Core Viewpoint - Xiamen Jihong Technology Co., Ltd. expects a significant increase in net profit for the first three quarters of 2025, driven by the growth of its cross-border social e-commerce business and improved profitability in its paper packaging segment [3] Group 1: Financial Performance - The company anticipates a net profit of between 257 million yuan (36 million USD) and 270 million yuan, representing a year-on-year increase of approximately 95.1% to 105.3% [3] - The net profit excluding non-recurring gains and losses is projected to be between 200 million yuan and 210 million yuan, with a year-on-year growth rate of 65% to 76% [3] Group 2: Business Development - Jihong Technology, established in 2003 and headquartered in Xiamen, initially focused on paper packaging before expanding into cross-border social e-commerce [3] - The company employs an "information finds people" promotional strategy to achieve a "goods find people" model in cross-border social e-commerce [3] Group 3: Market Performance - Since its listing on the Hong Kong Stock Exchange in May, the company's stock price has increased by 63.2% [3] - Following the profit announcement, the company's stock opened higher, reaching 18.34 HKD, an increase of 2.17% by midday [3]

Group 1 - The core viewpoint of the article highlights that Jihong Co., Ltd. (02603) experienced a significant stock price increase of over 13%, reaching HKD 20.4, with a trading volume of HKD 20.0736 million [1] - The company announced an expected net profit attributable to shareholders of approximately RMB 209 million to RMB 222 million for the first three quarters of 2025, representing a year-on-year growth of 55% to 65% [1] - The substantial growth in revenue and profit is attributed to the deepening of brand building and regional expansion in the cross-border social e-commerce business, as well as the benefits from long-term strategic cooperation with leading companies in the fast-moving consumer goods (FMCG) packaging sector [1] Group 2 - The company has improved its operational and resource utilization efficiency through group-level refined management, leading to a significant enhancement in profitability [1] - The growth in revenue and profit is also supported by the company's industry expertise and technological capabilities, which have contributed to the substantial increase in revenue scale and profit [1]

Core Viewpoint - Xiamen Jihong Technology Co., Ltd. (Jihong Co.) has made a significant market debut, becoming the first "AI cross-border social e-commerce A+H stock" in the Hong Kong market, reflecting the strong momentum of China's cross-border e-commerce industry amid globalization and digitalization [1][3] Group 1: Company Performance - In 2024, Jihong Co. achieved impressive financial results with a revenue of 552.93 million yuan and a net profit of 18.19 million yuan [4] - The company's cross-border social e-commerce business generated revenue of 336.59 million yuan, becoming the core engine of its growth [4] - Jihong Co. ranks second in the Chinese B2C export e-commerce sector with a 1.3% market share [4] Group 2: Business Model and Strategy - Jihong Co. operates under a dual-driven business model, combining cross-border social e-commerce with paper packaging solutions [3][4] - The company employs a unique "goods find people" model, leveraging consumer data to identify needs and guide purchasing decisions, contrasting with the traditional "people find goods" approach [5][6] - The cross-border social e-commerce business accounted for 60.9% of total revenue in 2024, with a high gross margin of 60.5% [6] Group 3: Packaging Solutions - Jihong Co. is a leading provider of one-stop paper packaging solutions, integrating various processes from design to logistics [8][9] - The company holds a 1.2% market share in the Chinese paper packaging sector, ranking first in revenue among domestic companies [9] - The paper packaging market in China is projected to grow from 1,456 billion yuan in 2020 to 1,703 billion yuan in 2024, with expectations to reach 2,227 billion yuan by 2029 [9] Group 4: Environmental and Market Trends - The company is positioned to benefit from increasing environmental awareness and stringent ESG policies, which are reshaping the packaging industry [10][11] - Jihong Co. has seen its paper packaging output rise from 846.7 million square meters in 2022 to 1,026.1 million square meters in 2024 [11] - The company has established partnerships with major brands like Yili and McDonald's, enhancing its market presence [12] Group 5: Future Outlook - Jihong Co. aims to transition from merely "cross-border selling" to "brand output," with a target to increase brand business contribution to 30% by 2027 [13] - The company's strategic focus includes leveraging AI technology and expanding its brand matrix to explore new valuation opportunities [14]

Core Viewpoint - Jihong Co., Ltd. is set to achieve a dual listing in both A-share and H-share markets, with its H-shares expected to be listed on May 27, 2025, aiming to raise approximately HKD 5.08 billion to HKD 7.25 billion [2][5][6] Group 1: H-Share Listing Details - The company has published its H-share prospectus and plans to issue 67.91 million shares, with a price range set between HKD 7.48 and HKD 10.68 [2][5] - The public offering in Hong Kong started on May 19, 2025, and is expected to conclude on May 22, 2025, with the final pricing to be announced by May 26, 2025 [5][6] - Jihong Co. will become an A+H listed company following the successful issuance and trading of its H-shares [6] Group 2: Business Performance and Strategy - The company has transitioned from a packaging business to a dual-driven model that includes cross-border social e-commerce and paper-based fast-moving consumer goods packaging solutions [2][8] - In Q1 2025, Jihong Co. reported a revenue of CNY 1.477 billion, marking an 11.55% year-on-year increase, with net profit reaching CNY 59.16 million, up 38.21% [9] - The cross-border e-commerce segment accounted for over 60% of the company's revenue, indicating a significant shift in business focus [7][9] Group 3: Financial Overview - For the year 2024, Jihong Co. experienced a revenue decline of 17.41% to CNY 5.529 billion, with net profit decreasing by 47.28% to CNY 182 million [8] - The packaging and e-commerce businesses generated revenues of CNY 1.198 billion and CNY 3.366 billion respectively in 2024, with respective year-on-year declines of 10.98% and 20.93% [8] - The company has increased its dividend frequency, distributing a total of CNY 128 million in cash dividends for the year 2024, which is 112.06% of its net profit [6][8]