Core Viewpoint - Shenzhen Feisu Innovation Technology Co., Ltd. has submitted an IPO application to the Hong Kong Stock Exchange after facing internal control issues during its A-share IPO process, which led to a warning from the Shenzhen Stock Exchange [1][3][4]. Group 1: Company Overview - Feisu Innovation specializes in information communication technology products and solutions, focusing on HPC, data centers, enterprises, and telecommunications [2][18]. - The company has faced significant scrutiny regarding its internal controls, particularly concerning data authenticity and financial reporting [3][19]. Group 2: Financial Performance - From 2022 to 2024, Feisu Innovation's revenues were 19.88 billion, 22.13 billion, and 26.12 billion, with net profits of 3.65 billion, 4.57 billion, and 3.97 billion respectively [11][24]. - In 2024, the company experienced a "revenue without profit" situation, with an 18.03% revenue increase but a 13.02% decline in net profit due to rising operational costs [11][24]. Group 3: Internal Control Issues - The Shenzhen Stock Exchange identified three core internal control issues: deficiencies in the information system, incomplete logging of system operations, and lack of management protocols for financial operations [5][19]. - The company received a regulatory letter from the Shenzhen Stock Exchange highlighting concerns about the accuracy and completeness of its financial disclosures [4][19]. Group 4: Capital Structure and Financing - Feisu Innovation has engaged in multiple rounds of financing since 2015, with a C-round valuation of approximately 6.6 billion based on a share price of 18.33 [19][20]. - The company has a significant redemption obligation of 664 million due to agreements with investors in case of IPO failure [20]. Group 5: Dividend Distribution - Just five days before its IPO application, Feisu Innovation approved a cash dividend distribution of 2 billion, which accounted for 50.38% of its projected net profit for 2024 [21][8]. Group 6: Financial Management Concerns - The company exhibits a "high savings and high debt" phenomenon, with 11.5 billion in financial assets and a bank loan increase to 573 million, despite having a low proportion of restricted funds [17][26]. - Interest expenses have exceeded interest income since 2024, raising questions about the rationale behind accumulating debt while holding substantial cash reserves [29].

Company Overview - Shenzhen Feisu Innovation Technology Co., Ltd. (Feisu Innovation) has submitted an application to list on the Hong Kong Stock Exchange, with China International Capital Corporation, CITIC Securities International, and China Merchants Securities International as joint sponsors [1] - Feisu Innovation is the second-largest online DTC network solution provider globally, with a market share of 6.9% based on 2024 revenue [4] - The company has served over 480,000 customers across more than 200 countries and regions, including approximately 60% of Fortune 500 companies [4] Financial Performance - Revenue for Feisu Innovation was approximately RMB 1.988 billion, RMB 2.213 billion, and RMB 2.612 billion for the fiscal years 2022, 2023, and 2024, respectively [6] - Profit figures for the same periods were approximately RMB 365 million, RMB 457 million, and RMB 397 million [7] - For the nine months ending September 30, 2024, the company reported revenue of RMB 1.954 billion and profit of RMB 351 million [6][7] Industry Insights - The global network solutions market is projected to grow from USD 119.2 billion in 2020 to USD 162.8 billion by 2024, with a compound annual growth rate (CAGR) of 8.1% [9] - The market is expected to continue expanding, reaching USD 245.3 billion by 2029, with a CAGR of 8.5% from 2024 to 2029 [9] - The high-performance network hardware market, specifically for speeds of 100G and above, is anticipated to grow from USD 14 billion in 2020 to USD 33.7 billion by 2024, with a CAGR of 24.6% [13]

Group 1 - The core point of the article is that Shenzhen Feisu Innovation Technology Co., Ltd. has submitted an application to list on the Hong Kong Stock Exchange, with CICC, CITIC International, and China Merchants Securities International as joint sponsors [1] - Feisu Innovation was previously listed on the Hong Kong Stock Exchange on May 27, 2025 [1] - According to Frost & Sullivan, Feisu Innovation is the second largest online DTC network solutions provider globally, with a market share of 6.9% based on 2024 revenue [1] Group 2 - The company offers comprehensive network solutions that enable global enterprises to achieve efficient digital transformation [1] - Through its online sales platform FS.com, Feisu Innovation provides scalable, cost-effective, and comprehensive one-stop network solutions [1] - The solutions include high-performance network devices, scalable network operating systems, and cloud network management platforms [1]

