Core Viewpoint - Beijing Quanshi Tiandi Online Network Information Co., Ltd. has responded to the Shenzhen Stock Exchange regarding its application for issuing shares to purchase assets and raise supporting funds, detailing the business development and operating performance of the target asset, Shanghai Jiato Internet Technology Group Co., Ltd. [1] Group 1: Business Development of Target Asset - Jiato Group has undergone multiple capital changes since its establishment in 2016, including an initial capital increase of 2 million yuan and subsequent rounds of funding, with a notable external investment of 18 million yuan in 2021 [2] - The programmatic advertising industry is rapidly growing, with global spending expected to reach $650.9 billion in 2024, accounting for 82.4% of the digital advertising market [2] - China's internet advertising market is projected to reach 852.04 billion yuan by 2025, with an increasing share of programmatic advertising [2] - Jiato Group has developed its own advertising trading system and intelligent marketing services, collaborating with major internet companies like Alibaba and JD.com [2] - The company holds 11 core technologies, over 100 software copyrights, and 1 patent, ensuring its competitive edge and sustainability in the market [2] Group 2: Operating Performance of Target Asset - The target asset's revenue growth rates for the past two years were 69.10% and 45.97%, surpassing comparable companies in the industry [3] - Revenue growth is attributed to industry expansion, increased advertising budgets from major clients, and the acquisition of new clients, with stable long-term partnerships established with key clients [3] - The procurement model includes direct media procurement and traffic platform procurement, with a decrease in the concentration of the top five suppliers [3] - The main business costs consist of media traffic costs, labor costs, and server hosting and bandwidth costs, with media traffic costs being the largest component [3] - The company has seen a 23.11% decrease in sales expenses in 2024, while management and R&D expenses have slightly increased, leading to a decline in the expense ratio [3] - Financial compliance issues have been addressed, including the rectification of employee bonus payments through third parties, ensuring no tax violations or administrative penalties [3]