Core Viewpoint - Drip Irrigation Investment, a new financial innovation, aims to provide a financing channel for small and micro enterprises in mainland China through cash flow investments, leveraging its unique model and the backing of experienced founders [2][3][4]. Group 1: Company Overview - Drip Irrigation Investment was established less than a month ago and is seeking to list on the Hong Kong Stock Exchange [2]. - The company was incubated by Drip Irrigation, founded by Li Xiaojia and Zhang Gaobo, with a focus on cash flow investment [3][4]. - Following a Series C funding round in 2023, Drip Irrigation's valuation reached $1.7 billion, making it a unicorn [4]. Group 2: Financial Performance - As of July 1, 2025, Drip Irrigation has raised a total of 5.573 billion Macanese Patacas (approximately 4.937 billion RMB) [4]. - The company has invested 4.4 billion RMB of its own funds into small micro stores [21]. - The funding structure primarily consists of nearly 90% self-funding, indicating limited cash flow financing capabilities [23]. Group 3: Investment Model - Drip Irrigation's investment model involves two phases: initially investing in small micro stores and later securitizing these investments for public market release [30][32]. - The company plans to issue 3 billion shares, with the issuance price yet to be determined [26]. - The investment strategy targets three types of investments: business-type, asset-type, and enterprise-type [46]. Group 4: Regulatory Environment - Drip Irrigation Investment is pursuing an IPO under Chapter 21 of the Hong Kong Stock Exchange rules, which allows companies without actual business operations to list [7][14]. - The last case of a Chapter 21 company listing occurred 14 years ago, leading to market skepticism regarding Drip Irrigation's IPO prospects [16][17]. Group 5: Risk and Transparency - Concerns exist regarding the transparency of cash flow investments, as investors may struggle to assess the financial health of the underlying businesses [47][49]. - Drip Irrigation plans to implement a digital system called "Drip Star" to enhance transparency and investor access to information [51][60]. - The company aims to address potential moral hazards and ensure accurate tracking of cash flows through partnerships with payment systems and e-commerce platforms [48][50].