Core Viewpoint - Chengdu Yunging World Co., Ltd. has submitted its IPO application to the Beijing Stock Exchange, aiming to raise 191 million yuan by issuing up to 40.01 million new shares, with the funds primarily allocated for sales network construction and a digital center project [1][2]. Company Overview - Yunging World operates primarily as a franchise business with only 2 direct-operated stores, boasting over 2,200 franchise stores, which account for approximately 7% of the total mother-baby chain stores in China [2][3]. - The company sources products from well-known brands at competitive prices and supplies them to its franchisees, allowing it to leverage scale pricing advantages and exclusive regional product supply [2]. Financial Performance - Yunging World's revenue from 2022 to 2024 is projected to grow from 603 million yuan to 1 billion yuan, with franchise sales contributing significantly to its income [3][10]. - In 2024, the revenue from franchisees is expected to reach 873 million yuan, making up 87.4% of the total revenue [3]. Market Position and Expansion Plans - Yunging World is primarily focused on the southwestern region of China, with plans to expand into central and eastern markets, aiming for a nationwide presence [4][8]. - The company recognizes the need for market expansion due to increasing industry concentration and competition from larger players like Kidswant and Aiyingshi [8][14]. Competitive Landscape - The competitive landscape is intensifying, with Kidswant and Aiyingshi making significant acquisitions to strengthen their market positions, such as Aiyingshi's acquisition of Beibei Bear and Kidswant's acquisition of Lejoy International [6][7]. - Despite being ranked third in the mother-baby chain market, Yunging World's revenue is significantly lower than that of its competitors, indicating a need for strategic growth [9][11]. Industry Trends - The birth rate in China has entered a low plateau, which poses challenges for the mother-baby industry, as evidenced by declining revenues for major players [12][13]. - The industry is expected to shift towards a model focusing on supply chain efficiency, service value addition, and regional operational efficiency, which is a driving factor for Yunging World's IPO [13][14].