Company Overview - Yangtuo Technology Inc. (referred to as "Haipai Ke") has submitted its prospectus to the Hong Kong Stock Exchange for a main board listing, with CITIC Securities as the sole sponsor [2] - The company holds a 10.1% market share in the family care and nutrition products sector within China's lower-tier markets, positioning itself as a leading player in the maternal and infant e-commerce industry [2][9] Financial Performance - As of 2024, Haipai Ke's net debt is projected to reach 2 billion RMB, with losses expanding to 78.825 million RMB [5][10] - Revenue figures show a slight increase from 895 million RMB in 2022 to 1.067 billion RMB in 2023, but net profit has fluctuated significantly, with a profit of 1.012 million RMB in 2022 turning into a loss of 56.54 million RMB in 2023 and further losses in 2024 [10][20] - The overall gross margin has declined from 43.9% in 2022 to 32.5% in 2024, indicating worsening profitability [14][19] Business Model and Strategy - Haipai Ke transitioned from a pure digital platform to a "platform + self-operated" dual model since 2019, aiming to enhance its self-branded products [6][19] - The company has seen a shift in revenue structure, with self-operated business revenue increasing from 540 million RMB in 2022 to 802 million RMB in 2024, while digital platform business revenue decreased from 3.54 billion RMB to 2.29 billion RMB during the same period [20][21] - Despite the growth in self-operated business, the gross margin remains low at 15.5%, significantly lower than the digital platform's gross margin of 91.5% [19][20] Market Environment - The maternal and infant e-commerce sector is facing challenges, including a decline in newborn numbers and increased competition from comprehensive e-commerce platforms [19][22] - Major competitors like Tmall and JD.com have seen substantial growth, with Tmall's maternal and infant sector surpassing 300 million users and achieving transaction volumes exceeding 10 billion RMB in 2024 [22] Investment and Financing - Haipai Ke has completed six rounds of financing before its IPO, with notable investors including Shunwei Capital and Hillhouse Capital, raising a total of approximately 26.93 million USD [6][8] - The company has faced shareholder withdrawals in 2020, 2024, and 2025, leading to significant share buybacks and the issuance of convertible notes totaling 158 million USD [8][9] Future Outlook - The upcoming IPO is seen as a critical step for Haipai Ke to alleviate financial pressures and accelerate business transformation, but the company must overcome profitability challenges and market competition to ensure sustainable growth [23][24]

Core Viewpoint - Haipai Ke has submitted its listing application to the Hong Kong Stock Exchange, aiming to raise funds for enhancing collaboration, technology capabilities, strategic alliances, and general corporate purposes, despite facing significant operational challenges and financial losses [1][2]. Financial Performance - In 2024, Haipai Ke's revenue decreased to 1.032 billion RMB, a decline of 3.3% year-on-year, indicating stagnation or potential regression in growth [6][8]. - The company reported a net loss of 78.83 million RMB in 2024, worsening from a loss of 56.54 million RMB in 2023, primarily due to a continuous decline in gross margin from 43.9% in 2022 to 32.5% in 2024 [8][11]. - The gross profit from the digital platform business fell by 32.26%, from 310 million RMB in 2022 to 210 million RMB in 2024, while self-operated business revenue grew but at a significantly reduced rate [8][9]. Market Position - Haipai Ke is recognized as a leading trading and service platform in the family care and nutrition products sector, holding a market share of 10.1% in the low-tier market as of 2024 [2][6]. - The company has expanded its registered seller base to 4,241 and registered buyers to 289,512 by the end of 2024, although transaction volume has been declining [7][8]. Debt and Financial Health - As of the end of 2024, Haipai Ke's net debt reached 2 billion RMB, with a debt-to-asset ratio of 350.12%, primarily due to 2.4 billion RMB in convertible redeemable preferred shares [11][12]. - The company reported a negative net asset position of 2 billion RMB, raising concerns about liquidity and the ability to meet financial obligations [11][12]. Management and Cost Structure - Despite ongoing losses, executive compensation has significantly increased, with total director remuneration rising from 2.297 million RMB in 2022 to 4.817 million RMB in 2024, while the company has been reducing employee costs through layoffs [13][15]. - Total employee costs decreased from 396 million RMB in 2022 to 259 million RMB in 2024, reflecting a strategic move to optimize workforce structure and improve operational efficiency [15][16].

