Core Viewpoint - Nanjing Qingtian Quanshui Information Technology Co., Ltd. (Qingtian Quanshui) has submitted its listing application to the Hong Kong Stock Exchange, planning to go public on the main board, while also distributing a significant cash dividend prior to the listing, raising concerns about its financial health and operational performance [1][2][14]. Financial Performance - The company has declared a cash dividend of 230 million RMB, which accounts for 144.65% of its net profit during the same period, indicating a potential depletion of its retained earnings [1][6]. - As of the end of 2024, the company's undistributed profits will be only 14.6 million RMB, suggesting that most of its profits accumulated over 13 years have been exhausted [1][6]. - Revenue growth has significantly slowed, with 2024 and the first half of 2025 showing revenue growth rates of only 6.39% and 4.50%, compared to 34.70% in 2023 [15][17]. - The net profit for 2024 and the first half of 2025 has dropped by 26.43% and 74.87%, respectively, primarily due to increased system integration costs and declining gross margins [17]. Client Base and Market Position - The number of enterprise clients has decreased from approximately 34,013 in 2022 to 27,260 in 2024, indicating a declining trend in client acquisition [17]. - Qingtian Quanshui ranks first in the Chinese cross-border enterprise intelligent tax solutions market with a market share of 1.7% and second in the broader digital solutions market with a 1.2% share [2]. Shareholder Actions - Prior to the listing application, three early shareholders collectively cashed out 80 million RMB, raising questions about the timing and motivations behind the dividend distribution and the IPO [3][14]. - The actual controller, Xin Yingmei, holds approximately 78.17% of the company's shares, with significant portions of the dividend expected to flow to her [2][4]. Regulatory Concerns - The company’s dividend distribution practices may violate new regulations that classify "clearance-style" dividends as negative listing behaviors if they exceed certain thresholds [7][8]. - Qingtian Quanshui has reached the threshold for "clearance-style" dividends, which could impact its IPO prospects [8]. Debt and Liquidity - As of June 30, 2025, the company has a total of 127 million RMB in payable dividends and 177 million RMB in broad monetary funds, indicating a potential liquidity crisis post-dividend distribution [9][10]. - The company has recently taken on a 10 million RMB bank loan, which must be repaid within a year, raising concerns about its financial stability [13]. Operational Challenges - The gross margin has declined from 83.5% in 2022 to 67.3% in the first half of 2025, reflecting operational inefficiencies and increased costs [17]. - The company’s net profit margin has plummeted from 94.70% in 2023 to 11.30% in the first half of 2025, indicating a severe drop in profitability [17].

Core Viewpoint - Nanjing Qingtian Quansuitong Information Technology Co., Ltd. plans to list on the Hong Kong Stock Exchange, aiming to enhance its competitive edge through technological innovation and diversified sales strategies, despite facing challenges such as declining customer numbers and profit margins [1][12]. Company Overview - Established in 2012, the company initially focused on providing intelligent tax services for cross-border enterprises and has since expanded into risk control compliance and document collaboration management solutions [1][3]. - The company has served nearly 420,000 foreign trade export and cross-border e-commerce enterprises, with approximately 160,000 users and over 2 million service instances [3]. Customer Dynamics - The number of enterprise customers has been declining, from approximately 34,000 in 2022 to 27,300 in 2024, indicating a shift in customer base towards larger clients [3][5]. - In 2024, the number of medium and large clients for the cross-border intelligent tax solution exceeded 10,000, while the number of small clients dropped significantly [5][6]. Market Size and Growth - The market for cross-border enterprise tax digital solutions in China was valued at 14.7 billion RMB in 2024, with projections to reach 32.8 billion RMB by 2029, indicating rapid growth despite a currently limited market size [6][8]. Competitive Landscape - The industry is highly fragmented, with the company holding a 1.2% market share in 2024, ranking second in the sector [8]. - The top five companies in the industry collectively hold only 4.9% of the market share, highlighting the competitive nature of the landscape [8]. Financial Performance - Revenue growth has slowed, with figures of 120 million RMB in 2022, 161 million RMB in 2023, and 171 million RMB in 2024, reflecting a year-on-year increase of only 6.4% in 2024 [8][10]. - Adjusted net profits have also shown weakness, with figures of 45.2 million RMB in 2022 and 48.4 million RMB in 2024, indicating a decline in profitability [9][10]. Business Structure - The company heavily relies on its cross-border intelligent tax solution, which accounted for 87.5% of revenue in the first half of 2025, limiting its ability to capitalize on diverse growth opportunities in the market [10][11]. - The focus on a single business model has hindered the company's growth potential, especially as other segments like electronic invoice management have seen rapid growth [11][12]. Dividend Policy - Despite facing performance pressures, the company distributed dividends of 103 million RMB in 2022 and 127 million RMB in 2024, significantly exceeding its net profits during those periods [12].

