Core Insights - The article highlights the increasing awareness among companies regarding brand building, with a focus on enhancing the influence and competitiveness of domestic brands in China, particularly in sectors like cosmetics, apparel, and electronics [1] - The advertising industry in China is projected to generate over 1.5 trillion yuan in revenue by 2024, with internet advertising accounting for 86.5% of total revenue [1] - Shenghuo Technology Group Limited is seeking to go public on the Hong Kong Stock Exchange, aiming to leverage its marketing services primarily for fast-moving consumer goods [1][2] Industry Overview - The integrated marketing industry is segmented into three tiers: upstream brand owners and advertising agencies, midstream integrated marketing service providers, and downstream media channels and consumers [3][4] - Shenghuo Technology operates in the midstream, providing integrated marketing services that include market research, brand strategy design, and multi-channel marketing execution [5] Financial Performance - Shenghuo Technology's revenue sources include integrated marketing services, marketing technology services, and advertising marketing services, with integrated marketing services accounting for over 40% of total revenue during the reporting period [6][7] - The company has experienced revenue growth, with figures of approximately 1.12 billion yuan in 2022, 1.63 billion yuan in 2023, and 2.52 billion yuan in 2024, although gross margins have declined from 35% in 2022 to 22.8% in the first half of 2025 [10][11] Client and Supplier Dynamics - Shenghuo Technology has a high client concentration, with significant revenue derived from major clients like Master Kong and Pepsi, and over 45% of revenue coming from its largest client [8][9] - The company relies on various suppliers for resources, with the top five suppliers accounting for approximately 42.9% of total procurement costs [8] Market Trends - The integrated marketing market in China is expected to grow from 804 billion yuan in 2024 to 993 billion yuan by 2029, with a compound annual growth rate (CAGR) of about 4.3% [12] - The advertising spending in China is projected to reach approximately 1.57 trillion yuan in 2024, with online advertising expected to exceed 2.35 trillion yuan by 2029, reflecting a CAGR of around 10.6% [12] Competitive Landscape - The integrated marketing and advertising services market in China is highly fragmented, with significant competition from companies like BlueFocus and others, which may have broader reach and more resources [15] - Shenghuo Technology holds a market share of 1.8%, ranking fourth among competitors in the integrated marketing sector [15] Company Structure and Leadership - Shenghuo Technology was founded in 2013 and is headquartered in Guangzhou, with its founders holding a combined 95.8% stake in the company [16][17] - The company has a history of dividend payments, with significant dividends declared in 2024 and the first half of 2025 [18]

Core Viewpoint - Shenghuo Technology Group Limited has submitted its prospectus to the Hong Kong Stock Exchange, with Cinda International as the sole sponsor, indicating its intention to go public and expand its marketing technology services in China [2]. Company Overview - Shenghuo Technology, established in 2013 and headquartered in Guangzhou, China, provides integrated marketing services, marketing technology services, and advertising marketing services [2]. - The company ranks fourth among QR code marketing solution providers in China, with a market share of approximately 1.8% based on revenue projections for 2024 [2]. Financial Performance - Shenghuo Technology's revenue for the years 2022 to 2024 is projected to be CNY 112.287 million, CNY 163.446 million, and CNY 251.886 million, respectively [3]. - The annual profit for the same years is expected to be CNY 19.78 million, CNY 27.152 million, and CNY 33.204 million, respectively [3]. - In the first half of 2025, the company achieved revenue of CNY 128.5 million, representing a year-on-year growth of 78.26%, with a profit of CNY 12.1 million, up 28.38% year-on-year [2][3]. Ownership Structure - Before the IPO, Zhong Jian holds 78.7% of the company's issued share capital through Fuyuan BVI, while Luo Xinyan holds 17.1% through Xiufei BVI, collectively controlling 95.8% of the company [3]. Management Team - Zhong Jian, the founder and chairman, has over 20 years of management experience and has held various executive roles in different companies prior to establishing Shenghuo Technology [4][5]. - Luo Zhiyong, the CEO, joined the group in 2013 and has been responsible for overall operations and management since his appointment as CEO in 2025 [8].

Group 1 - The company held its 15th meeting of the 6th Board of Directors on June 19, 2025, with all 5 directors present, complying with legal and regulatory requirements [1][2] - The Board approved an application for financing of up to RMB 100 million from Jiangsu Bank, with the final amount subject to the bank's approval based on the company's operational needs [1] - The Board agreed to establish a joint venture, Shanghai Longyun Nuoya Marketing Planning Co., Ltd., with a registered capital of RMB 10 million, where the company will contribute RMB 6.5 million (65%) [1][2] Group 2 - The Board authorized the management to handle the specific registration matters for the establishment of the joint venture [2]