Group 1 - The Hong Kong IPO market is experiencing a surge, with five companies completing their IPOs on July 9, 2025, marking a significant moment reminiscent of the 2018 tech listing boom [2] - The five companies that went public on the same day include 极智嘉-W, 蓝思科技, FORTIOR, 讯众通信, and 大众口腔, all of which had a successful debut with positive first-day performance [3][4] Group 2 - The first-day performance of the five companies showed gains ranging from 0.22% to 16.02%, with FORTIOR leading at a 16.02% increase, resulting in a market capitalization of approximately 20.8 billion HKD [3] - 蓝思科技 achieved a first-day increase of 9.13%, with a total market value reaching 129.3 billion HKD, while 极智嘉 saw a 5.36% rise, totaling 23 billion HKD in market capitalization [3] - The IPOs were highly sought after, with FORTIOR's public offering receiving 138.26 times subscription, and 蓝思科技's public offering receiving 462.76 times subscription, indicating strong investor interest [3][4] Group 3 - As of July 7, 2025, over 200 companies are in the queue for IPOs in Hong Kong, primarily from the technology, new consumption, and healthcare sectors, reflecting robust market activity [5] - The first half of 2025 saw 44 new listings, a 47% increase from the same period last year, with total fundraising amounting to 1,071 billion HKD, a 699% increase year-on-year [6] - The Hong Kong stock market is expected to maintain its momentum, with projections of around 80 new listings and fundraising between 1,300 billion HKD to 1,500 billion HKD for the entire year [7]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) experienced a significant day on July 9, with five companies, including Lens Technology and Geek+, going public simultaneously, marking a historic event with six gongs being struck at once [1][3]. Group 1: Companies Going Public - The five companies listed on July 9 raised a total of approximately HKD 98.21 billion in net proceeds, with Lens Technology leading the fundraising efforts [4]. - Lens Technology's shares were priced at HKD 18.18, achieving a subscription rate of 462.76 times for public offerings and 16.68 times for international offerings, resulting in net proceeds of about HKD 46.94 billion [5][7]. - Geek+ focused on logistics robotics, priced its shares at HKD 16.8, and garnered a subscription rate of 133.62 times for public offerings, raising approximately HKD 25.45 billion [7]. - Xunzhong Communication, a cloud communication service provider, priced its shares at HKD 13.55, achieving a subscription rate of 12.79 times for public offerings, raising around HKD 3.68 billion [7]. - Peak Semiconductor, operating in the semiconductor sector, priced its shares at HKD 120.5, with a subscription rate of 138.26 times for public offerings, raising approximately HKD 21.36 billion [7]. - Dazhong Dental, the only healthcare company among the listings, priced its shares at HKD 20, achieving a subscription rate of 108.25 times for public offerings, raising about HKD 1.78 billion [7]. Group 2: Market Trends and Future Outlook - The IPO market in Hong Kong has been robust, with 44 new listings in the first half of 2025, a 47% increase from 30 in the same period last year, and total fundraising amounting to HKD 107.1 billion, a 699% increase year-on-year [8]. - The Hong Kong IPO market is expected to remain strong in the second half of the year, supported by favorable funding and policy conditions, particularly for technology companies [8]. - As of June 30, 2025, there were 211 companies in the pipeline for IPOs, with over 80% being first-time applicants, primarily in software services, healthcare, and industrial manufacturing [9].

Core Insights - The company has a significant reliance on its top five customers, with their revenue contributions accounting for approximately 41.8%, 36.7%, and 35.3% of total revenue in 2022, 2023, and 2024 respectively [6][7] - The company ranks third among cloud communication service providers in China, holding a market share of 1.8% in 2024 [2][5] - The company's core business is centered around its CPaaS platform, which constitutes over 80% of its revenue [2] Financial Performance - The company reported revenues of approximately 810 million RMB, 916 million RMB, and 918 million RMB for the years 2022, 2023, and 2024 respectively [3][4] - Net profit for the company was approximately 75 million RMB, 77 million RMB, and 51 million RMB for the same years, showing a 2.5% increase from 2022 to 2023, followed by a 33.9% decrease from 2023 to 2024 [3][4] - The gross profit margins remained relatively stable, with gross profits of approximately 195 million RMB in 2022 and 2023, and increasing to about 203 million RMB in 2024 [4] Market Context - The total revenue of the Chinese cloud communication services market is projected to grow from 355 billion RMB in 2020 to 503 billion RMB in 2024, with a compound annual growth rate (CAGR) of 9.1% [5] - The company has registered 7 invention patents and 201 software copyrights related to its main business and services as of December 31, 2024 [5] - The company has served over 2400 enterprise clients in 2022 and 2023, with a slight decrease to 2100 clients in 2024 [6] Legal Matters - The company is currently involved in two related contract disputes concerning transactions with Beijing Yunxi Technology Co., Ltd. and Beijing Yakang Huanyu Technology Co., Ltd. [7] - A back-to-back transaction was established in January 2024, involving a purchase of disputed goods for 104 million RMB and a sale for 109 million RMB, with delivery deadlines that were not met [7]

