Core Viewpoint - The parent company of the online dating app "Yidui," Milian Technology Co., Ltd., has submitted an IPO prospectus to the Hong Kong Stock Exchange, highlighting its rapid growth but also significant compliance risks associated with its business model [1][11]. Group 1: Business Performance - Milian Technology's core business revolves around emotional social networking, with its main products including "Yidui" and "Tietie" in China, and "HiFami," "Chatta," and "Seeta" overseas [2]. - As of June 2025, "Yidui" has an average of 4.8 million monthly active users and a seven-day retention rate of 72.1%, significantly higher than the industry average [2]. - "Yidui" generated approximately 1.5 billion RMB in revenue, holding an 11.6% market share, making it the top player in China's online emotional social networking sector [3][4]. Group 2: Financial Overview - For the first half of 2025, "Yidui" contributed 79% to Milian Technology's total revenue of 1.917 billion RMB, indicating a heavy reliance on a single product [4]. - As of mid-2025, the company reported cash and cash equivalents of 981 million RMB, accounting for over 85% of its total assets, despite seeking additional capital through the IPO [5]. Group 3: Compliance and Ethical Risks - Milian Technology faces significant compliance challenges, with numerous complaints regarding "induced consumption," "false matchmaking," and "service discrepancies" [1][8]. - The company's business model heavily relies on "matchmakers," with over 180,000 active users, who earn a revenue share of 20% to 52% from user gifts, leading to high operational costs [6]. - The revenue-sharing fees constitute about 90% of the company's total costs, raising concerns about the sustainability of its business model [6]. Group 4: Market Challenges - The online dating sector is characterized by low-frequency engagement, making it difficult for companies to achieve repeat business, which poses a challenge for long-term growth [10]. - The regulatory environment is tightening, with scrutiny on content management and consumer protection, which could impact Milian Technology's IPO prospects [11][12].