Core Viewpoint - Shandong Kuailu Technology Development Co., Ltd. (Kuailu Technology) has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for five strategic directions, including expanding service networks and enhancing product offerings [1]. Group 1: Company Overview - Kuailu Technology, established in 2014, provides customized solutions for short-distance green travel, primarily serving light electric vehicle users and large commercial logistics [3]. - As of 2024, Kuailu Technology holds a 2.2% market share in the short-distance green travel technology service sector in mainland China, ranking first in the industry [3]. Group 2: Financial Performance - The company's revenue for the years 2022, 2023, and 2024 was approximately RMB 1.31 billion, RMB 1.22 billion, and RMB 1.63 billion, respectively, with a year-on-year decline of 6.7% in 2023 and a projected growth of 33.4% in 2024 [4][5]. - Net profits for the same years were RMB 6.29 million, RMB 2.30 million, and RMB 7.99 million, indicating a concerning profitability trend with net profit margins of only 0.5%, 0.2%, and 0.5% [4][5]. - Operating cash flow for the years was RMB 0.28 billion, RMB 0.72 billion, and RMB 0.84 billion, totaling RMB 1.84 billion over three years, while the total net profit was approximately RMB 16.58 million [6][7]. Group 3: Supply Chain and Dependency - Kuailu Technology's primary revenue source is the sale of lead-acid batteries, which accounted for 99.4%, 99.4%, and 99.1% of total revenue during the reporting period, with the Jinchaowei brand dominating the sales [12]. - The company heavily relies on its largest supplier, Chaowei Group, which constituted 98.5%, 87.0%, and 99.2% of total procurement amounts over the same periods, raising concerns about operational stability due to this supplier concentration [14].

Core Viewpoint - Shandong Kuailu Technology Development Co., Ltd. (Kuailu Technology) has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for five strategic directions, including expanding service networks and enhancing product offerings [1][3]. Company Overview - Kuailu Technology, established in 2014, provides customized solutions for short-distance green travel, serving light electric vehicle users and large commercial logistics [3]. - As of 2024, Kuailu Technology holds a 2.2% market share in the short-distance green travel technology service sector in mainland China, ranking first in the industry [3]. Financial Performance - Revenue for Kuailu Technology during the reporting period (2022-2024) was approximately RMB 1.31 billion, RMB 1.22 billion, and RMB 1.63 billion, with a year-on-year decline of 6.7% in 2023 and a growth of 33.4% in 2024 [4][5]. - Net profit figures for the same period were RMB 6.29 million, RMB 2.30 million, and RMB 7.99 million, indicating a concerning profitability trend [4][5]. - Gross profit margins were 3.5%, 3.4%, and 4.1%, while net profit margins were only 0.5%, 0.2%, and 0.5% [5]. Cash Flow and Inventory Management - The net cash flow from operating activities was RMB 0.28 billion, RMB 0.72 billion, and RMB 0.84 billion over the three years, totaling RMB 1.84 billion, while the total net profit was approximately RMB 16.58 million [6]. - Inventory levels decreased from approximately RMB 3.89 million to RMB 2.51 million, while trade and other receivables showed a mismatch with revenue growth [7][8]. Ownership Structure - Before the IPO, Changxing Mingyuan New Energy Partnership held 62.55% of Kuailu Technology, with Wu Yingjie controlling 85.50% of the company through various entities [8]. - Wu Yingjie, the founder and current chairman, has extensive experience in marketing and business management [8][9]. Supplier Dependency - Kuailu Technology's primary supplier is Chaowei Group, which has been a significant partner since 2017, with revenue from lead-acid battery sales accounting for 99.4% of total income during the reporting period [10][11]. - The procurement amounts from the top five suppliers were approximately RMB 12.61 billion, RMB 11.53 billion, and RMB 15.17 billion, with Chaowei Group being the largest supplier [11][12]. - The high dependency on Chaowei Group poses potential risks to the company's operational stability, as any disruption in the relationship could adversely affect business performance [12].

Core Viewpoint - Kuailu Technology, a leading short-distance green travel technology service provider in China, has submitted its IPO application to the Hong Kong Stock Exchange, marking its first attempt to go public [1][2]. Company Overview - Founded in 2014, Kuailu Technology focuses on providing customized solutions for light electric vehicle users, large commercial logistics, and urban green shared travel users [1]. - The company has developed a comprehensive ecosystem centered around Kuailu Travel, Kuailu Selection, and Kuailu Education, offering diverse products and services [3]. Financial Performance - Kuailu Technology's revenue has shown significant growth, with reported revenues of 1.311 billion RMB, 1.223 billion RMB, and 1.631 billion RMB for the years 2022, 2023, and 2024 respectively, despite a 6.7% decline in 2023 [3]. - The net profit figures for the same years were 6.293 million RMB, 2.295 million RMB, and 7.993 million RMB, indicating notable fluctuations in profitability [4]. - As of December 31, 2024, the company reported a net cash flow from operating activities of 84.31 million RMB and cash and cash equivalents of 312 million RMB, reflecting a healthy financial structure [4]. Market Position - Kuailu Technology holds a 2.2% market share in the short-distance green travel technology service sector, making it a leading player in the industry [2]. - The overall market for short-distance green travel services in China is projected to grow from 43.9 billion RMB in 2020 to 72.2 billion RMB in 2024, with a compound annual growth rate (CAGR) of 13.3% [8]. Competitive Landscape - The company faces increasing competition from both independent service platforms and traditional electric two-wheeler manufacturers, which could pressure its market share [9]. - Kuailu Technology's reliance on a single supplier, Chaowei Group, poses a risk, as approximately 98.5% to 99.2% of its total purchases from 2022 to 2024 were from this supplier [6][7]. Strategic Initiatives - To address competitive pressures, Kuailu Technology plans to use IPO proceeds to expand its service network, enhance store image, and develop new product experience zones, among other initiatives [9].

