Blue Focus(SZ:300058) Xin Lang Zheng Quan·2025-07-11 09:14Core Viewpoint - BlueFocus is facing significant financial challenges, including operational losses, high debt levels, and low profitability, which have led to difficulties in refinancing and a poor stock performance in the A-share market. The company's upcoming IPO in Hong Kong aims to raise funds primarily for alleviating liquidity issues and supporting its AI strategy [1][11][13]. Financial Performance - BlueFocus reported a revenue of 607.97 billion yuan in 2024, marking a year-on-year increase of 15.55%. However, the company experienced a net loss of 2.91 billion yuan, a staggering decline of 349.32% compared to the previous year [2][13]. - The company's gross profit margin has been declining, with figures of 6.43%, 6.34%, 4.69%, 3.44%, and 2.56% from 2020 to 2024 [4]. - The net profit margin is even lower, with values of 1.79%, 1.3%, -5.93%, 0.22%, and -0.48% during the same period [5]. Business Model and Strategy - BlueFocus's core overseas business accounts for approximately 80% of its revenue, but the gross margin for this segment is only 1.73%, significantly lower than the domestic business margin of 7.55% [7][11]. - The company has initiated a global expansion strategy (Globalization 2.0), shifting from an agency-driven model to a technology and AI-driven approach [2]. Debt and Cash Flow - The company's debt levels have been rising, with asset-liability ratios increasing from 47.57% in 2021 to 66.1% in 2024 [9]. - As of Q1 2025, the company reported a net cash outflow of 12 billion yuan from operating activities, indicating poor cash flow management [9][10]. Research and Development - Despite the emphasis on an "All in AI" strategy, BlueFocus's R&D expenditure is alarmingly low, with a projected rate of only 0.1% in 2024, which raises questions about the feasibility of its technology-driven narrative [1][13]. - The company's R&D expenses were reported at 0.54 billion yuan in 2024, a decrease of 39.65% year-on-year [13]. IPO and Future Prospects - The upcoming IPO in Hong Kong is seen as a potential solution to the company's liquidity crisis, with funds intended for AI technology development, global business network expansion, and marketing business growth [13]. - The company anticipates that AI-driven revenue will reach between 30 billion to 50 billion yuan by 2025, despite current low investment in R&D [13].