September 4, 2023, from ShanghaiFun Group Qunabox Group Limited (hereinafter referred to as”Fun Group”) Submitted a prospectus on the Hong Kong Stock Exchange to be listed on the Hong Kong Main Board.

Links to Fun Group's prospectus:

HKEXNEWS.hk/app...

Main business

Fun GroupEstablished in 2014, as a leading artificial intelligence Internet of Things (AIoT) marketing solution provider in China, it focuses on providing services to FMCG brands through the use of smart terminals.Fun GroupIt is the first provider in the industry to use experiential smart terminals as infrastructure to provide AIoT marketing solutions. It uses smart terminals as a touchpoint to reach out and connect with consumers and FMCG brands by providing innovative, fun and immersive product experiences.

According to Insight Consulting, by revenue in 2022:Fun GroupIt is the third largest FMCG AIoT marketing solution provider in China, with a market share of about 3.5%; based on AIoT marketing solution revenue growth from 2020 to 2022,Fun GroupIt ranked first among the top ten market participants, with a compound annual growth rate of 18.6%.

As of June 30, 2023,Fun GroupWe operate 6,018 experiential smart terminals in 22 cities across the country, the vast majority of which are located in commercial properties. By attracting consumers to visit the company's smart terminals and turning them into the company's online platformHave funUsers form an online and offline integration (OMO) model to continuously integrate offline and online consumer traffic.Fun GroupThe number of annual active users in 2022 was about 15.4 million, and in the first half of 2023, the company's highest monthly active users was about 2 million. According to the information from the insight consultation, during the track record period,Fun GroupIt provided 377 brand customers with about 1,400 SKUs of FMCG marketing solutions, including products from 77 emerging brands among the top 100 emerging brands in China in the beverage, food, and daily necessities industries (based on revenue in 2022).

Fun GroupThe revenue comes mainly from:

• AIoT marketing solutions, including OMO marketing solutions and value-added marketing solutions. The OMO marketing solution aims to help brands in the FMCG industry increase brand awareness. The company charges service fees from brand customers on a project-by-project basis according to the scale, construction period and complexity of the project, scope of work, labor costs, site and media resources, number of smart terminals used, and any special requirements of the brand customer. Value-added marketing solutions aim to meet the diverse needs of brand customers, optimize marketing strategies, and improve product competitiveness. The company charges different service fees according to the amount and complexity of the information to be processed, the scope of work, and the cost of human and technical resources.

• Smart retailRevenue mainly comes from retail products through the company's smart terminals and online platforms. This business segment complements the AIoT marketing solution business.

• Other servicesIt develops IT systems and customized software for customers, covering IoT technology applications, information sharing and analysis, and IT platform development. The company generally charges customers on a project-by-project basis, taking into account the complexity of the project and the human resource costs generated by the R&D team. The customers of this line of business are enterprise customers, which generally do not overlap with brand customers of AIoT marketing solutions.

Shareholder structure

According to the prospectus,Fun GroupIn the shareholder structure before listing,

Ms. Yin Juehui holds 29.75% of the shares through Trust Control Beyond Sectors;

Ms. Yin Juelian (sister of Ms. Yin Juehui) holds 3.63% of the shares in Q-robot, which is controlled by a trust;

Mr. Cao Liwen, KioskJoy, which is controlled through a trust, holds 3.63% of the shares;

Mr. Wu Wenhong, through INSIGMA, holds 1.81% of the shares;

Mr. Huang Aihua, through NeoBox, holds 1.81% of the shares;

Mr. Qian Jun holds 1.81% of the shares through the Q-robot shop.

The shareholders mentioned above are concerted actors. They acted in concert according to Ms. Yin's instructions and held a total of about 42.45% of the shares.

Non-executive director Ms. Zhou Li's contact, Mr. Yeung Man, holds 9.3% and 3.16% of the shares through Banyan Pacific and BPC respectively;

Junlian Capital, through Shanghai Junna, holds 9.05% of the shares;

Mr. Zhang Fan, through QFUN, holds 1.07% of the shares;

Xiamen C&D, holding 7.41% of the shares;

Mr. Wang Qing, through QFUN Tech, holds 1.18% of the shares;

Mr. Liu Xiaoying, founder of Eagle Fund, holds 3.21% of the shares;

Shanghai Eagle Speed, holding 0.33% of the shares;

Shanghai Xiang Yi Qui, holding 0.25% of the shares;

Shanghai Yingmaisheng, holding 1.39% of the shares;

Mr. Qi Zhenlin, through Beyond Marketing, holds 0.25% of the shares;

Shanghai Yuanyizhi, holding 1.65% of the shares;

Shanghai Yuanyuqu, holding 8.77% of the shares;

Yuanqu Phase III holds 2.88% of the shares;

Mr. Hu Minglie, through foresight, holds 0.58% of the shares;

Mr. Chen Haohua, through Sinoace, holds 1.05% of the shares;

Shanghai Hongjiuqu, holding 3.49% of the shares;

The Anji County Finance Bureau, through Ai Liang Shan, holds 2.54% of the shares.

Directors and Executives

Fun GroupThe board of directors consists of 9 directors, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors.

directorates(9 people)

executives(4 people)

Executives include: Chairman of the Board, Executive Director, and CEOYin JuehuiMs., Executive Director and Vice President of SalesCao LiwenMr., Executive Director and Chief Technology OfficerCao AihuaSir, Chief Financial OfficerYin Juelianladies.

Company performance

According to the prospectus, in the past six months of 2020, 2021, 2022, and 2023,Fun GroupThe operating income was 365 million yuan, 502 million yuan, 554 million yuan, and 364 million yuan respectively, and the corresponding net profit was -112 million, -139 million yuan, -94 million yuan, and 65 million yuan, respectively. The corresponding adjusted net profit was 29.616 million, 52.23 million, 78.163 million yuan, and 53.949 million yuan, respectively.

Intermediary team

Fun GroupThe brokerage team for this IPO mainly includes: Haitong International as its sole sponsor; Ernst & Young as its auditor; Beijing Zhide and Meimax respectively for their company's Chinese lawyers and corporate Hong Kong and US lawyers; Jingtian Gongcheng and Cole for their brokerage firm Chinese lawyers, brokerage firm Hong Kong and US lawyers respectively; and Insight Consulting as their industry advisors.