Milian Technology Inc. Files for Hong Kong IPO: Nearly 1 Billion Yuan in Cash Reserves Represents 85% of Total Assets Yet Still Seeks Funding, Highly Dependent on Single Product with Revenue Sharing Fees Accounting for 90% of Total Costs

Deep News
Oct 10

Milian Technology Inc. (hereinafter referred to as "Milian Technology"), the parent company of online dating social app Yi Dui, recently submitted its prospectus to the Hong Kong Stock Exchange, with China International Capital Corporation as the sole sponsor.

Backed by impressive metrics from its core Yi Dui app—4.8 million monthly active users, 180,000 matchmakers, and ranking first in industry revenue—Milian Technology has experienced rapid business growth in recent years. However, public complaints about Yi Dui and similar apps regarding "induced consumption," "fake dating," "services not matching advertising," and "using chatbots to trick users into recharging" are countless. Court documents also reveal continuous fraud cases occurring on the Yi Dui platform, making Milian Technology's compliance risks impossible to ignore.

From a financial perspective, Milian Technology is highly dependent on value-added services, which account for nearly 100% of revenue. In terms of app dependency, Yi Dui contributes approximately 80% of revenue, indicating the company's high reliance on a single product. As of June 30, 2025, Milian Technology's cash and cash equivalents totaled 981 million yuan, representing over 85% of total assets, yet the company still seeks to raise funds through a Hong Kong IPO.

**High Dependency on Single Product with Nearly 1 Billion Yuan Cash Reserves Representing 85% of Total Assets Yet Still Seeking Funding**

According to the prospectus, Milian Technology's core business revolves around emotional social networking, with application products covering domestic and international markets. Domestic products include main applications like "Yi Dui" and "TieTie," while overseas applications primarily include "HiFami," "Chatta and Seeta," among others.

Among these, Milian Technology's flagship product Yi Dui app has carved out a niche with its "host user-guided three-way video interaction mode." According to the prospectus, as of June 2025, Yi Dui averaged 4.8 million monthly active users with a seven-day retention rate of 72.1%, significantly higher than the industry average. Monthly active users launched the app an average of 119.6 times per month, far exceeding the industry's top ten participants' average of 55.2 times. By revenue, "Yi Dui" ranks first in China's online emotional social networking industry.

The prospectus shows that Yi Dui generated approximately 1.5 billion yuan in revenue in the first half of 2025, while Milian Technology's total revenue for the same period was 1.917 billion yuan, meaning Yi Dui app contributed 79% of the company's revenue, nearly 80%.

High dependency on a single product's most prominent issue is relatively fragile risk resistance. Once the core product faces adverse changes due to intensified market competition, policy adjustments, or legal compliance issues, the company's operating performance will face significant impact.

As of the end of the first half of 2025, Milian Technology's monetary funds totaled 981 million yuan, approaching 1 billion yuan, accounting for 85.43% of total assets, exceeding 85%.

Although the company's asset-liability ratio appears high, most liabilities are mainly convertible redeemable preferred share subscription prepayments, primarily resulting from preferred shares issued by Milian Technology historically. Currently, with the company turning profitable, experiencing significant revenue growth, and having IPO expectations, if the company successfully goes public, convertible redeemable preferred shares will convert to ordinary shares with preferential rights terminated, and this liability's book value will be reclassified to equity, significantly reducing the company's asset-liability ratio.

With nearly 1 billion yuan in cash representing most of its assets, why does Milian Technology still need to go public for funding? The prospectus indicates that fundraising will primarily be used for penetrating more overseas markets through existing products and developing differentiated products suitable for overseas markets; further investing in expanding R&D and technical teams, upgrading core technical infrastructure, enhancing products and optimizing user experience; strategic investments and acquisitions; and working capital and general corporate purposes.

**Business Ethics and Compliance Risks Constrain Long-term Value with Revenue Sharing Fees Accounting for 90% of Total Costs**

From 2022-2024 and the first half of 2025, Milian Technology achieved revenues of 1.052 billion yuan, 1.034 billion yuan, 2.373 billion yuan, and 1.917 billion yuan respectively; net profits were -13 million yuan, -17 million yuan, 146 million yuan, and 262 million yuan respectively.

Despite significant revenue growth and turning profitable, Milian Technology faces enormous compliance challenges, which are not only key to whether the company can successfully IPO in Hong Kong but also constraining factors for the company's long-term value.

