Core Viewpoint - Future Health Technology Co., Ltd. is preparing for an IPO in Hong Kong, aiming to raise funds for enhancing its health technology R&D capabilities, brand building, and multi-channel marketing [1][11]. Company Overview - Future Health is a leading company in the smart wearable health device sector in China, known for its massage device brand "SKG" [1][2]. - The company has focused on smart wearable health devices since 2016, utilizing medical-grade technologies such as medium-frequency pulse and transcutaneous electrical nerve stimulation (TENS) [2]. Financial Performance - For the first three quarters of 2025, the company reported a profit of 106 million yuan, with a revenue of 878 million yuan, reflecting a year-on-year growth of 16.22% in revenue and 24.92% in profit [5]. - The company’s revenue for the years 2022, 2023, and 2024 was 904 million yuan, 1.046 billion yuan, and 1.045 billion yuan respectively, with corresponding profits of 119 million yuan, 127 million yuan, and 135 million yuan [4]. Product Segmentation - The core product, neck and shoulder relief wearable devices, accounted for over 40% of revenue but saw a decline in revenue by 1.85% year-on-year in the first three quarters of 2025, generating 385 million yuan [6]. - Revenue from fitness recovery and shaping devices surged by 122.8% year-on-year, reaching 200 million yuan, increasing its revenue share to 23% [6]. R&D and Marketing Expenditure - R&D expenditure as a percentage of revenue decreased from 9.1% in 2022 to 6.6% in the first three quarters of 2025, while sales and marketing expenses increased from 18.2% to 22.6% during the same period [8]. Dividend Distribution - The company has a history of high dividend payouts, distributing 199 million yuan to shareholders in the first nine months of 2025, following previous distributions of 50 million yuan and 30 million yuan in 2022 and 2023 respectively [11].

Core Viewpoint - Future Health Technology Co., Ltd. (referred to as "Future Health" or "SKG") has faced multiple setbacks in its attempts to go public, raising questions about its sincerity and business model as it prepares for its third IPO attempt after withdrawing its application from the ChiNext and terminating its North Exchange guidance [1][2]. Group 1: Financial Performance and Challenges - SKG's core product, the "smart soothing wearable device," has seen stagnant revenue growth, with income of 630 million yuan in the first three quarters of 2025, reflecting only a 0.2% year-on-year increase [3][4]. - The company's total revenue grew by 16.22% to 878 million yuan in the first nine months of 2025, but the core product's revenue growth has stalled, indicating a potential decline in consumer demand [3][4]. - SKG's cumulative dividends reached 280 million yuan, accounting for 74% of its net profit during the reporting period, raising concerns about its financial management and intentions [7][9]. Group 2: Marketing and Consumer Complaints - Despite a decline in revenue, SKG has maintained high marketing expenditures, with sales expenses in the first nine months of 2025 reaching 22.6% of total revenue, significantly higher than industry standards [10][12]. - The company has faced over 300 complaints regarding product quality and safety, with issues such as severe burns and pricing discrepancies being highlighted by consumers [15][17]. - SKG's after-sales service has been criticized for inefficiency, with consumers reporting difficulties in resolving product issues, which may undermine the brand's long-term reputation [18]. Group 3: Research and Development - SKG's investment in research and development has decreased, with R&D expenditure as a percentage of revenue falling from 9.1% in 2022 to 6.6% by the end of September 2025, contradicting its claims of being a technology-driven company [10][12]. - The company's focus on marketing over product development raises concerns about its ability to sustain growth and innovation in a competitive market [10][12].

Core Viewpoint - SKG Health Technologies Co., Ltd. is attempting its third IPO journey by submitting an application to the Hong Kong Stock Exchange after previous failures in 2022 and 2024, aiming to become the largest massage equipment company in the Hong Kong market if successful [2]. Group 1: Company Overview - SKG, established in 2007 and headquartered in Shenzhen, focuses on developing wearable health products such as neck, eye, and waist massagers, holding over 21% market share in China's small massage device market for five consecutive years [4]. - The company has faced criticism regarding product effectiveness, research investment, marketing strategies, and significant dividends distributed to its controlling shareholders [4][11]. Group 2: Financial Performance - For the first three quarters of 2025, SKG's sales and marketing expenses rose to 22.6%, while R&D investment decreased to 6.6%, indicating a trend of prioritizing marketing over research [11][14]. - Revenue from smart wearable devices was 630 million yuan, a slight increase of 0.2% year-on-year, with core products like neck massagers seeing a revenue decline of 1.85% [14]. Group 3: Market Position and Future Prospects - The fitness recovery and shaping equipment line generated 200 million yuan in revenue, a 122.8% year-on-year increase, contributing to a gross margin of 50.2% for the first three quarters of 2025 [17]. - The global market for smart wearable devices is projected to grow from $4.5 billion in 2019 to $8.4 billion in 2024, with expectations to reach $17.8 billion by 2029 [18]. - SKG aims to enhance its technological innovation and product differentiation to strengthen its market position, focusing on areas like medical electronics and digital therapy [19].