Core Insights - The digital tax solution market in China is experiencing explosive growth, with market size projected to increase from 53.3 billion yuan in 2019 to 100.6 billion yuan by 2024, representing a compound annual growth rate (CAGR) of 13.5%, and expected to reach 183.3 billion yuan by 2029 [1] - Qingtian Quansuitong is preparing for an IPO on the Hong Kong Stock Exchange, aiming to raise funds for technological innovation, diversified sales strategies, strategic investments, and general operational needs [1] Company Overview - Qingtian Quansuitong is a leading digital service provider for cross-border enterprises, established in 2012, focusing on comprehensive solutions for import and export businesses [1][2] - The company ranks first in the Chinese cross-border enterprise intelligent tax solution market with a market share of 1.7% and second in the overall cross-border enterprise financial and tax digital solution market with a 1.2% share [2] Financial Performance - Revenue growth from 2022 to 2024 shows an increase from 120 million yuan to 171 million yuan, with a revenue of 63.82 million yuan in the first half of 2025, reflecting a year-on-year growth of 4.5% [3] - Gross profit fluctuated during the same period, with figures of 99.91 million yuan, 134 million yuan, and 120 million yuan, while net profit showed a decline from 55.27 million yuan in 2022 to 4.76 million yuan in 2024 [3][4] - The gross margin decreased from 83.5% in 2022 to 67.3% in the first half of 2025, yet remains above 50%, indicating a healthy level for software and SaaS companies [4] Market Dynamics - The market for intelligent tax and digital services is characterized by significant opportunities and challenges, driven by policy changes and the rapid growth of cross-border e-commerce [6][8] - The "Golden Tax Phase IV" policy is creating a rigid demand for digital upgrades among enterprises to comply with new tax regulations, benefiting companies like Qingtian Quansuitong that offer integrated solutions [7] - The shift from on-premise software to cloud-based SaaS models is lowering entry barriers for SMEs, enhancing market penetration opportunities for Qingtian Quansuitong [8] Competitive Landscape - The industry faces intense competition from established ERP giants and emerging SaaS startups, which may lead to price wars [9] - Qingtian Quansuitong's revenue heavily relies on its core product, the cross-border enterprise intelligent tax solution, which accounts for over 80% of its income, posing risks if the cross-border e-commerce sector experiences fluctuations [9] - The company is currently addressing challenges related to hardware costs impacting gross margins and the significant loss of major clients, which could affect its long-term investment value [9]

Core Viewpoint - Nanjing Qingtian has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for enhancing product competitiveness, implementing diversified sales strategies, strategic investments, acquisitions, and general corporate purposes [1] Company Overview - Nanjing Qingtian is a digital service provider specializing in cross-border enterprise financial and tax solutions, serving import and export businesses across various provinces and cities in China [1] - The company has reached nearly 420,000 foreign trade export enterprises and cross-border e-commerce businesses since its establishment, serving approximately 160,000 users with over 2 million service instances [2] Financial Performance - Revenue for Nanjing Qingtian during the reporting period was as follows: 120 million yuan, 161 million yuan, 171 million yuan, and 63.82 million yuan for the years 2022, 2023, 2024, and the first half of 2025 respectively [2] - Net profit figures were 55.27 million yuan, 153 million yuan, 47.6 million yuan, and 7.22 million yuan for the same periods [2] - Despite a revenue growth of approximately 6.4% in 2024, net profit declined by 68.8% compared to 2023, and in the first half of 2025, revenue grew by 4.5% while net profit fell by 74.87% [3] Market Position - According to Frost & Sullivan, Nanjing Qingtian ranked first in the Chinese cross-border enterprise intelligent financial and tax solutions market in 2024 with a market share of 1.7%, and second in the cross-border enterprise financial and tax digital solutions market with a market share of 1.2% [1] Customer and Supplier Dynamics - The company’s main revenue source is the cross-border enterprise intelligent financial and tax solutions, accounting for 85.2%, 80.7%, 78.9%, and 87.5% of total revenue during the reporting period [2] - The number of large and medium-sized clients decreased by nearly 80% in the first half of 2025, with small clients making up 85.54% of the total client base [2] - Nanjing Qingtian has significant overlap between its customers and suppliers, with one of its major clients also being a supplier [4] Shareholder Activity - Three early shareholders collectively cashed out 80 million yuan just two months before the IPO application was submitted, raising concerns about the timing of their exit [5] Financial Health - The company has shown weak short-term solvency, with current assets consistently lower than current liabilities from 2022 to 2024 [6] - In the first half of 2025, current assets and liabilities were recorded at 202 million yuan and 166 million yuan respectively [6]

