New stock outlook | Easy Buy Products: Increase revenue and reduce losses are just "surface phenomena", the continuous decline in gross profit margin "questions" the growth model.

With the consecutive listing of iconic companies such as DongGuan YiHeDa Automation (301029.SZ), ZKH Group Limited Sponsored ADR (ZKH.US), JD INDUSTRIALS (07618), the listed camp of China's MRO procurement and digital supply chain services continues to grow, and the industry landscape is becoming increasingly clear. Now, this thriving team is welcoming new blood from Shanghai - YiMaiGongPin has officially started the listing process and is launching an assault on the capital market. It was observed that on January 30th, YESMRO Holdings Limited (referred to as YiMaiGongPin) submitted its listing application to the Main Board of the Hong Kong Stock Exchange, with Agricultural Bank International as the exclusive sponsor. According to Zhishi Consulting data, based on 2024 revenue, YiMaiGongPin ranks third in the sub-market of digital FA (Factory Automation) component procurement services in China, with a market share of approximately 8.5%. From a financial perspective, YiMaiGongPin has yet to achieve profitability. The prospectus shows that in 2023 and 2024, YiMaiGongPin's revenue was 534 million and 637 million yuan respectively, with adjusted net losses of 38.808 million yuan and 28.154 million yuan, respectively, with the loss margin narrowing. By the third quarter of 2025, YiMaiGongPin's revenue was 554 million yuan, a 22.33% year-on-year increase, and the adjusted net loss for the period was 12.093 million yuan, continuing to narrow from the 24.34 million yuan loss in the same period of 2024. Although it is still experiencing continuous losses, it has shown a significant trend of narrowing losses. Whether it can achieve profitability soon, accelerate the release of company profits, will be a key factor for YiMaiGongPin to obtain a high valuation in the capital market. Expense reduction is key to continuous loss reduction Looking at the growth trajectory of YiMaiGongPin, it can be clearly divided into three stages. In 2016, the company was founded and launched e-commerce services, preliminarily verifying the feasibility of providing FA component procurement services for small and medium-sized enterprises with a digital platform service model. Starting from 2019, the development of YiMaiGongPin entered the second stage. The company completed multiple rounds of financing, entered a period of rapid expansion, and continued to strengthen the supply chain and technology foundation. Starting in 2023, YiMaiGongPin shifted its strategic focus to deepen profitability and barrier construction, officially launched its proprietary brand "Huo Ye" and commercialized it, thereby forming a new dual-drive development pattern of "platform + proprietary brand". As of now, YiMaiGongPin has built a huge supply chain ecosystem. On the supply side, YiMaiGongPin has established cooperation with approximately 2,500 suppliers and over 800 brands, including many internationally renowned brands. On the customer side, YiMaiGongPin has served over 24,000 automation equipment manufacturers of different sizes, covering industries such as automotive, consumer electronics, logistics, cosmetics, food and beverage, new energy, semiconductors, biopharmaceuticals, and Siasun Robot&Automation. In terms of proprietary brands, as of September 30, 2025, YiMaiGongPin's proprietary brand portfolio covers seven major categories including industrial control, low-voltage control, sensors, pneumatic components, mechanical parts, electrical auxiliary materials, and factory consumables, totaling over 837,000 inventory units. According to the prospectus, YiMaiGongPin continues to leverage the advantage of inventory availability. As of September 30, 2025, YiMaiGongPin can provide a huge product inventory of over 3.6 million available units, achieving an industry-leading spot rate of 81.3%, effectively responding to customers' urgent delivery cycles. In 2023, 2024, and the first three quarters of 2025, YiMaiGongPin's inventory turnover days were 17 days, 13 days, and 14 days respectively; cash conversion cycles were 1 day, -7 days, and -1 day respectively, highlighting its efficient fulfillment efficiency. The efficient fulfillment efficiency has continued to enhance YiMaiGongPin's stickiness. The average monthly purchase frequency per customer has increased from 3 times in 2023 to 3.5 times in 2024, and further to 3.7 times in the first three quarters of 2025, with corresponding customer retention rates of 67.3%, 70.9%, and 73.3%, showing a continuous improvement in retention indicators. The continued growth in YiMaiGongPin's revenue is mainly due to the steady expansion of its paying customer base and deepening of customer purchasing behavior. On one hand, the number of paying customers continues to rise, from 14,723 at the end of 2023 to 15,990 at the end of 2024; by the first three quarters of 2025, the number of paying customers has reached 16,396, a significant increase from the same period of the previous year (13,986), consolidating the customer base. On the other hand, customer activity and purchasing depth are also increasing. While the average consumption amount per customer is steadily increasing, the monthly purchase frequency per customer has gradually increased from 3.0 times in 2023 to 3.7 times in the first three quarters of 2025, reflecting the enhancement of customer stickiness and the further cultivation of platform purchasing habits. While driving revenue growth through scale expansion, YiMaiGongPin's operational efficiency continues to improve, and the enhancement of cost control capability provides support for