Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $47 million, an increase of $5.2 million or 12.4% year over year, marking the highest quarterly revenue since Q3 2021 [5] - Net loss decreased to $7.6 million from $13.5 million in the same period last year [5] - Adjusted EBITDA was reported at negative $1.2 million [5] Business Line Data and Key Metrics Changes - OEM revenue reached $3.6 million, growing by $600,000 or 19.7% year over year [5] - New unit sales volume increased by 6.2% year over year, compared to the industry's growth of 2.8% in new vehicle retail sales [5] - Prospect close rates during the quarter were the highest since Q2 2021, attributed to improved lead quality and marketing efficiency [5][34] Market Data and Key Metrics Changes - The company noted a shift in dealer priorities towards vehicle sourcing initiatives due to constrained new vehicle supply, emphasizing the importance of used vehicle availability [24] - A significant increase in online vehicle sales penetration was reported, with 71% of surveyed dealers viewing the shift to online sales as permanent, up from 53% in December 2024 [16] Company Strategy and Development Direction - The company is focused on enhancing the TrueCar Plus platform and aims to commercialize it by year-end, which is seen as critical for future growth [16] - Recent product enhancements aim to improve lead quality and dealer engagement, including actionable insights and motivated buyer features [9][10] - The strategy includes expanding dealer partnerships and integrating more OEM incentives into the platform [16][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future despite macroeconomic uncertainties, highlighting the importance of a modern marketplace for automotive retail [16] - The company is prepared to navigate various revenue growth scenarios and aims for adjusted EBITDA profitability and positive free cash flow in 2025 [17] - Management acknowledged the challenges posed by tariffs and interest rates but emphasized the ongoing demand for vehicles [20][21] Other Important Information - The company has made significant progress in integrating with key DMS providers to streamline dealer operations [11] - Enhancements to the consumer experience, such as redesigned search results and vehicle detail pages, are expected to improve engagement and conversion rates [10][12] Q&A Session Summary Question: Update on TrueCar's growth and used vehicle initiatives - Management emphasized the importance of enabling consumers to find the right vehicles, whether new or used, and highlighted efforts to support dealers in sourcing used vehicles directly from consumers [20][24] Question: Capital allocation priorities and share buyback plans - Management indicated openness to share repurchases as part of their capital allocation strategy, especially as they aim for free cash flow breakeven [26][27] Question: Trends regarding franchise dealer turnover and prospect close rates - Management noted that dealer turnover is not a major concern and attributed the high prospect close rates to improved dealer engagement and marketing efficiency [31][34] Question: Momentum in dealer revenue and internal investments - Management explained that revenue growth is driven by a combination of factors, including unit growth and improved dealer efficiency, while also focusing on enhancing the dealer and consumer experience [39][45] Question: OEM incentive revenue outlook - Management remains optimistic about OEM incentive revenue, viewing it as a significant opportunity despite current market challenges [46][49] Question: Second half outlook for non-dealer product revenue - Management expressed caution in providing specific revenue forecasts due to market uncertainties but highlighted the importance of maintaining a healthy dealer network [52][56] Question: Impact of AI on TrueCar's marketplace model - Management acknowledged the relevance of AI in the automotive retail space and emphasized the importance of their affinity network in maintaining consumer trust [61][64]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has requested Shanghai Kaijie E-commerce Co., Ltd. (Kaijie E-commerce) to provide supplementary information regarding its previous listing attempts and current plans for A-share listing, amid a backdrop of declining financial performance [1][2][3]. Financial Performance - Kaijie E-commerce reported revenues of approximately 1.829 billion yuan, 1.723 billion yuan, and 1.699 billion yuan for the years 2022, 2023, and 2024, respectively, indicating a continuous decline in revenue [4]. - The company's net profits for the same years were approximately 86 million yuan, 68 million yuan, and 60 million yuan, also reflecting a downward trend [4]. - Revenue from the top five customers accounted for 20.8%, 25.1%, and 26.6% of total revenue in 2022, 2023, and 2024, respectively [4]. - The largest customer contributed 16.7%, 18.6%, and 21.7% of total revenue for the years ending December 31, 2022, 2023, and 2024, respectively [4]. Listing and Regulatory Requirements - The CSRC has mandated Kaijie E-commerce to clarify its previous listing attempts on the National Equities Exchange and Quotations (NEEQ) and the reasons for its withdrawal from the A-share listing process [2][3]. - The company had previously listed on the NEEQ in May 2016 and voluntarily delisted in May 2019, with two subsequent A-share listing applications being withdrawn [3]. - The CSRC requires a legal opinion on whether the proposed shareholders' shares are subject to any pledges, freezes, or other rights defects [3]. Business Operations and Strategy - Kaijie E-commerce is a digital retail solution provider, ranked as the fifth largest in China by GMV in 2024 and the largest O2O digital retail solution provider [4]. - The company aims to use the funds raised from its listing for strategic business expansion, innovation, upgrading digital capabilities, strengthening its technical team and infrastructure, and expanding overseas, particularly in Southeast Asia and Europe [5].

