Core Viewpoint - Shanghai Fuyou Payment Service Co., Ltd. (Fuyou Payment) is making its third attempt to go public on the Hong Kong Stock Exchange (HKEX) after two previous failures, facing challenges such as increasing revenue without profit growth, declining gross margins, compliance issues, and high dividend payouts [1][2][5]. Group 1: IPO Attempts and Financial Performance - Fuyou Payment submitted its prospectus on May 9, with CICC and Shenwan Hongyuan as joint sponsors [1]. - The company has previously attempted to list on the HKEX in April and November of last year but failed due to not completing hearings within six months, leading to the expiration of its prospectus [2]. - Financial performance shows revenue growth from 1.102 billion RMB in 2022 to an expected 1.634 billion RMB in 2024, while net profit decreased from 147 million RMB in 2022 to an expected 84 million RMB in 2024 [2][3]. Group 2: Revenue and Profitability - Fuyou Payment's revenue for 2022 to 2024 is projected at 1.102 billion RMB, 1.142 billion RMB, 1.506 billion RMB, and 1.634 billion RMB respectively, while net profits are projected at 147 million RMB, 71 million RMB, 93 million RMB, and 84 million RMB [2][3]. - The company is experiencing a state of increasing revenue but decreasing profits, attributed to rising administrative expenses and other losses [2]. Group 3: Gross Margin Trends - The gross margin has declined from 28.4% in 2022 to 25.2% in 2023, with a slight recovery to 25.9% expected in 2024 [3][4]. - The decline in gross margin is due to increased commission rates for partners and competitive pressures leading to reduced service fees [3][4]. Group 4: Dividend Policy and Compliance Issues - Fuyou Payment has faced scrutiny over its high dividend payouts, distributing a total of 365 million RMB in cash dividends from 2021 to 2025, which accounts for 90% of its net profits during that period [5]. - The company has been penalized multiple times for compliance issues, totaling 6.9 million RMB in fines since 2021, with the latest penalties related to foreign exchange regulations [8]. Group 5: Shareholding Structure - The shareholding structure is relatively dispersed, with Fuyou Group holding 61% of Fuyou Payment, while other shareholders hold smaller stakes [6][7]. - The founder, Chen Jian, has significant influence through various holdings, including indirect stakes via Fuyou Group [7].