Core Viewpoint - The China Securities Regulatory Commission (CSRC) has requested Shanghai Kaijie E-commerce Co., Ltd. (Kaijie E-commerce) to provide supplementary information regarding its previous listing attempts and current plans for A-share listing, amid a backdrop of declining financial performance [1][2][3]. Financial Performance - Kaijie E-commerce reported revenues of approximately 1.829 billion yuan, 1.723 billion yuan, and 1.699 billion yuan for the years 2022, 2023, and 2024, respectively, indicating a continuous decline in revenue [4]. - The company's net profits for the same years were approximately 86 million yuan, 68 million yuan, and 60 million yuan, also reflecting a downward trend [4]. - Revenue from the top five customers accounted for 20.8%, 25.1%, and 26.6% of total revenue in 2022, 2023, and 2024, respectively [4]. - The largest customer contributed 16.7%, 18.6%, and 21.7% of total revenue for the years ending December 31, 2022, 2023, and 2024, respectively [4]. Listing and Regulatory Requirements - The CSRC has mandated Kaijie E-commerce to clarify its previous listing attempts on the National Equities Exchange and Quotations (NEEQ) and the reasons for its withdrawal from the A-share listing process [2][3]. - The company had previously listed on the NEEQ in May 2016 and voluntarily delisted in May 2019, with two subsequent A-share listing applications being withdrawn [3]. - The CSRC requires a legal opinion on whether the proposed shareholders' shares are subject to any pledges, freezes, or other rights defects [3]. Business Operations and Strategy - Kaijie E-commerce is a digital retail solution provider, ranked as the fifth largest in China by GMV in 2024 and the largest O2O digital retail solution provider [4]. - The company aims to use the funds raised from its listing for strategic business expansion, innovation, upgrading digital capabilities, strengthening its technical team and infrastructure, and expanding overseas, particularly in Southeast Asia and Europe [5].

Group 1 - Shanghai Kaijie submitted its IPO application to the Hong Kong Stock Exchange on May 28, with CITIC Securities as the exclusive sponsor [1] - Established in 2010, Shanghai Kaijie is a digital retail solutions provider serving over 200 brands, including more than 100 international brands across various industries [1] - The company is recognized as the fifth largest digital retail solutions provider in China and the largest O2O digital retail solutions provider by GMV in 2024 [1][4] Group 2 - Financial data shows a decline in revenue and profit from 2022 to 2024, with revenues of approximately 1.829 billion, 1.723 billion, and 1.699 billion yuan, and profits of 86.47 million, 67.59 million, and 60.43 million yuan respectively [1][4] - The company's gross margin has also decreased consecutively, with overall gross margins of 24.0%, 22.9%, and 21.8% from 2022 to 2024 [4] Group 3 - Shanghai Kaijie previously attempted to list on the A-share market but was unsuccessful, having withdrawn its application for the ChiNext board in December 2021 and later deciding not to pursue listing on the Shanghai Stock Exchange [5] - As of the latest date, the controlling shareholder, Xu Hao, and his concerted parties hold 70.94% of the voting rights [5] Group 4 - The funds raised from the IPO will be used for strategic business expansion, upgrading digital capabilities, strengthening the technical team and infrastructure, and expanding overseas, particularly in Southeast Asia and Europe [7]

Core Viewpoint - Shanghai Kaijie E-commerce Co., Ltd. is transitioning to the Hong Kong Stock Exchange for its IPO after facing challenges in the A-share market, with a history of declining performance and a need to regain market confidence [2][3][12]. Company Overview - Founded in 2010 by former Procter & Gamble executive Xu Hao, Shanghai Kaijie provides comprehensive e-commerce services to major brands like Mondelez, KFC, and Pepsi [3][5]. - The company has attracted investments from 18 notable investors, including major securities firms [5][7]. Financial Performance - The company has experienced a "three consecutive declines" in performance, with revenues of RMB 18.29 billion, RMB 17.23 billion, and RMB 16.99 billion from 2022 to 2024, respectively [18]. - Net profits have also decreased from RMB 86.47 million in 2022 to RMB 60.43 million in 2024 [18]. - The gross profit margin has declined from 24.0% in 2022 to 21.8% in 2024, indicating pressure on profitability [20]. Client and Revenue Dynamics - The number of brand partners has increased from 80 in 2022 to 113 in 2024, but revenue from the largest client has grown, indicating increased dependency on major clients [16][17]. - The company has faced challenges with client renewals, leading to significant revenue losses from key partnerships in the pet and beauty sectors [21]. Market Environment - The e-commerce market is becoming increasingly competitive, with many companies struggling to maintain profitability. For instance, competitors like Baozun and Liren Lizhuang have reported mixed financial results [24][25]. - The industry is witnessing a shift where companies are transitioning from being service providers to building their own brands, which Shanghai Kaijie has yet to adopt [25]. Future Outlook - The company is now seeking to establish itself in the Hong Kong market after unsuccessful attempts to list on the New Third Board and the Shenzhen Stock Exchange [12][13]. - The ongoing challenges in the e-commerce sector, including rising operational costs and pressure from brand partners, may hinder Shanghai Kaijie's growth unless it diversifies its business model [21][24].

