Core Viewpoint - Shenzhen Huaxida Technology Co., Ltd. (referred to as "Huaxida") has chosen to pursue a listing on the Hong Kong Stock Exchange after failing to list on the A-share market, with CITIC Securities International as the exclusive sponsor [1][8]. Company Overview - Established in 2003, Huaxida is a national high-tech enterprise engaged in the research, development, sales of software and hardware products, and cloud services. Its core products include Android TV smart terminal products authorized by Google and Netflix, next-generation network access communication products, XMedia TV video cloud platform, terminal device management systems, and value-added operation services [4]. - According to Frost & Sullivan, Huaxida ranks as the eighth largest provider in the global AI Home solutions market for enterprise clients by revenue in 2024, and is the third largest provider in China [4]. Financial Performance - Huaxida's revenue for the years 2022 to 2024 is approximately 2.529 billion, 2.367 billion, and 2.541 billion yuan, respectively, while net profit has declined from approximately 251 million to 137 million yuan over the same period, marking two consecutive years of profit decline [5]. - The revenue from hardware product sales constitutes the majority of Huaxida's income, accounting for approximately 97.7%, 97.1%, and 91.1% of total revenue from 2022 to 2024 [5]. - The company's income is primarily derived from overseas markets, particularly in the Americas and Europe, with overseas revenue of approximately 2.453 billion, 2.269 billion, and 2.406 billion yuan, representing 97%, 95.8%, and 94.7% of total revenue during the same period [5]. Shareholding Structure - Li Bo is the controlling shareholder and actual controller of Huaxida, holding 26.42% of the company's shares. He is also a general partner in several limited partnership enterprises, collectively holding approximately 36.61% of the voting rights at shareholder meetings [6]. Listing History - Huaxida was previously listed on the New Third Board with the code "430755" but terminated its listing in February 2025 [7]. - The company has faced challenges in its attempts to list on the A-share market, including signing a guidance agreement with Changcheng Securities in March 2020, which did not progress after a year [9]. In July 2022, it signed another guidance agreement with Century Securities for an initial public offering on the Beijing Stock Exchange, but this application was formally terminated in January 2024 after three rounds of inquiries focused on the authenticity of its financials [10][11]. Compliance Issues - During its time on the New Third Board, Huaxida encountered three compliance incidents, including failure to timely disclose related transactions, which led to warnings and disciplinary actions from regulatory bodies [12][13].

Core Viewpoint - Shenzhen Huaxida Technology Co., Ltd. (referred to as "Huaxida") has chosen to pursue a listing on the Hong Kong Stock Exchange after failing to list on the A-share market, with CITIC Securities as the exclusive sponsor [1][8]. Group 1: Company Overview - Huaxida, established in 2003, is a national high-tech enterprise engaged in the research, development, sales of hardware and software products, and cloud services. Its core products include Android TV smart terminal products authorized by Google and Netflix, next-generation network access communication products, XMedia TV video cloud platform, terminal device management systems, and value-added operation services [4]. - According to Frost & Sullivan, Huaxida ranks as the eighth largest provider of AI Home solutions globally and the third largest in China based on projected revenue for 2024 [4]. Group 2: Financial Performance - Huaxida's revenue for the years 2022 to 2024 is approximately 2.529 billion, 2.367 billion, and 2.541 billion yuan, respectively, while net profits are about 251 million, 191 million, and 137 million yuan, indicating a continuous decline in net profit over two years [4]. - The revenue from hardware product sales for the same period is approximately 2.470 billion, 2.298 billion, and 2.315 billion yuan, accounting for about 97.7%, 97.1%, and 91.1% of total revenue, making hardware sales the primary source of income for Huaxida [5]. - The majority of Huaxida's revenue comes from overseas markets, particularly in the Americas and Europe, with overseas revenue of approximately 2.453 billion, 2.269 billion, and 2.406 billion yuan, representing 97%, 95.8%, and 94.7% of total revenue, respectively [5]. Group 3: Corporate Governance and Compliance - Li Bo is the controlling shareholder and actual controller of Huaxida, holding 26.42% of the shares directly. Together with several partnerships, he controls approximately 36.61% of the voting rights at shareholder meetings [5]. - Huaxida has faced compliance issues, including three non-compliance incidents during its time on the New Third Board, leading to disciplinary actions from regulatory bodies [10].

