Group 1: Company Overview - Xunzhong Communication, established in 2008, is a comprehensive cloud communication service and solution provider, focusing on simplifying communication [2] - The company is the third-largest cloud communication service provider in China by revenue as of 2024, holding a market share of 1.8% [2] - The primary business includes cloud communication PaaS platform services, intelligent call center services, and video integration communication services [2] Group 2: Financial Performance - Revenue for Xunzhong Communication from 2022 to 2024 was RMB 809.743 million, RMB 915.630 million, and RMB 917.606 million respectively, indicating stagnation in growth [3][4] - Net profit for the same period was RMB 74.660 million, RMB 76.584 million, and RMB 50.642 million, showing a decline in profitability [3][4] - The company has experienced continuous negative operating cash flow for three consecutive years, with cash on hand of RMB 50 million as of April 30, 2025, highlighting liquidity pressure [5] Group 3: Market Position and Competition - The cloud communication market in China has around 800 service providers, with the top five holding a combined market share of 20.9% as of 2024 [7] - Xunzhong Communication has the highest net profit among the top five providers, with competitors holding market shares of 7.8% and 6.8% respectively [7] - The company's business model relies heavily on upstream telecom operators and downstream major clients, resulting in limited bargaining power [8] Group 4: IPO and Valuation - Xunzhong Communication plans to issue 30.44 million shares at a price range of HKD 13.55 to HKD 15.15, aiming to raise approximately HKD 4.37 billion [1][9] - The estimated market capitalization at the median IPO price is HKD 17.8 billion, with a valuation of 31 times earnings, which is considered high compared to the telecom operators' valuations [8][9] - The IPO shares represent 25% of total shares, with a significant portion locked by cornerstone investors, leading to concerns about liquidity in the market [9]

Core Viewpoint - The Hong Kong stock market is experiencing a surge in IPO activity, with multiple companies set to list in the coming days, indicating a robust market environment for new listings [1][3][18]. Group 1: Upcoming IPOs - On June 30, six companies announced their IPOs, with plans to list between June 30 and July 4, 2025 [1][3]. - The companies planning to list include Lens Technology, Fortior, Xunzhong Communication, Jizhi Jia, Dazhong Oral, and Shougang Longze, with Lens Technology and Fortior being A-share listed companies [1][3]. - Three companies, including Taide Pharmaceutical, Yunzhisheng, and IFBH, successfully listed on June 30, 2025, with Taide Pharmaceutical's share price set at 30.6 HKD [1][4]. Group 2: Financial Performance of Listed Companies - Yunzhisheng reported revenues of approximately 601 million RMB, 727 million RMB, and 939 million RMB for 2022, 2023, and 2024, respectively, with net losses of 375 million RMB, 376 million RMB, and 454 million RMB [4][6]. - Taide Pharmaceutical raised approximately 514 million HKD, with a net amount of about 429 million HKD after expenses, and secured two cornerstone investors contributing a total of 10 million USD [8]. - IFBH raised around 1.158 billion HKD, with a net amount of approximately 1.074 billion HKD, and is recognized as the second-largest coconut water beverage company globally [8]. Group 3: Market Trends and Future Outlook - The Hong Kong stock exchange has seen over 40 new listings in the first half of 2025, a significant increase compared to the same period in 2024, with total fundraising exceeding 100 billion HKD [17]. - The market is expected to remain active, with more companies preparing for IPOs, including those that have already submitted applications [17][18]. - The trend indicates a growing interest from A-share listed companies to enter the Hong Kong market, with over 70 companies submitting applications in June 2025 alone [17].

Core Viewpoint - Xunzhong Communication Technology Co., Ltd. plans to issue 30.44 million H-shares and is expected to be listed on the Hong Kong Stock Exchange on July 9, 2025, aiming to raise approximately HKD 4.12 billion to HKD 4.61 billion [1][3]. Company Overview - Xunzhong Communication is a full-stack cloud communication service provider, with its main business including cloud communication services, intelligent communication solutions, and other communication solutions [4]. - The company was established in September 2008 and is currently listed on the New Third Board since June 16, 2015 [3][4]. Financial Performance - Revenue for 2022, 2023, and 2024 was approximately RMB 810 million, RMB 916 million, and RMB 918 million, respectively, with gross profits of RMB 195 million, RMB 196 million, and RMB 203 million [5][6]. - Net profits for the same years were RMB 74.66 million, RMB 76.58 million, and RMB 50.64 million [5][6]. Fundraising and Use of Proceeds - The expected share price range is HKD 13.55 to HKD 15.15, with a median price of HKD 14.35, leading to a net fundraising amount of approximately HKD 3.91 billion [3][6]. - The company plans to allocate approximately 45.4% of the raised funds for continuous improvement and development of services and solutions, 15.6% for expanding sales channels, 16.2% for acquisitions in China, 12.8% for repaying outstanding loans, and 10.0% for working capital and other general corporate purposes [6]. Key Shareholders - Major shareholders include Park Seong-geun, Chengdu Unicom Innovation Investment, and Huagai Capital, with Park Seong-geun being the largest shareholder holding 27.36% [4].