Core Viewpoint - Shenzhen Feisuo Innovation Technology Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange after withdrawing its A-share application, amid concerns over internal control deficiencies and discrepancies in inquiry responses [3][20][24] Group 1: Company Overview - Feisuo Innovation, established in April 2009, focuses on enterprise-level network solutions, offering over 120,000 SKUs including optical modules, high-speed cables, and network management platforms [4][7] - The company has served over 450,000 customers across more than 200 countries, with approximately 60% of its clients being Fortune 500 companies [7] Group 2: Financial Performance - Feisuo Innovation's revenue grew from RMB 19.88 billion in 2022 to RMB 22.13 billion in 2023, and is projected to reach RMB 26.12 billion in 2024, reflecting an 18.0% growth rate [7][12] - The company's net profit increased from RMB 3.65 billion in 2022 to RMB 4.57 billion in 2023, but fell to RMB 3.97 billion in 2024, indicating a 13.0% decline [12][13] Group 3: Revenue Sources - Approximately 99% of Feisuo Innovation's revenue comes from overseas markets, with the U.S. accounting for 46% and Europe over 30% of total revenue [10][11] Group 4: Cost and Profitability Challenges - The company's financial costs surged by 298.4% from RMB 4.65 million in 2023 to approximately RMB 18.54 million in 2024, contributing to the decline in net profit despite revenue growth [14][12] - Sales and distribution expenses rose by 43.9% to RMB 4.88 billion in 2024, while general and administrative expenses and R&D expenses also saw significant increases [16] Group 5: Internal Control Issues - Feisuo Innovation faced regulatory scrutiny from the Shenzhen Stock Exchange due to internal control deficiencies related to its information systems, leading to written warnings for the company and its sponsors [20][22][24] - The company acknowledged the need to strengthen its internal control systems in response to the regulatory feedback received during its A-share IPO process [24]