Core Viewpoint - Yangtuo Technology Inc. (Haipai Ke) is seeking to go public on the Hong Kong Stock Exchange amid a challenging environment for the maternal and infant e-commerce sector, aiming to strengthen market share and reshape the competitive landscape [1][9] Group 1: Company Overview - Haipai Ke was established in 2015 by a team of founders from Alibaba, focusing on family care and nutrition products, integrating supply chains to enhance consumer experience and drive consumption upgrades in lower-tier markets [1][3] - The company has achieved significant growth, with transaction volume surpassing 10 billion RMB in its second year and reaching 100 billion RMB in 2019 [3] - Prior to the IPO, Haipai Ke completed six rounds of financing, raising approximately 193.59 million USD, with major investors including Shunwei Capital and Fosun International [3][4] Group 2: Financial Performance - As of the end of 2024, Haipai Ke reported accumulated losses of 1.85 billion RMB and net liabilities of 2 billion RMB [1][8] - Revenue figures for 2022 to 2024 are 895.27 million RMB, 1.06785 billion RMB, and 1.03239 billion RMB, indicating stagnation and potential decline [6] - The company transitioned from a profit of 1.01 million RMB in 2022 to losses of 56.54 million RMB and 78.83 million RMB in 2023 and 2024, respectively, with gross margins decreasing from 43.9% to 32.5% [6][8] Group 3: Market Strategy - Haipai Ke has established a vast channel system, connecting 4,200 registered sellers and 290,000 registered buyers across over 3,000 counties in China by 2024, capturing a 10.1% market share in the family care and nutrition sector [4][5] - The company is focusing on developing its own brands, having launched 92 proprietary brands by 2024, with self-operated business revenue increasing from 60.4% to 77.7% of total revenue [8] - To achieve profitability, Haipai Ke is optimizing its digital supply chain and exploring AI-driven solutions, although it faces challenges from weakened demand and competition from rivals like Pinduoduo [8][9]

Core Viewpoint - Yangtuo Technology Inc. (referred to as "Haipai Ke") is seeking to go public on the Hong Kong Stock Exchange, having achieved significant growth in transaction volume and profitability since its inception [1][4]. Group 1: Company Overview - Haipai Ke was established in 2015 and launched its platform in the same year, achieving a transaction volume of 1 billion yuan in its second year and 10 billion yuan by the fourth year [3][4]. - The company has developed 92 proprietary brands and established partnerships with 153 manufacturers by the end of 2024 [4]. - Haipai Ke focuses on family care and nutrition products, providing a stable supply chain for enterprise clients and enhancing consumer experience [4][6]. Group 2: Financial Performance - The company reported revenues of 895 million yuan, 1.067 billion yuan, and 1.032 billion yuan for the years 2022, 2023, and 2024, respectively, with net profits of 1.012 million yuan, -56.54 million yuan, and -78.825 million yuan [7][8]. - The gross profit margins for the same years were 43.9%, 37.6%, and 32.5% [7][8]. Group 3: Market Position - In 2024, Haipai Ke became the largest trading and service platform in China's lower-tier market for family care and nutrition products, capturing a market share of 10.1% [6]. - The platform connected approximately 4,200 registered sellers and covered over 290,000 registered buyers across 31 provinces and regions in China [6]. Group 4: Investment and Financing - Haipai Ke has completed six rounds of financing, raising a total of approximately $193.59 million, with significant investments from notable firms such as Shunwei Capital and Fosun International [9][13]. - The company plans to use the proceeds from its IPO to enhance collaboration with ecosystem participants, improve technological capabilities, and seek strategic alliances and acquisitions [15].