Core Viewpoint - Yangtuo Technology Inc. (referred to as "Haipai Ke") has submitted its prospectus to the Hong Kong Stock Exchange, aiming to list on the main board under the new Chapter 18C rules, with CITIC Securities as its sole sponsor [2][12] Company Background - Haipai Ke was established in February 2015, originally as Hangzhou Yangtuo Network, and was transferred to its current chairman Zhao Chen shortly after [3] - The core team has strong ties to Alibaba, with Zhao Chen having held multiple positions at Alibaba from 2006 to 2015, contributing to the rapid growth of Haipai Ke since its inception [4] Business Model and Performance - Haipai Ke operates a digital platform focused on connecting supply and demand for household care and nutrition products in China's lower-tier markets [5] - The company generates revenue by charging sellers a commission based on platform transaction volumes and offers customized marketing services to brands and manufacturers [7] - As of the end of 2024, Haipai Ke has developed 92 proprietary brands and established partnerships with 153 manufacturers, serving over 38,000 paying buyers [7] Financial Performance - Haipai Ke's total transaction volume reached 11 billion RMB in 2024, making it the largest trading and service platform in the household care and nutrition sector in China's lower-tier markets [7] - However, the company has experienced a significant decline in annual transaction volume from 2022 to 2024, impacting revenue [8] - Revenue figures for 2022, 2023, and 2024 were 895 million RMB, 1.067 billion RMB, and 1.032 billion RMB, respectively, indicating a downward trend [8] - The revenue structure shows a shift towards self-operated business, with self-operated revenue increasing from 60.4% in 2022 to 77.7% in 2024, while digital platform revenue has decreased [9][10] Profitability and Cash Flow - Gross profit figures for 2022, 2023, and 2024 were 393 million RMB, 401 million RMB, and 335 million RMB, with gross margins declining from 43.9% to 32.5% [10] - The company reported net losses of 1.012 million RMB in 2022, 56.54 million RMB in 2023, and 78.83 million RMB in 2024, indicating ongoing financial challenges [11] - Operating cash flow showed net outflows of 133 million RMB in 2022, 6 million RMB in 2023, and 112 million RMB in 2024, highlighting reliance on external financing [11] Future Plans - The IPO aims to inject capital into Haipai Ke for enhancing collaboration within its ecosystem, improving technological capabilities, and pursuing strategic alliances or acquisitions when opportunities arise [12]

Core Viewpoint - Yangtuo Technology Inc. has submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities as its sole sponsor, positioning itself as the largest trading and service platform in China's low-tier market for household care and nutrition products, holding a market share of 10.1% based on 2024 transaction volume [1][4]. Group 1: Company Overview - Yangtuo Technology Inc. is a leading trading and service platform in China, focusing on household care and nutrition products, optimizing consumer experience and driving consumption upgrades in low-tier markets [4]. - The company's platform, Haipai Ke, operates on a light asset model, efficiently connecting sellers (manufacturers, distributors, and brands) with various buyers, creating a sustainable ecosystem [4]. Group 2: Market Position - By 2024, the company is expected to generate a transaction volume of RMB 8.6 billion in the low-tier market for household care and nutrition products [4]. - The Haipai Ke platform has connected approximately 4,200 registered sellers and covers over 290,000 registered buyers across 31 provinces, cities, and autonomous regions in China [4]. Group 3: Financial Performance - The company's revenue increased by 19.2% from RMB 895.3 million in 2022 to RMB 1,066.8 million in 2023, primarily due to a strategic shift towards a profit-focused model [5][7]. - Revenue is projected to remain relatively stable at RMB 1,066.8 million for 2023 and RMB 1,032.4 million for 2024 [5][7]. - The company reported a net loss of RMB 56.5 million for the year ending December 31, 2023, and a projected loss of RMB 78.8 million for 2024 [7].