Core Viewpoint - Jihong Co., Ltd. (002803) is expected to achieve a net profit of 209 million to 222 million yuan for the first three quarters of 2025, reflecting a year-on-year growth of 55% to 65% [1] Group 1: Financial Performance - The company anticipates a net profit of 120 million to 134 million yuan for the third quarter, representing a year-on-year increase of 83.03% to 103.55% [1] - The performance recovery is attributed to the resurgence of global market demand after a decline in 2024 [1] Group 2: Business Operations - Jihong Co., Ltd. operates a dual-driven business model with cross-border social e-commerce and paper-based fast-moving consumer goods packaging [1] - The company leverages AI-driven "goods find people" model for precise advertising on major social platforms, promoting Chinese industrial products globally [2] - The proprietary "Giikin 3.0" system integrates various AI models to automate the entire business process, enhancing operational efficiency [2] Group 3: Market Position and Strategy - Jihong Co., Ltd. maintains the leading market share in domestic paper-based fast-moving consumer packaging, benefiting from partnerships with major brands like Luckin Coffee, KFC, and McDonald's [2] - The company plans to increase investment in AI research and self-owned brand development, aiming to enhance its cross-border e-commerce and expand into overseas packaging markets [3]

Core Viewpoint - Jihong Co., Ltd. is a leading player in the packaging printing and cross-border e-commerce sectors, with significant market positions in China and Asia [1] Group 1: Company Overview - Jihong Co., Ltd. ranks first in revenue within the Chinese paper-based fast-moving consumer goods packaging market [1] - The company is the second-largest B2C export enterprise in the Asian social e-commerce sector [1] - Jihong has developed the Giikin system, achieving a nearly 90% signing rate and a return on investment of nearly 200% [1] Group 2: Financial Performance - As of August 13, 2025, Jihong's stock price was 16.76 yuan, unchanged from the previous trading day, with a trading volume of 110,297 hands and a transaction amount of 184 million yuan [1] - The stock opened at 16.70 yuan, reached a high of 16.84 yuan, and a low of 16.46 yuan on the same day [1] Group 3: Business Development - The company has established a smart factory in the Middle East and launched two proprietary brands, "Konciwa" and "维米亚," contributing over 100 million yuan in revenue to its cross-border e-commerce business [1] Group 4: Capital Flow - On August 13, Jihong experienced a net outflow of 15.45 million yuan in main funds, accounting for 0.32% of its circulating market value [1] - Over the past five days, the cumulative net outflow of main funds reached 58.92 million yuan, representing 1.22% of its circulating market value [1]

Core Insights - Jihong Co., Ltd. is a leading player in both the printing packaging and cross-border e-commerce sectors, ranking first in China's paper-based fast-moving consumer goods packaging market and second in Asia's social e-commerce revenue among Chinese B2C export companies [2][3] - The company has successfully addressed industry pain points, such as the disconnection between design and printing, and has proactively invested in eco-friendly packaging solutions [2][4] - Jihong Co. went public on the Hong Kong Stock Exchange in May, marking a new chapter in its growth strategy [2] Group 1: Business Strategy - The founder, Zhuang Hao, emphasizes that successful transformations stem from keen industry insights rather than mere effort [3] - Jihong Co. has diversified its business by entering the cross-border e-commerce market, which now contributes nearly 20% of total revenue in its first year [4][8] - The company has developed proprietary systems to enhance operational efficiency, achieving a nearly 200% return on investment [6] Group 2: Technological Innovation - Jihong Co. has focused on creating a differentiated competitive advantage in the crowded cross-border e-commerce space by leveraging social media and algorithm-driven marketing strategies [5][6] - The company has invested approximately 300 million yuan in R&D, with a team of over 200 dedicated to developing its Giikin system, which has significantly improved sales conversion rates [6][8] Group 3: Market Adaptation - In response to challenges in 2024, including losses in both e-commerce and packaging sectors, the management decided to prioritize market expansion over immediate returns [7][8] - The company has seen a substantial recovery in profits, with a 110% increase in net profit in Q3 2024, and expects continued growth in the first half of 2025 [8][9] - Jihong Co. is now focusing on building its own brands to enhance profitability, with its brands "Konciwa" and "维米亚" generating over 100 million yuan in revenue [9] Group 4: Future Outlook - The company aims to deepen its international presence following its listing in Hong Kong, with plans to establish smart factories in the Middle East [9] - Zhuang Hao's approach to risk management is characterized by a focus on insight and investigation, which supports the company's strategic transformations [9]

