Core Viewpoint - The article discusses the challenges and opportunities faced by Kefu Medical, particularly in relation to its acquisition of the brand "Beibeijia" and its upcoming plans for a Hong Kong IPO amid declining revenues and profits [2][3][4]. Group 1: Company Overview - Kefu Medical acquired the brand "Beibeijia" in 2022 for 177 million yuan, reviving a once-popular posture correction product that had faced significant challenges in the past [2][4]. - The company has a diverse product portfolio, including home medical devices, rehabilitation aids, and health monitoring products, with "Beibeijia" being a notable part of its offerings [5][12]. - Kefu Medical ranks second among home medical device companies in China, with a market share of nearly 30% in the posture correction segment [5]. Group 2: Financial Performance - In the first half of 2025, Kefu Medical reported revenues of approximately 1.5 billion yuan, a decline of 4% year-on-year, and a net profit of about 170 million yuan, down 9.5% [3][9]. - The company's revenue growth has been hindered by a significant reliance on a few major clients, with the top five clients contributing 36.7% of revenue in the first half of 2025 [9][10]. - The overall revenue has increased from about 2.4 billion yuan in 2020 to an estimated 3 billion yuan in 2024, but net profit has decreased from 424 million yuan in 2020 to an estimated 312 million yuan in 2024 [7][9]. Group 3: Market Challenges - "Beibeijia" has faced criticism regarding its effectiveness, with many consumers expressing dissatisfaction on social media and complaint platforms, leading to a divided market perception [10][12]. - The product is classified as a consumer-grade item rather than a medical device, which has led to consumer confusion regarding its intended use and effectiveness [12][15]. - Kefu Medical's marketing efforts have included significant advertising expenditures, which increased by 51% in 2024, but these have not translated into sustained revenue growth [10][18]. Group 4: Strategic Moves - Kefu Medical is pursuing a Hong Kong IPO to address funding needs for overseas expansion and ongoing acquisitions, as its previous fundraising efforts from the A-share market have been largely exhausted [24]. - The company has engaged in multiple acquisitions to expand its product offerings and market presence, including recent purchases of medical product companies [18][20]. - The firm has maintained a consistent dividend policy, distributing a total of 1.235 billion yuan in dividends since its IPO, even as it faces financial pressures [22][23].