Yangtuo Technology Seeks HK Listing, 19.2% Revenue Growth in 2023

Yangtuo Technology Inc. has submitted an application to the Hong Kong Stock Exchange for a main board listing. The company, which owns the maternal and infant platform "Haipai Ke," operates under a light-asset model. This model efficiently connects sellers of family care and nutritional products, including manufacturers, distributors, and brands, with various buyers. The platform aims to build a comprehensive, healthy, integrated, and sustainable ecosystem.

The platform "Haipai Ke" has established itself as a significant player in the family care and nutritional products sector. According to Frost & Sullivan, based on 2024 transaction volume, Yangtuo Technology Inc. is the largest transaction and service platform in China's low-tier market for family care and nutritional products, holding a market share of 10.1%. This achievement underscores the company's strong market position and its ability to provide valuable services to both sellers and buyers in the industry.

The application to the Hong Kong Stock Exchange was submitted on June 30, with CITIC Securities acting as the sole sponsor. This move is expected to provide Yangtuo Technology Inc. with the necessary capital to further expand its operations and strengthen its market presence. The company's light-asset model, which focuses on efficient connections and a sustainable ecosystem, positions it well for future growth in the competitive family care and nutritional products market.

Yangtuo Technology Inc. is a leading transaction and service platform in China, specializing in family care and nutritional products. The company integrates the supply chain for these products, offering high-quality, personalized, stable, and reasonably priced product combinations to enterprise clients. This approach optimizes consumer experiences and drives consumption upgrades in low-tier markets. In 2024, the company generated transaction volumes of 8.6 billion yuan in the low-tier market for family care and nutritional products.

As of December 31, 2024, the "Haipai Ke" platform had connected approximately 4,200 registered sellers and covered 31 provinces, municipalities, and autonomous regions nationwide. It also reached over 3,000 county-level areas, serving approximately 290,000 registered buyers. This extensive network highlights the platform's ability to connect a wide range of participants in the family care and nutritional products sector, fostering a collaborative and sustainable ecosystem.

Financially, Yangtuo Technology Inc. reported revenue of 10.668 billion yuan for the year ending December 31, 2023, marking a 19.2% increase from the previous year's 8.953 billion yuan. This growth was primarily driven by increased revenue from the company's self-operated business, which resulted from a strategic shift from a scale-oriented model to a profit-focused approach. The company's revenue remained relatively stable in the subsequent years, with 10.668 billion yuan in 2023 and 10.324 billion yuan in 2024.

However, the company faces several risks. Its success hinges on its ability to create strong synergies among all participants on its digital platform. If it fails to maintain or enhance these synergies, its business, operational performance, and financial results could be significantly impacted. Additionally, the company's financial health and business operations could be adversely affected if it fails to retain existing customers, attract new ones, or if customer engagement and revenue contributions decline.