Core Viewpoint - Xunzhong Communication Technology Co., Ltd. is preparing for an IPO on the Hong Kong Stock Exchange after multiple unsuccessful attempts in other markets, indicating a strong desire for capital to support business growth and product upgrades [1][5][9]. Company Overview - Founded in 2008 by Park Seong-geun, Xunzhong Communication is a full-stack cloud communication service provider with over 25 years of experience in the IT industry [7]. - The company has undergone several rounds of investment, with major shareholders including Park Seong-geun (27.36%) and institutional investors like Lianchuang Innovation and Dongfang Huagai [7][9]. - Xunzhong primarily offers three types of solutions: Cloud Communication Services, Intelligent Communication Solutions, and Other Communication Solutions, with CPaaS being the core business [8][9]. Financial Performance - Revenue for 2022, 2023, and 2024 was approximately CNY 810 million, CNY 916 million, and CNY 918 million, respectively, showing stable but insufficient growth [9]. - Net profit decreased significantly in 2024, dropping over 30% year-on-year to CNY 50.64 million, attributed to asset impairment losses [9][10]. - The company has faced cash flow issues, with operating cash outflows for the past three years totaling CNY 117 million, CNY 56.21 million, and CNY 114 million [12][13]. Market Position - Xunzhong ranks third in China's cloud communication service market, holding a market share of 1.8% in 2024, with the overall market expected to grow from CNY 503 billion in 2024 to CNY 745 billion by 2029 [8][15]. - The competitive landscape is intense, with around 800 cloud communication service providers in China, and the top five accounting for approximately 20.9% of the market [15]. Challenges and Opportunities - The company faces challenges in maintaining profitability due to high telecom resource costs and increased accounts receivable [12][13]. - Despite these challenges, Xunzhong has opportunities in the digital economy, particularly in the tourism sector, leveraging AI technology to enhance service offerings [17][18].

Summary of Key Points Core Viewpoint The article provides an overview of the recent activities in the Hong Kong stock market, highlighting the number of companies that have submitted applications for listing, those that have passed the hearing, and details about their financial performance and market positions. Group 1: New Applications - A total of 19 companies submitted applications to the Hong Kong Stock Exchange from June 16 to June 22 [3] - New Hope Group (600803.SH) is the largest private natural gas company in China, with a market share of approximately 6.1% in 2024 [3] - Wolong Technology (002130.SZ) is the second-largest high-speed copper cable manufacturer globally, holding a 24.9% market share [4] - Beijing Geekplus Technology Co., Ltd. is the largest provider of AMR solutions globally, maintaining its leading position for six consecutive years [5] - Banu International Holdings is the largest hot pot brand in China by revenue, with a market share of 3.1% [6] - Hope Sea Inc. is the largest comprehensive electronic product import supply chain solution provider in China, with an import GMV of approximately RMB 34.8 billion in 2024 [7] - Guangzhou Shiyuan Electronic Technology Co., Ltd. ranks first in the Chinese market for interactive smart panels with a 25.0% market share [8] - Anmai Biotechnology Co., Ltd. ranks second globally in T-cell connector therapy, with total transaction values exceeding USD 2.1 billion [9] - Beijing Haizhi Technology Group focuses on industrial-grade AI solutions, ranking fifth in the Chinese market [10] - Suzhou Jiyi Technology Co., Ltd. ranks second in digital retail operations in China [11] - Drip Irrigation International Investment Co., Ltd. is the first global exchange group based on revenue-sharing models [12] - Zhaowei Electromechanical (003021.SZ) provides integrated micro-drive systems, with revenues projected to grow [13] - Meige Intelligent (002881.SZ) ranks fourth globally in wireless communication modules, holding a 6.4% market share [14] - Yuxin Technology (300674.SZ) is a leading fintech solution provider in China, with significant market shares in various sectors [15] - Shanghai Zhuoyue Ruixin Digital Technology Co., Ltd. ranks second in the digital education market for higher education in China [16] - Zhaoyi Innovation (603986.SH) is the second-largest NOR Flash provider globally, with an 18.5% market share [17] - Changchun Changguang Chenxin Microelectronics Co., Ltd. specializes in high-performance CMOS image sensors [18] - Weichai Lovol Smart Agriculture Technology Co., Ltd. is a leading provider of smart agricultural solutions in China [19] - PPIO is an independent distributed cloud computing service provider [20] - Xiangkang Holdings is a major technical apparel manufacturer for high-end brands [22] Group 2: Companies Passing Hearings - Four companies passed the listing hearing this week, including Fuwai Group, which is a pan-Asian life insurance company with projected insurance revenue growth [24] - Fengcai Technology focuses on chip design for BLDC motor control, ranking sixth in the Chinese market [25] - Xunzhong Communication Technology Co., Ltd. is the third-largest cloud communication service provider in China [26] - Cloudbreak Pharma Inc. is a clinical-stage ophthalmic biotech company with two core products [27] Group 3: Recent IPOs - Haitan Flavor Industry (03288.HK) raised approximately HKD 10.1 billion in its IPO, with a slight decline in stock price post-listing [28] - Sanhua Intelligent (02050.HK) had a strong subscription rate for its IPO [29] - Baize Medical (02609.HK) and other companies also reported significant subscription rates for their IPOs [30][31][32][33]

Core Insights - Xunzhong Co., Ltd. is the third-largest cloud communication service provider in China, with a market share of 1.8% based on 2024 revenue [4] - The company is one of the earliest providers of cloud communication services in China and among the few offering AI-driven communication services [4] - The core business of the company is Communication Platform as a Service (CPaaS), which accounted for over 80% of its revenue during the historical period [4] Industry Overview - The total revenue of China's cloud communication service market is projected to reach RMB 50.3 billion in 2024, with CPaaS services contributing RMB 44.8 billion and contact center SaaS services RMB 5.5 billion [4] - From 2020 to 2024, the total revenue of the cloud communication service market in China is expected to grow from RMB 35.5 billion to RMB 50.3 billion, representing a compound annual growth rate (CAGR) of 9.1% [4] - The market is anticipated to reach RMB 74.5 billion by 2029, with a CAGR of 8.2% from 2024 to 2029 [4] Financial Performance - Revenue for Xunzhong Co., Ltd. for the years 2022, 2023, and 2024 is approximately RMB 810 million, RMB 916 million, and RMB 918 million respectively [5][8] - Net profit for the same years is reported as RMB 74.66 million, RMB 76.58 million, and RMB 50.64 million respectively [5][8] - The overall gross margin decreased from 24.1% in 2022 to 21.4% in 2023, primarily due to a significant increase in lower-margin messaging service revenue [8] - The gross margin is expected to slightly increase to 22.1% in 2024, driven by a stable revenue structure and higher margins in most business segments [8] Segment Performance - The gross margin for cloud communication services was 25.9% in 2022, 21.7% in 2023, and is projected to be 22.2% in 2024 [9] - The gross margin for CPaaS services was 22.6% in 2022, 18.3% in 2023, and is expected to be 18.9% in 2024 [9] - The gross margin for project-based communication solutions increased from 54.9% in 2022 to 61.3% in 2023, and is projected to reach 64.9% in 2024 [9]