Core Viewpoint - The company, Hangzhou Tongshifu Cultural and Creative (Group) Co., Ltd., has submitted an application for listing on the Hong Kong Stock Exchange, with CMB International as the sole sponsor. The company focuses on integrating traditional craftsmanship with modern design to develop copper cultural and creative products, holding a leading market position in China [1][5]. Company Overview - Tongshifu has maintained a strong market presence in the copper cultural and creative product sector, ranking first in China with a market share of 35.0% as of December 31, 2024 [5][6]. - The company has evolved from a traditional copper workshop into a leading cultural brand over ten years, expanding its product range to include gold, silver, and plastic materials [5][6]. - The core product category remains copper cultural and creative products, which accounted for approximately 94.9% to 96.6% of total revenue from 2022 to 2024 [6][7]. Financial Performance - Revenue figures for Tongshifu are as follows: approximately CNY 5.03 billion in 2022, CNY 5.06 billion in 2023, and CNY 5.71 billion in 2024, with estimates of CNY 2.84 billion and CNY 3.08 billion for the first half of 2024 and 2025, respectively [7][10]. - Profit figures show a decline from CNY 569.38 million in 2022 to CNY 441.31 million in 2023, followed by an increase to CNY 789.82 million in 2024, with estimates of CNY 397.65 million and CNY 302.44 million for the first half of 2024 and 2025, respectively [8][10]. - Gross profit margins have improved from 32.2% in 2022 to 35.4% in 2024, with a slight decrease to 35.1% in the first half of 2025 [9][10]. Industry Overview - The global cultural and creative industry is projected to grow from CNY 16 trillion in 2019 to CNY 19.5 trillion by 2024, with a compound annual growth rate (CAGR) of 4.0% [11]. - The cultural and creative product market in China is expected to expand from CNY 4.5 trillion in 2019 to CNY 6.4 trillion by 2024, with a CAGR of 7.4% [13]. - The metal cultural and creative product market in China is anticipated to grow from CNY 231 billion in 2019 to CNY 252 billion by 2024, with copper products showing the strongest growth at a CAGR of 7.3% [16].

Core Viewpoint - Copper Master, a cultural and creative company specializing in copper crafts, has submitted its listing application to the Hong Kong Stock Exchange, with significant backing from Lei Jun, founder of Xiaomi, who is a major investor in the company [1][8]. Company Overview - The founder, Yu Guang, has a diverse background, having previously sold insurance and worked in home renovation before establishing Copper Master [2][3]. - Copper Master was founded after Yu Guang's personal experience with the high prices of copper art pieces, leading him to create his own products [3]. - The company has achieved significant revenue growth, with a reported total revenue of 1.06 billion RMB in 2016 [3]. Investment and Shareholding - Copper Master secured 110 million RMB in Series A funding in 2017, followed by 310 million RMB in Series B funding in 2018, with continued investment from Xiaomi and Shunwei Capital [8]. - The current shareholding structure shows Yu Guang as the largest shareholder with 26.27%, followed by Shunwei Capital and Tianjin Jinmi [9]. Market Position and Financial Performance - The copper craft market has shown strong growth, with the market size projected to increase from 1.1 billion RMB in 2019 to 1.6 billion RMB by 2024, reflecting a compound annual growth rate (CAGR) of 7.3% [11][15]. - Copper Master holds a 35% market share in the copper cultural and creative product segment, leading the revenue in this niche [13]. - The company's revenue for 2022, 2023, and 2024 is estimated at approximately 503 million RMB, 506 million RMB, and 571 million RMB, respectively [14]. Revenue Composition - Copper Master heavily relies on copper cultural products, which accounted for 95.4%, 96.3%, and 96.6% of total revenue from 2022 to 2024 [11][12]. - The company has a high dependency on a single product category, which poses potential risks [11]. Growth Comparison - Despite the overall market growth, Copper Master's revenue growth rate of 6.55% from 2022 to 2024 is lower than the industry average, indicating a potential gap in performance relative to market trends [15]. Expenditure Analysis - The company has allocated significantly more to platform services and marketing compared to research and development, with expenditures of 47.8 million RMB, 55.7 million RMB, and 49.4 million RMB from 2022 to 2024 [18][19].

Core Viewpoint - The company, Hangzhou Tongshifu Cultural and Creative (Group) Co., Ltd., is preparing for an IPO on the Hong Kong Stock Exchange, but its growth rate is lagging behind the industry, raising concerns about its future performance [2][5]. Financial Performance - For the years 2022 to 2024, the company reported revenues of RMB 503.185 million, RMB 506.383 million, and RMB 571.188 million, with net profits of RMB 56.938 million, RMB 44.131 million, and RMB 78.982 million, indicating fluctuating profitability despite revenue growth [3][4]. - The company's main revenue source is copper cultural products, which accounted for 95.4%, 96.3%, and 96.6% of total revenue during the same period, highlighting its reliance on this product line [4]. Market Position - According to a report by Frost & Sullivan, the company holds a leading position in the Chinese copper cultural product market with a market share of 35% as of the end of 2024 [4]. - However, the company's average annual compound growth rate (CAGR) of 6.54% from 2022 to 2024 is significantly lower than the industry CAGR of 9.21%, indicating a failure to capitalize on market growth [5]. Valuation Trends - The company's valuation has seen a dramatic decline, dropping from RMB 26.14 billion in July 2021 to RMB 16 billion by December 2022, a decrease of 38.26% [2][6]. - The valuation crisis is further illustrated by a shareholder transferring shares at RMB 4.16 per share in December 2024, a staggering drop of over 85% from the previous valuation of RMB 28.07 per share in December 2022 [11].