As the mid-year approaches, Hong Kong IPOs are heating up. According to Tonghuashun Financial data, a total of 9 Hong Kong IPO companies have been approved by the Hong Kong Stock Exchange this month. Among them, Dida Chuxing (02259.HK), Laopu Gold (06181.HK), and Tianji Juhe (02479.HK) will start their public offerings from June 20. Since June, a total of 5 Hong Kong IPOs have been completed, raising a total of 8.15 billion HKD, setting a new monthly fundraising record for the year.

Dida Chuxing (02559.HK) New Stock Offering

Dida Chuxing (stock code: 02559.HK) will start its public offering today (20th) until the 25th. As the second-largest carpooling platform company in China, Dida Chuxing plans to issue 39.091 million shares, of which 10% will be publicly offered in Hong Kong. The offer price is between 5 HKD and 7 HKD, with an estimated maximum fundraising of 270 million HKD. Each lot consists of 500 shares, with an entry fee of 3535.3 HKD. Dida Chuxing is expected to be officially listed on June 28, with CICC, Haitong International, and Nomura International acting as joint sponsors.

Approximately 50% of the net proceeds from this fundraising will be used to expand the user base and enhance marketing and promotional activities; 35% will be used to improve technological capabilities and safety mechanisms; and the remaining 15% will be used to enhance monetization capabilities.

Turning Losses into Profits

Dida Chuxing is an internet travel platform focused on carpooling and taxi services, striving to meet more travel needs by maximizing the transportation efficiency of existing on-road vehicles, thus creating a more efficient and less congested "alternative travel mode" for users and society.

In 2023, Dida Chuxing initiated eight new R&D projects mainly involving AI algorithm design, sales and marketing management, big data technology, POI search, and route planning. In recent years, Dida Chuxing has invested heavily in proprietary technologies, especially in AI, machine learning, and big data analysis, to enhance user experience and ensure sustainable platform growth. By accelerating the application and upgrading of AI, advanced algorithms, cloud technology, and navigation capabilities, it effectively addresses many long-standing pain points in improving carpooling experience efficiency. Moreover, Dida's proprietary technology supports approximately 45,000 route planning requests per second, optimizing the nearest pickup points and minimizing wait times and travel distances. During peak periods, it generates over 68,000 demand matches per minute.

According to the Frost & Sullivan report, based on adjusted net profit margin, Dida Chuxing has been the only major participant in China's carpooling market to achieve net profit over the past three years. In 2023, Dida Chuxing successfully turned a profit, netting 300 million RMB. Based on transaction volume and carpooling trip statistics, Dida Chuxing was the second-largest carpooling platform in China in 2023, with a market share of 31.8%. By the end of last year, Dida Chuxing provided app-based carpooling services in 366 cities nationwide, with approximately 15.6 million certified private car owners.

Laopu Gold (06181.HK) New Stock Offering

Laopu Gold (stock code: 06181.HK) will start its public offering today (20th) until the 25th. As a well-known gold brand in mainland China, Laopu Gold plans to issue 19.451 million H shares, of which 10% will be publicly offered. The offer price is set at 40.5 HKD per share, with an estimated fundraising of 790 million HKD. Each lot consists of 100 shares, with an entry fee of 4090.9 HKD. Laopu Gold is expected to be listed on June 28, with CICC International acting as the sole sponsor.

The company has introduced Tencent's (00700) wholly-owned subsidiary Tencent Huang River, Southern Fund Management Co., Ltd., and CPE FUND as cornerstone investors, who will subscribe for shares worth 56 million USD (approximately 440 million HKD) at the offer price. Approximately 73.3% of the net proceeds from this fundraising will be used to expand the sales network; 11.3% will be used to maintain brand positioning and enhance brand awareness; 2.7% will be used to optimize internal IT systems and improve automation and information levels; 2.7% will be used to strengthen R&D capabilities; and 10% will be used for general working capital and corporate.

Strong gross profit performance

Old Shop Gold positions itself as a high-end gold jewelry brand, dedicated to launching high-quality products that combine cultural and fashion elements, covering daily accessories, household goldware, and decorative pieces. Old Shop Gold’s gross profit margin is significantly higher than its peers. According to the prospectus, Old Shop Gold’s products mainly include pure gold products and pure gold inlaid products, with their revenue shares in 2023 being 43.9% and 56%, respectively. From 2021 to 2023, the gross profit margin for pure gold products was above 36%, while the gross profit margin for pure gold inlaid products, due to their more complex design and craftsmanship, was slightly higher, maintaining around 45%. Overall, Old Shop Gold's gross profit margin remained above 40% for three consecutive years, reaching 41.9% in 2023. In comparison, in the same year, the gross profit margins of Lao Feng Xiang, Chow Tai Sang, and Cai Bai shares were 8.15%, 18.14%, and 10.61%, respectively, while for fiscal year 2024, Chow Tai Fook's gross profit margin was 20.5%.

Tianju Dihe (02479.HK) New Stock Offering

Tianju Dihe (Stock Code: 02479.HK) is launching its initial public offering (IPO) today (20th June) until the 25th June. As a comprehensive API data circulation service provider in China, Tianju Dihe plans to issue 48.182 million H shares, with 10% of them available for public subscription in Hong Kong. The offering price is set at HKD 83.33 per share, with an estimated total fundraising of HKD 400 million. Each lot consists of 50 shares, with an entry fee of approximately HKD 4,208.5.

Tianju Dihe is expected to be listed on 28th June, with CITIC Securities serving as the sole sponsor. The company has introduced four cornerstone investors, including Reynold Lemkins, Yuanfeng, Xuzhou Economic and Technological Development Zone (Hong Kong), and Gold Wings, with a total investment of HKD 320 million.

Of the net proceeds from this fundraising, approximately 25% will be used to comprehensively upgrade its existing API product portfolio in the API market; 45% will be used to upgrade existing products and services in data management solutions; 20% will be allocated for the development of data security and privacy protection technologies; and 10% will be used for working capital and general corporate purposes.

Prestigious Clientele

Tianju Dihe provides standard API services and customized data management solutions to internet companies, telecom operators, technology companies, and other business and government organizations, as well as application developers and technology professionals. The company boasts a mature, robust, and diverse client base, including giants like Tencent, Alibaba, Baidu, NetEase, and several other internet companies.

Last year, Tianju Dihe's revenue reached RMB 440 million, marking a year-on-year growth of 34.1%. However, the profit attributable to the owners of the company was RMB 34.751 million, representing a year-on-year decrease of 15.8%.

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lSafe and Reliable: Independently custodied assets, encrypted data transmission via dual data centers in Hong Kong, ensuring the safety of assets and data

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