Core Viewpoint - Nanjing Qingtian has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for enhancing product competitiveness, implementing diversified sales strategies, strategic investments, acquisitions, and general corporate purposes [1] Group 1: Company Overview - Nanjing Qingtian specializes in providing digital solutions for cross-border enterprises engaged in import and export trade, covering multiple provinces in China [2] - The company ranks first in the Chinese market for cross-border enterprise intelligent tax solutions with a market share of 1.7% and second in the cross-border enterprise tax digital solutions market with a share of 1.2% [2] - Since its establishment, Nanjing Qingtian has reached nearly 420,000 foreign trade export enterprises and cross-border e-commerce businesses, serving approximately 160,000 users with over 2 million service instances [2] Group 2: Revenue Sources - The primary revenue source for Nanjing Qingtian is the "cross-border enterprise intelligent tax solution," accounting for 85.2%, 80.7%, 78.9%, and 87.5% of total revenue during the reporting periods [3] - The customer base is predominantly small clients, with small clients making up 85.54% of the total customer count as of mid-2025, while the number of medium and large clients has decreased by 78.17% to 2,374 [3] Group 3: Financial Performance - Nanjing Qingtian's revenue for the reporting periods was 120 million, 161 million, 171 million, and 63.82 million yuan, with net profits of 55.27 million, 153 million, 47.6 million, and 7.22 million yuan respectively [4] - Despite a 6.4% year-on-year revenue growth in 2024, net profit dropped by 68.8% compared to 2023; in the first half of this year, revenue grew by 4.5%, but net profit fell by 74.87% [4] - The gross margin decreased from 83.5% in 2022 to 67.3% in the first half of 2025, a decline of over 16 percentage points, primarily due to a significant increase in revenue costs [4] Group 4: Shareholder Activity - Three early shareholders collectively cashed out 80 million yuan just two months before the IPO application, raising concerns about the company's stability [7][8] - The largest shareholder, Qingtian Venture Capital, holds a 78.17% stake, with the actual controller being Xin Yingmei, who owns 99.96% of Qingtian Venture Capital [6] Group 5: Asset and Liability Situation - Nanjing Qingtian's current assets have consistently been less than current liabilities from 2022 to 2024, indicating weak short-term solvency [8] - As of the first half of this year, current assets and liabilities were recorded at 202 million and 166 million yuan, respectively [9]

Core Viewpoint - Nanjing Qingtian has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for enhancing product competitiveness, implementing diversified sales strategies, strategic investments, acquisitions, and general corporate purposes [1] Group 1: Company Overview - Nanjing Qingtian specializes in providing digital solutions for cross-border enterprises engaged in import and export trade, covering multiple provinces in China [2] - The company ranks first in the Chinese market for cross-border enterprise intelligent tax solutions with a market share of 1.7% and second in the digital tax solutions market with a market share of 1.2% [2] - Since its establishment, Nanjing Qingtian has reached nearly 420,000 foreign trade export enterprises and cross-border e-commerce businesses, serving approximately 160,000 users with over 2 million service instances [2] Group 2: Revenue Sources - The primary revenue source is the "cross-border enterprise intelligent tax solution," accounting for 85.2%, 80.7%, 78.9%, and 87.5% of total revenue during the reporting periods [3] - The customer base is predominantly small clients, with small clients making up 85.54% of the total customer count as of mid-2025, while the number of medium and large clients has decreased by 78.17% to 2,374 [3] Group 3: Financial Performance - Revenue figures for the reporting periods are 120 million, 161 million, 171 million, and 63.82 million yuan, while net profits are 55.27 million, 153 million, 47.6 million, and 7.22 million yuan [4] - Despite a 6.4% year-on-year revenue growth in 2024, net profit fell by 68.8% compared to 2023; in the first half of this year, revenue grew by 4.5%, but net profit dropped by 74.87% [4] - Gross margin decreased from 83.5% in 2022 to 67.3% in the first half of 2025, a decline of over 16 percentage points, attributed to a significant increase in revenue costs [4] Group 4: Shareholder Activity - Three early shareholders cashed out a total of 80 million yuan just two months before the IPO application, indicating potential concerns about the company's future [6][7] - The largest shareholder, Qingtian Venture Capital, holds a 78.17% stake, with the actual controller being Xin Yingmei, who owns 99.96% of the venture capital firm [6] Group 5: Asset and Liability Situation - Nanjing Qingtian's current assets have consistently been less than current liabilities from 2022 to 2024, indicating weak short-term solvency [7] - As of the first half of this year, current assets and liabilities were recorded at 202 million and 166 million yuan, respectively [8]

