Core Insights - The article discusses the repeated failures of Metro Supply Chain to successfully launch an IPO in Hong Kong, marking its third attempt in five years [2][10][11] Company Overview - Metro, founded in 1964 in Düsseldorf, Germany, pioneered the "Cash & Carry" model targeting B2B customers and entered the Chinese market in 1996 [4][7] - The company initially thrived in China, achieving sales of 12.6 billion yuan in 2008, but faced challenges due to the rise of e-commerce and changing consumer habits [7][9] IPO Attempts - Metro Supply Chain's first IPO attempt in March 2021 was halted due to concerns over business independence and high related-party transactions [12] - The second attempt in June 2024 failed as the company could not complete the listing process within six months, leading to the expiration of its prospectus [13] - The third attempt in December 2024 also ended in failure, with the prospectus expiring again by June 2025 [14] Financial Performance - The company has shown inconsistent financial results, with net profits of 332 million yuan in 2021, a loss of 471 million yuan in 2022, and a profit of 253 million yuan in 2023 [17] - Revenue dependency on Wumart Group is significant, with over 61% of total revenue coming from this single client from 2021 to 2023 [16][19] Market Challenges - The retail landscape in China has shifted dramatically, with online retail accounting for 31.8% of total retail sales in 2024, leading to increased competition from membership-based supermarkets and new retail models [19] - Traditional retail stores have been shrinking, with Wumart Group closing 24 supermarkets and 17 convenience stores in the first seven months of 2024 [19] Strategic Adjustments - Metro Supply Chain has initiated changes, including the development of a welfare gift business that generated stable revenue between 3 billion to 3.9 billion yuan annually from 2021 to 2023 [21] - The company is also diversifying into food services and distribution, but these efforts have not yet compensated for the decline in traditional revenue streams [23] Future Outlook - The company must reduce its dependency on Wumart Group and develop high-margin, sustainable growth businesses to improve its financial health [25] - Digital transformation and enhancing cash flow management are critical for gaining market confidence and achieving a successful IPO in the future [25][26]