IPO News | Digital Express Hong Kong Stock Exchange is a technology-driven full-link brand operator

The Zhitong Finance App learned that according to the Hong Kong Stock Exchange disclosure on March 31, Beijing Shuju Zhilian Technology Co., Ltd. (abbreviation: Shuju Zhilian) submitted a listing application to the main board of the Hong Kong Stock Exchange, and Huaxing Capital is the sole sponsor.

Company profile

According to the prospectus, Shuju Zhilian is a technology-driven full-link brand operator. By combining local expertise with global market capabilities, the company helps overseas brands develop and deeply cultivate the Chinese market, and also promotes Chinese brands to the world stage. With long-term in-depth insight into the consumer goods industry, the company uses its own technology and operational experience to help brand partners diversify their market layout and accelerate sales growth. This successful partnership has enabled the company to cultivate a valuable and diverse global brand portfolio in domestic and international markets.

According to Frost & Sullivan, the company ranked among the top ten e-commerce solution companies in mainland China in 2024 based on GMV generated by a comprehensive e-commerce platform. Among them, based on the GMV generated by JD in 2024, the company is the leading company in this category. According to Frost & Sullivan, the company ranked first in the e-commerce solutions industry for brands in mainland China based on the 2024 consumer electronics GMV.

The company's values and achievements have been widely recognized by brand partners and e-commerce platforms. The company is one of the few brand operators in mainland China that has received official recognition for many mainstream platform systems. The company's expertise is officially endorsed by leading platforms:

JD: Awarded “JD Excellent Proxy Operation Service Provider” and “JD Beauty Five-Star Quality Merchant”; won the JD Health Iron Holly Award and the title of “JD Excellent Proxy Operation Service Provider of the Year”.

Tmall: It has been awarded the title of “Star Service Provider” for many years; Tmall Ecological Certification - Super V-Partner with Digital Intelligence Capabilities; ranked in the “Tmall FMCG Industry Ecological Honorary Partner” list; awarded the title of “Double 11 Integrated Service Excellent Service Provider”.

Douyin: Certified as “Douyin E-commerce Bronze Brand Service Provider”.

The company's operations are based on two complementary business models: a product sales model and a service delivery model. It is worth noting that during the track record period, most of the company's revenue came from the product sales model. Under this model, the company purchases products from brand partners or their authorized distributors and has full ownership of the inventory, and then resells such branded products directly to consumers or e-commerce platforms and distributors. This fundamentally aligns the company's interests with the success of its brand partners, as the company's profitability directly depends on sales performance, thus forming a true win-win partnership. These business models are implemented through three integrated business segments.

Financial data

revenue

During the track record period, the company's revenue came from: (i) domestic electronics brand operations, including product sales and service provision; (ii) general agent and authorized brand operations; and (iii) overseas electronics brand operations. The company's revenue decreased from RMB 1,593 billion in 2023 to RMB 1,379 billion in 2024, mainly due to a decline in revenue from domestic electronics brand operations. The company's revenue increased from RMB 1,379 billion in 2024 to RMB 1,608 billion in 2025, mainly due to the increase in operating revenue of overseas e-commerce brands.

Profit during the year

The company recorded annual profits of RMB 804.85 million, RMB 9.168 million and RMB 43.399 million in 2023, 2024, and 2025 respectively.

Gross profit and gross profit margin

The company recorded gross profit of approximately RMB 341 million, RMB 269 million and RMB 372 million in 2023, 2024, and 2025 respectively. The company's gross margin fell slightly from 21.4% in 2023 to 19.5% in 2024, then rebounded to 23.1% in 2025. The recovery in gross margin in 2025 was mainly due to the optimization of the company's brand portfolio and the contribution of newly expanded overseas e-commerce brand operations.

Industry Overview

In recent years, the global retail e-commerce industry (that is, selling products to consumers through digital platforms) has continued to expand rapidly. Driven by the continued digitalization of retail channels, improved logistics and payment infrastructure, increasing consumer acceptance of online shopping, and the rapid spread of mobile internet, global retail e-commerce transactions continued to grow in major regions. According to Frost & Sullivan data, based on GMV, the market size of the global retail e-commerce industry increased from US$3.7 trillion in 2019 to US$6.9 trillion in 2024, with a compound annual growth rate of 13.3%. In 2024, based on GMV, mainland China is the world's largest retail e-commerce market. Looking ahead, the global retail e-commerce market is expected to continue to expand, reaching approximately US$11.8 trillion by 2029, with a compound annual growth rate of 11.3% from 2024 to 2029.

In 2024, the market size of the e-commerce solutions industry for brands in mainland China will reach RMB 1.3 trillion (in terms of GMV). It is expected to grow at a compound annual growth rate of 11.7% between 2024 and 2029, reaching RMB 2.2 trillion by 2029. The continuous increase in the penetration rate of online channels, combined with the brand's accelerated digital transformation strategy, continues to drive the growth of e-commerce transactions. Brand e-commerce solution companies rely on mature channel resources, operational experience and data-driven capabilities to help brands improve traffic acquisition efficiency and customer retention rates, thereby enhancing the brand's competitiveness on various online platforms.

E-commerce platforms are mainly divided into: (a) integrated e-commerce platforms, such as Tmall and JD, which mainly act as digital marketplaces for consumers to browse, compare, and buy products through search; and (b) emerging e-commerce platforms, such as Douyin and Xiaohongshu, which integrate shopping functions into short videos or social media platforms, so that consumers can make online purchases through live streaming, video, and graphic content. Relying on a mature traffic ecosystem, standardized transaction infrastructure and relatively stable platform rules, integrated e-commerce platforms have made significant contributions to the e-commerce solutions industry in mainland China. In 2024, the market size will reach RMB 899.8 billion, accounting for 70.6% of the brand e-commerce solutions industry. On the other hand, emerging e-commerce platforms are expected to achieve faster growth, with a compound annual growth rate of 17.2% from 2024 to 2029.

Board of Directors and Executive Information

The company's board of directors currently consists of eight directors, including five executive directors and three independent non-executive directors.

Shareholding structure

As of the last practical date, Mr. Xiong held a direct interest of 16.72% in the company. In addition, the company's employee-owned platform Huaxin Lanchuang holds 11.98% of the shares, while Huaxin Lanchuang holds 8.47% of the rights. Mr. Xiong (as the general partner of Huaxin Lanchuang) has the right to exercise voting rights attached to all shares held by Huaxin Lanchuang. Therefore, Mr. Xiong has the right to exercise the voting rights attached to 28.70% of the company's issued share capital.

Immediately after [compilation], Mr. Xiong and Huaxin Lanchuang will become the single largest shareholder group of the company, and the company will not have any controlling shareholders as defined in the “Listing Rules” after [compilation].

Intermediary team

Sole sponsor: Huaxing Securities (Hong Kong) Limited

Company Legal Adviser: Hong Kong Law: Han Kun Law Firm Limited Liability Partnership; Related Chinese Law: Fangda Law Firm

Independent Auditor and Reporting Accountant: KPMG

Industry Advisor: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch

Compliance Advisor: New Berry Finance Co., Ltd.