Group 1 - The core point of the article is that Shenzhen Feisu Innovation Technology Co., Ltd. has submitted an application to list on the Hong Kong Stock Exchange, with CICC, CITIC Securities International, and China Merchants Securities International as joint sponsors [1] - According to the prospectus, Feisu Innovation is the second largest online DTC network solution provider globally, with a market share of 6.9% based on projected 2024 revenue [1] - The company offers comprehensive network solutions that enable global enterprises to achieve efficient digital transformation through its online sales platform FS.com, providing scalable, cost-effective, and comprehensive one-stop network solutions [1]

Core Insights - Shenzhen Feisuke Innovation Technology Co., Ltd. has submitted an application to list on the Hong Kong Stock Exchange, with CICC, CITIC Securities International, and China Merchants Securities International as joint sponsors [1] - According to Frost & Sullivan, Feisuke Innovation is the second-largest online DTC network solution provider globally, with a market share of 6.9% based on projected 2024 revenue [1] - The company offers comprehensive network solutions that enable global enterprises to achieve efficient digital transformation through its online sales platform FS.com, providing scalable, cost-effective, and comprehensive one-stop network solutions [1] Company Overview - Feisuke Innovation specializes in high-performance network equipment, scalable network operating systems, and cloud network management platforms [1] - The company aims to facilitate digital transformation for businesses worldwide by leveraging its extensive network solutions [1]

Core Viewpoint - Shenzhen Feisu Innovation Technology Co., Ltd. has seen its Hong Kong IPO application expire after six months, indicating potential challenges in its market entry strategy [1] Company Overview - Feisu Innovation specializes in providing enterprise-level network solutions aimed at facilitating rapid digital transformation for global enterprises [1] - The company's product and service offerings include high-performance network devices, scalable network operating systems, and cloud network management platforms [1] - Feisu Innovation employs an online Direct-to-Consumer (DTC) business model to deliver scalable and affordable comprehensive one-stop network solutions [1]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued supplementary material requirements for 17 companies, including Feisuo Innovation, which submitted its listing application to the Hong Kong Stock Exchange on May 27, 2025 [1] Group 1: Supplementary Material Requirements - The CSRC requires Feisuo Innovation to clarify its internal control, corporate governance, and compliance operations [5] - The company must provide details on whether its business scope involves areas listed in the "Negative List for Foreign Investment Access (2024 Edition)" and ensure compliance with foreign investment policies [2] - Feisuo Innovation is asked to explain the reasonableness of the shareholding price for new shareholders in the past 12 months and whether there are any issues of interest transfer [2] Group 2: Corporate Structure and Governance - The company must disclose any shareholding arrangements involving equity holding and provide details on the parties involved, shareholding ratios, and any potential disputes [2] - The progress of state-owned shareholders in fulfilling state-owned shareholder identification management and other state asset management procedures must be reported [4] - The company is required to clarify the existence of any reserved or ungranted rights in employee shareholding platforms [3] Group 3: Data Management and Compliance - Feisuo Innovation must provide information on its website, app, and mini-programs, including the scale of user data collected and whether personal user information is shared with third parties [4] - The company is required to explain its previous A-share application and any self-regulatory measures taken, along with the status of related issue rectifications [5] - The company must clarify whether the shares held by shareholders participating in the "full circulation" have any pledges, freezes, or other rights defects [6] Group 4: Business Overview - Feisuo Innovation is a provider of enterprise-level network solutions, focusing on helping global enterprises achieve rapid digital transformation [6] - The company's products and services include high-performance network devices, scalable network operating systems, and cloud network management platforms [6] - According to Frost & Sullivan, Feisuo Innovation is the second-largest online DTC network solutions provider globally based on 2024 revenue [6]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued supplementary material requirements for 17 companies, including Feisuo Innovation, which is preparing for an IPO on the Hong Kong Stock Exchange. The CSRC has requested clarifications on various aspects of the company's operations, governance, and compliance [1][2][3][4][5][6]. Group 1: Regulatory Requirements - The CSRC requires Feisuo Innovation to clarify whether its business scope involves areas listed in the "Negative List for Foreign Investment Access (2024 Edition)" and to ensure compliance with foreign investment policies before and after the IPO [1]. - The company must provide details on any shareholding arrangements, including the names of parties involved, shareholding ratios, and the duration of such arrangements, along with legal opinions on their legitimacy and compliance [2]. - Feisuo Innovation is also asked to explain the reasonableness of the share prices for new shareholders over the past 12 months and whether there are any concerns regarding potential benefit transfers [2]. Group 2: Corporate Governance and Compliance - The CSRC has requested information on the existence of any reserved or ungranted rights within employee shareholding platforms [3]. - The company must clarify the progress of state-owned shareholders in fulfilling state asset management procedures [4]. - Feisuo Innovation is required to provide details on its website, app, and mini-programs, including user information collection and storage practices, and measures for personal data protection and security [4]. Group 3: Internal Control and Previous Regulatory Actions - The company needs to explain its internal control, corporate governance, and compliance operations [5]. - Feisuo Innovation must address any previous self-regulatory measures taken during its A-share application process and whether these issues pose obstacles to the current IPO [5]. - The CSRC has requested clarification on whether shares held by shareholders participating in the "full circulation" are subject to any pledges, freezes, or other rights defects [6]. Group 4: Company Overview - Feisuo Innovation is a provider of enterprise-level network solutions, focusing on helping global enterprises achieve rapid digital transformation through a range of products and services, including high-performance network devices and cloud network management platforms [6]. - According to Frost & Sullivan, the company ranks as the second-largest online DTC network solutions provider globally based on 2024 revenue [6].

