Group 1 - The China Securities Regulatory Commission (CSRC) has published requirements for supplementary materials for overseas listing applications, specifically addressing the relationship between Hongxing Cold Chain and its controlling shareholders [1] - Hongxing Cold Chain has submitted its application to the Hong Kong Stock Exchange, with Jianyin International and Agricultural Bank of China International as joint sponsors [1] - The CSRC has requested clarification on the pricing basis and compliance of the newly added shareholders acquiring company shares for zero consideration [1] Group 2 - Hongxing Cold Chain is a leading integrated service platform for frozen food trading and cold storage services, with a projected transaction value of approximately RMB 40 billion in 2024, ranking second in Central China and first in Hunan Province [2] - The company's revenue for the years 2022, 2023, and 2024 was RMB 237 million, RMB 202 million, and RMB 234 million respectively, with a compound annual growth rate of -0.67%, while net profits were RMB 79 million, RMB 75 million, and RMB 83 million, with a compound annual growth rate of 2.35% [2] - The increase in revenue is attributed to the completion and operation of cold storage facilities from the fifth phase project and an increase in rental prices for stores [2]

Core Viewpoint - Hongxing Cold Chain (Hunan) Co., Ltd. is preparing for an IPO on the Hong Kong Stock Exchange amid challenges such as increasing vacancy rates and stagnant revenue growth [1][2]. Company Overview - Hongxing Cold Chain is the largest frozen storage service provider in Hunan Province, established in 2006 and headquartered in Changsha [2][3]. - The company’s main business is frozen storage services, followed by leasing services [2]. Financial Performance - From 2022 to 2024, Hongxing Cold Chain reported revenues of 237 million yuan, 202 million yuan, and 234 million yuan, with a compound annual growth rate (CAGR) of approximately -0.64% [3]. - Net profits for the same period were 79.11 million yuan, 75.31 million yuan, and 82.88 million yuan, with a CAGR of only 2.35% [3]. - The company’s total cold storage vacancy rate increased from 3.3% in 2022 to 11.9% in 2024, with the northern frozen storage base reaching a vacancy rate of 32.2% in 2024 [2][7]. Dividend Policy - Hongxing Cold Chain distributed 84.39% of its net profits as dividends over the past three years, with a particularly high dividend payout ratio of 168.9% in 2024 [3][5]. - The company’s major shareholder, Hongxing Industrial Group, holds 58.25% of the shares, controlling a total of 70.97% of the issued share capital [4]. Research and Development - The company’s R&D expenditure from 2022 to 2024 totaled only 2.675 million yuan, representing a minimal investment in innovation compared to competitors [6][8]. - In contrast, major national cold chain logistics companies like JD Logistics and SF Express invested 2.534 billion yuan and 3.571 billion yuan in R&D, respectively, indicating a significant gap in technological advancement [8]. Market Challenges - The cold chain logistics industry is facing intense price competition, with rental rates for storage services declining [2][7]. - The company’s southern cold storage base saw a decrease in utilization rates, attributed to increased capacity and strategic pricing to attract new customers [7]. - The overall market environment poses a long-term challenge for Hongxing Cold Chain to maintain its market position and seek growth opportunities [8].

Core Viewpoint - Hongxing Cold Chain (Hunan) Co., Ltd. is preparing for an IPO on the Hong Kong Stock Exchange, having distributed 84.39% of its net profit as dividends to shareholders over the past three years, raising concerns about its growth potential and regional limitations [2][3][13] Financial Performance - The company reported revenues of 236.736 million yuan, 201.76 million yuan, and 233.576 million yuan for the years 2022 to 2024, with net profits of 79.112 million yuan, 75.312 million yuan, and 82.88 million yuan respectively, indicating revenue volatility [3] - Total net profit over the past three years was 237.304 million yuan, with cash dividends amounting to 200 million yuan, which is 84.39% of the net profit [3][4] - In 2024, the company plans to distribute 140 million yuan in cash dividends, which equals its entire profit for that year, plus an additional 57 million yuan from previous profits [3][6] Market Position - Hongxing Cold Chain holds an 8.9% market share in the central region of China for frozen food trading services, ranking second, and a 52.7% market share in Hunan province, ranking first [7][8] - In the cold storage service market, the company ranks first in both the central region and Hunan province, with market shares of 2.6% and 13.6% respectively [7][8] Growth Concerns - The company has experienced a compound annual growth rate (CAGR) of -0.67% in revenue, which is significantly lower than the industry growth rates [8][13] - The overall market for food cold chain trading services in China is expected to grow from 4.7 trillion yuan in 2020 to 5.2 trillion yuan in 2024, with a CAGR of 2.7% [10] - The cold storage service market is projected to grow from 21.7 billion yuan in 2020 to 25.6 billion yuan in 2024, with a CAGR of 4.2% [10] IPO Purpose - The primary purpose of the upcoming IPO is to raise funds for expansion, research and development, acquisitions, and to address liquidity issues following the substantial dividend payouts [5][6]

