Core Viewpoint - Jihong Co., Ltd. is set to launch its IPO, offering 67.91 million shares at a price range of HKD 7.48 to 10.68, with H-shares expected to be listed on May 27, 2023. The company is positioned as the first "AI-driven cross-border social e-commerce A+H stock" and is a leader in both the B2C export e-commerce and paper fast-moving consumer goods packaging industries, showcasing significant multi-dimensional value potential [1]. Industry Overview - Jihong Co., Ltd. operates in the B2C export social media e-commerce sector and the paper fast-moving consumer goods packaging industry, both characterized by large market space and high growth potential. The Chinese B2C export e-commerce market is projected to reach USD 927.6 billion by 2029, accounting for 11.4% of the global market, with a compound annual growth rate (CAGR) of 15.2% from 2024 to 2029 [2]. - The Asian segment of the B2C export e-commerce market is expected to grow to USD 458.4 billion by 2029, with a CAGR of 15.8%, outpacing the overall market growth. Social media is identified as the fastest-growing traffic source in this sector, with the Asian market projected to reach USD 69.5 billion by 2029, growing at a CAGR of 19.0% [2]. Company Strategy and Performance - Jihong Co., Ltd. employs an AI-driven approach to enhance operational efficiency in cross-border e-commerce, effectively reshaping the competitive landscape and reducing costs. This strategy allows for improved product selection, marketing, and user experience, transitioning the competition from resource consumption to algorithm evolution [5]. - The company focuses on the Asian market, particularly along the Belt and Road Initiative, which provides stability against fluctuations in Western markets. Over 80% of its cross-border e-commerce revenue comes from Asia, with minimal exposure to the U.S. market [5]. - Jihong Co., Ltd. has a robust long-term strategy that includes AI-driven e-commerce, proprietary brand development, and international expansion of its packaging business. The company has developed the Giikin system to optimize its operations across the supply chain, achieving a low inventory turnover ratio and high return on investment (ROI) compared to industry averages [8][9]. - The company has established several proprietary brands and is leveraging its marketing data to enhance brand influence and sales efficiency. Its packaging business has also expanded into new markets, collaborating with local firms to strengthen its operational capabilities [9][10]. Financial Performance - In 2024, Jihong Co., Ltd. is projected to generate revenue of CNY 3.366 billion from cross-border social e-commerce, accounting for 60.9% of total revenue, while its paper packaging business is expected to contribute CNY 2.099 billion, or 38% [11]. - The company is anticipated to maintain a gross margin of 60.5% for its cross-border e-commerce segment, supporting an overall gross margin of 43.8%. In Q1 2025, Jihong Co., Ltd. reported a revenue of CNY 1.477 billion, a year-on-year increase of 11.55%, with net profit rising by 38.21% [11]. Conclusion - Jihong Co., Ltd.'s upcoming IPO is expected to enhance its market visibility and provide a platform for international expansion, potentially transforming it from a regional leader to a global player. The company's strategic focus on technology and market positioning is likely to drive its value and attract investor interest [12][13].

Core Viewpoint - Xiamen Jihong Technology Co., Ltd. (Jihong Co., 002803.SZ) is set to go public on the Hong Kong Stock Exchange, leveraging its "data + technology" model to drive growth in cross-border e-commerce and packaging services, with projected revenues exceeding 5 billion RMB from 2022 to 2024 and a peak net profit of 332 million RMB [1][2][6]. Group 1: Company Overview - Jihong Co. focuses on ToC precision marketing cross-border social e-commerce and ToB comprehensive marketing design packaging services, establishing a differentiated competitive edge through AI technology [2][6]. - The company has formed deep partnerships with leading fast-moving consumer goods (FMCG) brands such as Yili and Luckin Coffee, and has achieved a leading position in emerging markets like Southeast Asia and the Middle East [2][6][15]. - Jihong Co. ranks second among B2C export e-commerce companies in China with a market share of 1.3% and leads in the paper-based FMCG sales packaging sector with a market share of 1.2% [8][12]. Group 2: Financial Performance - The company's revenue for 2022, 2023, and 2024 is projected to be 5.376 billion RMB, 6.695 billion RMB, and 5.529 billion RMB, respectively, with corresponding net profits of 172 million RMB, 332 million RMB, and 184 million RMB [6][15]. - In Q1 2025, Jihong Co. reported a revenue of 1.477 billion RMB, an increase of 11.55% year-on-year, and a net profit of 59 million RMB, up 38.21% year-on-year [15][17]. Group 3: Market Dynamics - The paper-based sales packaging industry is experiencing rapid growth, with the market size expected to reach 613.1 billion RMB by 2024 [9][10]. - The market for paper-based FMCG sales packaging has grown from 145.6 billion RMB in 2020 to an estimated 170.3 billion RMB in 2024, with projections to reach 222.7 billion RMB by 2029 [10][12]. - Environmental policies are enhancing competitive advantages, as the Chinese government promotes the use of eco-friendly alternatives in packaging [12][14]. Group 4: Strategic Initiatives - Jihong Co. plans to invest in technology iteration and overseas capacity expansion through its IPO proceeds, focusing on self-owned brands and eco-friendly packaging to expand its global footprint [1][4][18]. - The company has established a strategic partnership with VENU STRADING FZCO to build a sales network in the Middle East and Africa, focusing on packaging production and trade platforms [16]. - Jihong Co. aims to enhance its market competitiveness through the development of self-owned brands, leveraging its accumulated marketing data and technological advantages [15][17].