On May 27, Quzhi Group officially landed on the main board of the Hong Kong Stock Exchange, stock code (0917.HK), becoming the first AI interactive marketing stock in China.
According to the announcement of the allotment results, Quzhi Group sold 19.7 million shares globally, 17.73 million shares internationally, and publicly sold 1.97 million shares. The final sale price was HK$25 per share, with a net raise of about HK$493 million from the global sale.
China's largest AI interactive terminal network company, unique AIOT marketing model
Quzhi Group is the largest AI interactive terminal network company in China, and the pioneer of providing AIoT marketing solutions using experiential smart terminals.
Since its establishment in 2013, Quzhi Group has used AIoT technology to develop its own multi-sensory AI interactive terminals integrating vision, hearing, touch, smell, and motion interaction, and has used this to build an offline marketing terminal network platform “Fun” all over the country. Through offline installation of “Quina” AI interactive terminals, users of the “Fun” AI interactive terminal are attracted and transformed into an online platform (“Fun” App, WeChat Mini Program) to promote customer brands and products to consumers and obtain consumer data and feedback.
Unlike vending machines, interesting AI interactive terminals are unique in that they can bring consumers a strong sense of interactivity and experience. They can also use AI, big data and other technical means to achieve accurate marketing and smart decisions, and maximize marketing effectiveness through online and offline multi-scenario expansion. At the same time, using programmable interactive modules, fun AI interactions are highly flexible, can meet the diverse and differentiated marketing needs of brand customers, deepen consumers' impression of brands and products through tailored creative interactions, and enhance product competitiveness.
Quzhi Group is driven by AI interaction and big data algorithms on two wheels, and combines online and offline channels to form a unique marketing model. And this model also fits the current marketing pain points of brand companies: consumer appeal is difficult to grasp, consumer preferences are changing rapidly, offline marketing costs are high, and online dividends are gradually shrinking. Quizhi's new solutions using its technical advantages have also earned it many titles such as “Little Science and Technology Giant of the Shanghai Science and Technology Innovation Action Plan Project” and “Shanghai Specialized and New Enterprise”.
Based on the innovative practice of AI interactive marketing, Quzhi Group provides brand companies with new marketing solutions. Essentially, it is a “selling shovel” business.
The brand companies served by Quzhi Group are mainly on the consumer goods industry, which includes products such as beverages, food, beauty, and daily necessities, with a market size of 10 trillion dollars. According to Insight Consulting's data, the market size of the consumer goods industry has reached 47.2 trillion yuan in 2023, and is expected to continue to expand. This figure is expected to reach 60 trillion yuan by 2028, with a compound annual growth rate of 4.9%.
Benefit from trillion dollar market development dividends, and rapid revenue and profit growth
By fishing where there are the most fish and mining for gold in a market with big fish, you will fully benefit from the dividends of industry development and achieve rapid business growth.
Relying on its AI interactive terminal network, Quzhi Group provided 472 brand customers with about 1,400 SKU FMCG marketing solutions, covering major FMCG industry tracks such as beverages, food, beauty, and daily necessities. Among the top 100 emerging brands in China in the beverage, food and daily necessities industry, 74 of these brands are customers of Quzhi Group.
In terms of customer coverage, the number of brand customers increased from 174 in 2021 to 291 in 2023, and the number of major customers increased from 27 to 47 major customers.
Based on the continuous expansion and high-quality customer base, the per capita income contribution of major customers and the revenue scale of repeat customers are increasing year by year, and Quzhi Group's revenue scale and profit scale are growing rapidly. From 2021 to 2023, Quzhi Group achieved revenue of 502 million, 554 million, and 1,007 million yuan respectively, with a compound annual growth rate of 41.6%. The adjusted profit for the corresponding period was 52 million, 78 million, and 201 million, respectively, with a compound annual growth rate of 95.9%.
Source: Compiled according to the prospectus
epilogue
Based on its excellent performance in the past, Quzhi Group's strategic planning and fund-raising purposes also give investors a promising future outlook.
These plans mainly include further expanding the AI interactive terminal network layout to enhance effective reach to consumers; continuously broadening and enriching marketing services, expanding the brand customer base, and creating a benchmark case for new product marketing in multiple industries; increasing investment in technology research and development to improve user experience and operational efficiency; and selectively seeking strategic cooperation, investment and acquisition opportunities to achieve the company's long-term development.