Core Viewpoint - Ying Tong Holdings Limited (06883.HK) listed on the Hong Kong Stock Exchange and opened below the issue price, closing at HKD 2.40, a decline of 16.67% from the final offer price of HKD 2.88 [1][2]. Group 1: Listing and Financials - The total number of shares offered was 333,400,000, with 100,020,000 shares for public offering and 233,380,000 shares for international offering [1][2]. - The net proceeds from the offering amounted to HKD 882.52 million after deducting estimated listing expenses of HKD 77.67 million [2][3]. Group 2: Use of Proceeds - The company plans to use the net proceeds for further development of its own brands, including Santa Monica, and for acquisitions or investments in external brands [3]. - Additional plans include expanding direct sales channels, enhancing digital transformation, and increasing brand awareness [3]. Group 3: Financial Performance - For the fiscal years ending March 31, 2023, 2024, and 2025, the company's projected revenues are RMB 1.699 billion, RMB 1.864 billion, and RMB 2.083 billion, respectively [5][6]. - The net profit for the same periods is expected to be RMB 173 million, RMB 206 million, and RMB 227 million, respectively [5][6]. Group 4: Revenue Breakdown - The majority of gross profit comes from perfume sales, with projected gross profits of RMB 738 million, RMB 739 million, and RMB 817 million for the fiscal years ending March 31, 2023, 2024, and 2025 [6][7]. - The revenue contribution from the self-owned brand Santa Monica remains minimal, accounting for only 0.5% of total revenue, with projected income of just over RMB 10 million in fiscal year 2025 [9]. Group 5: Market Position and Challenges - Ying Tong Holdings has established a comprehensive sales network covering over 400 cities in China, including more than 100 self-operated stores and approximately 8,000 retail outlets [9]. - Despite having a strong distribution network, the company faces challenges in building its own brands and has a highly centralized family governance structure, which may limit its transformation path [9].