Core Insights - The recent update of the Hongmeng version of the Suning.com app introduces a "Cloud Service" feature aimed at enhancing service communication efficiency and improving consumer experience for Hongmeng users [1][3]. Group 1: Service Enhancements - The "Cloud Service" allows Hongmeng users to subscribe and receive timely updates on the latest promotions and discounts from the Suning.com platform, facilitating a more informed shopping experience [3]. - This update signifies a step forward in the refined operation and intelligent service for Hongmeng users [3]. Group 2: Promotional Activities - In conjunction with the Double Eleven shopping festival, the Hongmeng version of Suning.com is launching a substantial subsidy policy, offering a total of 2020 yuan in discount coupons [5]. - The coupons come in various denominations, such as "200 off 20" and "500 off 50," applicable across a wide range of categories including home appliances, 3C products, and fast-moving consumer goods [5][7]. - During the promotional period, these subsidies can be combined with government consumption subsidies and regional exclusive discounts, allowing for significant price reductions on certain products [7].

Core Viewpoint - Zhongqi Yunlian Co., Ltd. is seeking to list on the Hong Kong Stock Exchange for the second time, aiming to raise funds primarily for enhancing core technology, infrastructure, marketing capabilities, and international market expansion [1] Company Overview - Established in 2015, Zhongqi Yunlian is an independent digital financial platform that connects various stakeholders in the industrial financial supply chain [1] - The company ranks first in China's industrial digital financial platform market with a market share of 12.9% based on total financing obtained in 2024 [1][2] Financial Performance - The company reported a gross profit margin of 96% and has shown continuous revenue growth, with revenues of 6.52 billion, 8.79 billion, and 9.91 billion yuan from 2022 to 2024 [4][5] - The main revenue drivers are the cloud credit services, which contributed 79.1%, 85.0%, and 88.5% of total revenue during the same period [3] Business Segments - Zhongqi Yunlian operates three main business segments: rights confirmation and factoring services, scenario digital business, and other ecological businesses [2] - The cloud credit services are the primary revenue source, while scenario digital business has also shown growth, contributing 4.6%, 7.3%, and 7.0% of total revenue from 2022 to 2024 [3] Key Operational Metrics - The financing rates during the reporting period were 72.6%, 71.6%, and 72.0%, with core enterprise retention rates of 88.5%, 86.0%, and 87.8% [4] - The company experienced fluctuations in cash flow, with net cash flow from operating activities recorded at -1.307 billion, 88.48 million, and 26.27 million yuan [7] Cost Structure - Sales and marketing expenses accounted for over 40% of total revenue during the reporting period, indicating significant investment in market promotion and business development [6] - Research and administrative expenses were also substantial, comprising 18.2%, 17.7%, and 17.4% of total revenue [6] Shareholder Structure - Liu Jiangsheng holds a 64.79% partnership interest in Yunding Assets, which is the largest shareholder group of Zhongqi Yunlian [8] Legal and Regulatory Issues - As of June 19, 2023, Zhongqi Yunlian was involved in nine legal cases, including contract disputes and trademark infringement [8]

Core Viewpoint - Zhongqi Yunlian Co., Ltd. is making a second attempt to go public on the Hong Kong Stock Exchange, supported by clearer regulatory guidelines for supply chain finance, which have shifted from cautious observation to active guidance and regulation [1][2]. Financial Performance - Zhongqi Yunlian has shown steady growth in revenue and net profit from 2022 to 2024, with revenues of 652 million, 879 million, and 991 million RMB, and corresponding net profits of 45.7 million, 152 million, and 157.5 million RMB [2][9]. Business Model and User Growth - The company operates an independent digital financial platform that connects supply chain data, facilitating financing needs for enterprises. User numbers on the platform have grown significantly, from approximately 230,000 in 2022 to 556,000 in 2024 [3][4]. Market Position - According to Frost & Sullivan, Zhongqi Yunlian ranks first in China's digital financial platforms with a market share of 12.9% as of 2024. The company has also surpassed 1 trillion RMB in confirmed accounts receivable, reaching over 2 trillion RMB within 20 months [4][10]. Revenue Composition - The company's core business segments include rights confirmation and factoring, digital scene business, and other ecological businesses. The rights confirmation and factoring business accounted for over 91% of total revenue from 2022 to 2024, with electronic voucher services being the primary revenue driver [4][5][6]. Profitability and Cost Structure - Zhongqi Yunlian has improved its gross margin from 87.7% in 2022 to 95.9% in 2024, primarily due to a shift towards higher-margin digital services. However, the company faces challenges with high sales and marketing expenses, which accounted for approximately 42% of total revenue in recent years [6][9]. Competitive Landscape - The company faces increasing competition from bank-affiliated platforms and state-owned enterprises that are developing their own supply chain finance platforms. This competition could pressure Zhongqi Yunlian's market share if it cannot differentiate its services [8][10]. Regulatory Environment - Recent regulatory changes require adjustments in accounts receivable payment terms, which may impact the company's performance. The company must adapt to these new compliance requirements to maintain its market position [10][11]. Industry Growth Potential - The independent digital enterprise confirmation platform market in China is projected to grow from 1.4 trillion RMB in 2022 to 6.6 trillion RMB by 2027, with a compound annual growth rate of 36.7%. As a market leader, Zhongqi Yunlian is well-positioned to benefit from this growth [10].

Core Viewpoint - The company, Zhongqi Yunlian, established in 2015, operates primarily in three business segments: rights confirmation and factoring, scenario digital business, and other ecological businesses, with the rights confirmation and factoring business being the main source of revenue and profit [2][3]. Business Overview - As of December 31, 2022, 2023, and 2024, the number of users on the Yunlian platform was 230,400, 372,900, and 556,600 respectively, covering 98% of China's municipalities and prefecture-level cities [2]. - The company reported revenues of RMB 652.67 million, RMB 879.65 million, and RMB 991.01 million for the years 2022, 2023, and 2024, with gross profits of RMB 571.74 million, RMB 821.28 million, and RMB 949.98 million [3][5]. Revenue Composition - The revenue from cloud credit services significantly increased, accounting for 79.1%, 85%, and 88.5% of total revenue during the reporting period [6]. - The factoring service revenue showed a notable decline, contributing only 11.6%, 6.2%, and 2.1% to total revenue over the same period, down from 34.2% in 2020 [8][9]. Shareholder Dynamics - The company has experienced a trend of shareholder exits since 2019, with several state-owned enterprises and financial institutions divesting their stakes [10][11]. - As of the latest date, the top three shareholders are Yunding Assets, Tianjin Economic Development Zone State Investment, and Huayu Guochuang Fund, holding 23.11%, 20.73%, and 10.31% respectively [12]. Market Position and Competition - Banks are the primary clients of Zhongqi Yunlian, but there is a growing trend of banks entering the supply chain finance sector, potentially transforming former partners into competitors [13].