Cross-Border E-commerce Giant Jihong Co., Ltd. Seeks HKEX Listing, Targeting HK$725 Million

A-Share and H-Share Listing: A New Milestone for a Cross-Border E-commerce Powerhouse

Following companies like Lianchuan Biology and Betta Pharmaceuticals, Jihong Co., Ltd. marks another A-share listed company opting for a Hong Kong listing. A significant highlight of this re-listing is Jihong's robust cross-border e-commerce business.

Jihong Co., Ltd. first listed on the Shenzhen Stock Exchange Main Board in 2016, primarily focusing on packaging and printing, fast-moving consumer goods (FMCG) supply chain, and cross-border social e-commerce. Unlike many traditional international sellers who started with manufacturing or trade, Jihong grew from its paper packaging business, gradually developing content marketing and social advertising capabilities, ultimately forging a 'product-to-person' social e-commerce path.

This Hong Kong listing represents another critical strategic move in Jihong's global expansion, aiming to strengthen its international financing capabilities, expand its influence in cross-border e-commerce, and enhance its compliance and brand image in overseas markets.

From Printing & Packaging to Independent E-commerce Success

While many may only know Jihong as an A-share listed company, it has long been recognized as a 'major seller' within the cross-border e-commerce sphere.

Jihong officially entered cross-border e-commerce in 2017, establishing Xiamen Jikeyin E-commerce Co., Ltd. and pioneering a model combining social media advertising with independent e-commerce sites. By 2018, its revenue surpassed RMB 1.2 billion, with cross-border and advertising businesses growing over 460%. In 2021, Jihong developed its proprietary cross-border SaaS platform, 'Jimao Cloud,' offering AI-powered product selection, hot product testing, ad creative management, and settlement logistics management.

From 2022 to 2023, cross-border e-commerce revenue exceeded RMB 4 billion, with over RMB 1.7 billion spent on advertising in 2023, primarily targeting markets in Europe, the US, Japan, and South Korea. In Q1 2024, cross-border social e-commerce revenue reached RMB 790 million, boasting a robust gross profit margin of 52.49%, demonstrating strong business resilience.

Our analysis reveals a clear and mature business model: ① Focusing on high-value, cost-effective FMCG categories (home goods, apparel, consumer electronics); ② Leveraging precise advertising on platforms like Facebook, Instagram, and TikTok; ③ Establishing multiple independent websites to form a de-platformed brand matrix; ④ Following a systematic approach of ad placement → data analysis → small-batch product testing → large-scale volume growth. Currently, Jihong has become an 'invisible giant' in various markets across Southeast Asia, Latin America, Europe, and the US, with some individual products achieving multi-million dollar GMV on social media advertising platforms.

Strategic Timing: Why Hong Kong Now?

Several factors underpin Jihong's decision to list in Hong Kong at this juncture. Firstly, the Hong Kong IPO market is experiencing a recovery. Since 2024, policies have become marginally more lenient, particularly with enhanced valuation support for profitable companies with proven track records. This presents a favorable window for consistently profitable export enterprises like Jihong.

Secondly, there is a strong financing demand for its cross-border operations. While Jihong maintains healthy cash flow, the need to scale advertising spend and inventory — often involving tens of millions of US dollars — makes enhancing overseas financing capabilities crucial. Jihong has clearly articulated the intended use of the H-share proceeds: 1. Expanding advertising reach; 2. Strengthening global supply chain systems; 3. Upgrading technology platforms and SaaS systems; 4. Enhancing brand internationalization capabilities, such as localized content marketing.

Finally, overseas fundraising significantly boosts brand value for B2C businesses. Compared to the A-share market, which may have a weaker understanding of cross-border operations, Hong Kong and international investors are more familiar with DTC e-commerce and independent brand website models, offering a more suitable valuation framework. This move also lays a stronger foundation for potential future listings in the US or other international markets.

A Capitalization Blueprint for Cross-Border E-commerce

Jihong's trajectory may well represent a new paradigm for the maturation of cross-border e-commerce. Its evolution from packaging and printing to a comprehensive 'content + product + supply chain' operator, expanding from simple sales to a closed-loop system of SaaS platforms, brand matrices, and traffic acquisition, culminating in an A-share listing and H-share refinancing, opens up global market recognition and capital channels.

At a time when the cross-border industry generally faces the 'three major mountains' of growth bottlenecks, rising traffic costs, and increased regulation, Jihong's strategy is clearly more systematic and boasts a robust financing closed-loop. Despite current concerns about tariffs, visits by Rich Chuhai's business team to major cross-border seller hubs like Nanshan Science Park, Shenzhen Bantian, Bao'an Xixiang, and Shenzhen South China City — encompassing both tech-driven and traditional trade sellers — reveal many are aggressively stocking inventory, and numerous clients are gradually increasing their ad spend. Even some Amazon sellers are now driving traffic through independent website advertising, a practice that has become standard. Recent interactions with cross-border sellers have reinforced Rich Chuhai's conviction that cross-border e-commerce remains a highly promising sector, with many 'under-the-radar' sellers steadily emerging into the spotlight.

Perhaps, the next major listed seller is already on its way.