Core Viewpoint - The company, Chengdu Yunyin World Co., Ltd., is expanding against the backdrop of declining birth rates, but its extensive "family business network" and risks associated with its franchise model add uncertainty to its IPO journey [1][4]. Group 1: Business Expansion and Market Strategy - Yunyin World has achieved rapid growth in store numbers through a franchise model and strategies targeting lower-tier markets, despite the overall pressure on the maternal and infant industry due to declining birth rates [1]. - The company has submitted its IPO application to the Beijing Stock Exchange, which has been accepted, drawing market attention [1]. Group 2: Family Network and Independence Concerns - The company's ownership structure and business dealings are heavily intertwined with family connections, raising concerns about the independence of its operations and potential for profit transfer [2]. - The actual controller's relatives have constructed a commercial network, with the controller's spouse previously controlling or holding stakes in companies that were among Yunyin World's top five suppliers [2]. - Several relatives of the actual controller and employees serve as franchisees, with some previously listed as top customers, creating a complex web of related transactions [2]. Group 3: Quality Control and Management Risks - The reliance on a franchise model has led to rapid store expansion but has also resulted in declining gross margins and quality control challenges [3]. - Frequent product safety issues have arisen at franchise stores, indicating weaknesses in quality management despite the company's claims of low penalties and completed compliance [3]. - The company's gross margin remains consistently lower than comparable companies in the industry and is on a downward trend, primarily due to the wholesale nature of its franchise model compared to retail operations [3]. - Allowing franchisees to source some products independently increases the risk of inconsistent product quality, complicating management as the number of stores grows [3]. Group 4: Challenges Ahead for IPO - Yunyin World faces significant challenges on its IPO path, needing to demonstrate the independence of its operations and the sustainability of its business model to alleviate regulatory and market concerns [4]. - In an increasingly competitive maternal and infant industry, the company's ability to establish a foothold in the capital market remains to be seen [4].

Core Viewpoint - Metro Supply Chain's application for a Hong Kong IPO has become invalid, marking the third failed attempt, leading to increased uncertainty regarding its listing prospects [1][2][4]. Company Overview - Metro Supply Chain, originally a German brand, opened its first store in Shanghai in 1996, focusing on B2B operations with a membership and cash-and-carry model [2]. - In October 2019, Metro China was acquired by Wumart Group, which integrated it into its operations [2]. Financial Performance - From 2021 to 2023, Metro Supply Chain reported revenues of RMB 27.82 billion, RMB 27.10 billion, and RMB 24.86 billion, with net profits of RMB 0.33 billion, a loss of RMB 0.47 billion, and a profit of RMB 0.25 billion respectively [6]. - In the first seven months of 2024, the company achieved revenue of RMB 14.82 billion, a year-on-year decline of 0.96%, with a net loss of RMB 41 million, a reduction of 54.19% compared to the previous period [6]. Business Segments - The main business segments of Metro Supply Chain include retail distribution solutions, food service and distribution solutions, welfare gift solutions, and wholesale [5]. - The retail distribution solutions segment is heavily reliant on Wumart Group, which accounted for over 60% of the company's revenue in recent years [9][11]. Client Dependency - In 2022, 2023, and the first seven months of 2024, revenue from Wumart Group was RMB 16.89 billion, RMB 15.40 billion, and RMB 9.11 billion, representing 62.3%, 62.0%, and 61.4% of total revenue respectively [9]. - The company's dependency on Wumart has raised concerns about its operational sustainability, especially as Wumart's store count decreased by approximately 15% [11][12]. Profitability Challenges - The gross margin for the retail distribution solutions segment was only 3.8% in the first seven months of 2024, compared to 18.7% for food service and distribution solutions [12]. - The overall gross margin for Metro Supply Chain was reported at 9.7% [12]. Future Outlook - Metro Supply Chain aims to reduce its reliance on Wumart by expanding its client base, having recently added two independent third-party retail clients in Hunan and Hubei [11]. - Despite efforts to diversify, revenue from other clients remains minimal, contributing only RMB 2.3 million in the first seven months of 2024 [11].

Core Insights - The company reported a total revenue of 36.22 billion yuan for the year 2024, representing a year-on-year growth of 9.2% [1] - The core circular business segment achieved a revenue of 30.79 billion yuan, with a robust growth of 15.5%, accounting for 85.0% of total revenue [1] - The company maintained a strong cash flow, achieving an operating net cash flow of 1.92 billion yuan and cash and cash equivalents of 13.43 billion yuan [1] Financial Performance - The company’s core net profit for 2024 was 2.23 billion yuan, a decrease of 4.8% year-on-year [1] - The net profit for the period was 1.26 billion yuan, reflecting a significant decline of 38.3% compared to the previous year [1] - The earnings per share for shareholders was reported at 0.98 yuan, with a proposed total dividend of 1.9 yuan per share, resulting in an approximate dividend yield of 9.3% based on the closing price at the end of 2024 [2] Business Segments - Revenue from residential property services grew by 13.1% to 19.23 billion yuan, with a gross profit increase of 5.2% to 2.39 billion yuan [2] - Revenue from property and facility management services increased by 20.1% to 9.97 billion yuan, with a gross profit growth of 17.6% to 0.84 billion yuan [2] - Revenue from BPaaS solutions rose by 16.9% to 1.59 billion yuan, with a gross profit increase of 23.8% to 0.51 billion yuan [2] Risk Management - The company prioritized cash flow safety in response to macroeconomic challenges and uncertainties in the real estate market, which negatively impacted revenue and gross profit [2] - The proportion of revenue from related party transactions decreased to 9.5%, down 4 percentage points year-on-year, indicating enhanced business independence [1] - Trade receivables from related parties at the end of 2024 amounted to 2.45 billion yuan, a decrease of 0.04 billion yuan from the beginning of the year [1]