Research indicates that Yi Dui app's business model relies heavily on "matchmakers." As of June 30, 2025, the Yi Dui platform had accumulated over 180,000 host users. These matchmakers not only organize video chats, guide conversations, and facilitate relationships but also directly participate in platform revenue sharing.

According to the prospectus, hosts can receive revenue sharing from gifts given by users, with sharing ratios ranging from 20% to 52%. Meanwhile, revenue sharing fees are also the company's main operating costs, accounting for around 90%. For example, in the first half of 2025, the company's revenue sharing fees totaled 877 million yuan, accounting for 90.6% of operating costs.

While Milian Technology's "matchmaker" model and revenue sharing incentive mechanism increase platform activity, they also bring significant risks of induced consumption. Some "matchmaker" users, to maximize revenue, may excessively guide users to engage in gift tipping, recharging, and other consumption behaviors. According to media investigation reports, multiple male complainants described Yi Dui app as "not a dating platform, but one that makes money through live streaming under the guise of matchmaking." The report also mentioned that a 79-year-old father with Alzheimer's disease was induced to spend 270,000 yuan on the Yi Dui app within several months.

According to statistics from the Black Cat Complaints platform, Yi Dui app has accumulated 1,060 complaints (as of October 9, 2025). Besides numerous induced consumption complaints, Yi Dui app has also been complained about for "false advertising." For instance, one consumer complained about recharging nearly 140,000 yuan for roses on Yi Dui app but couldn't even get contact information for chat partners.

Additionally, according to court judgments, from 2022 to 2024, defendant Chen XX met women through false information noted on Yi Dui app, concealed occupation and marital status information, established romantic relationships with multiple women, and defrauded multiple victims of money totaling over 110,000 yuan. Furthermore, court documents show that defendant Yang X concealed his identity and met three victims through the Yi Dui platform, with the highest fraud amount reaching 350,000 yuan.

In fact, "pig butchering" scams on online dating platforms are no longer news. On March 15, 2024, dating websites like Zhenai.com and Jiayuan.com were exposed by CCTV's 3.15 Evening Party for attracting consumers to become paying members with high-quality opposite-sex resources and attractive success stories, then harvesting consumers with various schemes.

Early dating social giants like Jiayuan, Baihe, and Zhenai continuously refined dating website business models, all core models relying on matchmaker matching and membership fees. Milian Technology, now rushing toward a Hong Kong IPO, also cannot separate its core business model from "matchmakers," but complaints about induced consumption, false advertising, and fake dating are challenges that need to be addressed.

Research suggests that dating is merely a subdivision of social networking, essentially a low-frequency behavior. If successful pairing occurs, there is almost no repeat purchase, so this type of business model and ceiling are inherently "congenitally insufficient." If a social dating platform experiences rapid performance growth but also has many compliance complaints, investors must pay attention to long-term value from business ethics and compliance risk perspectives.

**What Are the Prospects for Hong Kong IPO?**

For internet companies, regulatory authorities particularly focus on content review mechanisms, virtual currency management, and induced consumption, areas where Milian Technology may have weaknesses. Whether the company's "matchmaker model" can withstand scrutiny will determine its IPO fate. The core question investors face is: How long can this business model built on the blurred boundaries between emotion and consumption last?

Many investors report from practical experience that "Yi Dui" may have relatively loose user information verification, as the app only requires filling in a phone number for registration, while basic information like age, gender, occupation, and marital status is self-reported. How is the authenticity of registered user identity information ensured? Does Milian Technology, as platform manager, meet compliance operation requirements?

Taking the fraud case implemented by Chen XX through Yi Dui app shown in the above court documents as an example, Chen XX concealed his occupation as a construction worker and falsely represented himself to multiple women as external surgeon "Zhang Tao" or "Chen Tao" at Baoji People's Hospital, concealing his married status and falsely claiming to be widowed, establishing romantic relationships with multiple women and implementing fraud through false occupation and false marital status.

If Milian Technology and Yi Dui app conducted prudent verification of user information, could so many complaints and crimes be avoided? Could more consumers suffer fewer losses? The answer is affirmative.

According to the "Cybersecurity Law of the People's Republic of China," network operators who fail to require users to provide real identity information or provide related services to users who do not provide real identity information may be fined or even face business suspension, closure, website shutdown, revocation of relevant business licenses, or revocation of business licenses.

Currently, pure dating social concepts face challenges in capital markets. Established companies like Jiayuan have delisted from US stocks, while emerging companies like Milian Technology are seeking IPO opportunities. If Milian Technology still cannot resolve numerous complaints about "induced consumption" and "fake dating," established companies may serve as cautionary tales.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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