Core Viewpoint - Xizi Health has submitted its listing application to the Hong Kong Stock Exchange, marking a significant step in its capital expansion process and aiming for high-quality development in the sports nutrition industry [1] Company Overview - Xizi Health operates as a professional sports nutrition brand operator, focusing on industry trends and developing four core brands: FoYes, fiboo, Gu Ben Ri Ji, and HotRule, creating a diverse product matrix [1] - The product range includes core categories such as protein powder, compound whey protein powder, and creatine, as well as trendy functional foods like functional gummies and coffee, targeting various consumer groups [1] Financial Performance - In the first three quarters of 2023, 2024, and 2025, Xizi Health achieved revenues of 1.447 billion yuan, 1.692 billion yuan, and 1.609 billion yuan respectively, with net profits of 93.856 million yuan, 149 million yuan, and 118 million yuan, indicating steady revenue growth and improving profitability [1] Market Trends - The nutrition and health food market in China is experiencing a golden development period, with the market size projected to grow from 297.9 billion yuan in 2020 to 405.7 billion yuan in 2024, reflecting a compound annual growth rate of 8.0% [2] - Consumer health demands are becoming more diversified and personalized, pushing the industry towards specialization and refinement [2] Manufacturing Capabilities - Xizi Health emphasizes smart manufacturing as a core competitive advantage, establishing a high-standard, intelligent production system to ensure stable product supply and quality [2] - The manufacturing base in Jiangxi has a production area of 19,200 square meters and a flexible capacity of 7.35 million barrels of protein powder, allowing for efficient response to diverse market orders [2] Technological Integration - The manufacturing base integrates advanced technologies such as big data, cloud computing, and AI, achieving a production automation level of 95%, which enhances efficiency and reduces costs while maintaining product quality [4] - The company plans to expand production capacity through new production lines and facilities, aiming for rapid product iteration and stringent cost control [4] Quality Control Initiatives - Xizi Health is committed to building a comprehensive quality management system across the entire supply chain, enhancing consistency in quality from procurement to delivery [4]

Core Viewpoint - Xizi Health Group has submitted its listing application to the Hong Kong Stock Exchange, with a significant reliance on online sales channels, particularly through Douyin, raising concerns about its business model amid rising traffic costs [1][3]. Group 1: Financial Performance - Xizi Health's projected revenues for 2023, 2024, and the first nine months of 2025 are approximately 1.447 billion, 1.692 billion, and 1.609 billion yuan, respectively, with net profits of 94 million, 149 million, and 118 million yuan during the same periods [1]. - The company ranks third among Chinese sports nutrition food brand operators and is noted as one of the fastest-growing brands in the sector from 2022 to 2024 [2]. Group 2: Revenue Sources - Approximately 99% of Xizi Health's revenue comes from online channels, with Douyin accounting for over 60% of this income, indicating a heavy reliance on digital platforms for sales [3]. - The company's main brands include FoYes, fiboo, Gu Ben Diary, and HotRule, with FoYes and fiboo contributing 35% and 36.7% to revenue, respectively, in the first three quarters of 2025 [2]. Group 3: Marketing and R&D - Xizi Health's marketing expenses have increased significantly, with sales costs rising from approximately 473 million to 756 million yuan, representing an increase in the sales expense ratio from 32.7% to 47% [4]. - R&D expenditures are notably low, with only 0.5% to 0.7% of revenue allocated to R&D, raising concerns about the company's technological capabilities and potential for product differentiation [4][5]. Group 4: Production and Quality Control - The company primarily relies on third-party manufacturers for its products, which raises concerns about quality control and supply chain management [5]. - Complaints regarding product quality, including safety issues, have been reported by consumers, indicating potential risks associated with the company's reliance on external production [5].

