Core Viewpoint - The company, Haipai Ke, is preparing for an IPO amid a challenging environment in the maternal and infant e-commerce sector, which is characterized by increasing competition and declining birth rates in China [3][9][21]. Financial Performance - Haipai Ke's revenue has stagnated, with figures of 895 million yuan in 2022, 1.067 billion yuan in 2023, and 1.032 billion yuan in 2024, while net profits have worsened from a profit of 1.012 million yuan in 2022 to losses of 56.54 million yuan in 2023 and 78.825 million yuan in 2024 [5][6]. - The company's net debt has increased to 2 billion yuan by 2024, primarily due to redeemable preferred shares and convertible notes [5][6]. - The gross margin has declined from 43.9% in 2022 to 32.5% in 2024, with the digital platform business maintaining a high margin of around 91% while the self-operated business remains low at approximately 15% [8]. Business Model and Market Position - Haipai Ke operates as a B2B2C platform connecting small maternal and infant stores with global brands, focusing on lower-tier markets [3][6]. - The company has established itself as a leader in the low-tier market for family care and nutrition products, achieving a market share of 10.1% with a total transaction volume of 11 billion yuan in 2024 [6][7]. - However, both GMV and the number of core buyers have declined, with GMV dropping from 14.9 billion yuan in 2022 to 11 billion yuan in 2024, and the number of core buyers decreasing from 103,500 to 93,800 [7][8]. Investment and Shareholder Dynamics - Prior to the IPO, Haipai Ke completed six funding rounds totaling nearly 200 million USD, with significant investments from major firms like Shunwei Capital and Hillhouse Capital [4]. - The company has faced shareholder withdrawals, leading to share buybacks totaling 38 million USD, 11 million USD, and 24 million USD in 2020, 2024, and 2025 respectively [5]. Challenges and Competitive Landscape - The maternal and infant e-commerce sector is under pressure due to a decline in newborn numbers from 14.7 million in 2019 to 9.54 million in 2024, alongside increased competition from major platforms like JD and Alibaba [9][10]. - Complaints regarding product quality and after-sales service have been rising, with 103 complaints recorded by mid-2025, indicating potential reputational risks [14][15][18]. Strategic Initiatives - Haipai Ke is focusing on enhancing user engagement and exploring new growth avenues, including expanding into Southeast Asian markets, which are projected to grow at a CAGR of 9.3% from 2024 to 2029 [20]. - The company plans to use IPO proceeds to deepen partnerships with top infant formula brands and improve IT infrastructure for better data analytics and insights [20].