Group 1: IPO Information - Jihong Co., Ltd. (02603.HK) is conducting an IPO with a subscription period from May 19 to May 22, offering a total of 67.91 million shares, with 10% for public offering and 90% for international placement [1] - The IPO price range is set between 7.48 and 10.68 HKD, with a market capitalization estimated between 3.386 billion and 4.835 billion HKD and a price-to-earnings ratio of 21 times [1] - The minimum subscription amount is 5,394 HKD, with the listing date scheduled for May 27 [1] Group 2: Company Overview - Jihong Co., Ltd. was established in 2003 and is headquartered in Xiamen, Fujian, initially focusing on fast-moving consumer goods packaging before transitioning to cross-border e-commerce in 2017 [2] - The company ranks second in China's B2C export e-commerce sector with a market share of 1.3% and first in the paper packaging sector with a market share of 1.2% as of 2024 [2] - Jihong's cross-border social e-commerce business utilizes a "goods find people" model, leveraging platforms like Meta and TikTok for targeted advertising [2] Group 3: Financial Performance - Jihong's revenue for 2022, 2023, and 2024 was 5.376 billion, 6.695 billion, and 5.529 billion RMB, respectively, with net profits of 172 million, 332 million, and 184 million RMB [3] - In Q1 2025, the company reported revenue of 1.477 billion RMB, reflecting a year-on-year growth of 11.55%, with a net profit of 59.16 million RMB [3] - By 2024, the cross-border e-commerce segment contributed 60.9% of total revenue, while the packaging business accounted for 38% [4] Group 4: Operational Insights - Jihong's packaging business offers a comprehensive solution from design to logistics, serving well-known clients like Yili and Luckin Coffee, with a low industry concentration (top five players hold only 4.5% market share) [3] - The company has a cash balance of 786 million RMB but faces pressure with accounts receivable reaching 522 million RMB, which is over 286% of its profit [5] - The dual business model helps mitigate risks, while AI technology enhances operational efficiency [5] Group 5: Market Sentiment and Pricing Strategy - The IPO price range of 7.48-10.68 HKD represents a discount of 33%-53% compared to the A-share price of 14.63 RMB, indicating a significant pricing strategy aimed at attracting investors [6] - The expected oversubscription rate is high, with estimates suggesting a potential oversubscription of 15 to 50 times, which could lead to a significant price adjustment [6]