Core Viewpoint - Xizi Health Group has submitted its listing application to the Hong Kong Stock Exchange, with a significant reliance on online sales channels, particularly through Douyin, raising concerns about its business model amid rising traffic costs [1][5]. Financial Performance - Xizi Health's projected revenues for 2023, 2024, and the first nine months of 2025 are approximately 1.447 billion, 1.692 billion, and 1.609 billion yuan respectively, with net profits of 94 million, 149 million, and 118 million yuan for the same periods [1]. - Sales expenses have increased significantly, reaching approximately 473 million, 751 million, and 756 million yuan for the respective years, with the sales expense ratio rising from 32.7% to 47% [6]. Revenue Sources - The company generates 99% of its revenue from online channels, with Douyin accounting for over 62.8% of its income, indicating a heavy dependence on a single platform [5][6]. - The main brands under Xizi Health include FoYes, fiboo, Guben Diary, and HotRule, with FoYes and fiboo contributing 35% and 36.7% to revenue respectively [4]. Market Position - Xizi Health ranks third among Chinese sports nutrition food brand operators and is noted as one of the fastest-growing brands in the sector from 2022 to 2024 [4]. - The company has achieved top rankings in GMV for its products on Douyin, indicating strong market presence [4]. Marketing and R&D - The company employs a "data-driven marketing" strategy, focusing on direct-to-consumer sales while maintaining a low R&D expenditure, which is less than 1% of revenue [6][7]. - Concerns have been raised regarding the low R&D investment, which may affect long-term growth potential and investor confidence [7][8]. Production and Quality Control - Xizi Health relies heavily on third-party manufacturers for its product lines, which raises concerns about quality control and product safety, as evidenced by consumer complaints [7][8].

Core Viewpoint - The company has successfully transformed its business model from third-party brand agency to self-owned brand operation, significantly increasing its revenue and profitability through a strong focus on its proprietary brands [1][5][17]. Business Operations and Model - Xizi Health is a sports nutrition and functional food company with products including protein powder, creatine, and functional gummies, operating under four proprietary brands: FoYes, fiboo, Gu Ben Ri Ji, and Hot Rule [1]. - The revenue share from self-owned brands surged from 42.4% in 2023 to 97.3% in the first nine months of 2025, becoming the main revenue driver [1]. Revenue and Growth - The company reported a revenue of 1.692 billion yuan in 2024, a 17.0% increase from 1.447 billion yuan in 2023, with revenue for the first nine months of 2025 reaching 1.609 billion yuan, reflecting a 23.0% year-on-year growth [2][3]. - The core brand FoYes showed exceptional performance, generating 562 million yuan in the first nine months of 2025, a staggering increase of 364.2% year-on-year, accounting for 35.0% of total revenue [2]. Profitability Metrics - The gross margin improved from 44.4% in 2023 to 59.5% in the first nine months of 2025, driven by the higher margin of self-owned brands, which reached 60.3% compared to 30.8% for third-party brands [3][4]. - Net profit for 2024 was 149 million yuan, a significant increase of 59.0% from 94 million yuan in 2023, but only a slight increase of 1.9% to 118 million yuan in the first nine months of 2025 [3][4]. Revenue Structure Changes - Self-owned brand revenue in 2024 was 1.498 billion yuan, a 144.0% increase from 614 million yuan in 2023, and further increased to 1.567 billion yuan in the first nine months of 2025, a 38.7% year-on-year growth [5]. - In contrast, revenue from third-party brands plummeted by 76.5% to 194 million yuan in 2024 and further declined to 43 million yuan in the first nine months of 2025 [5]. Customer and Supplier Concentration - The concentration of customers decreased significantly, with the top five customers accounting for only 8.1% of revenue in the first nine months of 2025, down from 21.6% in 2023 [6]. - Supplier concentration remains high, with the top five suppliers accounting for 45.0% of purchases, indicating potential supply chain risks [6]. Management and Shareholding Structure - The company's shareholding is highly concentrated, with major shareholders controlling 77.85% of the equity, posing a risk of major shareholder influence [7]. - The core management team has an average industry experience of 15 years but lacks international market experience, which may hinder overseas expansion plans [7]. Research and Development Investment - R&D spending is notably low, with only 0.7% of revenue allocated to R&D in 2025, significantly below industry standards [9][10]. Financial Challenges - The company faces financial challenges, including high sales expenses, with a sales expense ratio of 47.0%, which is significantly above the industry average [15]. - Operating cash flow has been declining, dropping from 2.70 billion yuan in 2023 to 0.66 billion yuan in the first nine months of 2025, a decrease of 75.6% [11][12].

