Core Viewpoint - Hangzhou Tongshifu Cultural and Creative Co., Ltd. (hereinafter referred to as Tongshifu) has re-submitted its listing application to the Hong Kong Stock Exchange after its initial submission expired in May 2025, aiming to capitalize on its unique position in the copper cultural product market [1] Group 1: Company Overview - Founded in 2013 by entrepreneur Yu Guang, Tongshifu has successfully transformed the niche market of copper products into a business with annual revenue reaching 500 million yuan [1] - The company has a strong focus on copper cultural products, with revenue from these products consistently accounting for over 95% of total income during the reporting period [1][2] Group 2: Market Position - According to a report by Frost & Sullivan, Tongshifu ranks first in the Chinese copper cultural craft product market with a market share of 35% as of the end of 2024 [2] - The company has established a matrix of self-developed and licensed intellectual properties (IPs), with over 90% of its revenue coming from self-developed IPs, showcasing its strong original design capabilities [2] Group 3: Business Model - Tongshifu's growth trajectory is heavily influenced by the Xiaomi model, with Yu Guang being a self-proclaimed "hardcore Mi Fan" who has integrated Xiaomi's value proposition into the company's core [3] - The company has adopted marketing strategies similar to Xiaomi, such as the "Copper Fan Festival," to enhance customer engagement and brand loyalty [3] Group 4: Financial Performance - Tongshifu has achieved continuous profitability, with revenue increasing from 503 million yuan to 571 million yuan during the reporting period; however, net profit has shown volatility, with figures of 56.94 million yuan, 44.13 million yuan, and 78.98 million yuan [4] - In 2023, the company experienced a double-digit year-on-year decline in net profit, and in the first half of 2025, net profit fell by 23.9% to 30.24 million yuan [5]

Core Viewpoint - The company, Hangzhou Tongshifu Cultural and Creative (Group) Co., Ltd., founded by entrepreneur Yu Guang, has successfully transformed the niche market of copper crafts into a business generating annual revenue of 500 million yuan, leveraging a model inspired by Xiaomi [2][3]. Group 1: Company Background and Business Model - Yu Guang's journey into the copper craft business began with a realization of market potential after a shocking quote for a copper statue [1]. - Since its establishment in 2013, the company has adopted a "stock clearance marketing" strategy, gaining visibility through unique marketing efforts, including sending a copper statue to former U.S. President Obama [5]. - The company primarily uses traditional lost-wax casting methods, with a production cycle of approximately 12 working days, focusing on balancing quality and cost [5]. Group 2: Financial Performance - The company's revenue has shown growth from 503.2 million yuan in 2022 to an estimated 571.2 million yuan in 2024, while net profit has fluctuated, with figures of 56.94 million yuan, 44.13 million yuan, and 78.98 million yuan over the same period [15][17]. - The online average transaction price has decreased from 958 yuan in 2022 to an estimated 777 yuan in 2024, reflecting changing consumer preferences [5]. Group 3: Market Position and Product Focus - As of the end of 2024, the company holds a leading position in the Chinese copper cultural and creative product market, with a market share of 35% [6]. - Copper products account for over 95% of the company's revenue, indicating a strong focus on this material despite diversifying into gold, silver, and plastic products [6][10]. Group 4: Intellectual Property and Product Development - The company has developed a robust IP matrix, creating hundreds of original product IPs between 2022 and 2024, with over 90% of revenue derived from self-developed IPs [10][11]. - The introduction of 528 new SKUs based on self-developed IPs in 2024 highlights the company's commitment to innovation and product diversity [11]. Group 5: Strategic Partnerships and Future Plans - The company has strong backing from Xiaomi, with significant shareholding from Xiaomi-related entities, which enhances its market credibility [12]. - The upcoming IPO aims to raise funds for product development, capacity enhancement, and digital infrastructure upgrades, addressing challenges related to market space and profitability [19].