profitability improvement. Data shows that the proportion of expenses (sales, administrative, and R&D) to revenue has significantly improved, dropping from 16.0% in 2023 to 12.87% in 2024, and further decreasing to 9.99% in the first three quarters of 2025, a significant drop from 14.02% in the same period of 2024. Therefore, the continuous narrowing of adjusted net losses for YiMaiGongPin is essentially the result of steady revenue growth and effective cost control working together. The significant decrease in the proportion of expenses during the period also reflects that the company's development strategy before listing has clearly tilted towards profit improvement. So why doesn't YiMaiGongPin choose to stimulate economies of scale through rapid expansion to achieve profitability? The changes in its gross profit margin may reveal some reasons: the gross profit margins in 2023, 2024, and the first three quarters of 2025 were 7.62%, 7.29%, and 7.23% respectively, showing a slight downward trend overall, indicating that revenue growth has not synchronously led to an increase in gross profit margins. In this context, the improvement in profitability from cost compression is far more direct and significant than simply pursuing revenue scale expansion. The divergence between gross profit growth and gross profit margin decline exposes long-term operational challenges Although the growth on the revenue side and the trend of loss reduction on the profit side outline a positive overall picture of YiMaiGongPin's financial performance, the failure of revenue growth to an increase in gross profit margin reveals a deeper challenge in its business model: the company may not have established strong pricing power or cost transfer capabilities, and its growth at this point may still rely to a certain extent on "trading volume for price" or the expansion of low-margin product categories. This poses a critical question about the sustainability of its profit quality. According to the prospectus, the decline in YiMaiGongPin's gross profit margin is mainly due to the continuous decline in the gross profit margin of third-party brands. In 2023 and 2024, the gross profit margins of third-party brands of YiMaiGongPin were 7.1% and 6.3% respectively, further dropping to 6.2% in the first three quarters of 2025, while it was 6.5% in the same period of 2024. In contrast to the continuous decline in the gross profit margin of third-party brands, there is a significant increase in the gross profit of third-party brand business. In 2023 and 2024, the gross profits of third-party brands were 36.459 million and 38.256 million yuan respectively, increasing significantly to 32.432 million yuan in the first three quarters of 2025, a substantial increase from 28.247 million yuan in the same period of 2024. The divergence between gross profit growth and gross profit margin decline shows that YiMaiGongPin's continued revenue growth may rely on the "trading volume for price" or the expansion of low-margin product categories in third-party brands. The root of this development path may be traced back to the initial market positioning of YiMaiGongPin. By focusing on serving small and medium-sized enterprises, the company successfully filled a market gap and built differentiated competitive barriers, but this model also embeds long-term structural challenges. Specifically, orders from small and medium-sized clients are fragmented, making it difficult to achieve economies of scale, directly limiting bargaining power and profit margins; at the same time, small and medium-sized clients have high purchase frequencies and low single transaction amounts, which also increase service and operating costs. In addition, the risk resistance of small and medium-sized enterprises is generally weaker, and their demand is easily affected by macroeconomic cycles and industry fluctuations, which poses hidden concerns for the company's growth sustainability and stability. More importantly, by targeting small and medium-sized enterprises, YiMaiGongPin missed the window to extend to medium and large clients. In the field of MRO procurement and digital supply chain services, leading platforms have firmly occupied the market of medium and large clients, and have begun to expand to small and medium clients, which undoubtedly puts pressure on YiMaiGongPin to break through the customer circle. To break through the development dilemma, YiMaiGongPin has been focusing on its own brand business since 2023, attempting to optimize its profit structure. However, after nearly three years of development, the revenue share of this business has only increased to 5.2%, growing slowly. Although the gross profit margin of its proprietary brands reached 26.2% in the first three quarters of 2025, significantly higher than the 6.2% of third-party brands, its revenue contribution remains very limited. Under the pressure of insufficient volume of proprietary brands, the company has had to rely more on expanding the third-party brand business through "trading volume for price", further entering a cycle of "scale growth leading to lower gross profit margins". In its prospectus, YiMaiGongPin explains that the customer transaction data accumulated on its platform can drive it strategically to develop proprietary brand products in high-demand categories, thereby increasing gross profit margins and profitability. However, from the current results, this development path is progressing slowly and its actual effects are limited. Until YiMaiGongPin can effectively prove to the market that the model of "data-driven -> proprietary brand -> profit improvement" can work, the company may find it difficult to achieve a higher valuation in its current profit dilemma.