Group 1 - Red Star Cold Chain, a comprehensive service platform for frozen food trading and storage, submitted its prospectus for a Hong Kong IPO on April 25, 2025 [2] - The China Securities Regulatory Commission (CSRC) has requested additional materials from Red Star Cold Chain, including clarifications on the identification of controlling shareholders and the rationale behind the transfer of shares at zero consideration [2][3] - The company must provide details on its business scope, including real estate leasing and telecommunications services, and confirm compliance with foreign investment policies [2][3] Group 2 - The prospectus must outline the issuance plan, including share par value, number of shares issued, and expected fundraising amount, along with changes in the shareholding structure post-listing [2] - Red Star Cold Chain is required to disclose whether it has developed and operates apps or mini-programs, including the scale of personal data collection and usage [3] - The company must clarify if the shares held by participating shareholders in the "full circulation" plan are subject to any pledges, freezes, or other rights defects [3]

Core Viewpoint - Red Star Cold Chain's recent actions, including a significant dividend payout before its IPO, raise questions about its motives and financial health, particularly given its stagnant revenue and reliance on the Hunan market [2][3]. Company Overview - Red Star Cold Chain, based in Changsha, Hunan, specializes in frozen food trading and cold storage services, originally established in 2006 and restructured into a joint-stock company in December 2019 [2]. - The company reported revenues of 237 million yuan, 202 million yuan, and 234 million yuan for the years 2022 to 2024, indicating stable revenue performance [2]. Financial Performance - The net profits for the same period were 79.11 million yuan, 75.31 million yuan, and 82.88 million yuan, totaling approximately 237 million yuan over three years [2]. - The total cash dividends declared during the reporting period amounted to 200 million yuan, which represents 84.39% of the total net profits [3]. Shareholder Structure - The controlling shareholder, Red Star Industrial, holds 58.25% of Red Star Cold Chain, receiving approximately 116.5 million yuan from the dividend payout, which is nearly 50% of the total net profit over three years [3][4]. IPO Plans and Use of Proceeds - The IPO aims to fund four projects: construction of new processing plants and cold storage facilities, hardware upgrades, strategic acquisitions, and replenishing working capital [4]. - The company has also been reported to have outstanding social insurance and housing fund contributions, totaling approximately 5.5 million yuan, 4.8 million yuan, and 4.9 million yuan for the years ending 2022, 2023, and 2024, respectively [4]. Employee Structure - As of the end of 2024, Red Star Cold Chain employed 368 individuals, with 256 in warehousing and the remainder in administrative, trading platform, and research roles, all located in Changsha, Hunan [5]. Market Analysis - Industry experts suggest that while regional leaders like Red Star Cold Chain should benefit from market opportunities, its financial maneuvers indicate a focus on capitalizing existing benefits rather than creating new value, especially in a competitive landscape with increasing national players [6].