Core Viewpoint - Shenzhen Feisuo Innovation Technology Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange after withdrawing its A-share application, amid concerns over internal control deficiencies and discrepancies in inquiry responses [3][20][24] Group 1: Company Overview - Feisuo Innovation, established in April 2009, focuses on enterprise-level network solutions, offering over 120,000 SKUs including optical modules, high-speed cables, and network management platforms [4][7] - The company has served over 450,000 customers across more than 200 countries, with approximately 60% of its clients being Fortune 500 companies [7] Group 2: Financial Performance - Feisuo Innovation's revenue grew from RMB 19.88 billion in 2022 to RMB 22.13 billion in 2023, and is projected to reach RMB 26.12 billion in 2024, reflecting an 18.0% growth rate [7][12] - The company's net profit increased from RMB 3.65 billion in 2022 to RMB 4.57 billion in 2023, but fell to RMB 3.97 billion in 2024, indicating a 13.0% decline [12][13] Group 3: Revenue Sources - Approximately 99% of Feisuo Innovation's revenue comes from overseas markets, with the U.S. accounting for 46% and Europe over 30% of total revenue [10][11] Group 4: Cost and Profitability Challenges - The company's financial costs surged by 298.4% from RMB 4.65 million in 2023 to approximately RMB 18.54 million in 2024, contributing to the decline in net profit despite revenue growth [14][12] - Sales and distribution expenses rose by 43.9% to RMB 4.88 billion in 2024, while general and administrative expenses and R&D expenses also saw significant increases [16] Group 5: Internal Control Issues - Feisuo Innovation faced regulatory scrutiny from the Shenzhen Stock Exchange due to internal control deficiencies related to its information systems, leading to written warnings for the company and its sponsors [20][22][24] - The company acknowledged the need to strengthen its internal control systems in response to the regulatory feedback received during its A-share IPO process [24]

Core Viewpoint - Shenzhen Feichuang Innovation Technology Co., Ltd. (Feichuang) has submitted its listing application to the Hong Kong Stock Exchange, aiming to leverage its position as a leading global provider of enterprise-level network solutions to support digital transformation for businesses worldwide [1][2]. Company Overview - Feichuang is recognized as the second-largest online DTC network solutions provider globally, based on projected revenue for 2024 [1]. - The company offers a comprehensive range of products and services, including high-performance network devices, scalable operating systems, and cloud network management platforms [1]. - Feichuang has established a highly integrated DTC model that efficiently delivers contextual solutions globally, combining network architecture design, multi-vendor procurement, and after-sales support into a unified platform [1]. Financial Performance - For the year 2024, Feichuang reported revenues of RMB 2.612 billion, reflecting an 18.0% year-on-year growth [2]. - The net profit for the same period was RMB 397 million, with a gross margin of 50.0% [2]. - The compound annual growth rate (CAGR) of the company's revenue from 2022 to 2024 is 14.6%, indicating strong growth momentum [2]. - The net revenue retention rate improved from 94.4% in 2023 to 102.1% in 2024, showcasing strong customer loyalty [2]. Market Presence - Feichuang has served over 450,000 customers across more than 200 countries and regions, including approximately 60% of the Fortune 500 companies [1].