Core Viewpoint - BFB HEALTH successfully listed on the Hong Kong Stock Exchange through an unconventional asset securitization method, led by its early investor, Huaying Capital, rather than traditional investment banks or large PE firms [4][5][16]. Group 1: Company Background - BFB HEALTH, formerly known as Duoyanshou, was co-founded in 2015 by Wu Mansheng and Zheng Duoyan, initially focusing on health food products [8]. - The company achieved a cumulative GMV exceeding 10 billion yuan by 2020, primarily through popular products like SOSO jelly [8]. Group 2: Investment Journey - Huaying Capital invested over 100 million yuan in Duoyanshou's A-round financing in 2021, recognizing the potential of functional food and the company's strong private traffic moat [9][10]. - The investment was prompted by the company's stable revenue and profit, supported by a direct-to-consumer (DTC) model that enhanced user loyalty and repeat purchases [10]. Group 3: Strategic Transformation - In 2022, Duoyanshou faced external challenges, including negative public sentiment towards functional foods and tightening IPO regulations, prompting a strategic pivot [11][12]. - Huaying Capital proposed a merger and acquisition (M&A) strategy to help Duoyanshou transition beyond health products, inspired by the success of U.S. telemedicine company Hims & Hers [13][14]. Group 4: Execution of M&A Strategy - The strategic transformation involved collaboration with an A-share listed company to develop domestic semaglutide and establishing a cross-border drug supply chain to meet immediate user needs [14][15]. - The complex M&A process required deep expertise in Hong Kong's capital market, which was facilitated by Huaying Capital's partner, who had extensive experience in successful listings [15][16]. Group 5: Active Management Strategy - The successful listing of BFB HEALTH signifies Huaying Capital's shift from traditional financial investment to proactive management, aiming to create controllable alpha returns [18][19]. - The firm plans to identify and actively manage "proactive management assets" and engage deeply in the strategic and operational aspects of its portfolio companies [20]. Group 6: Future Outlook - BFB HEALTH is envisioned as an industry integration platform, with plans to acquire synergistic brands and supply chain companies to enhance its market value [21][22]. - Huaying Capital's ongoing evolution includes expanding its team with investment banking professionals to support its proactive management and ecosystem-building strategies [22][24].