Core Viewpoint - New Qi'an Technology Co., Ltd. has successfully listed on the Hong Kong Stock Exchange, but its financial data reveals significant concerns regarding its revenue and profit trends [1][2][3]. Financial Performance - In 2022, 2023, and 2024, New Qi'an's revenues were approximately 761.5 million RMB, 447 million RMB, and 569 million RMB, respectively, indicating a recovery in 2024 but still below 2022 levels by about 192 million RMB [3][4]. - The company's net profit for the same years was approximately 122 million RMB, 44.7 million RMB, and 43.4 million RMB, showing a continuous decline [3][4]. - The gross profit margin has been affected by rising costs and competitive pressures, particularly in the sucralose and food-grade glycine markets [5][6]. Market Challenges - The sucralose market is highly concentrated, with the top five producers holding a significant market share, posing challenges for New Qi'an [4][6]. - The food additive market is experiencing intense competition, leading to price wars and overcapacity issues, which have negatively impacted New Qi'an's revenue from sucralose [5][6]. - New Qi'an's reliance on major clients like Coca-Cola and Nestlé has increased its vulnerability, as these clients have reduced their purchases of sucralose [11][15]. Accounts Receivable Issues - New Qi'an's trade receivables have increased from approximately 103 million RMB in 2022 to about 225 million RMB in 2024, despite declining revenues [9][10]. - The average collection period for trade receivables has lengthened from 45 days in 2022 to 113 days in 2024, indicating potential liquidity issues [11]. Global Expansion and Regulatory Challenges - New Qi'an is actively pursuing global expansion, but faces challenges such as varying political, economic, and cultural environments, which complicate management and increase operational costs [17]. - The company has been impacted by high anti-dumping duties and tariffs on glycine exports to the U.S., affecting its North American market, which accounted for approximately 41.1% of its revenue in 2024 [17].

Core Viewpoint - The Hong Kong IPO market has shown signs of recovery since 2025, with a notable increase in investor participation, although the performance of newly listed stocks has been mixed, as evidenced by the case of New Qi An [1][3]. Group 1: Market Performance - As of June 10, 2025, 32 companies have listed on the Hong Kong main board, with 9 of them (28.13%) experiencing a drop in share price on their first trading day, compared to 36.8% for the entire year of 2024 [1]. - New Qi An's stock price surged by 72.49% in the dark market before its listing, but it opened at a 60.05% premium and closed the first day with a gain of only 21.43% [1][3]. - On the second trading day, New Qi An's stock price fell to 17.76 HKD, dropping below its issue price of 18.9 HKD, marking a decline of approximately 6% [3]. Group 2: IPO Structure and Allocation - New Qi An's IPO involved issuing 10,585,400 shares, with 10% allocated for public sale and 90% for international placement. However, the public offering was oversubscribed by 149.37 times, while the international placement was only 0.93 times [5][6]. - The actual allocation for public sale was only 15.7%, significantly lower than the expected 50% due to a "routine reallocation" strategy, indicating a preference to keep shares concentrated among a few investors [5][6]. - The top three underwriters hold 60.52% of the actual tradable shares, suggesting a high concentration of ownership that could influence stock price movements [7][8]. Group 3: Company Overview and Financial Performance - New Qi An is a manufacturer of glycine and sucralose, with a significant portion of its revenue derived from international markets, accounting for nearly 80% of sales in 2024 [10][12]. - The company has experienced revenue fluctuations, with reported revenues of 761.5 million RMB in 2022, 447 million RMB in 2023, and 569 million RMB in 2024, largely due to declining product prices [13]. - Recent trends indicate a recovery in product prices, particularly for sucralose, which has seen a price increase of 150% from July 2024 to March 2025, benefiting New Qi An's financial outlook [14].

Core Viewpoint - New Qi'an (02573.HK) has launched an IPO, planning to issue 10.5854 million shares globally, with a price range of HKD 18.9 to HKD 20.9 per share, aiming to raise approximately HKD 174.3 million if priced at HKD 19.9 per share [1] Company Overview - Established in 2003, New Qi'an specializes in the production and sale of food additives, including high-intensity sweetener sucralose and food-grade and industrial-grade glycine, ranking first in the global food-grade glycine manufacturing industry by sales volume and revenue in 2023 [2] - The company holds approximately 5.1% and 3.1% of the global market share in food-grade glycine by sales volume and revenue, respectively [2] Financial Performance - New Qi'an has experienced declining financial performance over the past two years, with revenue dropping from RMB 761 million in 2022 to RMB 569 million in 2024, and net profit decreasing from RMB 122 million to RMB 43.4 million during the same period [3] Market Segmentation - In 2024, over 60% of New Qi'an's revenue came from Europe and North America, with significant growth in the North American market [4] - Revenue distribution by region for 2024 shows North America contributing RMB 233.8 million (41.1%), Europe RMB 119.2 million (20.9%), and mainland China RMB 116.4 million (20.5%) [5] IPO Details - The Hong Kong public offering will commence on May 30, 2025, and end on June 5, 2025, with the final offer price and allocation results to be announced on June 9, 2025 [1] - New Qi'an has secured cornerstone investments of approximately HKD 60 million from investors including Reynold Lemkins and He Win [1]

Core Viewpoint - New Qi'an Group Co., Ltd. is undergoing a listing hearing on the Hong Kong Stock Exchange, with Minyin Capital as its sole sponsor [1] Company Overview - New Qi'an is a manufacturer of food-grade glycine and sucralose, primarily engaged in the production and sale of food-grade glycine, industrial-grade glycine, and sucralose [3] - Food-grade glycine is used in pet food, consumer products, sauces, and dairy products, while industrial-grade glycine serves as a raw material for food-grade glycine and glyphosate, which is used as a herbicide [3] - Sucralose, a high-intensity sweetener, is widely used in soft drinks, candies, baked goods, syrups, and nutritional supplements [3] Financial Performance - Revenue for New Qi'an in 2022, 2023, and 2024 is approximately CNY 761.5 million, CNY 446.9 million, and CNY 568.9 million respectively, with net profits of approximately CNY 122.0 million, CNY 44.7 million, and CNY 43.4 million [6][8] - The sales revenue breakdown shows that sucralose accounted for about 49.6%, 51.1%, and 41.8% of total revenue in the past three years, while food-grade glycine accounted for approximately 40.6%, 40.1%, and 42.0% [3] Market Position - New Qi'an ranks first in the global food-grade glycine manufacturing industry based on sales volume and revenue in 2023, with a global market share of approximately 5.1% by volume and 3.1% by revenue [3] - The company's food-grade glycine accounts for about 0.31% of the global food additive market in 2023 [3] Production and Supply Chain - The company has established an international supply chain with five production facilities located in China, Indonesia, and Thailand [4] - New Qi'an has a global sales network serving customers in approximately 40 countries across six continents [4]