Company Overview - Yangtuo Technology Inc. (referred to as "Haipai Ke") has submitted its prospectus to the Hong Kong Stock Exchange for a main board listing, with CITIC Securities as the sole sponsor [2] - The company holds a 10.1% market share in the family care and nutrition products sector within China's lower-tier markets, positioning itself as a leading player in the maternal and infant e-commerce industry [2][9] Financial Performance - As of 2024, Haipai Ke's net debt is projected to reach 2 billion RMB, with losses expanding to 78.825 million RMB [5][10] - Revenue figures show a slight increase from 895 million RMB in 2022 to 1.067 billion RMB in 2023, but net profit has fluctuated significantly, with a profit of 1.012 million RMB in 2022 turning into a loss of 56.54 million RMB in 2023 and further losses in 2024 [10][20] - The overall gross margin has declined from 43.9% in 2022 to 32.5% in 2024, indicating worsening profitability [14][19] Business Model and Strategy - Haipai Ke transitioned from a pure digital platform to a "platform + self-operated" dual model since 2019, aiming to enhance its self-branded products [6][19] - The company has seen a shift in revenue structure, with self-operated business revenue increasing from 540 million RMB in 2022 to 802 million RMB in 2024, while digital platform business revenue decreased from 3.54 billion RMB to 2.29 billion RMB during the same period [20][21] - Despite the growth in self-operated business, the gross margin remains low at 15.5%, significantly lower than the digital platform's gross margin of 91.5% [19][20] Market Environment - The maternal and infant e-commerce sector is facing challenges, including a decline in newborn numbers and increased competition from comprehensive e-commerce platforms [19][22] - Major competitors like Tmall and JD.com have seen substantial growth, with Tmall's maternal and infant sector surpassing 300 million users and achieving transaction volumes exceeding 10 billion RMB in 2024 [22] Investment and Financing - Haipai Ke has completed six rounds of financing before its IPO, with notable investors including Shunwei Capital and Hillhouse Capital, raising a total of approximately 26.93 million USD [6][8] - The company has faced shareholder withdrawals in 2020, 2024, and 2025, leading to significant share buybacks and the issuance of convertible notes totaling 158 million USD [8][9] Future Outlook - The upcoming IPO is seen as a critical step for Haipai Ke to alleviate financial pressures and accelerate business transformation, but the company must overcome profitability challenges and market competition to ensure sustainable growth [23][24]