Core Viewpoint - Shenzhen Huaxida Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange after previously withdrawing its application for the Beijing Stock Exchange due to concerns over the authenticity of its financial statements [1][2]. Financial Authenticity Concerns - Huaxida faced three rounds of inquiries from the Beijing Stock Exchange regarding the authenticity and sustainability of its financial performance, particularly questioning the significant growth in trade revenue and the relationship with its largest customer, Smart Media [2][4]. - The company has a high proportion of accounts receivable relative to total assets, yet it maintains the lowest bad debt provision ratio among its peers, raising questions about its accounting policies [10][14]. Customer Relationships and Revenue - Smart Media, a related party and major customer, contributed over 800 million yuan to Huaxida's revenue in 2021 and 2022, accounting for more than 20% of total revenue during those years [6][14]. - The establishment of Smart Media shortly before it became a major customer raises suspicions about the legitimacy of the transactions between Huaxida and Smart Media, as well as the necessity of using Smart Media as an intermediary [7][6]. Audit and Reporting Issues - Huaxida announced it would be unable to disclose its 2024 annual report on time, citing the complexity of the audit process related to its application for overseas listing [8][9]. - The company has previously made multiple corrections to its financial data, which has led to skepticism regarding the reliability of its financial statements [8][9]. Comparison with Peers - Huaxida's accounts receivable as a percentage of total assets were significantly higher than those of comparable companies, with figures of 45.41%, 42.3%, and 36.85% for 2022, 2023, and 2024 respectively [10][11]. - The bad debt provision ratio for Huaxida was notably lower than that of its peers, with 4.65% for both 2022 and 2023, compared to an average of over 10% for comparable companies [14].

Core Viewpoint - Shenzhen Huaxida Technology Co., Ltd. has submitted a prospectus for listing on the Hong Kong Stock Exchange, aiming to enhance its international market influence and financing capabilities after previously withdrawing its A-share application [1][3][5]. Company Overview - Huaxida was established in October 2003, originally as Shenzhen Zhixin Microelectronics Co., Ltd., with a registered capital of approximately 192 million RMB [3]. - The major shareholders include Li Bo and Shenzhen Chuangzhan Internet Partnership [3]. Business Development - The company initially focused on the development and sales of encryption chips, later expanding into digital TV modules and TV sticks [8]. - In 2012, Huaxida launched a digital video solution based on the Android Open Source Project (AOSP) and began expanding its overseas telecom operator business [8]. - The company introduced the XMediaTV streaming platform in 2017 and entered the network infrastructure sector in 2020, offering products such as carrier-grade Wi-Fi routers and optical network terminals [8]. - In 2024, Huaxida launched the Cedar AI smart home agent, capable of situational awareness and semantic understanding for smart home devices [8]. Financial Performance - Revenue for Huaxida in 2022, 2023, and 2024 was approximately 2.53 billion RMB, 2.37 billion RMB, and 2.54 billion RMB, respectively, showing a 6.85% decrease in 2023 [9][11]. - Gross profit for the same years was about 477 million RMB, 500 million RMB, and 482 million RMB, with net profits of approximately 251 million RMB, 191 million RMB, and 137 million RMB, respectively [9][11]. - The company's revenue primarily comes from hardware product sales, accounting for about 97.7%, 97.1%, and 91.1% of total revenue during the reporting period [11]. - The majority of revenue is generated from overseas markets, particularly in the Americas and Europe, contributing approximately 97.0%, 95.8%, and 94.7% of total revenue in the respective years [11].