AOM International Group Announces Strategic Expansion into Fujian Laojiu Stewed Pot Restaurant and Wine Business

Key Highlights and Investment Insights

• New Business Segment: AOM International Group Company Limited (“AOM” or “the Group”, Stock Code: 00381) has completed the acquisition of Fujian Laojiu Investment Co., Ltd as of 31 May 2024. This acquisition adds a new business segment to the Group—wines and wine trading.
• Launch of Restaurant Franchise Project: The Group plans to launch the Fujian Laojiu Stewed Pot Self-Operated Restaurants and Franchise Project in 2026, targeting both self-operated and franchise stores.
• Strategic Rationale: The initiative responds to economic headwinds, seeking to offer high-quality investment opportunities amid a competitive and challenging consumption environment. The project leverages health-focused dining preferences and aims to capture a share of the trillion-yuan food and beverage market in China.

Detailed Project Overview

1. Core Strategy: Tradition Meets Modern Demand

The project blends three pillars: traditional brewing wisdom, modern dining trends, and immersive cultural experiences. The Group aims to address investors’ key concerns—capital safety, profitability, and scalability. The market is shifting from taste-centric to health and quality-driven dining, with consumers preferring low-fat, low-sugar, and nutritionally balanced options. The Group’s strategy combines online and offline channels, positioning itself to become a national leader in the growing health-focused stewed pot restaurant market.

2. Brand Heritage and Recognition

• The project is anchored by the Gushan brand (鼓山牌), a Fujian wine label with nearly 200 years of heritage, tracing back to the Daxing Winery established during the Qing Dynasty.
• Gushan won the “National Silver Medal for Quality Liquor” twice and is recognized as a “Time-Honored Chinese Brand” by the Ministry of Commerce.
• Its traditional brewing techniques are listed as National Intangible Cultural Heritage.

3. Product Features and Advantages

• The project utilizes a proprietary medicinal white mold (sourced from Hubei Jincaotang Pharmaceutical Co., Ltd., an affiliate) to create a unique, mellow flavor base for its stewed pots.
• The stewed pot recipe employs a slow, double-boiler method to blend natural ingredients and aged wine aromas.
• The Group will invest tens of millions of yuan to establish a comprehensive supply chain, reducing procurement costs, minimizing staff and kitchen space requirements, and improving store profitability.
• The product line will include baijiu, aged cooking wine, condiments, beverages, and aged drinking wine series.

4. Business Model and Technology Integration

• “1+N” Dual-Channel Profit Model: Revenue streams will include both in-store dining/takeout and online food delivery. The innovative AI Smart Micro-Kitchen enables 24-hour unmanned retail and AI-powered precision cooking and delivery.
• Partnerships include the provision of a full set of equipment free of charge (partners pay only a small deposit). The micro-kitchen collects consumer data, supports brand advertising, and targets high-traffic locations near flagship stores, such as office buildings, campuses, hospitals, and upscale residential areas.
• Centralized procurement, standardized ingredients, and space-saving kitchen designs further enhance operational efficiency.

5. Franchisee and Investment Protection

• The brand retains a 51% stake in each outlet, aligning interests with franchisees and sharing operational risks. Franchisees hold 49% equity and are involved in management decisions.
• Comprehensive, full-cycle support includes site selection, store design, renovation, staff training, grand opening, and ongoing operational guidance.
• Triple-layered guarantee mechanism ensures investor protection and operational support.

6. Financial Returns and Shareholder Value

• Operating returns derive from dine-in and takeout core profits, while additional revenue comes from AI micro-kitchen vending and branded merchandise sales.
• Once the initial investment is recouped, store shareholders (franchisees) receive up to 49% equity dividends, benefiting from ongoing returns.
• Potential for capital gains as brand value and company share prices increase.
• Both standard and flagship stores are projected to have very short payback periods, with stable, substantial dividend returns after breakeven.

Other Important Information for Shareholders

• The Board will issue further announcements regarding business development in compliance with Hong Kong Stock Exchange regulations.
• Shareholders and potential investors are advised to exercise caution in trading the company’s shares due to the price-sensitive nature of these strategic expansions and new business ventures.
• The Board currently comprises five executive directors, one non-executive director, and three independent non-executive directors, ensuring diverse oversight.

Potential Impact on Share Price

The Group’s strategic expansion into both the wine business and the rapidly growing healthy dining sector, combined with its innovative AI-driven business model and strong brand heritage, represents a significant growth opportunity. This development could positively influence investor sentiment and potentially drive share price appreciation should the project achieve its ambitious goals.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. While every effort has been made to ensure accuracy, investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information above is based on company disclosures and may be subject to change. The company’s business outlook is subject to market and operational risks, and actual results may differ from projections.

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