Core Viewpoint - The outdoor market in China is attracting domestic brands, with Tanboer aiming for an IPO on the Hong Kong Stock Exchange, following a significant dividend payout that raises concerns about its financial health and operational efficiency [1][10][12]. Financial Performance - Tanboer's revenue has shown impressive growth, increasing from 732 million RMB in 2022 to 1.302 billion RMB in 2024, with a notable 85% year-on-year growth in the first half of 2025 [4][5]. - Despite revenue growth, net profit has fluctuated, with figures of 86 million RMB in 2022, 139 million RMB in 2023, and a decline to 107 million RMB in 2024, resulting in a net profit margin decrease from 11.7% in 2022 to 5.5% in the first half of 2025 [6][12]. Marketing and Sales Channels - The company has shifted towards online sales, with online revenue rising from 226 million RMB in 2022 to 626 million RMB in 2024, accounting for 48.1% of total revenue [7][8]. - Marketing expenses have surged, reaching 508 million RMB in 2024, which is 39% of total revenue, indicating a significant investment in brand promotion and channel transformation [8][9]. Inventory Management - Tanboer faces a severe inventory issue, with inventory value skyrocketing from 257 million RMB at the end of 2023 to 1.103 billion RMB by August 2025, leading to a dramatic increase in inventory turnover days from 242 days in 2023 to 485 days in 2025 [8][9]. Dividend Payouts and Financial Health - The company distributed a substantial dividend of 290 million RMB before its IPO, significantly impacting its financial position, reducing net assets from 741 million RMB at the end of 2024 to 487 million RMB by mid-2025 [10][12]. - The majority of the dividend benefited the controlling Wang family, raising concerns about the company's cash reserves, which fell to 26 million RMB post-dividend [12][13].