Core Viewpoint - Yuwang Biological Nutrition Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, aiming to leverage capital markets for global expansion despite facing growth challenges and declining performance in recent periods [1][2][3]. Company Overview - Yuwang Biological, founded in 1979, specializes in the development, production, and sale of refined fish oil and dietary supplements, with a significant historical presence in the market [2]. - The company is the largest supplier of food-grade refined fish oil globally, holding an 8.1% market share as of 2024 [1]. - The product portfolio includes over 3,000 types of fish oil soft capsules and dietary supplements, which accounted for approximately 97.5% to 98.8% of total revenue from 2022 to mid-2025 [2][3]. Financial Performance - Revenue increased from 534 million yuan in 2022 to 832 million yuan in 2024, with net profit rising from 67.3 million yuan to 125 million yuan during the same period [4]. - However, in the first half of 2025, revenue dropped by 27.02% to 343 million yuan, and net profit fell by 74.01% to 22.8 million yuan, indicating significant financial strain [5]. - The gross profit margin decreased from 29.6% in 2024 to 20.7% in the first half of 2025, primarily due to falling end prices and high procurement costs [5]. Market Dynamics - The global food-grade fish oil market is maturing, with the top five brands accounting for approximately 32.4% of total industry revenue in 2024 [6]. - The human food-grade fish oil market is expected to experience a downturn after a brief rebound, projected to decline to 990 million USD by 2029 [6]. - The domestic market for food-grade fish oil has also shown limited growth potential, with expectations of a decrease from 2.56 billion yuan in 2023 to 1.29 billion yuan by 2029 [6]. Strategic Initiatives - The company plans to use the funds raised from the IPO for overseas capacity expansion, upgrading high-purity fish oil production lines, and brand promotion to strengthen its market position and explore new areas like pet fish oil [3]. - Yuwang Biological aims to enhance brand influence and attract international partners while addressing competitive pressures from increasing industry concentration [3]. Challenges and Opportunities - The company faces challenges in consumer recognition and brand perception, relying heavily on third-party trade companies for over 50% of sales [6][7]. - Efforts to build a direct-to-consumer sales channel have been limited, with only 2.7% of total revenue coming from direct sales in the first half of 2025 [7]. - Experts suggest that diversifying procurement sources and enhancing brand marketing could help mitigate risks associated with raw material price fluctuations and improve market positioning [5][9].