Core Viewpoint - Company Fuyou Payment has submitted its third IPO application to the Hong Kong Stock Exchange after previous attempts failed, highlighting ongoing challenges in profitability and compliance issues in its pursuit of capital market entry [2][3][6]. Group 1: Company Background - Fuyou Payment, established in 2011 and headquartered in Shanghai, holds various payment licenses in mainland China, Hong Kong, and the United States, focusing on commercial, financial, and cross-border digital payment services [6]. - The company has processed over 545 billion payment transactions, with a total payment volume (TPV) of 15.1 trillion RMB as of the end of 2024 [10]. Group 2: IPO Attempts - Fuyou Payment has previously attempted to list on the A-share market in 2018 and 2021 but was unable to proceed, leading to the termination of related agreements [6]. - After shifting focus to the Hong Kong market, the company submitted its IPO applications on April 30 and November 8, 2024, both of which ultimately expired [6]. Group 3: Financial Performance - The company's revenue for 2022, 2023, and 2024 was approximately 1.142 billion RMB, 1.506 billion RMB, and 1.634 billion RMB, respectively, reflecting a compound annual growth rate of 19.6% [8]. - However, net profits for the same years were 71.17 million RMB, 92.98 million RMB, and 84.43 million RMB, indicating a decline in profit for 2024 compared to the previous year [8]. Group 4: Market Position - In 2024, Fuyou Payment ranked eighth among independent digital payment service providers in China, holding a market share of 0.8%, with no change in market share from 2023 [10]. - The overall digital payment service market in China is projected to reach a TPV of 268.6 trillion RMB in 2024, with the top three non-independent providers holding a combined market share of 75.6% [8][10]. Group 5: Compliance Challenges - Fuyou Payment has faced multiple regulatory penalties since its inception, including significant fines for compliance violations related to payment services and foreign exchange regulations [12]. - The company has been under pressure to enhance compliance and improve service quality to navigate the competitive landscape and regulatory environment [13].

Core Viewpoint - The company, Shanghai Fuyou Payment Service Co., Ltd., has submitted its listing application to the Hong Kong Stock Exchange for the third time after its previous applications expired, indicating ongoing challenges in its IPO journey [1][2]. Group 1: Listing Progress - Fuyou Payment's IPO process has faced delays, with its initial application submitted in April 2024 and subsequent expirations in October 2024 and May 2025 [1]. - The company has stated that the expiration of its prospectus does not hinder its overall IPO progress, as it is a routine procedure to ensure updated information disclosure [1]. Group 2: Financial Performance - Fuyou Payment's revenue for 2022, 2023, and 2024 was approximately 1.14 billion, 1.50 billion, and 1.63 billion RMB respectively, while net profits for the same years were 71.17 million, 92.98 million, and 84.43 million RMB [2][3]. - The company's gross profit margin decreased from 28.4% in 2022 to 25.2% in 2023, with a slight recovery to 25.9% in 2024 [2]. Group 3: Industry Challenges - The payment industry is experiencing intense competition, leading to reduced service fees and increased commission costs, which negatively impact net profits [2][4]. - Fuyou Payment has faced regulatory penalties annually since 2014, which may complicate its compliance efforts as it seeks to go public [4]. Group 4: Future Strategies - The company plans to adjust its business strategy to mitigate the impact of high commission rates on its gross margin, focusing on developing high-margin digital business solutions [4]. - There is a need for Fuyou Payment to enhance compliance measures and invest in technology to innovate payment products and services, particularly in high-value areas like cross-border payments and SaaS solutions [4].

Core Viewpoint - Fuyou Payment has submitted its third listing application to the Hong Kong Stock Exchange, with CICC and Shenwan Hongyuan Hong Kong as joint sponsors, after two previous applications in April and November 2024 [1]. Company Overview - Fuyou Payment is a versatile digital payment technology platform in China, recognized as one of the first to offer multi-channel digital payment and digital business solutions, and among the first to obtain cross-border foreign exchange payment service licenses [3]. - As of December 31, 2024, Fuyou Payment has processed a total TPV of RMB 15.10 trillion, handling over 54.5 billion payment transactions since its establishment [6]. Market Position - In the comprehensive digital payment service market in China, Fuyou Payment ranked eighth with a market share of 0.8% in 2024, amidst a total TPV of RMB 268.6 trillion, dominated by three major non-independent comprehensive digital payment service providers holding 75.6% of the market [3][6]. Financial Performance - Fuyou Payment's TPV increased from RMB 1.73 trillion in 2022 to RMB 2.08 trillion in 2024, reflecting a compound annual growth rate (CAGR) of 9.7%. The number of transactions processed grew from 8.6 billion to 14.3 billion during the same period, with a CAGR of 28.8% [7]. - The company's revenue for 2022, 2023, and 2024 was approximately RMB 1.14 billion, RMB 1.51 billion, and RMB 1.63 billion, respectively, with net profits of RMB 71.17 million, RMB 92.98 million, and RMB 84.43 million [7][9]. Cost Structure - Fuyou Payment's operating expenses as a percentage of revenue decreased from 22.1% in 2022 to 19.0% in 2024, indicating improved operational efficiency [7]. - The gross profit margin declined from 28.4% in 2022 to 25.2% in 2023, primarily due to increased commission rates for acquiring services as part of a pricing strategy to strengthen partnerships [9].