RYC(SZ:003010) Sou Hu Cai Jing·2025-09-29 07:17Core Viewpoint - The company Ruoyuchen is seeking to go public in Hong Kong after its successful IPO in the A-share market, reflecting the trend of Chinese companies pursuing overseas listings amid a competitive e-commerce landscape [1][10]. Company Overview - Ruoyuchen, known as the "first stock of e-commerce agency operation," has submitted its listing application to the Hong Kong Stock Exchange, with CITIC Securities International and GF Securities as joint sponsors [1]. - The company has experienced significant growth, with a 72% compound annual growth rate in agency operation revenue leading to its A-share listing in 2020 [1]. Stock Performance - As of September 29, 2023, Ruoyuchen's A-share price was 42.81 yuan, with a market capitalization of 13.316 billion yuan, reflecting an increase of over 200% since the beginning of the year [2]. Business Transformation - The company, founded by Wang Yu and Wang Wenhui, initially focused on agency operations but has shifted towards developing its own brands due to the saturation of the agency market [4][5]. - In 2020, Ruoyuchen launched its first proprietary home cleaning brand, "Zhanjia," which faced initial losses but has since seen significant growth, with sales doubling in 2024 [6]. Brand Development - The company has expanded its product offerings, launching additional brands such as "Feicui" and "Niu Yibei," aiming to replicate the success of "Zhanjia" [6]. - By mid-2025, revenue from proprietary brands is expected to account for 45.8% of total revenue, surpassing the 28.8% from agency operations [6]. Investment in Technology - To support brand expansion, Ruoyuchen has invested in AI technology and partnered with companies to enhance product development and brand management [7]. Growth Dependencies - The company's growth heavily relies on OEM partnerships, with the number of collaborating factories increasing from 5 to 26 between 2022 and 2024 [8]. - Marketing expenses have surged, with a 124% year-on-year increase in the first half of 2025, highlighting a significant focus on sales and marketing over research and development [8]. Revenue Concentration Risks - Ruoyuchen's revenue is highly concentrated in online sales, with 67.2% coming from self-operated online stores, primarily on platforms like Douyin [9]. IPO Fund Utilization - The funds raised from the Hong Kong IPO will be used to enhance brand recognition, expand domestic sales networks, and support international expansion [10].