Gelonghui learned that on July 19th, QMMM Holdings Limited (hereinafter referred to as 'QMMM') went public on Nasdaq at an issue price of $4 per share. The company's closing price on the first day of trading was $4.07 per share, up 1.75%, and its total market value is approximately $69.7 million.

QMMM is a digital advertising and marketing production services company. The company mainly generates revenue through its two wholly-owned subsidiaries, ManyMany Creations and Quantum Matrix. Among them, ManyMany Creations mainly provides digital advertising services, including interactive design, animation, art technology and virtual reality production services. Quantum Matrix focuses on new virtual avatar and virtual clothing technology services.

Financial data shows that in the past 2022 and 2023 fiscal years (with a fiscal year ending on September 30), QMMM's revenues were approximately $3.396 million and $2.8079 million respectively. During the same period, the company's corresponding net income was approximately $0.8006 million and $-1.2912 million. In the fiscal year of 2023, the company's performance declined year-on-year and turned from profit to loss.

In the prospectus, QMMM stated that the main reason for the 17.3% year-on-year decrease in revenue in 2023 was that after the public health event, the international tourism industry's recovery in Hong Kong was slow, and major brands in Hong Kong's shopping centers and tourist retailers reduced their advertisements and promotion activities, negatively impacting the company's advertising business revenue.

At the same time, due to providing more discounts to customers to get orders, QMMM's gross margin also decreased from 39.4% in fiscal year 2022 to 22.5% in fiscal year 2023.

QMMM's clients include local and international banks, real estate developers, luxury brands, high-end fashion houses, and theme parks. The subsidiary ManyMany Creations stands out in the industry with digital technology, breaking through traditional advertising forms. The company is committed to combining quality concepts with creative digital media technology and provides one-stop services for creative and production of advertising activities, TV commercials, online videos, 360 videos and animation, VR/AR/MR technology, 3D scanning, motion capture and other contents.

QMMM's revenue is highly dependent on a small number of major clients. The prospectus shows that in the fiscal year 2022 and 2023, the largest client contributed approximately 34.8% and 21.1% of the total revenue respectively, and the top five clients contributed approximately 77.2% and 68.4% of the total revenue respectively.

The company also stated that its performance mainly depends on the demand of multiple markets in Hong Kong, including banking, real estate, luxury goods, leisure, and high-end fashion. The characteristics of the project are influenced by multiple factors such as the global economic environment and the social, economic, and market conditions in Hong Kong.

Although the company is in a leading position in the Hong Kong media and advertising industry, especially in the market of virtual avatar and virtual clothing technology services, it still faces fierce competition and may encounter competitors with lower prices and better services. If it fails to maintain or enhance its competitiveness, it may lead to a decline in gross margin, loss of market share, and affect profitability and business performance.

Regarding equity structure, before going public, Bun Kwai held 55.0% of the company's shares through Fortune Wings Ventures Limited.

In this IPO, QMMM plans to use the raised funds for market expansion, business development, and marketing; research and development of technology products and services; expansion of creative and production teams to enhance the company's project capabilities; and use the remaining funds for general corporate purposes and working capital.