Core Viewpoint - The IPO of Shengbela, a high-end maternity care service provider, is surrounded by contradictions as it faces significant financial losses while attempting to expand in a declining birth rate environment and increasing regulatory scrutiny [1][4]. Financial Performance - Shengbela reported a cumulative loss exceeding 1.2 billion yuan over three years, with a revenue of 358 million yuan in the first half of 2024, marking a 32% year-on-year increase, but the loss expanded to 480 million yuan during the same period [1][2]. - Revenue growth has slowed significantly, dropping from 82% in 2021 to 19% in 2023, while the contribution of its core business, the maternity center, decreased from 90.2% to 83.5% [2]. Business Model and Strategy - The company positions itself in the high-end maternity care market, charging between 68,000 to 168,800 yuan for a 28-day stay, and collaborates with luxury hotels to enhance service quality [2]. - Despite a light asset model that reduces initial investment, Shengbela faces high rental costs, which account for 35%-40% of its sales costs, alongside additional expenses for meal customization and hotel bookings [2]. Operational Risks - Shengbela's medical qualifications have raised compliance concerns, with fines imposed for operating without the necessary medical licenses, which could undermine brand trust in a sector reliant on consumer confidence [3]. - The company is experiencing cash flow pressures, with some locations in second-tier cities facing vacancies, and notable investors like Gao Rong Capital and Tencent have exited through share transfers, indicating a retreat of capital [3]. Conclusion - The IPO represents a clash between high-end consumer narratives and operational realities, with significant threats from regulatory compliance issues, cost structure imbalances, and a declining demographic dividend [4]. - Without demonstrating a replicable profit model post-IPO or achieving scale through acquisitions, the high-end maternity care market may face a potential bubble burst, highlighting the disconnect between valuation logic and fundamental performance [4].