Core Viewpoint - Xunzhong Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange after previously attempting to sell to Dahua Intelligent and later pursuing an IPO on the Beijing Stock Exchange. The company aims to expand its market presence, particularly in Southeast Asia, amidst fluctuating revenues and increasing competition in the cloud communication sector [1][15][16]. Company Overview - Founded in 2008, Xunzhong Co., Ltd. specializes in cloud communication services, intelligent cloud contact services, call operation services, and intelligent scenario applications. The core business, known as CPaaS (Communication Platform as a Service), accounted for over 80% of its revenue during the reporting period [1][4]. - As of July 31, 2023, the company's stock price was 7.12 RMB per share, with a market capitalization of approximately 650 million RMB [1]. Financial Performance - The total revenue for Xunzhong Co., Ltd. for the years 2021, 2022, and 2023 was 994 million RMB, 810 million RMB, and 916 million RMB, respectively. The profit for the same years was 74.8 million RMB, 74.7 million RMB, and 76.6 million RMB [4][5]. - The company experienced an 18.5% decline in total revenue in 2022, attributed to intensified market competition and reduced demand for mobile traffic services due to the pandemic [6][8]. - In the first quarter of 2024, revenue decreased by 19.7% compared to the first quarter of 2023, primarily due to a 20.1% drop in cloud communication service revenue [6][8]. Market Position - According to Frost & Sullivan, Xunzhong Co., Ltd. is the largest full-stack cloud communication service provider in China by revenue in 2023, with a market share of approximately 1.8% [1][2]. - The company ranks fourth in the Chinese cloud communication service market, with significant competition from other established players [2]. Customer Base - The number of enterprise clients has fluctuated, with over 3,500 clients in 2021, 2,400 in 2022, and remaining at 2,400 in 2023. The revenue from the top five clients accounted for approximately 40.8%, 41.8%, 36.7%, and 55.4% of total revenue during the respective years [6][8]. Future Plans - The company plans to use the funds raised from the Hong Kong IPO to enhance its services and solutions, including integrating large language models into existing cloud communication services and expanding its sales channels [8]. - Xunzhong Co., Ltd. aims to explore business opportunities in Southeast Asia, targeting companies with over 100 employees and annual revenues exceeding 50 million HKD [8].

Core Viewpoint - Beijing Xunzhong Communication Technology Co., Ltd. (referred to as "Xunzhong") is preparing for an IPO on the Hong Kong Stock Exchange, having submitted its prospectus after hearing on June 20, 2025, and is currently listed on the New Third Board with the stock code 832646.NQ [4][12]. Company Overview - Xunzhong, established in 2008, is a comprehensive cloud communication service and solution provider, focusing on simplifying communication [7]. - The company offers three main types of solutions: cloud communication services, intelligent communication solutions, and other communication services and accessories [7]. - According to Frost & Sullivan, Xunzhong ranks as the largest full-stack cloud communication service provider in China by revenue as of 2024 [7]. Business Segments - **Cloud Communication Services**: This includes a range of value-added communication services primarily delivered through APIs, focusing on messaging, voice, and mobile traffic communication. The core of the business is Communication Platform as a Service (CPaaS) [7]. - **Intelligent Communication Solutions**: These solutions enhance organizational communication using software or hardware combinations, leveraging technologies like data analysis and cloud computing [7]. - **Other Communication Services and Accessories**: This segment includes dedicated mobile phones, contact center outsourcing, and video conferencing solutions, which have been strategically reduced due to intense competition and low profitability [7]. Financial Performance - Xunzhong's revenue for the years 2022, 2023, and 2024 was RMB 809.743 million, RMB 915.630 million, and RMB 917.606 million, respectively [12][14]. - The net profit for the same years was RMB 74.660 million, RMB 76.584 million, and RMB 50.642 million, showing fluctuations in profitability [12][14]. Shareholder Structure - As of May 31, 2025, Xunzhong had 558 shareholders, with the largest single shareholder, Mr. Park Seong-geun, holding 27.36% of the shares [8][12]. Board of Directors - The board consists of 8 members, including executive directors and independent non-executive directors, with Mr. Park Seong-geun serving as the chairman and CEO [10][13]. Underwriting Team - The IPO's underwriting team includes DBS Asia as the sole sponsor, with Ernst & Young as the auditor and King & Wood Mallesons as the legal advisor [14].