Core Viewpoint - Muyuan Foods is initiating its "international narrative" through its Hong Kong IPO, aiming to connect with international capital and enhance its valuation narrative by emphasizing "internationalization" and "technology-driven" growth [1][7]. Group 1: Financial Performance and Debt - Muyuan Foods has experienced significant asset growth, with total assets increasing from 528.87 billion to 1772.66 billion from 2019 to 2021, showing growth rates of 77.22%, 131.87%, and 44.56% respectively [4]. - However, from 2022 to 2024, total assets have plateaued, with figures of 1929.48 billion, 1954.05 billion, and 1876.49 billion, reflecting much lower growth rates of 8.85%, 1.27%, and -3.97% [4]. - The company has accumulated substantial debt, with total liabilities reaching 565.22 billion in 2020, a 166.93% increase, and surpassing 1 trillion in 2021, with a debt ratio of 61.30% [6]. - As of 2024, total liabilities remained above 1 trillion, with a debt ratio of 58.68%, indicating ongoing financial pressure [6][5]. Group 2: IPO and Market Strategy - The company emphasizes that the Hong Kong IPO is not primarily for raising funds but to enhance its credibility in the global market [7][10]. - The management acknowledges the need for internationalization as a critical growth pathway, especially given the current domestic market constraints [10][12]. - Despite the focus on internationalization, the company faces challenges in achieving a premium valuation as a leading enterprise, given the historical performance of newly listed stocks in Hong Kong [13][14]. Group 3: Technological and Competitive Challenges - Muyuan Foods aims to position itself as a leader in agricultural technology, but its R&D investment of 17.47 billion only accounts for 1.27% of its revenue, which is significantly lower than international competitors [16][17]. - The company’s R&D personnel count has decreased, raising concerns about its capability to compete in a technology-driven industry [17]. - Current international efforts are limited, with 100% of revenue in 2024 coming from domestic sources, indicating a slow start in its international expansion [18].