Core Viewpoint - The company, Haipai Ke, a leading maternal and infant e-commerce platform in China, has officially submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for market expansion and supply chain optimization [1] Business Overview - Haipai Ke was founded in April 2015 by Zhao Chen, initially focusing on a B2B2C model for maternal and infant products, targeting second and third-tier cities in China [2] - The platform connects buyers directly with upstream sellers, allowing for direct shipping from suppliers to consumers [2] - In 2019, the company expanded into self-operated business, launching its own brand products and establishing a diverse product matrix, including children's snacks, dietary supplements, and basic fast-moving consumer goods [3] Financial Performance - For the fiscal year ending December 31, 2024, Haipai Ke's total transaction volume reached 11 billion RMB, with a market share of 10.1% in the low-tier market for maternal and infant products [4] - The company's revenue increased from 895.3 million RMB in 2022 to 1.066 billion RMB in 2023, primarily driven by growth in self-operated business [6][10] - However, despite revenue growth, the company reported losses of 56.5 million RMB in 2023 and 78.8 million RMB in 2024 [9][10] Revenue Breakdown - Revenue from digital platform business decreased from 353.975 million RMB in 2022 to 229.335 million RMB in 2024, while self-operated business revenue increased from 540.408 million RMB to 801.826 million RMB during the same period [7] - The majority of self-operated business revenue comes from maternal and infant products, accounting for nearly all of the self-operated revenue [8] Investment and Shareholding - The company has completed six rounds of financing prior to the IPO, with major investors including Shunwei Capital and Fosun International [12] - Zhao Chen, the founder, holds approximately 42.62% of the voting rights, making him the largest shareholder [13]

Core Viewpoint - The domestic chain pharmacy industry is experiencing significant challenges, transitioning from rapid expansion to a survival phase, with a focus on efficiency over scale [1][6][10]. Industry Overview - The chain pharmacy sector has shifted from a "land grab" phase to a "survival of the fittest" competition, with many stores closing or relocating due to poor performance [2][11]. - The number of retail pharmacies in China increased from 524,000 in 2019 to 667,000 in 2023, with projections of reaching 700,000 in 2024, indicating an oversupply situation [8][10]. Market Dynamics - In 2024, the number of closed pharmacies is expected to rise significantly, with quarterly closures projected at 6,778, 8,791, 9,545, and 14,114 respectively, marking the first negative growth in total pharmacy numbers in recent years [5][10]. - The rise of e-commerce and changing consumer habits have further pressured physical pharmacies, with online pharmacy sales expected to reach 75.8 billion yuan in 2024, growing by 14.4% year-on-year [8][10]. Financial Performance - In 2024, six listed chain pharmacy companies reported a collective decline in net profits, with only one company, Yifeng Pharmacy, showing growth [10][12]. - Major companies like Guoda Pharmacy have had to close numerous stores, with 1,273 direct stores and 389 franchise stores shut down in a short period [11][12]. Strategic Responses - To survive, many pharmacies are merging operations to reduce costs, with smaller chains collaborating to manage resources more efficiently [11][12]. - Major chains are adopting new strategies, including closing unprofitable stores and slowing expansion, as seen with Yifeng Pharmacy closing 1,078 stores in 2024 [12]. Future Directions - The future of pharmacies lies in diversification and service enhancement, with a shift towards health services beyond just selling medications [15][16]. - Companies are exploring models like "pharmacy + clinic" and expanding product offerings to include health-related items, aiming to create a more comprehensive service environment [15][16].