Core Viewpoint - Drip Irrigation International Investment Co., Ltd. (referred to as "Drip Investment") has submitted its IPO application to the Hong Kong Stock Exchange, aiming to clarify its operational model amidst market skepticism [1][3] Group 1: Company Overview - Drip Investment was founded by former HKEX CEO Li Xiaojia and focuses on cash flow-based financing services for small and micro enterprises [1][2] - The company’s investment product, known as DRC (Daily Revenue Sharing Contract), allows it to invest in small businesses and receive a portion of their daily revenue [2][3] Group 2: Product Characteristics - Drip Investment's products are characterized as "non-equity, non-debt," emphasizing cash flow rather than traditional investment structures [2] - The cash rights investment model is designed to share risks with investors, who do not have rigid repayment rights if the business fails to generate cash flow [2][3] Group 3: Strategic Goals - The launch of Drip Investment marks the beginning of the Drip Irrigation 3.0 phase, which aims to standardize non-standard financing products for small businesses [3][5] - The company plans to package and securitize cash flow assets, making them accessible to various types of investors without requiring small businesses to alter their operations [3][5] Group 4: Technological Integration - The "Drip Star" digital operating system includes five core elements: RBO, SPV, SPAC, ETF, and RBU, which serve as digital financing vehicles [5][6] - AI technology plays a crucial role in enhancing operational efficiency and connecting with potential partners in the investment ecosystem [6][7] Group 5: Financial Performance - As of July 2024, Drip Investment's MCLF fund size is reported at $160 million, with a significant decline in annualized return rates from 18.11% in 2022 to 0.51% in 2024, indicating a 97.18% drop [8][10] - The decline in returns is attributed to the cessation of new investments and the impact of the pandemic on small micro-finance, although the company asserts that cash flow investments have shown resilience [10][11]

Group 1 - The core point of the article is the submission of a listing application by Drip Irrigation International Investment Co., founded by former HKEX CEO Li Xiaojia, to the Hong Kong Stock Exchange, with HSBC as the sole sponsor [1] - Drip Irrigation Investment aims to focus on cash flow investments, including bonds, equities, and a new investment category termed "cash rights" (CCO), which is based on specific cash flow rights [1][5] - The funds raised from the listing will be invested alongside other professional investors across various industries [1] Group 2 - Chapter 21 of the Hong Kong Stock Exchange listing rules allows companies that primarily focus on investment to list without the need for actual business operations, addressing the demand for standardized listing channels for professional investment institutions [2] - Companies under Chapter 21 must adhere to strict diversification principles, including limits on single investments and monthly disclosures of net asset values [2][3] - Currently, there are 21 Chapter 21 companies, but their liquidity is low, and they have faced regulatory scrutiny, leading to a significant decrease in new listings in recent years [3] Group 3 - Drip Irrigation Investment is distinct from Drip Irrigation, which was co-founded by Li Xiaojia and focuses on providing funding to small and micro enterprises through a revenue-sharing model [5][6] - The establishment of Drip Irrigation Investment as a limited liability company in the Cayman Islands with no current operations aims to raise funds for investments and general operational expenses [6] - Li Xiaojia's industry reputation may help attract institutional investors, but the historical liquidity issues of Chapter 21 companies could pose challenges for Drip Irrigation Investment's listing journey [7]