Core Viewpoint - Suzhou Jiyi Technology Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, with CITIC Securities as the sole sponsor, marking a significant step for the company in the digital retail and e-commerce service sector in China [3]. Group 1: Company Overview - Established in October 2015, Jiyi Technology is a comprehensive digital retail operation service provider and Silk Road e-commerce service provider in China [3]. - The company focuses on brand asset management driven by AI and digital intelligence, aiming to enhance brand growth and value [3]. Group 2: Investment and Financing - Jiyi Technology received its first significant investment from JD Group's Jiangsu JD Bangneng Investment Management Co., Ltd. in January 2018, which acquired a 25% stake for 25 million RMB [3]. - The company has completed five rounds of financing, including pre-IPO funding, raising a total of approximately 440 million RMB [3]. Group 3: Shareholding Structure - Prior to the IPO application, the controlling shareholder, Wang Shan, held approximately 33.45% of the company's equity through various entities [4]. - Wang Shan has gradually diluted her shareholding through multiple transfers, cashing out approximately 47.9 million RMB [4]. Group 4: Special Rights and Agreements - Investors have been granted special rights, including tag-along rights, preemptive rights, anti-dilution rights, redemption rights, and board nomination rights [7]. - Although the related agreements were suspended upon the IPO application submission, they will automatically resume if the IPO is rejected or not completed within 18 months [8].

Core Viewpoint - Suzhou Jiyi Technology Co., Ltd. is pursuing an IPO on the Hong Kong Stock Exchange, facing declining revenue in its primary business segment of "Brand-to-Consumer Solutions" while compensating with growth in "Brand-to-Business Solutions" [1][2] Revenue and Profit Summary - Revenue from 2022 to 2024 is projected to be RMB 1.117 billion, RMB 1.356 billion, and RMB 1.400 billion, respectively, with corresponding profits of RMB 37.58 million, RMB 24.87 million, and RMB 49.82 million, indicating a low net profit margin with significant volatility [2][4] - The net profit margins for the respective years are 3.4%, 1.8%, and 3.6% [2] Business Segment Performance - The "Brand-to-Consumer Solutions" segment, which is the largest revenue source, has seen its revenue share decline from 88.5% in 2022 to 60.2% in 2024 [4][5] - The "Brand-to-Business Solutions" segment has increased its revenue share from 5.7% in 2022 to 35.3% in 2024, indicating a strategic shift [5][6] Cost Management and Profitability - In 2024, despite only a slight increase in revenue, profits doubled year-on-year due to a nearly 20% reduction in sales expenses, with employee costs and warehousing expenses decreasing by over 20% and 30%, respectively [7][10][12] - The gross profit for 2024 is projected at RMB 202.31 million, with a gross profit margin of 14.4% [8] Client Dependency - The largest client, referred to as Client A, accounted for 72.0%, 48.1%, and 38.8% of revenue from 2022 to 2024, indicating a significant dependency on this client [1][14] - Client A is likely to be JD.com, which also holds a 9.5% stake in Jiyi Technology [13][15]