On September 12, 2024, Shenzhen Xunce Technology Co., Ltd. from Guangdong (referred to as "Xunce Technology") submitted an IPO prospectus to the Hong Kong Stock Exchange, planning to list on the main board of Hong Kong. This is its second application after the filing failed on March 12, 2024.
Link to Xunce Technology's IPO prospectus:
https://www1.hkexnews.hk/app/sehk/2024/106787/documents/sehk24091201610_c.pdf
Main Business
Founded in 2016, Xunce Technology is a well-known real-time data infrastructure and analytics solution provider in China. It provides real-time information technology solutions covering data infrastructure and data analytics for enterprises in various industries. By aggregating different data and providing a unified data platform with real-time processing capabilities, Xunce Technology enables asset managers and other businesses to focus on investment and business decisions.
The strategic focus of Xunce Technology is asset managers. For example, for clients in the asset management industry, when a major market news is released that may impact the stock prices of companies in their investment portfolios, Xunce Technology's data infrastructure solution can immediately collect that data point, standardize it to fit the client's internal format, and integrate it with other relevant data points. Similarly, within milliseconds to seconds, the company's data analytics solution can process that data point, update the performance indicators of the client's investment portfolio, and help the client quickly assess whether to buy, hold, or sell assets based on the latest market conditions.
According to Frost Sullivan's data in 2023 based on revenue:
Xunce Technology ranks first in the real-time data infrastructure and analytics market of the asset management industry in China, with a market share of approximately 13.5%.
Xunce Technology ranks fourth in China's real-time data infrastructure construction and analysis market, with a market share of approximately 3.4%.
Since its establishment, Xunce Technology has been deeply involved in the asset management industry, serving the top 10 asset management companies in terms of China's asset management scale at the end of 2022, including insurance companies, mutual funds, bank asset management departments, brokerages, corporate finance, family offices, and high net worth individuals.
Xunce Technology has also successfully expanded its solutions to diversified industries beyond asset management, including financial services (excluding asset management), urban management, and telecommunications, covering China's three major state-owned telecommunications operators.
Revenue divided by industry application
Revenue divided by geographical location
Shareholder Structure
According to the prospectus, Xunce Technology's shareholder structure before listing was as follows:
Zhuhai Enyuan (Mr. Liu Chengxi 99%, Zhuhai Hengcheng *1%), holding 13.08% of the shares.
Zhuhai Fuqian (Mr. Liu Chengxi 99%, Zhuhai Hengcheng 1%), holding 12.08% of the shares;
Zhuhai Guwen (Zhuhai Hengcheng 1%, other independent shareholders 99%), holding 3.7% of the shares;
* Zhuhai Hengcheng is respectively held by Mr. Liu Chengxi and Mr. Geng Dawei, with a shareholding of 99.9% and 0.1%.
Mr. Liu Chengxi indirectly controls 28.86% of the company's equity through the aforementioned shareholders.
Tencent (00700.HK) holds 0.04% and 7.51% of the shares through Shenzhen Tencent and Guangxi Tencent respectively;
KKR holds 6.32% through Accel Asia Holdings II;
Yunfeng Fund holds 3.76% and 2.26% through Yunfeng Xincheng and Yunfeng Qitai respectively;
Hubei Gaozhiliang (Hongtai Fund controlled by Sheng Xitai as GP, Wuhan Jingkai Investment 41.96, National Manufacturing Transformation and Upgrading Fund 39.37%), holding 5.13%.
Xingluo Jingyou (Sheng Xitai indirectly 1.82%, GP; Hundsun Technologies Inc. (600570.SH) 29.60%, one of the LP), holding 1.31%;
PAC Capital holds 4.54% through Madison Square;
Greater Bay Area Fund holds 4.53% through GBA Fund;
Tian Yu and Nie Lei-controlled Xiamen Yuanfeng (CPA Capital), holds 4.51% through Tianjin Weizi;
Kimco Realty Corp. holds 3.98%;
Goldman Sachs holds 3.23% through GS PSI;
Zhongnan Venture Capital holds 1.67% through Zhongnan Heduo and 1.23% through Zhongnan Hongyuan;
Yuxin Capital holds 1.27% through Yuxin Renhui, 0.66% through Yuxin Guoyuan, and 1.09% through Yuxin Guochang;
Tianjin Xihua holds 2.59% of the shares.
Shenzhen Yuanzheng holds 0.87% of the shares.
Shenzhen Saida Ren holds 0.82% of the shares.
Wuxi Haiyingjia holds 1.13% of the shares.
Shenzhen Zhongtou holds 0.64% of the shares.
Guangdong Yucai Venture holds 0.86% of the shares through Guangdong Yucai and Chuangying Jianke holds 0.05% of the shares.
Pan Honglan holds 0.75% of the shares through Yangguang Jiazu Investment.
Times Rich (Li Yiping 50%, Cen Zhaoxiong 50%) holds 0.3% of the shares.
Shanghai Pudong Development Bank (600000.SH) holds 0.6% of the shares through Shanghai Yiyun.
Beijing Centergate Technologies holds 0.3% of the shares.
Yang Fei holds 0.3% of the shares through Guangzhou Youshan.
Hejiahongsheng (Heli Investment, GP) holds 0.3% of the shares.
Beijing Gehua (Kunpeng Capital 33.32%; Gehua Cable 33.27%; GP is Shenzhen Silk Road) holds 3.34% of the shares.
Shenzhen Silk Road controlled by Aomeng holds 0.06% of the shares through Tongrui Changying.
Taikang Insurance holds 1.5% of the shares through Taikang Life.
Shanghai Yukaishi (Zhou Hailang 75%, Chen Qing 25%) holds 1.92% of the shares.
Hangzhou Baihui (Zheshang Securities (601878.SH) indirectly holds 50%, Hengdian Capital is the GP), holding a 1.39% stake.
China International Capital Corporation (601995.SH, 03908.HK) holds a 0.4% stake through CICC Pucheng.
Board of directors and executives
The board of directors of Xunce Technology consists of 9 directors, including:
5 executive directors: Mr. Liu Zhijian (Chairman of the Board, CEO), Mr. Geng Dawei (General Manager), Mr. Yang Yang (Chief Technology Officer), Mr. Xuan Ran (General Manager), Mr. Jiang Chunfei (Senior Vice President);
1 non-executive director: Mr. Cai Xiang;
3 independent non-executive directors: Mr. Wang Di, Mr. Jiang Changjian, Ms. Tian Jiangchuan.
3 supervisors: Mr. Guo Kexin, Mr. Sun Zhengzhang, Mr. Zheng Shenglei.
In addition to the executive directors, the executives include Mr. Wu Changbo, the CFO.
Corporate Performance
According to the prospectus, in the past 2021, 2022, 2023, and the first three months of 2024, XunCe Technology's revenue was RMB 0.12 billion, 0.288 billion, 0.53 billion, and RMB 0.75 billion, respectively. The corresponding net losses were RMB 0.119 billion, 0.097 billion, 0.063 billion, and RMB 0.84 billion.
Intermediary Team
The main intermediaries of XunCe Technology's IPO are: China International Capital Corporation as its exclusive sponsor; Ernst & Young as its auditor; King & Wood Mallesons, Davis Polk & Wardwell as its Chinese and Hong Kong/US legal counsel respectively; Haiwen & Partners, Fangda Partners as its Chinese and Hong Kong/US brokerage legal counsel respectively; Frost & Sullivan as its industry advisor.