Core Viewpoint - Liuliu Guoyuan is attempting to relaunch its IPO in Hong Kong after a six-year hiatus, driven by cash flow pressures and the need to address significant financial obligations to investors [20][24]. Group 1: Company Background and Market Position - Founded in 2006, Liuliu Guoyuan initially focused on traditional pastries but pivoted to specialize in plum products, capitalizing on a gap in the domestic market for plum snacks [5][6]. - The company has built a "plum empire" with the help of celebrity endorsements, notably from Yang Mi, which significantly boosted its market presence [3][11]. - The current snack market is highly competitive, with rapid innovation and new brands emerging, posing challenges for Liuliu Guoyuan to maintain its market share [4][11]. Group 2: Product Development and Financial Performance - Liuliu Guoyuan has been expanding its product line to mitigate reliance on plum products, which accounted for 87.57% of total revenue in 2018. New products like "plum jelly" have shown strong revenue growth, contributing 25.4% of total revenue by 2024 [5][7][10]. - Despite the introduction of new products, the company remains heavily dependent on plum raw materials, which are vulnerable to climate impacts, leading to rising raw material costs from 41.7% to 47.7% of revenue from 2022 to 2024 [8][10]. - The company's revenue figures show a steady increase, with total revenue projected to rise from 1.174 billion RMB in 2022 to 1.616 billion RMB in 2024 [10][19]. Group 3: Marketing and Brand Strategy - Liuliu Guoyuan has heavily invested in marketing, with sales and distribution expenses exceeding net profits, indicating a potential imbalance between marketing and product development [9][13]. - The company has shifted its marketing strategy to include storytelling and brand building, aiming to create deeper emotional connections with consumers [12][14]. - The reliance on celebrity endorsements for marketing may not be sustainable for long-term brand value, as consumer preferences shift towards product quality [10][14]. Group 4: Financial Challenges and IPO Necessity - The urgency for the IPO is driven by a looming cash flow crisis, exacerbated by a redemption clause from investors requiring a significant payout if the company fails to go public [20][21]. - Liuliu Guoyuan's cash reserves are critically low, with only 51 million RMB available against current liabilities of 958 million RMB, highlighting the financial strain [21][24]. - The upcoming IPO is seen as a crucial opportunity for the company to secure funding and stabilize its financial situation amidst increasing operational challenges [25][26].