Core Viewpoint - Baima Tea's stock price has experienced significant volatility since its listing on the Hong Kong Stock Exchange on October 28, with an initial surge followed by a sharp decline, reflecting investor concerns about liquidity and performance [1][4]. Group 1: Stock Performance - On its first trading day, Baima Tea's stock surged by 86.7%, closing at 93.35 HKD per share, but subsequently fell nearly 50% to 58.05 HKD by November 7 [1][4]. - The stock reached a high of 115 HKD shortly after listing, indicating initial strong market interest [1]. Group 2: Company Announcements - On October 30, Baima Tea announced a plan for full circulation of H-shares, which involves converting 31.93 million domestic shares into H-shares, potentially increasing the circulating shares by 60% [4][5]. - This plan has raised concerns among investors about increased selling pressure in the secondary market [5]. Group 3: Financial Performance - Baima Tea's revenue projections show a growth from 1.818 billion HKD in 2022 to 2.143 billion HKD in 2024, but the growth rate is expected to drop sharply from 16.72% in 2023 to just 0.99% in 2024 [5]. - In the first half of 2025, the company reported a revenue decline of 4.2% year-on-year, with net profit down 17.8% [5]. Group 4: Business Model and Challenges - The company heavily relies on franchisees, with franchise income accounting for about 50% of total revenue [7]. - The growth of franchise numbers has slowed, with a net increase of only 86 franchise stores in the first half of 2025, compared to 475 in 2023 [7].