Core Viewpoint - Shanghai Kaijie E-commerce Co., Ltd. (referred to as "Kaijie E-commerce") has submitted an IPO application to the Hong Kong Stock Exchange, positioning itself as a "digital retail solution provider" for brand partners, amidst a backdrop of declining revenues in the e-commerce agency sector [2][3][11]. Group 1: Company Overview - Kaijie E-commerce claims to have established a comprehensive omnichannel network covering over ten core digital retail platforms, serving more than 200 brands [2]. - The company has faced challenges in its IPO journey, having previously attempted to list on the A-share market twice without success [5][6][7][8]. - As of the latest data, the company's revenue has shown a continuous decline over the past three years, with projected revenue for 2024 down 1.4% year-on-year [3][12]. Group 2: Financial Performance - The GMV (Gross Merchandise Volume) for Kaijie E-commerce was reported at RMB 81.78 billion in 2022, RMB 100.02 billion in 2023, and is projected to reach RMB 134.59 billion in 2024 [12]. - Revenue figures for the same years were RMB 18.29 billion, RMB 17.23 billion, and RMB 16.99 billion, respectively, indicating a downward trend [12][13]. - Net profit has also declined, with figures of RMB 0.86 billion, RMB 0.68 billion, and RMB 0.60 billion for 2022, 2023, and 2024, respectively [12]. Group 3: Market Context - The e-commerce agency industry is currently facing growth challenges, with many companies experiencing similar declines in performance [17]. - The top five market participants in China's digital retail solutions market collectively hold about 10% of the total market share as of 2024 [11]. - The competitive landscape is characterized by increasing pressure on e-commerce businesses, leading to a shift towards self-operated models by brands to reduce costs [18]. Group 4: Future Plans - Kaijie E-commerce aims to use the funds raised from the IPO for strategic expansion, innovation, and enhancing its digital capabilities, as well as expanding its overseas business [4][21]. - The company is targeting Southeast Asia and Europe for its international expansion, capitalizing on the rapid growth of the digital retail market in these regions [21][22]. - Industry experts suggest that while challenges exist in overseas markets, there are opportunities for e-commerce agencies to provide specialized services to brands looking to enter these markets [23][24].