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].