Company Overview - Shenzhen Feisuo Innovation Technology Co., Ltd. has re-submitted its application for a mainboard listing on the Hong Kong Stock Exchange, with joint sponsors including CICC, CITIC Securities International, and CSC International [1] - The company was founded in 2009 and focuses on enterprise-level network solutions, offering high-performance network devices, scalable operating systems, and cloud network management platforms through a direct-to-consumer (DTC) model [1][8] - Feisuo Innovation is the second-largest DTC network solutions provider globally, with a market share of 6.9% as of 2024, following a US-based competitor with a 12.1% market share [8] Business Model and Customer Base - The DTC model integrates network architecture design, procurement, and after-sales services into a unified platform, providing comprehensive services from solution design to one-stop procurement [8] - The company has over 120,000 SKUs, serving more than 480,000 customers across over 200 countries, with approximately 60% of its clients being Fortune 500 companies [2][8] - Customer retention rates are high, with net revenue retention rates of 94.4% in 2023 and 102.3% in 2024, indicating strong customer loyalty [2] Financial Performance - Feisuo Innovation has shown consistent revenue growth, achieving revenues of RMB 1.988 billion, RMB 2.213 billion, and RMB 2.612 billion for the years 2022, 2023, and 2024, respectively, representing a compound annual growth rate (CAGR) of 14.6% [9] - The company's profits for the same years were RMB 365 million, RMB 457 million, and RMB 397 million, with a slight decline in 2024 [9] - For the nine months ending September 30, 2025, revenues increased by 11.3% year-on-year to RMB 2.175 billion, while profits rose by 20.5% to RMB 423 million, with a stable gross margin of 52.6% [9][10] Shareholder Structure - The controlling shareholder is founder Xiang Wei, who directly holds 56.65% of the shares and indirectly controls an additional 4.51% through employee incentive platforms, totaling 61.16% voting power [4][10] Industry Environment - The global network solutions market is expanding steadily, growing from USD 119.2 billion in 2020 to an estimated USD 162.8 billion in 2024, with a CAGR of 8.1% [11] - High-performance network hardware (100G and above) is experiencing rapid growth, with a CAGR of 24.6% from 2020 to 2024, expected to reach USD 83.1 billion by 2029 [11] - The market for optical modules and high-speed cabling products is also growing, with an 18.4% CAGR, providing significant growth opportunities for Feisuo Innovation [11]

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]