Transwarp(SH:688031) Xin Lang Zheng Quan·2025-08-21 07:02Core Viewpoint - Starry Technology is the smallest in terms of revenue among its peers and is facing significant challenges, including declining revenue and increasing losses, raising doubts about its ability to attract investors in the Hong Kong IPO market [1][4][6]. Company Performance - Starry Technology's revenue for 2022, 2023, and 2024 was 3.73 billion, 4.91 billion, and 3.71 billion respectively, indicating a decline in 2024 compared to 2022 [6][17]. - The company reported net losses of -2.71 billion, -2.88 billion, and -3.43 billion for the same years, with total losses exceeding 9 billion over three years [6][17]. - As of the first quarter of 2025, the company's undistributed profits stood at -14.03 billion, making it difficult for investors to expect cash dividends [7]. Market Position - Starry Technology is the latest to list on the A-share market among its peers, with its IPO occurring in October 2022, while competitors listed earlier [3][4]. - The company's revenue is significantly lower than its peers, with 2024 revenue being less than half of the second-lowest peer, Zhongwang Software, which reported 8.88 billion [3][4]. Financial Discrepancies - There are inconsistencies in the financial data reported by Starry Technology, with significant differences between the revenue proportions from direct sales and third-party distributors in its A-share announcements and Hong Kong prospectus [9][11][12]. - For instance, the company claimed that direct sales accounted for 96.3% of total revenue in the Hong Kong prospectus, while its A-share report indicated a much lower figure of 50.64% for 2024 [11][12]. Sales and Expenses - Starry Technology's sales expense ratio was notably high, at approximately 55% from 2022 to 2024, which did not translate into revenue growth [14][17]. - The sales expenses for the years 2022, 2023, and 2024 were 2.05 billion, 2.63 billion, and 2.04 billion, respectively, consistently maintaining a high percentage of revenue [14][17]. Cash Flow and Efficiency - The company has been experiencing negative cash flow from operating activities, with net cash flows of -3 billion, -3.65 billion, and -3.27 billion for the years 2022, 2023, and 2024 [17]. - The accounts receivable turnover days have increased significantly, indicating slower collection efficiency, with days extending from 198 in 2022 to 342 in 2024 [17].