Core Viewpoint - Jihong Co., Ltd. has successfully listed on the Hong Kong Stock Exchange, becoming the first "A+H" cross-border social e-commerce stock, with a significant opening increase of 43% to HKD 11, reflecting market recognition of its dual-track leadership and AI-driven capabilities [1][4][2]. Group 1: Company Overview - Jihong Co., Ltd. was established in 2003 and initially focused on providing packaging solutions for fast-moving consumer goods. It has since expanded into cross-border social e-commerce, leveraging its experience in packaging to connect suppliers with consumers in Asia, Europe, and North America [6][11]. - The company operates two main business segments: ToC precision marketing cross-border social e-commerce and ToB comprehensive marketing design and packaging services, establishing a leading position in both sectors [6][11]. Group 2: Financial Performance - Jihong's cross-border social e-commerce business generated revenues of CNY 3.107 billion, CNY 4.257 billion, and CNY 3.366 billion from 2022 to 2024, accounting for approximately 60% of total revenue [11]. - The gross margin for the cross-border social e-commerce business exceeded 60% in 2023 and 2024, significantly higher than the industry average, indicating a successful "technology premium" model [11]. - In Q1 2025, Jihong achieved a revenue of CNY 1.477 billion, a year-on-year increase of 11.55%, with net profit rising by 57.97% to CNY 62.47 million [12]. Group 3: Technological Advancements - Jihong has developed the Giikin system, which integrates AI applications to optimize the entire business process from product selection to logistics, reducing the product selection cycle by 60% and increasing the accuracy of hit product predictions to 82% [7][8]. - The company has filed for 4 patents and 140 software copyrights related to its cross-border social e-commerce algorithms and software systems, showcasing its commitment to technological innovation [8]. Group 4: Market Position and Strategy - Jihong's cross-border e-commerce business is positioned in a rapidly growing market, with the Asian segment contributing over 80% of its revenue, allowing it to mitigate risks from trade policy fluctuations in Europe and the U.S. [17][18]. - The company plans to use the proceeds from its IPO to expand into Southeast Asia, Europe, and Latin America, capitalizing on the growth potential in these emerging markets [24][27]. Group 5: Packaging Business Growth - Jihong's paper packaging business has shown steady growth, with production increasing from 846.7 million square meters in 2022 to 1.026 billion square meters in 2024 [19]. - The company is actively developing biodegradable materials and lightweight structures to meet the growing demand for sustainable packaging solutions [19][20]. Group 6: Shareholder Returns - Jihong has a strong commitment to returning value to shareholders, with a cash dividend distribution plan announced for 2024, amounting to CNY 68.17 million [13]. - The company has also implemented a share buyback plan, reflecting its confidence in future business growth [13].

Core Viewpoint - Xiamen Jihong Technology Co., Ltd. (Jihong Co., stock code: 02603.HK) officially listed on the Hong Kong Stock Exchange on May 27, with an issue price of HKD 7.68 per share, and its stock closed at HKD 9.61 in the dark market, reflecting a 25.13% increase from the issue price, marking it as the first A+H company included in the Hong Kong Stock Connect upon listing [1][2]. Group 1: Business Overview - Founded in 2003, Jihong Co. initially focused on fast-moving consumer goods (FMCG) packaging, establishing partnerships with well-known brands like Yili and Luckin Coffee, and providing comprehensive packaging solutions [2]. - In 2017, the management identified the rapid growth of e-commerce penetration in Southeast Asia and innovatively adopted a social e-commerce model, leveraging its packaging business's supply chain resources, which has since become a significant growth driver [2]. - The company has successfully built a dual-driven model of "traditional business as ballast + emerging business as growth engine," with packaging business contributing revenue of CNY 2.099 billion and a gross margin of 17.85%, while cross-border e-commerce generated CNY 3.366 billion, accounting for over 60% of total revenue with a gross margin above 60% [2]. Group 2: Market Strategy and Innovation - Jihong Co. combines stable cash flow from its packaging business with a second growth curve from cross-border e-commerce, supported by technological innovation and regional market expansion [3]. - The company is accelerating the integration of AI into its operations, utilizing algorithms to analyze overseas markets, optimize product selection, and enhance online B2C sales through platforms like Meta and TikTok [3]. - Jihong Co. has established a strategic focus on the Asian market, with over 80% of its revenue coming from this region in 2024, positioning itself as a stable player in global trade cycles [3]. Group 3: Global Expansion and Funding - The Hong Kong listing marks a new phase in Jihong Co.'s globalization strategy, with funds raised aimed at enhancing local operations in Southeast Asia, advancing AI algorithm development, and upgrading supply chain digitalization [4]. - The H-share listing provides a broader financing platform and support for accelerating overseas market expansion, while the A+H structure helps balance domestic and international market risks, enhancing brand recognition and competitiveness [4].

