Core Viewpoint - The company, 聚水潭, is set to launch its global offering on October 13, 2025, with a pricing model that raises concerns about its readiness for the capital market and the sustainability of its financial performance [2][3]. Group 1: IPO Details - The company will issue approximately 68.17 million shares at a price of HKD 30.60 per share, raising an estimated HKD 2.09 billion, with a potential increase to HKD 2.76 billion if the overallotment option is fully exercised [1]. - The net proceeds from the offering will be allocated as follows: 55% for research and development, 25% for sales and marketing, 10% for strategic investments, and 10% for general corporate purposes [1]. Group 2: Financial Performance - The company reported revenues of CNY 520 million, CNY 700 million, and CNY 910 million for the years 2022, 2023, and 2024, respectively, reflecting a compound annual growth rate of 31.9% [6]. - In 2024, the company achieved a net profit of CNY 10 million, primarily due to a deferred tax asset contribution of approximately CNY 90 million, indicating that its actual profitability remains unstable [6]. - For the first half of 2025, the company recorded a revenue of CNY 520 million, with a year-on-year growth rate of 24.4%, but faced a net loss of CNY 40 million due to adjustments related to preferred shares [6]. Group 3: Valuation Concerns - The company's market capitalization is projected to reach HKD 13 billion, which corresponds to a price-to-earnings ratio of 1,175 times for 2024, significantly higher than the average for the Hong Kong SaaS industry [7][9]. - The company's price-to-sales ratio is reported at 14 times, which is substantially above the average of 7.6 times for comparable companies in the Hong Kong market [10]. - The valuation has nearly doubled from its C-round financing valuation of CNY 6 billion to HKD 13 billion, raising questions about the sustainability of this increase given the cooling SaaS market [9]. Group 4: Investor Participation - The company has secured 13 cornerstone investors, collectively committing USD 130 million, which accounts for 48.5% of the base offering size [4]. - Notably, there are no foreign long-term or strategic investors among the cornerstone investors, which may reflect concerns about the company's fundamentals and growth potential [4][5]. - Goldman Sachs, a previous investor, has exited its position before the IPO, raising further concerns about the company's prospects in the public market [10].