Core Viewpoint - Shandong Zhaochuang Information Co., Ltd. (Zhaochuang Information) is seeking to list on the Hong Kong Stock Exchange, having established itself as a leading provider of commodity information services in China, with a market share of 10.6% in the industry and ranking first in the energy commodity sector [1][2]. Company Overview - Zhaochuang Information operates across 25 commodity sectors, utilizing over 120,000 information sources to build a substantial data asset [2]. - The company offers various services, including information services, digital services, consulting, and exhibition services, with information services being the core business [2]. Financial Performance - The company's revenue growth has been modest, with a 7.7% increase from RMB 273 million in FY2022 to RMB 294 million in FY2024, reflecting a compound annual growth rate of less than 4% [3][4]. - In the first eight months of 2025, the company reported revenue of RMB 229 million, a year-on-year increase of 4.7% [3][4]. - Net profit figures for 2022, 2023, and 2024 were RMB 58.4 million, RMB 52.1 million, and RMB 70.5 million, respectively, with a notable rebound in 2024 after a decline in 2023 [4][5]. Profitability Metrics - The company maintains a high gross margin, with rates of 65.8%, 59.9%, 65.6%, and 62.6% from 2022 to the first eight months of 2025 [5][6]. - The decline in gross margin in 2023 was attributed to increased sales costs, which rose from 34.2% in 2022 to 40.1% [5]. - The net profit margin for 2022, 2023, and 2024 was 21.4%, 18.4%, and 23.9%, respectively, indicating strong profitability despite fluctuations [6]. Industry Outlook - The Chinese commodity information services market is projected to grow from RMB 2.5 billion in 2024 to RMB 4.1 billion by 2029, with a compound annual growth rate of 10.7%, significantly higher than the global growth rate of 5.4% [7]. - The industry is transitioning from basic price reporting to in-depth market insights and data intelligence services, driven by digitalization and risk management needs [7]. Competitive Position - Despite the favorable market conditions, Zhaochuang Information's revenue growth of approximately 3-4% lags behind the industry average of 10.7%, indicating challenges in capturing new market share [9]. - The company is positioned at a critical juncture, needing to deepen its data intelligence services and expand into international markets to enhance growth potential [9].

Group 1: Company Listings - Zhuochuang Information has submitted a listing application to the Hong Kong Stock Exchange, aiming to enhance its global strategy and international influence as a leading provider of commodity information services in China, holding a market share of 10.6% in the industry [1] - Cheliantianxia has also filed for a listing on the Hong Kong Stock Exchange, positioning itself as a leader in automotive E/E architecture with a second-place ranking in the smart cockpit domain in China, which will support its technology iteration and customer expansion [2] - Longfeng Group has submitted its application to the Hong Kong Stock Exchange, recognized as the largest pharmaceutical retailer in Hong Kong with a market share of 5.2%, aiming to capitalize on the recovery of tourism retail in the region [3] - Qingsong Health has passed the listing hearing on the Hong Kong Stock Exchange and is preparing for its IPO, focusing on AI-driven health management tools, which aligns with the digital health trend [4] Group 2: Market Performance - The Hang Seng Index closed at 25,858.89, down by 0.34% on November 28 [5] - The Hang Seng Tech Index saw a slight increase of 0.02%, closing at 5,599.11 [5] - The National Enterprises Index decreased by 0.38%, ending at 9,130.18 [5]

Core Insights - Shandong Zhaochuang Information Co., Ltd. (卓创资讯) has submitted an application to list on the Hong Kong Stock Exchange, with Ping An Securities (Hong Kong) as the sole sponsor [1] Company Overview - Zhaochuang Information is a leading provider of comprehensive commodity information services in China, focusing on market data monitoring, price assessment, and market research analysis for various categories of bulk commodities [1] - According to Frost & Sullivan, the company ranks second in the Chinese commodity information services industry by revenue for 2024, holding a market share of 10.6% [1] Industry Position - In the energy commodities sector, which includes but is not limited to crude oil, natural gas extraction products, and chemical raw materials and products, Zhaochuang Information ranks first based on 2024 revenue [1]

