Core Viewpoint - Wankey Technology's decision to list in Hong Kong is a gamble amid financial struggles, with high gross margins of 93.22% juxtaposed against a net loss of 163 million yuan in 2024, raising questions about its business model and sustainability [2][3][11] Financial Performance - In 2024, Wankey Technology reported a revenue of 1.44 billion yuan, a decrease of 2.78% from 2023's 1.481 billion yuan [3][4] - The company experienced a significant increase in sales expenses, reaching 849 million yuan, up 17.42% year-on-year, which outpaced revenue growth [4][5] - Research and development expenses amounted to 442 million yuan, accounting for 30.73% of revenue, indicating a heavy investment in innovation [4][5] Globalization Strategy - Wankey Technology aims to strengthen its global presence, with overseas revenue accounting for 35.1% in 2024, rising to over 90% in Q1 of the following year [6][8] - The company faces intense competition from international giants like Adobe and Canva, which pressures its market share and profitability [7][8] Risks in Global Market - The reliance on overseas markets exposes Wankey Technology to geopolitical risks and regulatory challenges, particularly in the U.S. and Europe [8][9] - The company is investing heavily in AI technologies, but the revenue from AI applications was only 67 million yuan in 2024, representing just 4.65% of total revenue [9][10] IPO and Future Outlook - The upcoming IPO is intended to fund R&D, strategic investments, and debt repayment, but raises concerns about further losses and the effectiveness of brand positioning [10][11] - Historical instances of shareholder cash-outs and governance issues have cast a shadow over the company's credibility, complicating its path forward [10][11]