Core Viewpoint - Xunzhong Communication Technology Co., Ltd. plans to issue 30.44 million H-shares and is expected to be listed on the Hong Kong Stock Exchange on July 9, 2025, aiming to raise approximately HKD 4.12 billion to HKD 4.61 billion [1][3]. Company Overview - Xunzhong Communication is a full-stack cloud communication service provider, with its main business including cloud communication services, intelligent communication solutions, and other communication solutions [4]. - The company was established in September 2008 and is currently listed on the New Third Board since June 16, 2015 [3][4]. Financial Performance - Revenue for 2022, 2023, and 2024 was approximately RMB 810 million, RMB 916 million, and RMB 918 million, respectively, with gross profits of RMB 195 million, RMB 196 million, and RMB 203 million [5][6]. - Net profits for the same years were RMB 74.66 million, RMB 76.58 million, and RMB 50.64 million [5][6]. Fundraising and Use of Proceeds - The expected share price range is HKD 13.55 to HKD 15.15, with a median price of HKD 14.35, leading to a net fundraising amount of approximately HKD 3.91 billion [3][6]. - The company plans to allocate approximately 45.4% of the raised funds for continuous improvement and development of services and solutions, 15.6% for expanding sales channels, 16.2% for acquisitions in China, 12.8% for repaying outstanding loans, and 10.0% for working capital and other general corporate purposes [6]. Key Shareholders - Major shareholders include Park Seong-geun, Chengdu Unicom Innovation Investment, and Huagai Capital, with Park Seong-geun being the largest shareholder holding 27.36% [4].

Group 1 - The company plans to globally offer 30.44 million H-shares, with 3.044 million shares available for sale in Hong Kong and 27.396 million shares for international sale, along with an over-allotment option of approximately 15% [1] - The expected pricing range for the shares is between HKD 13.55 and HKD 15.15 per share, with the subscription period from June 30 to July 4, 2025, and the expected listing date on July 9, 2025 [1] - The company is the third-largest cloud communication service provider in China, holding a market share of 1.8% of the total revenue in the Chinese cloud communication service market for 2024 [2] Group 2 - The company has entered into cornerstone investment agreements, with cornerstone investors agreeing to subscribe for shares amounting to approximately HKD 131 million, assuming a mid-range offer price of HKD 14.35 per share [3] - The estimated net proceeds from the global offering are approximately HKD 391 million, which will be allocated as follows: 45.4% for service and solution development, 15.6% for expanding sales channels, 16.2% for acquisitions in China, 12.8% for repaying outstanding loans, and 10.0% for working capital and other general corporate purposes [3] - The company is one of the few in China capable of providing AI-driven communication services, with its core business being Communication Platform as a Service (CPaaS), which accounted for over 80% of its revenue during the historical period [2]

Group 1 - The company, Xunzhong Communication (02597), plans to conduct an IPO from June 30 to July 4, 2025, offering 30.44 million H-shares, with 10% allocated for Hong Kong and 90% for international sales [1] - The expected price range for the shares is between HKD 13.55 and HKD 15.15, with trading anticipated to start on July 9, 2025 [1] - The company is the third-largest cloud communication service provider in China, holding a market share of 1.8% of the total revenue in the Chinese cloud communication market for 2024 [1] Group 2 - For the IPO, assuming a median price of HKD 14.35 per share, the company estimates a net proceeds of approximately HKD 391 million, with allocations for service improvements (45.4%), sales channel expansion (15.6%), acquisitions in China (16.2%), loan repayments (12.8%), and working capital (10.0%) [2] - If the over-allotment option is fully exercised, the net proceeds could reach up to HKD 481 million at the highest price of HKD 15.15 per share [2] - The company has entered into a cornerstone investment agreement with Tongzhou International, where investors have agreed to subscribe for shares amounting to approximately HKD 131 million [2]

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]