Core Insights - The article highlights the growth and positioning of the company, Jiyi Technology, as a leading digital retail comprehensive operation service provider in China, focusing on AI-driven brand asset management and cross-border e-commerce services [3][4]. Company Overview - Jiyi Technology is recognized as the second-largest digital retail comprehensive operation service provider in China and the fifth-largest e-commerce operation service provider based on GMV projections for 2024 [3]. - The company ranks first among cross-border import e-commerce operation service providers in China according to GMV for 2024 [3]. Financial Performance - The company's GMV increased from 8.2 billion RMB in 2022 to 11.1 billion RMB in 2023, representing a growth of 35.1%, and is projected to reach 15 billion RMB in 2024, further increasing by 35.3% [4]. - Revenue figures for the years 2022, 2023, and 2024 are approximately 1.12 billion RMB, 1.36 billion RMB, and 1.4 billion RMB respectively [4][6]. - The company reported annual profits of approximately 37.6 million RMB in 2022, 24.9 million RMB in 2023, and 49.8 million RMB in 2024 [4][6]. Service Capabilities - Jiyi Technology has established partnerships with over 200 global brands across various sectors, including health, beauty, fast-moving consumer goods, home, and appliances [3]. - The company provides digital retail comprehensive operation services to major supermarkets, assisting traditional retailers in integrating online and offline channels [3]. Market Positioning - The company has transitioned from a traffic-oriented e-commerce operation model to a consumer demand-driven model, focusing on product innovation and consumer scenario construction [4].

Group 1 - Shanghai Kaijie submitted its IPO application to the Hong Kong Stock Exchange on May 28, with CITIC Securities as the exclusive sponsor [1] - Established in 2010, Shanghai Kaijie is a digital retail solutions provider serving over 200 brands, including more than 100 international brands across various industries [1] - The company is recognized as the fifth largest digital retail solutions provider in China and the largest O2O digital retail solutions provider by GMV in 2024 [1][4] Group 2 - Financial data shows a decline in revenue and profit from 2022 to 2024, with revenues of approximately 1.829 billion, 1.723 billion, and 1.699 billion yuan, and profits of 86.47 million, 67.59 million, and 60.43 million yuan respectively [1][4] - The company's gross margin has also decreased consecutively, with overall gross margins of 24.0%, 22.9%, and 21.8% from 2022 to 2024 [4] Group 3 - Shanghai Kaijie previously attempted to list on the A-share market but was unsuccessful, having withdrawn its application for the ChiNext board in December 2021 and later deciding not to pursue listing on the Shanghai Stock Exchange [5] - As of the latest date, the controlling shareholder, Xu Hao, and his concerted parties hold 70.94% of the voting rights [5] Group 4 - The funds raised from the IPO will be used for strategic business expansion, upgrading digital capabilities, strengthening the technical team and infrastructure, and expanding overseas, particularly in Southeast Asia and Europe [7]

Core Viewpoint - Shanghai Kaijie E-commerce Co., Ltd. (Kaijie E-commerce) has submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities International as the sole sponsor [1]. Company Overview - Kaijie E-commerce is a leading digital retail solutions provider in China, offering comprehensive digital retail solutions across the entire value chain of the e-commerce ecosystem, including brand positioning, product development consulting, retail operations, channel management, marketing promotion, order fulfillment, and data and IT services [5]. - According to Zhaoshang Consulting, by GMV in 2024, the company ranks as the fifth largest digital retail solutions provider in China and the largest O2O digital retail solutions provider [5]. - The company has served over 200 brands, including more than 100 international brands, with partnerships spanning various industries such as food and beverage, beauty and personal care, baby products, trendy toys, pet care, health, outdoor sports, and chain enterprises [5]. Business Relationships - Kaijie E-commerce maintains an average partnership duration of over eight years with major brand partners, with over 90% of these partnerships still active as of May 21, 2025 [5]. - Nearly 50% of the company's brand partners are from the Fortune 500 fast-moving consumer goods companies [5]. Market Position and Recognition - The company has established a multi-channel network covering over ten core digital retail platforms, including Tmall, JD.com, Douyin, and Pinduoduo [6]. - It has been recognized as a Tmall Six-Star Service Provider for seven consecutive years since 2018 and has received various accolades from Alibaba's ecosystem, including Tmall and Alimama [6]. Financial Performance - For the fiscal years 2022, 2023, and 2024, the company reported revenues of approximately RMB 1.83 billion, RMB 1.72 billion, and RMB 1.70 billion, respectively [6][8]. - The net profits for the same periods were RMB 86.47 million, RMB 67.59 million, and RMB 60.43 million, respectively [6][8]. - The gross profit margins have shown a declining trend, with margins of 24.0%, 22.9%, and 21.8% for the years 2022, 2023, and 2024, respectively [8].

Core Insights - The capital market's attitude towards the digital retail industry is becoming more cautious due to changing market conditions and increased risk awareness among investors [2] - In 2022, China's digital retail sector experienced a significant decline in financing activities, with a total of 97 financing events, down 45.8% year-on-year [2] - The total financing amount for digital retail in China in 2022 was only 4.49 billion yuan, a drastic decrease of 93.65% compared to the previous year [4] - Despite the overall downturn, specific segments like live e-commerce and digital collectibles saw substantial growth, with the latter experiencing a 1100% increase in financing events [4] Financing Trends - In 2022, the digital retail industry in China recorded 97 financing events, a 45.8% decrease from the previous year [2] - The total financing amount for the sector was 4.49 billion yuan, reflecting a 93.65% year-on-year drop [4] - Live e-commerce reached a market size of 3.5 trillion yuan in 2022, growing by 48.21% [7] - Digital collectibles had 24 financing events in 2022, with a total financing amount of approximately 170 million yuan, marking an 84-fold increase [4] Industry Structure - The digital retail industry can be categorized into three tiers: - The first tier includes live e-commerce, social e-commerce, maternal and infant e-commerce, and automotive e-commerce, all reaching a GMV of over one trillion yuan [7] - The second tier consists of fresh e-commerce, second-hand e-commerce, and beauty e-commerce, each with a market size in the hundreds of billions [7] - The third tier includes retail e-commerce SaaS, nearing a thousand billion yuan [7] Research Methodology - The research team employed a combination of desktop research, quantitative surveys, and qualitative analysis to assess the digital retail industry's market capacity, industry chain, operational characteristics, profitability, and business models [6] - Various analytical models such as SCP, SWOT, PEST, regression analysis, and SPACE matrix were utilized to evaluate market environment, industry policies, competitive landscape, technological innovations, market risks, industry barriers, opportunities, and challenges [6] Future Outlook - A comprehensive report titled "2024-2030 China Digital Retail Industry Market Development Monitoring and Investment Strategy Consulting Report" is being prepared to guide investment decisions and strategic planning for enterprises, research institutions, and investment organizations [6]