Core Insights - The report highlights the significant decline in the influencer economy in China, with the market size previously projected to reach 8 trillion yuan by 2025, now facing challenges due to a slowdown in the advertising market and increased competition [2][6] - Tianxiaxiu, a key player in the influencer economy, is planning to issue H-shares and list on the Hong Kong Stock Exchange to enhance its international brand image and competitiveness amid declining performance [2][6] - The company has experienced a drastic drop in revenue and net profit from 2021 to 2024, with net profit plummeting by 87.20% [7][9] Company Overview - Tianxiaxiu was founded in 2009 and has leveraged the rise of mobile internet and social media platforms like Weibo to establish itself in the influencer marketing space [3][4] - The company has developed various platforms, including WEIQ, for influencer marketing and has received significant investment, achieving a valuation exceeding 10 billion yuan in 2017 [4][5] Financial Performance - From 2021 to 2024, Tianxiaxiu's revenue decreased from 45.12 billion yuan to 40.66 billion yuan, with net profit dropping from 3.36 billion yuan to 0.43 billion yuan, marking a continuous decline over three years [7][9] - The company's cash flow has also been negative, with a net outflow of 1.85 billion yuan as of June 2025, and cash reserves falling to 1.393 billion yuan, the lowest since its reverse listing [7][9] Market Challenges - The influencer economy is facing significant challenges, including a slowdown in growth and increased competition, leading to a divergence in the market [2][6] - Tianxiaxiu's overseas business expansion has been slow, and its innovative projects have not yet turned profitable, raising concerns about its future performance [8][9] Institutional Investor Behavior - There has been a notable trend of institutional investors reducing their stakes in Tianxiaxiu, with a net decrease in institutional holdings observed from late 2024 to mid-2025 [8]