Core Viewpoint - Jiangsu Hongxin Supermarket Chain Co., Ltd. (Jiangsu Hongxin) has listed on the Hong Kong Stock Exchange, with an opening price of HKD 3.44 and a closing price of HKD 2.50, indicating a challenging market debut [1]. Group 1: IPO Details - The total number of shares offered globally was 53,562,000 H-shares, with 8,892,000 shares available in Hong Kong and 44,670,000 shares for international sale [1]. - The final offer price was set at HKD 2.50, raising a total of HKD 133.91 million, with net proceeds amounting to HKD 92.55 million after deducting estimated listing expenses of HKD 41.36 million [4][5]. Group 2: Company Overview - Jiangsu Hongxin is a wholesale grain and oil merchant headquartered in Yangzhou, primarily operating supermarkets and convenience stores under the "Hongxin Long" brand in the Jiangsu region [5]. - The company plans to use the raised funds to open new retail stores, establish new distribution centers, create a central kitchen, and enhance its ERP and infrastructure systems to improve operational efficiency [5]. Group 3: Market Position and Financial Performance - Jiangsu Hongxin ranks approximately 20th among supermarket operators in Jiangsu province, with a market share of about 0.4% based on 2023 sales [6]. - The company's revenue for recent periods was reported as follows: RMB 1.432 billion, RMB 1.329 billion, RMB 1.402 billion, and RMB 1.006 billion, with year-on-year growth rates of -7.23%, 5.52%, 1.82%, indicating weak revenue growth for 2024 [6]. - Profit figures for the same periods were RMB 35.08 million, RMB 51.07 million, RMB 51.60 million, and RMB 24.08 million, showing a decline in profitability, with profits for the first nine months of 2024 being less than half of those in 2023, down 21.13% year-on-year [6].

Company Information - Jiangsu Horizon Chain Supermarket Company Limited is listed under stock code 2625[2] Financial Data - The preliminary financial data for the year ending December 31, 2024, will be included in the prospectus dated March 21, 2025[3] Regulatory Compliance - The announcement is made in accordance with the Hong Kong Stock Exchange Listing Rules[3]

Group 1 - The Hong Kong Securities and Futures Commission (SFC) is consulting on multiple optimization suggestions for IPOs and post-listing matters, aiming to enhance regulatory efficiency and protect investor rights [1] - CATL plans to issue up to 220 million shares in Hong Kong, potentially raising $5 billion (approximately 36.5 billion RMB), marking one of the largest IPOs in recent years [2] - China Unicom and Alibaba have signed a strategic cooperation agreement focusing on AI technology and smart infrastructure, indicating potential for innovation in smart cities and related sectors [3] Group 2 - Jiangsu Hongxin's public offering in Hong Kong was oversubscribed by 46.96 times, reflecting strong market enthusiasm despite a low winning rate of 3.91% for investors [4] - Changhong New Materials has submitted its prospectus for listing on the Hong Kong GEM board, focusing on graphene heating materials, with projected revenue of 98 million RMB and a net profit of 17 million RMB for 2024 [5] Group 3 - The Hang Seng Index closed at 23,426.60, down 0.65%, while the Hang Seng Tech Index and the National Enterprises Index fell by 1.48% and 0.82%, respectively [6]

Summary of Key Points Core Viewpoint - The Hong Kong IPO market saw four companies submit listing applications this week, with no companies passing the hearing, and four companies in the process of offering shares, including one that has officially listed. Group 1: Companies Submitting Listing Applications - On March 18, Zhuozheng Medical Holdings Limited submitted a listing application to the Hong Kong Stock Exchange, marking its second attempt after a previous application in May 2024. The company operates 20 medical service institutions in China and is the third-largest private mid-to-high-end comprehensive medical service provider in the country, with a market share of 1.7% based on 2023 revenue [2]. - On March 21, Aolian Service Group Co., Ltd. submitted a listing application, focusing on business and community service in Guangdong Province, China. The company ranked 16th and 11th among independent property management service providers in China based on total revenue and net profit, respectively [3]. - On March 21, Jiangbolong (301308.SZ), a leading independent semiconductor memory manufacturer, submitted a listing application. The company reported a revenue of 17.464 billion RMB in the previous year, a 72.48% increase, and a net profit of 499 million RMB, up 160.24% [4]. - On March 21, Beijing Yunji Technology Co., Ltd. submitted a listing application, aiming to become the first stock in the robot service sector. The company is the largest in the global market for hotel scene robot service agents based on 2023 revenue [4][5]. Group 2: Companies in the Offering Process - Weisheng Pharmaceutical-B (02561.HK) was open for subscription from March 13 to March 18, 2025, with a subscription rate of 72.64 times. The stock officially listed on March 21, 2025, and closed at the issue price after an initial drop of over 6% [6]. - Nanshan Aluminum International (02610.HK) is in the process of offering 88.2353 million shares, with a price range of 26.60 to 31.50 HKD per share, expected to start trading on March 25, 2025 [6]. - Shubao International (02569.HK) is offering 250 million shares, with a price range of 0.5 to 0.6 HKD per share, expected to start trading on March 27, 2025 [7]. - Jiangsu Hongxin (02625.HK) is offering 53.562 million shares, with a price range of 2.5 to 3 HKD per share, expected to start trading on March 31, 2025 [7].

Investment Rating - The report assigns a rating of ★★★☆☆ to the company based on fundamental factors and valuation [3]. Core Insights - The company is a grain and oil wholesaler headquartered in Yangzhou, primarily operating in the Suzhong region under the "Hongxin Long" brand, ranking second among supermarket operators in Yangzhou with a market share of approximately 9.1% in 2023 [1]. - The convenience store sector is expected to continue growing, with retail sales in mainland China reaching RMB 424.8 billion in 2023, reflecting a compound annual growth rate (CAGR) of 14.30% from 2017 to 2023. The forecast for 2024E-2027E indicates a continued growth with a CAGR of 9.00% [2]. - The company has four main business strategies aimed at consolidating market position and increasing market share, including expanding retail store numbers, enhancing warehousing capacity through new distribution centers, increasing food processing capabilities via new central kitchens, and improving operational efficiency through enhanced ERP systems [2]. Financial Data Summary - The financial data for the company shows the following figures (in billion RMB): - Other income: 14.32 in 2022, 13.29 in 2023, and projected 14.02 in 2024 - Profit attributable to shareholders: 0.35 in 2022, 0.51 in 2023, and projected 0.52 in 2024 [3].