Core Viewpoint - Drip Irrigation International Investment Co., Ltd. (referred to as "Drip Investment") has chosen a special listing method under the Hong Kong Stock Exchange's Chapter 21, which allows companies without actual business operations to go public, marking the first such application in 14 years [1][3]. Group 1: Company Background - Drip Investment was established on May 23, 2025, in the Cayman Islands, with Li Xiaojia as the chairman. The company has not conducted any operations since its inception [5]. - The company aims to create a non-equity, non-debt cash flow investment model to provide overseas financing channels for small and micro enterprises [5]. - Drip Investment's platform allows global investors to invest directly in numerous small and micro businesses in China, sharing transparent and secure investment returns [6]. Group 2: Financial Performance - As of December 31, 2024, Drip Investment's total issuance scale on the Macau Stock Exchange reached 46.1 billion RMB, with over 13,000 income-sharing products issued, returning 24.4 billion RMB to investors [6]. - The MCLF fund's annualized returns have seen significant fluctuations, with returns dropping from 18.11% in August-December 2022 to 0.51% in January-July 2024 [8][9]. Group 3: Business Model and Risks - Drip Investment's core operating model is based on Daily Revenue Sharing Contracts (DRC), providing financing to small businesses in various sectors, which return a portion of their daily cash flow to Drip Investment [7]. - Concerns have been raised regarding the sustainability of this model, particularly in economic downturns, as over 90% of the company's revenue comes from small business revenue sharing [7]. - The company claims to control risks through direct connections with POS systems and cross-verification of data, but only managed to intercept 69 fraudulent transactions in 2023, raising questions about the effectiveness of its risk management [10].

Core Viewpoint - The listing of Drip Irrigation Investment marks the beginning of a new investment paradigm focused on cash flow-based investing, providing diverse opportunities for investors while supporting small and micro enterprises [1][4]. Group 1: Company Overview - Drip Irrigation Investment has submitted a listing application to the Hong Kong Stock Exchange, with HSBC as its sole sponsor, indicating the start of its listing journey [1]. - The company was established on May 23, 2025, in the Cayman Islands, with an initial authorized share capital of 3 billion shares [3]. - Drip Irrigation Investment is a closed-end investment company that has not yet commenced operations or business activities [3]. Group 2: Investment Strategy - The company focuses on three major market opportunities: 1. Asset-Based Cash Rights, providing liquidity to private equity and venture capital investors [5]. 2. Business-Based Cash Rights, supporting the development of the real economy without diluting equity [5]. 3. Corporate-Based Cash Rights, aiding early-stage entrepreneurs with essential capital to avoid failures due to funding shortages [5]. Group 3: Financial Performance and Projections - As of June 20, 2025, Drip Irrigation has raised a cumulative financing amount of 5.545 billion Macanese Patacas and a cumulative income-sharing amount of 3.413 billion Macanese Patacas [3]. Group 4: Listing Methodology - Drip Irrigation Investment plans to list under the rare Chapter 21 of the Hong Kong listing rules, which allows companies without a specific main business to apply for listing, focusing on the rationality of investment strategies and internal controls [7]. - The company’s listing documents are available only in English, and it has not disclosed specific performance data in its prospectus [7]. Group 5: Market Impact - If successful, the listing will standardize and systematize the allocation of funds to diverse asset classes that traditional debt and equity markets cannot effectively reach, injecting non-dilutive capital into the real economy [8].

Core Viewpoint - The establishment of Drip Irrigation International Investment Company (Drip Investment) by former HKEX CEO Li Xiaojia marks the initiation of its listing journey on the Hong Kong Stock Exchange (HKEX), with HSBC as the sole sponsor [1][2]. Group 1: Company Overview - Drip Investment is a closed-end investment company registered in the Cayman Islands on May 23, 2025, with an initial authorized share capital of 3 billion shares [2]. - The company focuses on "cash flow-based investing" to create income and distribute dividends to shareholders, and it is currently not operational [2]. - Li Xiaojia serves as the chairman and sole executive director, with seven other independent non-executive directors [2]. Group 2: Market Opportunities - Drip Investment aims to capitalize on three major market opportunities: 1. Asset-Based Cash Rights: Providing liquidity to private equity (PE), venture capital (VC), and their investors [4]. 2. Business-Based Cash Rights: Supporting the development of the real economy without diluting equity or imposing rigid repayment [4]. 3. Corporate-Based Cash Rights: Offering essential survival capital to early-stage entrepreneurs to prevent failures due to funding shortages [4]. Group 3: Listing Methodology - Drip Investment plans to list under the rare Chapter 21 of the Hong Kong listing rules, which allows companies without a specific main business to apply for listing, focusing on investment strategies and internal controls [5][6]. - The last company to list under Chapter 21 was in 2011, indicating the rarity of such listings in recent years [6]. Group 4: Strategic Impact - If successful, Drip Investment's listing will standardize and systematize the allocation of funds to diverse asset classes that traditional debt and equity markets cannot effectively reach, injecting non-dilutive capital into the real economy [7].

Core Viewpoint - Micro Connect International Finance Company Limited (滴灌通) has submitted its initial application for listing on the Hong Kong Stock Exchange, backed by former HKEX CEO Li Xiaojia, amidst previous controversies regarding its business model and a recent C-round financing of $458 million [1][9]. Group 1: Company Overview - Micro Connect is a fintech company that connects global capital with small and micro enterprises through an innovative revenue-sharing model, allowing these businesses to raise affordable long-term funds [7]. - The company operates the world's first licensed Daily Revenue Sharing Products (DRO) exchange, facilitating investment opportunities for global investors while providing liquidity for small enterprises [7]. Group 2: Leadership and Management - Li Xiaojia, aged 64, is the co-founder and chairman of Micro Connect, responsible for strategic direction and key decision-making alongside the CEO [2]. - The management team includes experienced executives, such as independent non-executive director Fang Xiaoming, who has over 20 years of global experience in banking, private equity, and technology [5]. Group 3: Business Model and Innovations - The company’s revenue-sharing products offer diverse investment opportunities linked to daily cash flows from small businesses, making financing more accessible and cost-effective [7]. - The "滴灌之星" system, a digital operating system for the exchange, includes five core elements that replicate traditional market structures but in a digital format, enhancing safety and ease of financing for small enterprises [8]. Group 4: Recent Developments and Controversies - Following a $458 million C-round financing in August 2023, the company faced scrutiny over its business model, with critics labeling it as high-interest lending and questioning its legal framework [9][10]. - Li Xiaojia defended the model as a joint venture approach, emphasizing the collaborative nature of the business relationship among stakeholders [9].