Core Viewpoint - Quantitative Party (2685.HK) has listed in Hong Kong, raising approximately HKD 131 million, with a net amount of HKD 12.37 million from the offering [1] Group 1: Company Background - Quantitative Party, known as Quantum Data Technology Co., Ltd. in China, was founded in 2014 in Beijing by Zhou Hao, who initially focused on online lending and created the cash loan platform "Credit Wallet" [1] - The company rebranded "Credit Wallet" to "Yang Xiaomiao" in 2020, claiming a shift from main lending operations to a consumer e-commerce platform, although it appears to still operate within the financial sector [3] Group 2: Business Operations - The Yang Xiaomiao app, while positioned as an e-commerce platform, offers products at significantly higher prices compared to competitors like JD.com, with a specific example showing a price of CNY 13,321 for an iPhone 17 Pro Max, compared to CNY 9,999 on JD.com [3][5] - Complaints on the Black Cat Complaints platform exceed 24,000, primarily concerning misleading shopping practices, inflated product prices, high interest on installment purchases, and aggressive debt collection practices linked to the associated platform "Bian Li Card Package" [5] Group 3: Regulatory Issues - The operator of Yang Xiaomiao, Beijing Yudong Intelligent Information Technology Co., Ltd., is fully owned by Quantum Data Technology Co., Ltd., while the operator of "Bian Li Card Package" is Beijing Zimu Yunchuang Technology Co., Ltd., also fully owned by a related entity [5] - In July, a related entity, Yingtan Xinjing Guangda Microfinance Co., Ltd., was fined CNY 196,000 by the People's Bank of China for violations related to credit information management, and it is a major client of Quantitative Party [7]

Core Viewpoint - The company, Quantitative Party, is facing multiple challenges as it prepares for its IPO, including compliance issues, weak business fundamentals, high valuations, and funding pressures, which raise concerns about the viability of its market entry [1] Group 1: IPO Details and Financials - The IPO is set to launch on November 19, with pricing expected on November 25 and trading on November 27 [1] - The estimated fundraising amount is only 150 million HKD, making it the smallest mainboard IPO since the new regulations were introduced [2] - After accounting for listing expenses of approximately 107 million RMB, only about 580,000 HKD will be available for business development, indicating a "self-funded listing" scenario [2] Group 2: Compliance and Business Operations - The company has a history of compliance issues, including a failed attempt to list in the US due to scrutiny over its financial services [3] - Despite rebranding its business model, it continues to engage in lending activities through its app, raising further regulatory concerns [3] - The company has been criticized for its reliance on a single app, which generated 98.1% of its revenue, making it vulnerable to market fluctuations [4] Group 3: Market Reception and Valuation Concerns - Investor interest in the IPO has been lukewarm, with no cornerstone investors, reflecting a lack of confidence in the company's prospects [5] - The company's market valuation could reach 5.1 billion HKD, with a projected P/E ratio of 37.7, significantly higher than industry averages, raising concerns about overvaluation [6] - The small market capitalization and low liquidity could lead to the company being manipulated by a few investors, posing risks for ordinary investors [6]