Core Viewpoint - Nanjing Qingtian has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for enhancing product competitiveness, implementing diversified sales strategies, strategic investments, acquisitions, and general corporate purposes [1] Company Overview - Nanjing Qingtian is a digital service provider specializing in cross-border enterprise solutions, primarily serving import and export businesses across various provinces in China [1] - The company transitioned to a joint-stock company in July 2023, with early shareholders cashing out a total of 80 million yuan shortly after [1][5] Financial Performance - The company reported revenues of 120 million yuan, 161 million yuan, 171 million yuan, and 63.82 million yuan for the years 2022, 2023, 2024, and the first half of 2025, respectively [2] - Despite a revenue increase of approximately 6.4% in 2024, net profit saw a significant decline of 68.8% compared to 2023 [3] - The gross profit margin decreased from 83.5% in 2022 to 67.3% in the first half of 2025, a drop of over 16 percentage points [3] Revenue Sources - The primary revenue source is the "cross-border enterprise intelligent tax and finance solution," accounting for 85.2%, 80.7%, 78.9%, and 87.5% of total revenue during the reporting period [2] - The number of medium and large clients has decreased by nearly 80% in the first half of 2025, with small clients making up 85.54% of the total client base [2] Market Position - According to Frost & Sullivan, Nanjing Qingtian ranks first in the Chinese cross-border enterprise intelligent tax and finance solution market with a market share of 1.7% and second in the cross-border enterprise financial digital solution market with a market share of 1.2% [2] Customer and Supplier Dynamics - The company has served approximately 160,000 users and has over 60,000 active users, with around 27,000 being paying customers [2] - Nanjing Qingtian's procurement from its top five suppliers accounted for 77.1%, 89.0%, 96.4%, and 98.5% of total procurement during the reporting period [3] Shareholder Activity - Three early shareholders collectively cashed out 80 million yuan just two months before the IPO application, raising concerns about the company's stability [5][6] Liquidity Concerns - Nanjing Qingtian's current assets have consistently been less than its current liabilities from 2022 to 2024, indicating weak short-term solvency [6]

Core Viewpoint - Nanjing Qingtian Quansuitong Information Technology Co., Ltd. (Qingtian Quansuitong) has submitted its listing application to the Hong Kong Stock Exchange, aiming to capitalize on its leading position in the cross-border enterprise digital solutions market in China [1][4]. Group 1: Company Overview - Qingtian Quansuitong is a leading provider of digital solutions for cross-border enterprises engaged in import and export trade, having served approximately 160,000 users and completed over 2 million service instances since its establishment in 2012 [4]. - The company has reached nearly 420,000 foreign trade export enterprises and cross-border e-commerce businesses, with a market penetration rate of about 10% as of December 31, 2024 [4]. Group 2: Market Position - According to Frost & Sullivan data, Qingtian Quansuitong ranks first in the Chinese cross-border enterprise intelligent tax solutions market with a market share of 1.7% and second in the cross-border enterprise financial and tax digital solutions market with a market share of 1.2% for 2024 [1][4]. Group 3: Financial Performance - The company's revenue increased from 119.58 million RMB in 2022 to 161.08 million RMB in 2023, and is projected to reach 171.38 million RMB in 2024 [5][7]. - Gross profit for the years 2022, 2023, and 2024 was 99.91 million RMB, 133.69 million RMB, and 120.02 million RMB, respectively, with a decline in gross margin from 83.0% in 2023 to 70.0% in 2024 due to rising system integration costs [6][7]. - For the six months ending June 30, 2025, the company recorded a revenue of 63.82 million RMB [7].