Core Viewpoint - The low-tier market in China is emerging as a new growth area for consumption, with significant demand for baby and nutritional products driven by a high birth rate in these regions [1][19]. Company Overview - Yangtuo Technology Inc, also known as "Haipai Ke," has submitted an IPO application to the Hong Kong Stock Exchange, with CITIC Securities as its sole sponsor [1]. - The company focuses on family care and nutritional products, with over 70% of its revenue coming from the sale of infant formula milk powder in the past three years [1][9]. - Haipai Ke's revenue exceeded 1 billion yuan in 2024, but it faces operational challenges such as declining transaction volume, net profit losses, and decreasing gross margins [1][16]. Financial Performance - Revenue for Haipai Ke was approximately 895 million yuan in 2022, 1.067 billion yuan in 2023, and 1.032 billion yuan in 2024, with net profits showing a downward trend, resulting in losses of 56.54 million yuan in 2023 and 78.83 million yuan in 2024 [16][23]. - The gross margin has decreased from 43.9% in 2022 to 32.5% in 2024, indicating a decline in profitability [16][19]. Market Position - Haipai Ke ranks first in the Chinese family care and nutritional products industry in terms of transaction and service platform, holding a market share of 10.1% in the low-tier market [18][19]. - The overall market size for family care and nutritional products in China is projected to reach 2.6 trillion yuan in 2024, with a compound annual growth rate of 4.9% from 2019 to 2024 [19]. Business Model - The company operates a digital platform that connects manufacturers, distributors, and buyers, allowing registered buyers to place orders directly with upstream sellers [12][13]. - The revenue model is based on commissions from sales transactions on the platform, which has seen a decline in transaction volume from 14.935 billion yuan in 2022 to 10.966 billion yuan in 2024 [23][24]. Competitive Landscape - The family care and nutritional products industry is highly competitive, with major players including Tmall, JD.com, and Pinduoduo, as well as various vertical e-commerce platforms [18][19]. - Despite an increase in registered sellers and buyers, Haipai Ke's transaction volume has decreased, posing challenges for its revenue generation [23][24]. Future Prospects - The company plans to use the funds raised from the IPO to enhance collaboration with ecosystem participants, improve technological capabilities, and explore strategic alliances and investment opportunities [26].

Core Viewpoint - Hai Paike is preparing for an IPO on the Hong Kong Stock Exchange, focusing on the family care and nutrition products sector, with a total transaction volume of 11 billion yuan in 2024 [2][3]. Group 1: Company Overview - Established in 2015, Hai Paike is a trading and service platform specializing in family care and nutrition products, aiming to enhance consumer experience and promote consumption upgrades in lower-tier markets [2]. - By the end of 2024, Hai Paike connected approximately 4,200 registered sellers and covered over 290,000 registered buyers across 31 provinces and regions in China [3]. Group 2: Market Position and Performance - In 2024, Hai Paike achieved a transaction volume of 8.6 billion yuan in the family care and nutrition product sector in lower-tier markets, holding a market share of 10.1% [2][5]. - The company reported revenues of 895 million yuan, 1.067 billion yuan, and 1.032 billion yuan for the years 2022, 2023, and 2024, respectively, with gross margins of 43.9%, 37.6%, and 32.5% [5]. Group 3: Business Expansion and Product Development - Since 2019, Hai Paike has expanded into self-operated business, focusing on high-penetration product categories, with over 100,000 paid buyers and more than 1,000 SKUs sold in 2024 [3][4]. - The company has developed 92 private label brands and established partnerships with 153 manufacturers, with over 38,000 paid buyers for its private label business [4]. Group 4: Financial Health and Future Plans - Hai Paike turned a profit in 2023, with adjusted net profit margins of 1.8% and 2.5% for 2023 and 2024, respectively [6]. - The funds raised from the IPO will be used to enhance collaboration within the ecosystem, improve technological capabilities, and seek strategic alliances or acquisitions [6].