Company Overview - Xizi Health Group is a sports nutrition and functional food company focused on providing high-quality health products and promoting a healthy lifestyle. Its main products include protein powder, whey protein powder, creatine, functional gummies, and coffee [3] - The company has established a brand matrix that includes four proprietary brands: FoYes, fiboo, GuBen Diary, and HotRule, each targeting different consumer needs and demographics [3][4][5] - FoYes, launched in 2024, is the core sports nutrition brand, focusing on high-quality protein products and achieving the highest GMV in the whey protein category on Douyin as of November 30, 2025 [3] - fiboo, introduced in 2021, targets women's nutritional needs and has also ranked first in the GMV for various vitamins and minerals on Douyin as of November 30, 2025 [4] - GuBen Diary, established in 2022, focuses on natural health foods and meal replacements, catering to consumers seeking balanced and lightweight lifestyles [4] - HotRule, launched in April 2025, aims to attract Gen Z consumers with trendy flavors and innovative designs, achieving a GMV of over RMB 60 million by the last feasible date [5] Financial Performance - Xizi Health reported revenues of approximately RMB 1.447 billion for the fiscal year 2023, RMB 1.692 billion for 2024, RMB 1.308 billion for the nine months ending September 30, 2024, and RMB 1.609 billion for the nine months ending September 30, 2025 [7] - The gross profit for the same periods was RMB 642 million, RMB 995 million, RMB 759 million, and RMB 958 million, respectively, with gross margins improving from 44.4% in 2023 to 59.5% in the nine months ending September 30, 2025 [8][9] - The company has seen significant growth in its proprietary brands, with fiboo and GuBen Diary achieving sales exceeding RMB 500 million and RMB 200 million within 31 months and 20 months of launch, respectively [3][4] Industry Overview - The retail sales of nutrition and health foods in China increased from RMB 297.9 billion in 2020 to RMB 405.7 billion in 2024, with a compound annual growth rate (CAGR) of 8.0% from 2020 [12] - The retail sales of sports nutrition foods in China grew from RMB 3.6 billion in 2020 to RMB 8 billion in 2024, with a CAGR of 22.1% [13] - The market is expected to continue growing, with projections indicating that retail sales of nutrition and health foods will reach RMB 645.2 billion by 2029, and sports nutrition foods will reach RMB 19 billion by 2029, driven by increasing participation in sports and expanding consumption scenarios [12][13]

香港聯合交易所有限公司與證券及期貨事務監察委員會對本申請版本的內容概不負責，對其準確性或 完整性亦不發表任何意見，並明確表示概不就因本申請版本全部或任何部分內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 Hunan Xizi Health Group Co., LTD 湖 南 西 子 健 康 集 團 股 份 有 限 公 司 於中華人民共和國成立的股份有限公司） 的申請版本 警告 本申請版本乃根據香港聯合交易所有限公司（「聯交所」）及證券及期貨事務監察委員會（「證監會」） 的要求而刊發，僅用作提供資訊予香港公眾人士。 本申請版本為草擬本，其內所載資料並不完整，亦可能會作出重大變動。 閣下閱覽本文件，即 代表 閣下知悉、接納並向湖南西子健康集團股份有限公司（「本公司」）、其獨家保薦人、整體協 調人、顧問或包銷團成員表示同意： 於 本 公 司 招 股章 程 根 據 香 港 法 例 第 32章 公 司（ 清盤 及 雜 項 條 文 ）條 例 送 呈 香 港 公 司 註冊 處 處 長 登 記前，不會向香港公眾人士提出要約或邀請。倘在適當時候向香港公眾人士提出要約或邀請，有 意投資者務請僅依據於香港公司註冊處處 ...