Core Viewpoint - Yangtuo Technology Inc. (referred to as "Haipai Ke") is officially entering the Hong Kong stock market, focusing on the family care and nutrition products sector, aiming to optimize consumer experience and drive consumption upgrades in lower-tier markets [1][16]. Company Overview - Established in 2015, Haipai Ke integrates the supply chain for family care and nutrition products, providing a comprehensive service platform for enterprise clients [1]. - The company is projected to become the largest trading and service platform in China's lower-tier market for family care and nutrition products, with a market share of 10.1% by 2024 [1][2]. Business Model - Haipai Ke operates a light-asset model, connecting over 4,200 suppliers with approximately 290,000 registered buyers across 31 provinces and regions in China [3]. - The revenue structure consists of two main segments: self-operated business (77.7% of revenue in 2024) and digital platform business (22.2% of revenue in 2024) [3]. Financial Performance - Revenue figures for Haipai Ke from 2022 to 2024 are projected at 895 million, 1.067 billion, and 1.032 billion RMB respectively, indicating a short-term growth bottleneck [6][7]. - The company experienced a shift from profit in 2022 (1.012 million RMB) to losses in 2023 (56.54 million RMB) and further losses in 2024 (78.83 million RMB) [8][9]. Profitability Challenges - The gross margin has been declining, with rates of 43.9%, 37.6%, and 32.5% from 2022 to 2024, primarily due to the lower margins associated with self-operated business [8][9]. - The self-operated business's revenue share increased significantly, but its gross margin remains low, with the basic self-operated business gross margin at only 7.4% in 2024 [8][9]. Market Outlook - The family care and nutrition products market in lower-tier cities is expected to grow, with a projected market size increase from 673 billion RMB in 2019 to 857 billion RMB in 2024, reflecting a compound annual growth rate (CAGR) of 4.9% [14]. - By 2029, the market size is anticipated to reach 1,258 billion RMB, with a CAGR of 8% from 2024 to 2029 [14]. Strategic Initiatives - To address operational pressures, Haipai Ke is focusing on reducing marketing investments in non-core sales channels and optimizing its inventory mix [13]. - The company has developed 92 proprietary brands and established partnerships with 153 manufacturers, with proprietary brand business gross margins reaching 36.5% in 2024 [13]. Future Prospects - The upcoming IPO is seen as a critical opportunity for Haipai Ke to alleviate financial difficulties and optimize its business structure [16]. - Long-term success will depend on balancing business scale with profitability, optimizing the asset-liability structure, and enhancing supply chain efficiency [17].

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]

Group 1 - Yangtuo Technology Inc. (referred to as "海拍客") submitted its listing application to the Hong Kong Stock Exchange on June 30, with CITIC Securities as the exclusive sponsor [1] - 海拍客 is a leading trading and service platform in China, focusing on the home care and nutrition products sector, aiming to enhance consumer experience and promote consumption upgrades in lower-tier markets [1] - By 2024, the transaction volume of home care and nutrition products in China's lower-tier markets is expected to reach RMB 8.6 billion, making 海拍客 the largest trading and service platform in this sector with a market share of 10.1% [1][1] Group 2 - As of December 31, 2024, 海拍客's platform is projected to connect approximately 4,200 registered sellers and cover over 290,000 registered buyers across 31 provinces, cities, and autonomous regions in China [1] - The platform has over 93,000 core buyers, with each core buyer placing an average of 11 orders per month [1] - Financially, the company's revenues for 2022, 2023, and 2024 are projected to be RMB 900 million, RMB 1.07 billion, and RMB 1.03 billion, respectively, with losses of RMB 56.54 million and RMB 78.83 million in 2023 and 2024 [2]