Core Viewpoint - Yangtuo Technology Inc. (海拍客), a leading player in the maternal and infant market, has submitted its IPO application to the Hong Kong Stock Exchange, amidst concerns over its financial performance and product authenticity [1][6]. Company Overview - Established in 2015, 海拍客 has become the largest service platform for family care and nutrition products in China's lower-tier markets, holding a market share of 10.1% as of 2024 [2]. - The company connects approximately 4,200 registered sellers and 290,000 registered buyers across 31 provinces and over 3,000 villages and counties in China [2]. Business Model - 海拍客 has shifted from a commission-based model to a dual-driven model of "commission + self-operated" [1]. - The revenue from its digital platform business has declined from 3.54 billion yuan in 2022 to 2.29 billion yuan in 2024, with its contribution to total revenue dropping from 39.5% to 22.2% [2][3]. Financial Performance - The company's revenue for the reporting period was 8.95 billion yuan, 10.67 billion yuan, and 10.32 billion yuan, indicating stagnant growth [4]. - Cumulative losses over the past two years amount to 135 million yuan, with the company unable to guarantee future profitability [4]. Inventory and Margin Issues - The gross margin has significantly decreased from 43.9% in 2022 to 32.5% in 2024, primarily due to the lower margin of self-operated products [3]. - Inventory levels have surged, reaching 150 million yuan by April 2025, a 101% increase from the end of 2024 [3]. Capital and Debt Challenges - The company has faced increasing cash flow pressures, with net cash flow from operating activities showing continuous outflows [6]. - By the end of 2024, the debt ratio had escalated to 350%, raising concerns about its ongoing viability [6]. Governance and Trust Issues - Despite financial struggles, executive compensation has risen significantly, with total payments to directors increasing from 2.297 million yuan in 2022 to 4.817 million yuan in 2024 [7]. - The company has faced multiple controversies regarding counterfeit products, with complaints about product authenticity affecting consumer trust [8].