Group 1 - The China Securities Regulatory Commission (CSRC) has published supplementary material requirements for overseas issuance and listing, specifically for Unisplendour Corporation Limited (000938.SZ) [1] - Unisplendour is required to clarify the changes in its shareholding structure before and after the overseas listing, particularly regarding the full exercise of the over-allotment option [1] - The company must explain the operational methods of new shareholders, including the Xinda Securities Fengshi No. 2 Single Asset Management Plan and the Chang'an Trust Zhongbao Investment No. 1 Trust [1] Group 2 - Unisplendour is recognized as a global leader in digital and artificial intelligence solutions, providing a full-stack intelligent ICT infrastructure product suite along with advanced cloud-based intelligent platforms [2] - The solutions offered by Unisplendour are designed to assist clients across various industries in accelerating their digital and intelligent transformation [2]

Core Viewpoint - Unisplendour Co., Ltd. has submitted its prospectus for a Hong Kong IPO, aiming to become a key player in the AI computing market, despite showing conflicting financial results over the past three years, with revenue growth but a significant decline in net profit and increasing debt levels [1][4][22]. Financial Performance - The company's total revenue increased from 73.75 billion RMB in 2022 to 79.02 billion RMB in 2024, while net profit fell from 3.74 billion RMB to 1.98 billion RMB, resulting in a net profit margin drop from 5.1% to 2.6% [1][4]. - Revenue growth of 7% over two years contrasts sharply with a 47% decline in net profit, highlighting a significant disparity in financial performance [4]. Business Segments - The decline in profitability is primarily attributed to a drop in gross margins across its two main business segments: digital solutions and ICT product distribution [5][7]. - Gross margins for the digital solutions segment decreased from 26.8% in 2022 to 20.6% in 2024, while the ICT product distribution segment saw a drop from 7.8% to 4.9% during the same period [5][7][8]. Debt Situation - The company's total liabilities surged from 36.24 billion RMB in 2022 to 72.7 billion RMB in 2024, with a corresponding increase in the debt-to-asset ratio from 48.91% to 81.87% [10][11]. - A significant acquisition of a 30% stake in H3C Technologies for approximately 15 billion RMB in 2024 was financed through loans, contributing to the increased debt levels [11][22]. Inventory and Cash Flow - Inventory levels rose dramatically from 18.88 billion RMB in 2022 to 33.95 billion RMB in 2024, with a further increase noted in Q1 2025 [14]. - The efficiency of inventory turnover worsened, with turnover days increasing from 111.3 days in 2022 to 163.8 days in 2024 [15]. Goodwill and Risks - The company's goodwill remained high at 13.99 billion RMB, constituting 86.9% of its net assets in 2024, raising concerns about potential goodwill impairment risks [16]. - The company has faced significant financial challenges, including a history of debt crises and restructuring, which may impact its future stability [18][22].