Core Viewpoint - YESMRO Holdings Limited has submitted a listing application to the Hong Kong Stock Exchange, marking a significant step in its growth as a digital factory automation (FA) component provider since its establishment in 2016 [1][8]. Company Overview - YESMRO has a history dating back to 2016, focusing on digital transformation in the FA component industry and has become a key partner for automation equipment manufacturers [1][8]. - As of September 30, 2025, the company has served over 24,000 automation equipment manufacturers across various industries, with customer retention rates increasing from 67.3% in 2023 to 73.3% in 2025 [1][8]. Market Position - According to data from Zhaoshang Consulting, YESMRO ranks first in China's digital FA factory automation component procurement service market with a market share of 8.5% as of 2024 [3][10]. - The company boasts industry-leading capabilities in inventory supply and delivery, with a stock availability rate exceeding 81.3% and on-time delivery rate of 96.5% [3][10]. Business Model - YESMRO's business model is driven by two interrelated flywheels: the continuous expansion of customer scale and stickiness, and the simultaneous enhancement of proprietary brands and profitability [3][10]. - The company utilizes its proprietary IT system "Charter Brain" and a dedicated sales team to facilitate end-to-end digital procurement processes, achieving a 65% automatic matching rate in product selection through AI [3][10]. Product Supply - The company has established a dual-track layout of "third-party brands + proprietary brands," collaborating with approximately 2,500 suppliers and over 800 brands, with available stock units exceeding 3.67 million [4][11]. - The proprietary brand launched in 2022 has shown remarkable performance, with stock units exceeding 837,000 and a revenue growth of 71.2% from 2023 to 2024, significantly outperforming third-party brands [4][11]. Financial Performance - YESMRO reported revenues of 534 million RMB in 2023, projected to increase to 637 million RMB in 2024, reflecting a year-on-year growth of 19.2% [5][12]. - The company recorded a net loss of 402 million RMB in 2023, which is expected to narrow to 294 million RMB by the third quarter of 2025, indicating improving profitability when excluding non-cash factors [6][12]. Future Outlook - The Chinese FA factory automation component procurement service market is projected to grow from 84 billion RMB in 2024 to 118.1 billion RMB by 2029, with a compound annual growth rate (CAGR) of 7.1% [4][11]. - The digital procurement service segment is expected to grow even faster, with a CAGR of 17.2% from 2024 to 2029, reaching a market size of 16.8 billion RMB by 2029 [4][11]. Use of Proceeds - The funds raised from the upcoming listing are intended for four main areas: development of proprietary brand strategies and ecosystem expansion, strengthening market position and global expansion, upgrading information technology and digital intelligence capabilities, and expanding automated warehousing networks [7][14].