Core Viewpoint - Hongxing Cold Chain (Hunan) Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, aiming to raise funds for expansion and modernization of its operations [1][3]. Company Overview - Hongxing Cold Chain, headquartered in Changsha, Hunan Province, is the largest frozen storage service provider in Central China and Hunan Province. The company was established in 2006 and transformed into a joint-stock company in December 2019 [1][3]. IPO Fund Utilization - The net proceeds from the IPO will be used to construct a new processing plant and cold storage facilities, upgrade existing equipment and IT infrastructure, and seek strategic acquisitions and partnerships over the next three years [3]. Market Demand - The cold chain market in China is substantial, driven by the country's large population and increasing demand for fresh, safe, and high-quality food as income levels and living standards rise [3]. Expansion Plans - Hongxing Cold Chain plans to build a new processing plant and cold storage facilities with a total design capacity of approximately 100,000 cubic meters or over 20,000 tons of usable capacity within the next three years [3]. Current Operations - The company operates two cold storage bases in Changsha, Hunan. The southern base was established in 2008, and the northern base was built in 2015 [3]. Financial Metrics - For the southern cold storage base, the average monthly storage fee per ton from 2022 to 2024 is projected to decrease from 79.4 RMB to 66.9 RMB. The northern base's fees are expected to fluctuate between 59.5 RMB and 51.5 RMB during the same period [3][4]. - The southern base's total available capacity is expected to increase from 130,352 tons in 2022 to 206,594 tons in 2024, while the northern base remains stable at 24,000 tons [4]. - The utilization rate for the southern base is projected to decrease from 98.9% in 2022 to 90.5% in 2024, while the northern base's utilization is expected to decline from 85.0% to 67.8% [4].

Core Viewpoint - Hongxing Cold Chain has submitted an application for an IPO on the Hong Kong Stock Exchange after failing to go public in A-shares five years ago, amid a stagnation in its revenue and net profit growth over the past three years [1][4][6]. Company Overview - Established in 2006, Hongxing Cold Chain is a leading integrated service platform for frozen food trading and storage, with a self-operated trading market area of 36,000 square meters and a storage capacity exceeding 1 million cubic meters [3][4]. - The company ranks first in Hunan Province and second in Central China for frozen food trading services, with an expected transaction value of approximately 40 billion yuan in 2024 [4][6]. Financial Performance - From 2022 to 2024, Hongxing Cold Chain's revenue fluctuated around 200 million yuan, while net profit remained between 75 million and 83 million yuan, with a stable gross margin above 50% [7][8]. - The company faces significant pressure from high fixed asset ratios, with fixed assets accounting for 89.8% of total assets by the end of 2024, leading to increased depreciation and amortization costs [8][9]. Market Challenges - The cold chain logistics industry in China is highly fragmented and competitive, with rising vacancy rates in cold storage facilities, which reached 11.9% by 2024, indicating a growing supply-demand imbalance [9][12]. - Hongxing Cold Chain's reliance on the local market and insufficient technological investment have become apparent, as over 90% of its revenue comes from Hunan Province, limiting its expansion potential [10][13]. Competitive Landscape - National cold chain giants like Yuhu Cold Chain are aggressively entering the Changsha market, posing a direct threat to Hongxing Cold Chain's market position [2][14]. - The company is at a disadvantage compared to competitors like JD Cold Chain and SF Express, which have established national networks and higher technological capabilities [12][13]. Future Outlook - The cold chain logistics market is expected to grow due to the rise of fresh e-commerce, agricultural product upgrades, and increased demand for high-standard distribution systems in lower-tier markets [10][12]. - Yuhu Cold Chain's rapid development in Changsha, including a significant investment in a digital cold chain food trading center, highlights the competitive pressures facing Hongxing Cold Chain [14][15][17].