Core Viewpoint - Shanghai Kaijie E-commerce Co., Ltd. (Kaijie E-commerce) has submitted its prospectus for an IPO on the Hong Kong Stock Exchange, marking its second attempt at going public after withdrawing its A-share application in 2021 [1][4]. Company Overview - Established in 2010, Kaijie E-commerce is a comprehensive e-commerce service provider, offering B2B and B2C sales as well as data-driven creative marketing services [1]. - According to data from ZhiShi Consulting, Kaijie E-commerce is the fifth largest digital retail solution provider in China and the largest O2O digital retail solution provider based on GMV projections for 2024 [1]. Previous IPO Attempts - Kaijie E-commerce first entered the New Third Board in May 2016 but voluntarily delisted in July 2019 to streamline operations and reduce costs [2]. - After two years, the company attempted to list on the A-share market in June 2021 but withdrew its application in December 2021 before completing the inquiry process [3]. Reasons for Switching to Hong Kong - The company cited low liquidity of shares on the New Third Board as a barrier to public financing and business growth [4]. - Listing on the Hong Kong Stock Exchange is seen as a way to enhance financing capabilities, expand the shareholder base, and improve international market recognition [4]. Financial Performance - Kaijie E-commerce has experienced a decline in both revenue and net profit for three consecutive years from 2022 to 2024, with revenues of 1.829 billion, 1.723 billion, and 1.699 billion yuan respectively, and net profits of 86.47 million, 67.59 million, and 60.43 million yuan [5][6]. - The company's gross profit margin has also decreased from 24% in 2022 to 21.8% in 2024 [8]. Client Base Changes - Previously, Colgate was one of Kaijie E-commerce's top five clients, contributing sales of 38.57 million, 42.04 million, and 59.10 million yuan from 2018 to 2020, but is no longer among the top clients [9][8]. Industry Context - The beauty e-commerce service industry is facing significant challenges, with many operators, including Kaijie E-commerce, reporting declining revenues and profits [15]. - Among six listed beauty e-commerce operators, only Ruoyuchen has shown revenue growth in 2024 and the first quarter of 2025, while others have experienced varying degrees of decline [16][17].

Core Viewpoint - Shanghai Kaijie E-commerce Co., Ltd. (referred to as "Kaijie E-commerce") has submitted an IPO application to the Hong Kong Stock Exchange, positioning itself as a "digital retail solution provider" for brand partners, amidst a backdrop of declining revenues in the e-commerce agency sector [2][3][11]. Group 1: Company Overview - Kaijie E-commerce claims to have established a comprehensive omnichannel network covering over ten core digital retail platforms, serving more than 200 brands [2]. - The company has faced challenges in its IPO journey, having previously attempted to list on the A-share market twice without success [5][6][7][8]. - As of the latest data, the company's revenue has shown a continuous decline over the past three years, with projected revenue for 2024 down 1.4% year-on-year [3][12]. Group 2: Financial Performance - The GMV (Gross Merchandise Volume) for Kaijie E-commerce was reported at RMB 81.78 billion in 2022, RMB 100.02 billion in 2023, and is projected to reach RMB 134.59 billion in 2024 [12]. - Revenue figures for the same years were RMB 18.29 billion, RMB 17.23 billion, and RMB 16.99 billion, respectively, indicating a downward trend [12][13]. - Net profit has also declined, with figures of RMB 0.86 billion, RMB 0.68 billion, and RMB 0.60 billion for 2022, 2023, and 2024, respectively [12]. Group 3: Market Context - The e-commerce agency industry is currently facing growth challenges, with many companies experiencing similar declines in performance [17]. - The top five market participants in China's digital retail solutions market collectively hold about 10% of the total market share as of 2024 [11]. - The competitive landscape is characterized by increasing pressure on e-commerce businesses, leading to a shift towards self-operated models by brands to reduce costs [18]. Group 4: Future Plans - Kaijie E-commerce aims to use the funds raised from the IPO for strategic expansion, innovation, and enhancing its digital capabilities, as well as expanding its overseas business [4][21]. - The company is targeting Southeast Asia and Europe for its international expansion, capitalizing on the rapid growth of the digital retail market in these regions [21][22]. - Industry experts suggest that while challenges exist in overseas markets, there are opportunities for e-commerce agencies to provide specialized services to brands looking to enter these markets [23][24].

