Growth Halts as Store Count Plateaus Near 2,900
Qian Da Ma, once a high-flyer in China's community grocery scene, is facing a significant slowdown that has brought its expansion to a near standstill. After a D-round financing in 2019 fueled a national push, the company's growth has decelerated sharply. Revenue remained flat at approximately 11.7 billion RMB from 2023 to 2024 and experienced a year-over-year decline in the first three quarters of 2025.
The company's physical footprint expansion has also stalled. Since the end of 2022, its total store count has stagnated around 2,900 units. The filing reveals a high rate of churn, with 916 store closures offsetting 908 openings between 2023 and Q3 2025. As of September 2025, the network stood at 2,938 stores, with its home market of South China still accounting for nearly 70% of the footprint, underscoring its failure to effectively penetrate new markets.
'Daily Clearance' Model Fails to Scale Nationally
Qian Da Ma's core business is built on its innovative "daily clearance" model, which uses a tiered, time-based discount system to ensure all fresh inventory, particularly meat, is sold each day. While this created a powerful customer draw in its early days, the model's dependence on hyper-local supply chains and high-density store networks has proven difficult to replicate outside of its home territory.
The financial data reveals a stark regional performance gap. In the first three quarters of 2025, Qian Da Ma's sales gross margin in South China was 12.5%, more than double the margin achieved in its other mainland regions. This disparity stems from challenges in building efficient local supply chains for fresh produce and meat in new territories. As one expert noted, the company's procurement costs in new cities were sometimes higher than those of small, independent neighboring shops, erasing any competitive advantage.
Qian Da Ma looks like it's expanding nationally, but the fresh food business is essentially a local supply chain business. As a chain brand, its procurement price was actually no better than the family-run shop next door.
— Long Zhen, Founder of Jiameng Data
IPO Driven by 197% Debt Ratio and Redemption Deadline
The timing of the IPO appears to be driven by financial necessity rather than strategic strength. Qian Da Ma's agreements with past investors include a redemption clause that activates if the company fails to complete an IPO by January 1, 2027. This would force the company to buy back preferred shares at their principal cost plus an 8% compounded annual interest rate.
This looming obligation has had a dramatic impact on the company's balance sheet. As of September 2025, approximately 1.58 billion RMB in redeemable preferred shares were reclassified as financial liabilities. This accounting move caused the company's asset-liability ratio to balloon to 196.6%, signaling a precarious financial position. The IPO is now a critical race against time to raise capital and deleverage before the redemption deadline. The proceeds are earmarked for network expansion, supply chain enhancements, and digital upgrades, representing a last-ditch effort to fix its model before its capital structure collapses.