Core Viewpoint - Hongxing Coldchain (Hunan) Co., Ltd. is seeking to go public on the Hong Kong Stock Exchange, despite a challenging market for cold chain logistics companies and mixed performance in its financials [1][10]. Company Overview - Established in 2006, Hongxing Coldchain is a leading integrated service platform for frozen food trading and cold storage services, with a land area of over 210 acres and a storage capacity of 160,000 tons [1]. - The company is recognized as the first national AAA-level cold chain logistics enterprise in Hunan Province and ranks among the top in market share within the province [1]. Financial Performance - Revenue for the years 2022, 2023, and 2024 was reported at RMB 236.736 million, RMB 201.760 million, and RMB 233.576 million, respectively, with a compound annual growth rate (CAGR) of -0.67% [2][3]. - Net profit for the same years was RMB 79.112 million, RMB 75.312 million, and RMB 82.880 million, showing a CAGR of 2.35% [2][3]. - The main revenue sources include cold storage services (68.5% of revenue in 2024), leasing services, and handling services [3][6]. Market Dynamics - The cold chain logistics industry is experiencing rapid growth due to increasing consumer demand for fresh food and the expansion of e-commerce in fresh produce and pharmaceuticals [7]. - In 2024, China's cold chain logistics demand is projected to reach 365 million tons, with total revenue of RMB 536.1 billion, reflecting year-on-year growth of 4.3% and 3.7%, respectively [7]. Competitive Position - Hongxing Coldchain ranks second in the central region of China for frozen food trading services with a market share of 8.9% and first in Hunan Province with a market share of 52.7% [8]. - The company is also the largest provider of cold storage services in both the central region and Hunan Province, with market shares of 2.6% and 13.6%, respectively [8]. Challenges - The company faces declining prices and utilization rates in its core cold storage business, with average monthly storage fees decreasing significantly in recent years [4][6]. - The gross profit margin for cold storage services has dropped from 60.5% in 2022 to 54.4% in 2024, while overall gross profit margin has shown slight fluctuations [6]. - Increased competition from traditional logistics and new retail companies entering the cold chain market poses a significant threat to Hongxing Coldchain's market position [10].

Summary of Key Points Core Viewpoint - The article provides an overview of the recent IPO activities in the Hong Kong stock market, highlighting the companies that have submitted applications, passed hearings, and are in the process of going public. Group 1: Companies Submitting Applications - Demy Pharmaceutical Co., Ltd. submitted an application to the Hong Kong Stock Exchange, focusing on skin health with projected revenues of approximately RMB 3.84 billion, RMB 4.73 billion, and RMB 6.18 billion for 2022, 2023, and 2024 respectively, while incurring losses of RMB 55.17 million, RMB 4.70 million, and RMB 106 million [4] - Zhongwei New Materials Co., Ltd. submitted its prospectus, specializing in new energy battery materials with revenues projected at RMB 30.34 billion, RMB 34.27 billion, and RMB 40.22 billion for 2022, 2023, and 2024 respectively, and net profits of RMB 1.54 billion, RMB 2.10 billion, and RMB 1.79 billion [4] - Hehui Optoelectronics submitted an application, ranking second globally in AMOLED semiconductor display panel manufacturing, with revenues of approximately RMB 4.19 billion, RMB 3.04 billion, and RMB 4.96 billion for 2022, 2023, and 2024, and losses of RMB 1.60 billion, RMB 3.24 billion, and RMB 2.52 billion [5] - Suzhou Rebo Biotechnology Co., Ltd. submitted its listing application, currently having six self-developed siRNA drugs in clinical trials, with projected net losses of RMB 437 million and RMB 282 million for 2023 and 2024 [6] - Naxin Microelectronics submitted an application, ranking fifth in China's analog chip market, with revenues of RMB 1.67 billion, RMB 1.31 billion, and RMB 1.96 billion for 2022, 2023, and 2024, and profits of RMB 250 million, losses of RMB 305 million, and losses of RMB 403 million [7] - Guanghetong Wireless Co., Ltd. submitted its prospectus, being the second-largest wireless communication module provider globally, with revenues of RMB 5.20 billion, RMB 5.65 billion, and RMB 6.97 billion for 2022, 2023, and 2024, and net profits of RMB 365 million, RMB 565 million, and RMB 677 million [8] - Hongxing Cold Chain (Hunan) Co., Ltd. submitted its application, ranking second in frozen food trading services in Central China, with revenues of RMB 237 million, RMB 202 million, and RMB 234 million for 2022, 2023, and 2024, and net profits of RMB 79 million, RMB 75 million, and RMB 83 million [9] - Three Squirrels submitted a listing application, being the largest online nut snack enterprise in China, with revenues of RMB 7.29 billion, RMB 7.12 billion, and RMB 10.62 billion for 2022, 2023, and 2024, and net profits of RMB 129 million, RMB 220 million, and RMB 408 million [10] Group 2: Companies Passing Hearings - Junda Co., Ltd. passed the hearing, being a leading photovoltaic cell manufacturer with projected revenues of RMB 11.09 billion, RMB 18.61 billion, and RMB 9.92 billion for 2022, 2023, and 2024, and net profits of RMB 821 million, RMB 816 million, and losses of RMB 591 million [11] - Green Tea Group Limited passed the hearing, ranking third in the number of restaurants and fourth in revenue among casual Chinese restaurant brands in mainland China, with revenues of RMB 2.38 billion, RMB 3.59 billion, and RMB 3.84 billion for 2022, 2023, and 2024, and profits of RMB 17 million, RMB 296 million, and RMB 350 million [12] - Shanghai Auntie passed the hearing, being the fourth largest fresh tea drink network in China, with revenues of RMB 2.20 billion, RMB 3.35 billion, and RMB 3.29 billion for 2022, 2023, and 2024, and net profits of RMB 149 million, RMB 388 million, and RMB 329 million [13]