Core Viewpoint - Shanghai Kaijie E-commerce Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, marking its fourth attempt at capital market entry after previous setbacks [1] Group 1: Company Overview - Founded in July 2010, Kaijie E-commerce focuses on providing comprehensive digital retail solutions, capturing market opportunities as foreign brands faced localization challenges in China [2] - The company has established a multi-channel network covering ten core digital retail platforms, including Tmall, JD.com, Douyin, and Pinduoduo, and has received top honors as a "Tmall Six-Star Service Provider" for seven consecutive years [2] - Kaijie serves over 200 brands, with more than half being international brands, including well-known companies like Mondelez, KFC, and LEGO [2][3] Group 2: Financial Performance - Despite a significant increase in Gross Merchandise Volume (GMV) from 8.178 billion to 13.459 billion yuan between 2022 and 2024, the company's revenue has declined from 1.829 billion to 1.699 billion yuan, a total decrease of 7.1% [4][3] - Net profit has also decreased by 30.2%, from 86.47 million to 60.43 million yuan, indicating a troubling divergence between GMV growth and financial performance [4] - The company has a high customer concentration risk, with the top five brand partners contributing 62.2%, 52.1%, and 52.8% of revenue from 2022 to 2024, respectively [4] Group 3: Industry Context - The financial struggles of Kaijie E-commerce reflect broader structural changes within the e-commerce agency industry, where major players are experiencing significant performance disparities [7] - The industry is facing challenges as brands increasingly build in-house teams, leading to a decline in reliance on third-party agencies [7] - The average gross margin in the agency sector has dropped from 45% in 2018 to around 32%, with leading companies like Baozun experiencing over an 80% decline in stock price from historical highs [7][8] Group 4: Strategic Direction - Kaijie E-commerce is attempting to transition towards a technology-driven model, with digital marketing services now accounting for 34% of its revenue [8] - The company plans to use funds raised from its IPO to enhance its digital retail solution capabilities and upgrade its technological infrastructure [8] - The success of Kaijie's latest capital market attempt will depend on its ability to innovate beyond traditional agency models and leverage new opportunities in "going global" and AI [8]

Core Viewpoint - Shanghai Kaiqi E-commerce Co., Ltd. (Kaiqi E-commerce), recognized as the fifth largest digital retail solution provider in China, has submitted its listing application to the Hong Kong Stock Exchange, despite facing significant challenges in revenue and profit growth [1][4][9]. Company Overview - Founded in July 2010, Kaiqi E-commerce specializes in providing comprehensive digital retail solutions for global premium brands, covering the entire value chain of the e-commerce ecosystem [1]. - The company has served over 200 brands by the end of 2024, with more than 100 being international brands, and has partnerships with nearly 50% of the Fortune 500 fast-moving consumer goods companies [3]. Financial Performance - The Gross Merchandise Volume (GMV) for Kaiqi E-commerce from 2022 to 2024 was reported as 8.178 billion, 10.002 billion, and 13.459 billion yuan, respectively, indicating a compound annual growth rate of nearly 30% [4]. - However, the company's revenue declined from 1.829 billion yuan in 2022 to 1.699 billion yuan in 2024, and net profit decreased from 86.47 million yuan to 60.43 million yuan during the same period [4]. Revenue Challenges - The decline in revenue is attributed to the termination of partnerships with low-profit brands, which has exposed the company's weak customer retention and conversion rates [5]. - The revenue from the to-B business segment is projected to grow from 555.7 million yuan in 2023 to 582 million yuan in 2024, driven by new food brand introductions and increased sales from existing brands [5]. Client Dependency - Revenue from the top five clients accounted for 20.8%, 25.1%, and 26.6% of total revenue from 2022 to 2024, with the largest client contributing 16.7%, 18.6%, and 21.7% respectively [6]. - This heavy reliance on a few clients raises concerns about potential revenue gaps if any major client reduces or terminates their partnership [6]. Profitability Issues - The gross profit margin for Kaiqi E-commerce has declined from 24.0% in 2022 to 21.8% in 2024, with both to-C and to-B business segments experiencing margin reductions [7]. - The company has adopted a strategy to increase market penetration in the low-margin food product sector, which has led to a decrease in overall gross margins [7]. Market Position and Competition - Kaiqi E-commerce has attempted to list multiple times, including efforts in the New Third Board and A-share market, but faced setbacks [8]. - The e-commerce agency industry is at a crossroads, with many companies struggling to maintain core brand partnerships, leading to increased competition and rising customer acquisition costs [8][9]. IPO Timing and Market Conditions - Despite the unfavorable performance metrics, the company is pursuing an IPO to avoid potential future declines in performance and market relevance [9]. - The current market conditions, including reduced liquidity in the Hong Kong market, pose additional risks for the company's successful listing and future performance [10].

