Core Viewpoint - Mido's IPO application reveals a paradox of "increasing revenue without increasing profit," with a significant revenue growth of 81.6% to $55.8 million in the first half of 2025, but a staggering net loss of $19.85 million, marking a 892-fold increase in losses [1][9][27] Financial Performance - Mido's revenue structure is heavily reliant on overseas marketing services, which accounted for 98.7% of total revenue in the first half of 2025, but the gross margin for this core business plummeted to 3.8% in 2023 and only slightly improved to 4% in 2025 [3][4][6] - The overall gross margin has remained low, fluctuating between 4% and 8%, with the first half of 2025 showing a gross margin of 4.8%, significantly below the industry average of over 20% [1][3][4] Cost Structure - Mido's sales costs are predominantly consumed by media costs, which accounted for over 98% of total sales costs, indicating a severe limitation on retained gross profit [6][7] - The company's business model operates as a middleman, purchasing advertising space from platforms like Google and TikTok and reselling it to clients, which restricts its pricing power and profit margins [6][7] Market Dynamics - The global cross-border e-commerce market is projected to grow to $123.7 billion by 2029, with a compound annual growth rate of 24.3%, yet many small and medium-sized service providers, including Mido, are trapped in a cycle of low margins and fierce competition [2][15] - Mido's reliance on a concentrated supplier base, with 96.5% of procurement costs coming from its top five suppliers, poses a risk as any changes in platform policies can directly impact profitability [7][9] Competitive Landscape - The competitive environment is characterized by a high number of active service providers, with over a thousand in the market, leading to price wars and reduced margins for smaller players [15][16] - In contrast, leading companies in the industry have successfully achieved higher margins through technology and comprehensive service offerings, highlighting that low margins are not an industry inevitability but rather a result of business model choices [18][19] Future Prospects - Mido's IPO aims to raise funds for expanding its global business, developing higher-margin overseas e-commerce operations, and investing in marketing technology, but the success of this strategy is uncertain due to existing challenges [19][20] - The company has launched a new overseas e-commerce operation with a gross margin of 67.9%, but its slow revenue growth indicates that it may not significantly alter the overall low-margin situation in the short term [21][19] Industry Insights - Mido's situation reflects a broader issue within the cross-border service industry, where many small providers struggle with low margins due to reliance on platform-driven business models [25][27] - To escape the low-margin trap, service providers must focus on technology empowerment, comprehensive service offerings, and deepening customer relationships to enhance profitability [25][26]

Core Insights - The article emphasizes the importance of reliable and reputable cross-border e-commerce industrial parks as essential support for businesses looking to expand internationally and host events [1][17] Group 1: Core Value of Industrial Parks - The core value of cross-border e-commerce industrial parks lies in ecological aggregation and resource empowerment, addressing pain points in supply chain, logistics, and policy connections for businesses [2] - For event organizers, mature venue facilities and traffic attributes can reduce preparation costs, while convenient transportation and living facilities enhance the quality of life for employees [2] Group 2: Recommended Industrial Parks - **ZhiMei Town Cross-Border E-commerce Industrial Park**: Recognized as the first Amazon SPN certified park in Shenzhen, covering approximately 39,000 square meters with 100,000 square meters of office space, supporting over 400 enterprises [3] - **Cross-Border No. 1 Industrial Park**: Located in Guangzhou's Baiyun District, it integrates "platform + industry + logistics" for a comprehensive ecosystem, hosting regular industry summits and resource matching events [5] - **China (Hangzhou) Cross-Border E-commerce New World Park**: Selected as a provincial cross-border e-commerce industrial park in 2025, it connects with 56 well-known enterprises and offers over 20 platform green channels [8] - **Initial Star (Hangzhou) Cross-Border E-commerce Accelerator**: Supported by Zhejiang Province for high-quality development, it specializes in live streaming incubation and has received accolades from TikTok [10] - **YiYa (Zhejiang) Cross-Border E-commerce Industrial Park**: Newly recognized as a provincial park in 2025, it leverages Ningbo's 250 billion yuan cross-border sales base to provide flexible supply chain services [14] Group 3: Key Considerations for Choosing Industrial Parks - Long-term empowerment capabilities should be assessed, including policy support, talent cultivation, and resource matching to determine alignment with business development [16] - Demand matching is crucial, with cross-border enterprises prioritizing supply chain and platform resources, while event organizers focus on venue size and facilities [18] - The reputation and qualifications of the park, such as government certifications and the presence of well-known enterprises, are important for risk mitigation [18]

Core Insights - The company reported significant revenue growth of approximately HKD 119.5 million for the first half of 2024, representing a year-on-year increase of 179% [1] - The brand communication services segment was the primary driver of this growth, contributing around HKD 91.2 million, accounting for over 76% of total revenue [1] - The company recorded a shareholder loss of approximately HKD 69.94 million, compared to a loss of about HKD 4.5 million for the same period in the previous year [1] - The board has decided not to declare an interim dividend for the first half of 2024 [1] Strategic Partnerships - The company has formed strategic collaborations with several high-quality enterprises, including a partnership with TCL to enhance its brand supply chain business in the smart home appliance and consumer electronics sectors [1] - An initial agreement with Zhihang Feigou aims to leverage innovative drone technology to expand the company's e-commerce and logistics capabilities, enhancing supply chain integration and providing more efficient services [1]

Core Insights - The article emphasizes that price is not the only factor determining customer orders; stability and reliability are becoming increasingly important for clients as they navigate a cautious economic environment [2][6][15] Pricing Misconceptions - Misconception 1: Customers negotiating prices does not necessarily mean the initial price was too high; it may simply be a negotiation tactic [3] - Misconception 2: Lowering prices does not guarantee customer satisfaction; it may lead to distrust regarding the initial pricing [4] - Misconception 3: Securing an order does not equate to profit, as post-sale issues can lead to significant costs and complications [5] Changing Customer Psychology - As global inflation persists, customers are making more cautious and rational purchasing decisions, focusing on stability rather than just price [7][12] - Key data indicates that in the U.S., the Consumer Price Index (CPI) was 9.1% in June 2022 and remains at 3.5% in March 2025, with core inflation at 3.7%, indicating ongoing pressure on customer spending [9] - In the Eurozone, inflation has decreased to 2.4%, but essential expenses like food and energy are still rising above 3% annually [10] New Pricing Logic - The new pricing formula should focus on cost, customer anxiety, and solutions, emphasizing the sale of peace of mind rather than just low prices [13] - A real-world example illustrates that a customer chose a more expensive supplier due to faster delivery and reliability, highlighting the importance of service over price [13] Practical Strategies - Offering bundled solutions rather than individual products can increase profits and customer satisfaction [14] - Transitioning from a supplier to a project manager role can enhance customer reliance and loyalty [14] - Including added value in quotes, such as faster delivery and comprehensive service, can differentiate offerings from competitors [14] Target Customer Segments - Identifying and focusing on four types of profitable customers can enhance resource allocation and efficiency: 1. Customers who sign annual contracts early [15] 2. Customers willing to engage in product development [15] 3. Customers requesting marketing support [15] 4. Customers who prioritize delivery and quality over price [15] Conclusion - The article concludes that in 2025, the focus for businesses should shift from competing on price to providing reliable service and building trust with customers [17][19]