Core Viewpoint - Quantitative Technology Co., Ltd. (referred to as "Quantitative") has submitted an IPO application to the Hong Kong Stock Exchange, transitioning from a lending platform to an e-commerce platform, primarily operating through "Yang Xiaomei" and "Consumption Map" for automotive transactions [1][4]. Financial Performance - In the first five months of 2024 and 2025, the company achieved revenues of 993.03 million RMB and 414.14 million RMB, respectively, with net profits of 147.13 million RMB and 125.63 million RMB [2][4]. - The revenue for 2022 and 2023 was 475.29 million RMB and 529.67 million RMB, respectively, with a gross profit of 312.76 million RMB and 367.66 million RMB [2]. Business Transition - The company has shifted its focus from financial lending to e-commerce, with "Yang Xiaomei" becoming its main business. The revenue from financial services has significantly decreased, accounting for only 3.2% of total revenue in 2024 [8][10]. - The average revenue per user has increased from 10,330 RMB in 2022 to 21,296 RMB in 2024, indicating a growing customer base and engagement [11]. Regulatory Challenges - Quantitative has faced scrutiny from regulatory bodies regarding its lending practices and customer complaints, leading to multiple failed IPO attempts in the U.S. and Hong Kong [4][6]. - The company has committed to ceasing all financial-related services on its platform, aiming to comply with regulatory requirements [10]. Shareholder Structure - The largest shareholder, Mars Legend, controlled by the founder Zhou Hao, holds 23.72% of the shares, while Sunshine Life Insurance is the second-largest shareholder with 15.42% [6][7]. - The company is under pressure from a redemption agreement signed with investors, which could lead to significant financial liabilities if not addressed through a successful IPO [6]. Customer Complaints - There have been numerous complaints regarding the pricing and service quality on the "Yang Xiaomei" platform, with reports of inflated prices and aggressive marketing tactics [13][14].

Core Viewpoint - The introduction of the "New Lending Regulations" is expected to significantly impact the high-interest lending sector, leading to a potential exit of many platforms from the market due to increased costs and regulatory pressures [1][6][10]. Industry Overview - The current scale of the lending industry is approximately 3 trillion to 4 trillion yuan, with high-interest lending accounting for about 25%, indicating a potential impact of over 1 trillion yuan on the market [3]. - The high-interest lending business, which operates within a 24%-36% interest rate range, is facing a fundamental shift as banks withdraw funding and raise costs [4][14]. Regulatory Impact - The "New Lending Regulations" will take effect on October 1, 2025, and will include stricter calculations of comprehensive costs, which will challenge the survival of high-interest lending platforms [1][6]. - Many banks have already begun to withdraw from high-interest lending partnerships, citing increased regulatory risks and the need for compliance [3][4]. Cost Dynamics - Funding costs for high-interest lending platforms have surged to 10%-14%, with some platforms even quoting rates as high as 14% to retain bank partnerships [4][5]. - The profitability of high-interest lending is declining, with profit margins dropping to less than 6% due to rising costs associated with funding, customer acquisition, and operational expenses [5][10]. Market Restructuring - The industry is undergoing a significant restructuring, with smaller platforms facing pressures from increased qualification requirements and funding cooperation thresholds [6][12]. - Many high-interest lending platforms are considering a shift to lower-interest lending (below 24%), which requires a complete overhaul of their business models, customer acquisition strategies, and risk management frameworks [11][12]. Competitive Landscape - Leading lending platforms are less affected by the regulatory changes due to their focus on lower-interest lending and stronger risk management practices [2][14]. - The concentration of the lending industry is expected to increase as stronger platforms leverage their compliance and technological advantages to capture market share during the ongoing industry shakeout [15].