Core Viewpoint - The company, Kaijie Electronics, is facing continuous performance decline despite being the fifth largest digital retail solution provider in China, as it prepares for its IPO in Hong Kong [1][2]. Group 1: Company Performance - Kaijie Electronics has shown a compound annual revenue growth rate (CAGR) of -3.65% from 2022 to 2024, with net profit declining at a CAGR of -16.47% during the same period [2]. - The revenue structure has been adjusted, but it has not reversed the downward trend in performance. The company serves over 200 brands, including more than 100 international brands across various sectors [3]. - The revenue from To-C (consumer) and To-B (business) segments for 2024 is projected to be 974 million RMB and 582 million RMB, respectively, accounting for 57.3% and 34.3% of total revenue [3]. Group 2: Profitability and Financial Metrics - The overall gross margin for 2024 is expected to be 21.8%, a decrease of 2.2 percentage points from 2022. The gross margins for To-C and To-B segments are 25.8% and 11.2%, respectively [4][5]. - The company has a relatively dispersed customer concentration, with the top five customers contributing 26.6% of revenue, while the top five suppliers account for 52.6% of procurement [3][4]. Group 3: Market Position and Industry Context - The digital retail market in China is projected to reach 13.9 trillion RMB in 2024, with a compound growth rate of 11.8% over the past five years. In contrast, Kaijie Electronics' performance lags behind this industry growth [7][8]. - The company holds a mere 1% market share, indicating a loss of market position as it faces intense competition in a highly fragmented market [9]. - Despite the challenges, the digital retail solutions market is expected to grow significantly, with projections indicating a market size of 3.4 trillion RMB by 2029 [8][9]. Group 4: Strategic Initiatives - To enhance competitiveness, the company is investing in research and development to create an integrated smart e-commerce platform and is focusing on AI technology to improve its service offerings [6][10]. - The company has increased its brand partnerships to 113 in 2024, up by 33 over three years, indicating efforts to strengthen its market presence [9].

Core Viewpoint - Shanghai Kaijie E-commerce Co., Ltd. (Kaijie E-commerce) has submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities International as the sole sponsor [1]. Company Overview - Kaijie E-commerce is a leading digital retail solutions provider in China, offering comprehensive digital retail solutions across the entire value chain of the e-commerce ecosystem, including brand positioning, product development consulting, retail operations, channel management, marketing promotion, order fulfillment, and data and IT services [5]. - According to Zhaoshang Consulting, by GMV in 2024, the company ranks as the fifth largest digital retail solutions provider in China and the largest O2O digital retail solutions provider [5]. - The company has served over 200 brands, including more than 100 international brands, with partnerships spanning various industries such as food and beverage, beauty and personal care, baby products, trendy toys, pet care, health, outdoor sports, and chain enterprises [5]. Business Relationships - Kaijie E-commerce maintains an average partnership duration of over eight years with major brand partners, with over 90% of these partnerships still active as of May 21, 2025 [5]. - Nearly 50% of the company's brand partners are from the Fortune 500 fast-moving consumer goods companies [5]. Market Position and Recognition - The company has established a multi-channel network covering over ten core digital retail platforms, including Tmall, JD.com, Douyin, and Pinduoduo [6]. - It has been recognized as a Tmall Six-Star Service Provider for seven consecutive years since 2018 and has received various accolades from Alibaba's ecosystem, including Tmall and Alimama [6]. Financial Performance - For the fiscal years 2022, 2023, and 2024, the company reported revenues of approximately RMB 1.83 billion, RMB 1.72 billion, and RMB 1.70 billion, respectively [6][8]. - The net profits for the same periods were RMB 86.47 million, RMB 67.59 million, and RMB 60.43 million, respectively [6][8]. - The gross profit margins have shown a declining trend, with margins of 24.0%, 22.9%, and 21.8% for the years 2022, 2023, and 2024, respectively [8].