Core Viewpoint - Haipai Ke has submitted its listing application to the Hong Kong Stock Exchange, aiming to raise funds for enhancing collaboration, technology capabilities, strategic alliances, and general corporate purposes, despite facing significant operational challenges and financial losses [1][2]. Financial Performance - In 2024, Haipai Ke's revenue decreased to 1.032 billion RMB, a decline of 3.3% year-on-year, indicating stagnation or potential regression in growth [6][8]. - The company reported a net loss of 78.83 million RMB in 2024, worsening from a loss of 56.54 million RMB in 2023, primarily due to a continuous decline in gross margin from 43.9% in 2022 to 32.5% in 2024 [8][11]. - The gross profit from the digital platform business fell by 32.26%, from 310 million RMB in 2022 to 210 million RMB in 2024, while self-operated business revenue grew but at a significantly reduced rate [8][9]. Market Position - Haipai Ke is recognized as a leading trading and service platform in the family care and nutrition products sector, holding a market share of 10.1% in the low-tier market as of 2024 [2][6]. - The company has expanded its registered seller base to 4,241 and registered buyers to 289,512 by the end of 2024, although transaction volume has been declining [7][8]. Debt and Financial Health - As of the end of 2024, Haipai Ke's net debt reached 2 billion RMB, with a debt-to-asset ratio of 350.12%, primarily due to 2.4 billion RMB in convertible redeemable preferred shares [11][12]. - The company reported a negative net asset position of 2 billion RMB, raising concerns about liquidity and the ability to meet financial obligations [11][12]. Management and Cost Structure - Despite ongoing losses, executive compensation has significantly increased, with total director remuneration rising from 2.297 million RMB in 2022 to 4.817 million RMB in 2024, while the company has been reducing employee costs through layoffs [13][15]. - Total employee costs decreased from 396 million RMB in 2022 to 259 million RMB in 2024, reflecting a strategic move to optimize workforce structure and improve operational efficiency [15][16].