Core Viewpoint - The outdoor brand "Pelliot" (full name: Pelliot Outdoor Sports Group Co., Ltd.) has submitted its prospectus to the Hong Kong Stock Exchange, officially starting its IPO process, following explosive growth from 2022 to 2024, with net sales increasing from 351 million to 1.733 billion yuan, marking a compound annual growth rate of 122.2% [1][2]. Group 1: Company Background and Growth - Founded in 2012 by a couple, Liu Zhen and Hua Jingling, Pelliot initially focused on affordable outdoor apparel, primarily through online sales, and saw modest performance until the "outdoor boom" during the pandemic in 2022 [3][4]. - The launch of the "Classic Series" three-in-one jacket in 2022, priced at 499 yuan, filled a market gap between high-end international brands and low-cost products, leading to significant revenue growth [3][4]. - Revenue figures for 2022 to 2024 are projected at 379 million, 908 million, and 1.766 billion yuan, respectively, with a compound annual growth rate of 115.86% [3]. Group 2: Ownership and Governance Structure - Liu Zhen and Hua Jingling collectively hold 63.17% of the company, granting them absolute control [4]. - The "couple-run" governance structure can lead to efficient decision-making but poses risks such as potential "one-man rule" and conflicts arising from personal disagreements [4]. Group 3: Financial Performance and Profitability - Pelliot's gross margin is reported to be 59.6% in 2024, higher than competitors like Arc'teryx (55.4%) and Sanfo Outdoor (56.67%) [5]. - The main revenue source is apparel, accounting for over 90% of total income in 2024, with an average selling price of approximately 732 yuan per item [5]. Group 4: Quality Control Issues - Despite high gross margins, consumer feedback indicates quality control issues, with complaints about inconsistent product quality and inadequate waterproofing [6][8]. - The company has faced criticism for not providing quality inspection reports, raising concerns about transparency [14][15]. Group 5: Marketing and Sales Strategy - Pelliot has effectively utilized social media and influencer marketing to drive sales, with online direct-to-consumer (DTC) revenue reaching 1.351 billion yuan in 2024, accounting for 76.5% of total revenue [18]. - However, the company has incurred high sales and distribution costs, with advertising expenses totaling 598 million yuan over the past three years [18]. Group 6: Research and Development Concerns - Pelliot's R&D expenses have been significantly lower than sales expenses, with a decreasing trend in R&D investment over the past three years [19]. - The company holds only 54 patents, with a limited number of high-value invention patents, indicating a lack of innovation [19]. Group 7: Market Challenges - Pelliot faces challenges from increased competition as international brands localize and domestic brands enhance their marketing strategies [20]. - The company has experienced rising inventory levels, with finished goods inventory increasing by 180% from 2023 to 2024, indicating potential overstock issues [20]. Group 8: Brand Image and Controversies - A controversy arose regarding the brand name "Pelliot," which some linked to a historical figure associated with looting cultural artifacts, leading to public backlash [21][23]. - The company has struggled with high-end product positioning, with new product lines facing challenges in market acceptance and sales performance [24].