Core Viewpoint - Shandong Kuailu Technology Development Co., Ltd. (referred to as "Kuailu Technology") has submitted its prospectus for an initial public offering on the main board of the Hong Kong Stock Exchange, aiming to capitalize on the growing demand for customized solutions in short-distance green travel [1][3]. Company Overview - Kuailu Technology provides customized solutions including batteries and components, technical support, and training to meet diverse short-distance green travel needs [3]. - According to Frost & Sullivan, Kuailu Technology is a leading comprehensive service provider for short-distance green travel technology in mainland China, holding a market share of 2.2% as of 2024 [3]. - The company's service network covers all 31 provinces in China, with over 950 regional service providers and 20,000 local partner stores as of the end of 2024 [3]. - Established in October 2014, Kuailu Technology was previously known as Zhejiang Kuailu Technology Co., Ltd. and relocated from Hangzhou, Zhejiang Province to Tai'an, Shandong Province in July 2023 [3]. Ownership Structure - The registered capital of Kuailu Technology is approximately 11.11 million yuan, with Wu Yingjie as the legal representative [3]. - Wu Yingjie directly controls 13.50% of the company's shares and holds a total of 85.50% voting rights through Longxing Mingyuan and Longxing Mingwei [5]. Business Segments - Kuailu Technology's brands include "Kuailu Travel," "Kuailu Selection," and "Kuailu Education," with "Kuailu Travel" being the core brand [7]. - The main business activities involve providing lead-acid and lithium-ion batteries, selling chargers, tires, and various parts for short-distance light electric vehicles [7]. - The company primarily generates revenue from the "Jinchaowei" brand, alongside its own brand offerings [7]. Financial Performance - Kuailu Technology's revenue for the years 2022, 2023, and 2024 was approximately 1.31 billion yuan, 1.22 billion yuan, and 1.63 billion yuan, respectively, with net profits of 6.29 million yuan, 2.30 million yuan, and 7.99 million yuan [7][8]. - Revenue from the Jinchaowei brand accounted for 95.1%, 84.9%, and 70.6% of total revenue in 2022, 2023, and 2024, respectively [8]. - The company relies heavily on Super Energy Group as its largest supplier, with procurement amounts from this supplier constituting 98.5%, 87.0%, and 99.2% of total procurement in the respective years [9].

Core Viewpoint - Shandong Kuailu Technology Development Co., Ltd. (Kuailu Technology) has submitted an application for listing on the Hong Kong Stock Exchange, with CMB International as the sole sponsor [1] Company Overview - Kuailu Technology is a leading provider of short-distance green travel technology services in mainland China, holding a market share of 2.2% based on projected revenue for 2024 [3] - The company collaborates with regional service providers and local partner stores to create a service platform for light electric vehicle users, large commercial logistics providers, and urban green shared travel users [3][8] Business Model and Services - The company operates a network covering all 31 provinces in China, with over 950 regional service providers and 20,000 partner stores [4] - Kuailu Technology offers customized solutions including batteries, components, technical support, and training to meet diverse short-distance green travel needs [4][6] - The main business includes providing lead-acid and lithium-ion batteries, selling chargers and tires, and offering technical training and consulting services to local partner stores [6] Financial Performance - Revenue for the years ending December 31 for 2022, 2023, and 2024 is approximately RMB 1.31 billion, RMB 1.22 billion, and RMB 1.63 billion, respectively [5][14] - The net profit for the same periods is RMB 6.29 million, RMB 2.30 million, and RMB 7.99 million, respectively [5][14] - The company’s revenue from regional service providers accounted for nearly all sales, with amounts of approximately RMB 1.31 billion, RMB 1.22 billion, and RMB 1.63 billion for the respective years [10][11] Market Potential - The market for short-distance green travel technology services in mainland China is projected to grow from RMB 43.9 billion in 2020 to RMB 72.2 billion in 2024, with a compound annual growth rate (CAGR) of 13.3% [5] - The total sales of light electric vehicles in mainland China are expected to increase from 56.6 million in 2020 to 77.7 million in 2024, with a CAGR of 8.2% [13] Supply Chain and Risks - The company relies heavily on a single supplier, Chaowei Group, for its lead-acid batteries, which poses a concentration risk [12] - Kuailu Technology has maintained a close business relationship with Chaowei Group since 2017, with purchases from them constituting approximately 98.5%, 87.0%, and 99.2% of total purchases for the years ending 2022, 2023, and 2024, respectively [12]