Core Viewpoint - The company has over 20 years of experience in the bulk commodity information service sector, accumulating a vast amount of price and fundamental data [1] Group 1 - The data and information content is collected and written by a professional analyst team, ensuring authority, timeliness, and accuracy [1] - The company has established a data center within its software industrial park, capable of managing the entire data lifecycle from collection to application [1] - The company employs machine learning and deep learning algorithms to train, evaluate, optimize, and persist data sets, supporting business user modeling and forecasting needs [1]

Core Viewpoint - The company is recognized as a leading provider of commodity information services in China, emphasizing its commitment to stable operations and investor relations management [1] Group 1: Company Operations - The company has a long-standing history of stable operations in the commodity information service sector [1] - It actively engages with investors through various channels, including investor hotlines, emails, the company website, and interactive platforms, to enhance transparency and trust [1] Group 2: Investor Relations - The company places significant importance on providing reasonable returns to investors and has implemented a cash dividend plan [1]

Group 1 - The company has not established a partnership with Shanghai Data Exchange but has engaged in partial collaborations with Guangzhou Data Exchange and Shandong Data Trading Company [1] - The contribution of these collaborations to the company's revenue is currently minimal and will not significantly impact its operating performance [1] - The company has been deeply involved in the bulk commodity information service sector for many years and has developed a comprehensive marketing and customer service system [1] Group 2 - The company possesses a professional marketing management system and an experienced sales team, enabling effective market penetration of various products [1] - The company has received widespread recognition from customers in the market [1] - Future plans include continuous product iteration and comprehensive optimization and expansion of services, along with active exploration of external collaborations to provide higher quality and more valuable experiences for customers [1]

Core Viewpoint - The company, Zhaochuang Information, has been distributing dividends that exceed its net profits for the past two years, raising questions about the sustainability of such a high dividend policy and its impact on future business development [1][2]. Financial Performance - In the fiscal year 2024, Zhaochuang Information reported a net profit of approximately 70.51 million yuan, while the total dividends distributed amounted to 111 million yuan, exceeding the net profit by 41 million yuan [1][3]. - For the fiscal year 2023, the company distributed a total of 123 million yuan in dividends against a net profit of 52.06 million yuan, exceeding the net profit by 71 million yuan [1][2]. - The cumulative net profit for the years 2023-2024 is about 123 million yuan, while the total dividends paid out is 234 million yuan [2]. Dividend Strategy - The company has implemented a high-frequency and high-ratio dividend strategy, having announced multiple dividend distributions in both 2023 and 2024 [1][3]. - Zhaochuang Information plans to distribute at least 10% of its annual distributable profits in cash dividends over the next three years (2025-2027), with a cumulative distribution of no less than 30% of the average annual distributable profits over that period [3][4]. Cash Flow and Profitability - As of December 31, 2024, the company reported accumulated undistributed profits of 122 million yuan and a net cash flow from operating activities of approximately 77 million yuan [3]. - The company maintains a cash reserve of about 270 million yuan, which supports its ability to pay dividends despite the high payout ratio [3]. Shareholder Composition - Among the top ten shareholders, institutional investors account for only 40%, with no presence of state-owned funds, which typically favor stable high-dividend stocks [5]. - The dividend yield for Zhaochuang Information for 2023 and 2024 is 3.60% and 3.25%, respectively, which is lower compared to other high-dividend stocks like Huate Dain [5]. Market Position and Future Outlook - Zhaochuang Information has been in operation for over 20 years, focusing on the commodity information service sector, and has established a substantial customer base with stable payment willingness [2][8]. - The company has no current plans for equity transfer or acquisition, aiming to grow independently while considering potential acquisitions in the future based on market conditions [7][8].