Group 1 - The company received feedback from the CSRC regarding its application for listing in Hong Kong, focusing on compliance with regulations for overseas issuance and listing [1] - The company must clarify the shareholding structure, including changes in the controlling shareholder's equity and the legality of any shareholding arrangements [1][2] - The company is required to provide detailed information about its business operations, including the status of its telecommunications business licenses and the nature of its revenue sources [2][3] Group 2 - The company primarily sources its battery products from Chaowei Group, which accounted for 98.5%, 87%, and 99.2% of total procurement from 2022 to 2024, respectively [3] - In 2022, 95.1% of the company's revenue came from the sales of Jin Chaowei brand batteries, with the contribution expected to decrease to 70.6% by 2024 [3] - The company is also required to provide information on its equity incentive plan, including the roles of the partners involved and any potential conflicts of interest [2]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has mandated Kuailu Technology to provide supplementary materials regarding its overseas listing application, focusing on compliance with regulations and clarifying its business operations and shareholder structure [1][2]. Group 1: Regulatory Requirements - CSRC requires Kuailu Technology to confirm whether there are any prohibitive circumstances for overseas issuance and listing, and to obtain a clear legal opinion from lawyers [1]. - The company must clarify the changes in the shareholding structure of its controlling shareholder, Changxing Mingyuan, and provide detailed shareholder information [2]. - Legal verification is required regarding the compliance of the original shareholding arrangements and the legitimacy of the company's establishment and shareholding changes [2]. Group 2: Business Operations - Kuailu Technology must provide details on its subsidiaries and branches, as the current submission only includes major subsidiaries [2]. - The company has stated that it does not engage in value-added telecommunications services and plans to cancel its related business licenses, necessitating an explanation of its current business scope [2]. - The primary revenue source is from the sales of lead-acid batteries under the Jinchaowei brand, and the company needs to clarify the duration and specifics of its distribution agreement with Chaowei Group [2]. - Information regarding the company's shared mobility business, including operational entities, licenses, and historical scale, must be disclosed [2]. - The company collects user personal information and must detail its data collection practices, including the scale of data collected and any potential data transmission to overseas parties [2]. Group 3: Financial Performance - Kuailu Technology's revenue for the fiscal years 2022, 2023, and 2024 was approximately 1.311 billion, 1.223 billion, and 1.631 billion RMB, respectively [3]. - The net profit and total comprehensive income for the same years were 6.293 million, 2.295 million, and 7.993 million RMB, respectively [3]. - According to Frost & Sullivan, Kuailu Technology holds a 2.2% market share as a comprehensive service provider for short-distance green travel in mainland China [3].

Core Viewpoint - Shandong Kuailu Technology Development Co., Ltd. (Kuailu Technology) has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for five strategic directions, including expanding service networks and enhancing product offerings [1]. Group 1: Company Overview - Kuailu Technology, established in 2014, provides customized solutions for short-distance green travel, primarily serving light electric vehicle users and large commercial logistics [3]. - As of 2024, Kuailu Technology holds a 2.2% market share in the short-distance green travel technology service sector in mainland China, ranking first in the industry [3]. Group 2: Financial Performance - The company's revenue for the years 2022, 2023, and 2024 was approximately RMB 1.31 billion, RMB 1.22 billion, and RMB 1.63 billion, respectively, with a year-on-year decline of 6.7% in 2023 and a projected growth of 33.4% in 2024 [4][5]. - Net profits for the same years were RMB 6.29 million, RMB 2.30 million, and RMB 7.99 million, indicating a concerning profitability trend with net profit margins of only 0.5%, 0.2%, and 0.5% [4][5]. - Operating cash flow for the years was RMB 0.28 billion, RMB 0.72 billion, and RMB 0.84 billion, totaling RMB 1.84 billion over three years, while the total net profit was approximately RMB 16.58 million [6][7]. Group 3: Supply Chain and Dependency - Kuailu Technology's primary revenue source is the sale of lead-acid batteries, which accounted for 99.4%, 99.4%, and 99.1% of total revenue during the reporting period, with the Jinchaowei brand dominating the sales [12]. - The company heavily relies on its largest supplier, Chaowei Group, which constituted 98.5%, 87.0%, and 99.2% of total procurement amounts over the same periods, raising concerns about operational stability due to this supplier concentration [14].