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]