Core Viewpoint - Zhongqi Yunlian Co., Ltd. has submitted its prospectus to the Hong Kong Stock Exchange for the second time after an initial failure in October 2023, aiming to address challenges in supply chain finance through its digital financial platform [1] Company Background - Established in 2015, Zhongqi Yunlian is a mixed-ownership enterprise controlled by state-owned enterprises, initiated by China CRRC and involving multiple central and local state-owned enterprises and financial institutions [2] - The company utilizes blockchain and big data technologies to create an "N+N+N" ecosystem, linking core enterprises, chain enterprises, and financial institutions [2] - The largest shareholder is the employee stock ownership platform, Yunding Assets, holding 23.11% of shares, while other institutional investors hold a combined 20.73% [2] Business Performance - The core revenue sources are rights confirmation and factoring services, contributing 65.7%, 55.0%, and 55.2% of revenue from 2022 to 2024, with "Yunxin" services increasing from 79.1% to 88.5% during the same period [2][5] - The user base of the Yunlian platform grew from 230,434 to 556,588 from 2022 to 2024, covering 98% of China's municipalities [3] - The platform's core enterprise retention rates were 88.5%, 86.0%, and 87.8% over the same period [3] Market Position - According to Frost & Sullivan, Zhongqi Yunlian is the largest digital accounts receivable rights confirmation platform in China, holding a market share of 29.5% in confirmed accounts receivable and 32.6% in financing amounts as of 2024 [3][4] - The company has been recognized in the KPMG China Fintech 50 for four consecutive years [3] Financial Overview - Revenue increased from RMB 652.27 million in 2022 to RMB 991.01 million in 2024, with net profit rising from RMB 46.85 million to RMB 157.48 million during the same period [5][6] - The proportion of sales expenses relative to revenue was 46.7%, 42.7%, and 42.3% from 2022 to 2024, indicating high investment in sales despite user growth [8] Risks and Concerns - The high concentration of revenue from the "Yunxin" service raises concerns about income stability if core enterprises shift to self-built platforms or if market competition intensifies [5][7] - The company's current liabilities surged from RMB 482 million in 2022 to RMB 1.074 billion in 2024, indicating increased debt pressure [7][8]