Group 1: IPO Information - Jihong Co., Ltd. (02603.HK) is conducting an IPO with a subscription period from May 19 to May 22, offering a total of 67.91 million shares, with 10% for public offering and 90% for international placement [1] - The IPO price range is set between 7.48 and 10.68 HKD, with a market capitalization estimated between 3.386 billion and 4.835 billion HKD and a price-to-earnings ratio of 21 times [1] - The minimum subscription amount is 5,394 HKD, with the listing date scheduled for May 27 [1] Group 2: Company Overview - Jihong Co., Ltd. was established in 2003 and is headquartered in Xiamen, Fujian, initially focusing on fast-moving consumer goods packaging before transitioning to cross-border e-commerce in 2017 [2] - The company ranks second in China's B2C export e-commerce sector with a market share of 1.3% and first in the paper packaging sector with a market share of 1.2% as of 2024 [2] - Jihong's cross-border social e-commerce business utilizes a "goods find people" model, leveraging platforms like Meta and TikTok for targeted advertising [2] Group 3: Financial Performance - Jihong's revenue for 2022, 2023, and 2024 was 5.376 billion, 6.695 billion, and 5.529 billion RMB, respectively, with net profits of 172 million, 332 million, and 184 million RMB [3] - In Q1 2025, the company reported revenue of 1.477 billion RMB, reflecting a year-on-year growth of 11.55%, with a net profit of 59.16 million RMB [3] - By 2024, the cross-border e-commerce segment contributed 60.9% of total revenue, while the packaging business accounted for 38% [4] Group 4: Operational Insights - Jihong's packaging business offers a comprehensive solution from design to logistics, serving well-known clients like Yili and Luckin Coffee, with a low industry concentration (top five players hold only 4.5% market share) [3] - The company has a cash balance of 786 million RMB but faces pressure with accounts receivable reaching 522 million RMB, which is over 286% of its profit [5] - The dual business model helps mitigate risks, while AI technology enhances operational efficiency [5] Group 5: Market Sentiment and Pricing Strategy - The IPO price range of 7.48-10.68 HKD represents a discount of 33%-53% compared to the A-share price of 14.63 RMB, indicating a significant pricing strategy aimed at attracting investors [6] - The expected oversubscription rate is high, with estimates suggesting a potential oversubscription of 15 to 50 times, which could lead to a significant price adjustment [6]

Core Viewpoint - Xiamen Jihong Technology Co., Ltd. has successfully passed the Hong Kong Stock Exchange listing hearing, positioning itself as a unique player in the "AI-driven cross-border social e-commerce" sector, which is expected to attract significant attention from capital markets [1][2]. Group 1: Unique Positioning and Business Model - Jihong Technology fills a gap in the technology and e-commerce sectors by being the first in the "AI-driven cross-border social e-commerce" field [2]. - The company operates a dual-driven model consisting of cross-border social e-commerce and paper packaging, with projected revenues of 3.366 billion yuan (60.9% of total) from e-commerce and 2.099 billion yuan (38%) from packaging in 2024 [2]. - The synergy between the packaging and e-commerce businesses enhances overall competitiveness, as marketing experience from packaging can benefit e-commerce operations [3]. Group 2: Financial Performance - In Q1 2025, Jihong Technology reported revenues of 1.477 billion yuan, an increase of 11.55% year-on-year, with a net profit of 59.16 million yuan, up 38.21% [3]. - The cross-border social e-commerce business has shown steady growth, generating revenues of 2.834 billion yuan, 3.107 billion yuan, 4.257 billion yuan, and 3.366 billion yuan from 2021 to 2024, with a gross margin of 60.5% expected in 2024 [4]. Group 3: AI Technology and Market Strategy - The company leverages AI technology to enhance operational efficiency, utilizing a unique "product finds people" model to target customers through major social media platforms [5][6]. - Jihong Technology's Giikin system has accumulated over 611,000 SKUs and 5.8 million advertising materials, significantly reducing customer acquisition costs [6]. - The company focuses on the Asian market, with over 80% of its revenue coming from this region, allowing it to avoid the impacts of policy fluctuations in Western markets [7][8]. Group 4: Future Outlook - With the completion of its H-share listing, Jihong Technology is poised for a re-evaluation of its investment value, potentially leading to a new round of value reassessment in the capital markets [4][8].