Group 1 - Hongxing Cold Chain (Hunan) Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, which has been officially accepted [3] - The joint sponsors for the listing are Jianyin International and Agricultural Bank of China International [3] - The company previously submitted its application on April 25, 2025 [3] Group 2 - Hongxing Cold Chain is a provider of frozen food store leasing services and frozen food warehousing services, headquartered in Changsha, Hunan Province [5] - Since its establishment in 2006, the company has developed a business model that combines frozen food store leasing with cold storage, connecting wholesalers and retailers in the frozen food supply chain [5] - The company primarily leases stores to frozen food wholesalers and retailers, charging rent based on the specific location of the stores [5] Group 3 - The company operates self-owned cold storage facilities in Changsha, providing two bases for frozen food wholesalers and retailers, with a total designed capacity exceeding one million cubic meters (over 230,000 tons) [6] - The utilization rate of the cold storage facilities has exceeded 88.0% during the reporting period, serving over 700 clients as of June 30, 2025 [6]

Core Viewpoint - Red Star Cold Chain (Hunan) Co., Ltd. has submitted an IPO application to the Hong Kong Stock Exchange after a previous application lapsed. The funds raised will be used for building a new processing plant, upgrading existing equipment, strategic acquisitions, and general corporate purposes [1][12]. Group 1: Company Performance - Over the past three and a half years, key performance indicators at the company's two bases in Changsha have declined, with the number of customers at the northern base dropping by 91.76% [1][7]. - The company has paid out a total of 240 million RMB in dividends over the past three and a half years, primarily benefiting the controlling shareholder, who holds over 70% of the company [1][13]. - Red Star Cold Chain reported revenues of 237 million RMB, 202 million RMB, 234 million RMB, and 118 million RMB for the respective periods, with net profits of 79.1 million RMB, 75.3 million RMB, 82.9 million RMB, and 39.7 million RMB [8][9]. Group 2: Business Operations - The company primarily operates in cold storage services, which accounted for 68.8% of its revenue in the first half of the year [2][8]. - The utilization rate of the southern base's storage capacity decreased from 98.9% to 88.2%, while the average monthly cold storage fee per ton fell from 79.4 RMB to 70.7 RMB [5][7]. - The northern base experienced a more severe decline, with customer numbers dropping from 279 to 23, leading to a utilization rate decrease from 85% to 45.9% [7][10]. Group 3: Financial Health - The company has faced liquidity issues, with current liabilities exceeding current assets in 2023 and 2024, resulting in current ratios below 0.6 [10][11]. - The total non-current assets were valued at 772.7 million RMB in 2022, increasing to 1.1 billion RMB in 2023, while current assets were 161.9 million RMB in 2022 and 129.9 million RMB in 2023 [11][12]. Group 4: Risks and Challenges - The company has acknowledged risks related to supplier concentration, with the top five suppliers accounting for 78.1% to 90.6% of total procurement over the years [10]. - Red Star Cold Chain has also been noted for its failure to pay employee social security and housing fund contributions, accumulating a total of 16.8 million RMB in unpaid amounts [1][13].

Core Viewpoint - Hongxing Cold Chain (Hunan) Co., Ltd. has submitted its second listing application to the Hong Kong Stock Exchange in 2023, with CCB International and Agricultural Bank of China International as joint sponsors [1]. Company Overview - Hongxing Cold Chain is a provider of frozen food store leasing and cold storage services, headquartered in Changsha, Hunan Province. The company has developed a business model that combines frozen food store leasing with cold storage, connecting wholesalers and retailers in the frozen food supply chain [3][4]. - The company primarily leases over 36,000 square meters of space to frozen food wholesalers and retailers, achieving a rental rate of over 94% during the reporting period, establishing itself as a core hub in Hunan's frozen food industry [4]. Market Position - According to a report by Frost & Sullivan, the cold chain service market for frozen foods in China is divided into frozen food store leasing (1.8% market share) and frozen food logistics services (98.2% market share) by revenue in 2024. Hongxing Cold Chain is the second-largest provider in Central China (8.8% market share) and the largest in Hunan Province (54.7% market share) [4]. - The company serves over 700 clients as of June 30, 2025, with its self-operated cold storage facilities in Changsha having a total design capacity exceeding 1 million cubic meters (over 230,000 tons) and a utilization rate of over 88% [4]. Industry Growth - The cold chain industry in China is experiencing rapid growth due to increasing consumer demand for high-quality frozen foods and the recognition of the critical role of cold chain services in maintaining food quality. The market for frozen food store leasing is projected to grow from RMB 2.2 billion in 2024 to RMB 2.9 billion in 2029, with a compound annual growth rate (CAGR) of 6.0% [6]. - The cold storage service market is also expanding, with a projected market size of RMB 25.6 billion in 2024, growing to RMB 35.1 billion by 2029, reflecting a CAGR of 6.5% from 2025 to 2029 [6]. Financial Performance - The company reported revenues of approximately RMB 237 million, RMB 202 million, RMB 234 million, and RMB 118 million for the six months ending June 30 in 2022, 2023, 2024, and 2025, respectively. The corresponding profits for these periods were RMB 79.1 million, RMB 75.3 million, RMB 82.9 million, and RMB 39.7 million [6][7].

Core Viewpoint - Hongxing Cold Chain (Hunan) Co., Ltd. has submitted its second listing application to the Hong Kong Stock Exchange in 2023, with CCB International and Agricultural Bank of China International as joint sponsors [1]. Company Overview - Hongxing Cold Chain is a provider of frozen food store leasing and cold storage services, headquartered in Changsha, Hunan Province. The company has developed a business model that combines frozen food store leasing with cold storage, connecting wholesalers and retailers in the frozen food supply chain [3][4]. - The company primarily leases over 36,000 square meters of space to frozen food wholesalers and retailers, achieving a rental rate of over 94% during the reporting period, making it a core hub in Hunan's frozen food industry [4]. Market Position - According to a report by Frost & Sullivan, the company is the second-largest provider of frozen food store leasing services in Central China with a market share of 8.8% and the largest in Hunan with a market share of 54.7%. Its overall market share in China is 1.9% [4]. - In the cold storage service market, the company is the largest provider in Central China and Hunan, with market shares of 2.6% and 13.6%, respectively, and an overall market share of 0.7% in China [4]. Industry Growth - The rapid growth of China's cold chain industry is driven by increasing consumer demand for high-quality frozen foods and the recognition of the critical role of cold chain services in maintaining food quality within the supply chain [5]. - The market size for frozen food store leasing services is projected to grow from RMB 2.2 billion in 2024 to RMB 2.9 billion in 2029, with a compound annual growth rate (CAGR) of 6.0%. The cold storage service market is expected to expand from RMB 25.6 billion in 2024 to RMB 35.1 billion in 2029, with a CAGR of 6.5% from 2025 to 2029 [6]. Financial Performance - The company reported revenues of approximately RMB 237 million, RMB 202 million, RMB 234 million, and RMB 118 million for the six months ending June 30 in 2022, 2023, 2024, and 2025, respectively. The corresponding profits for these periods were RMB 79.1 million, RMB 75.3 million, RMB 82.9 million, and RMB 39.7 million [6][7].