Bluefocus Intelligent Communications Group Co.,Ltd. has recently received feedback from the China Securities Regulatory Commission (CSRC) regarding its overseas listing filing, with the following specific feedback points:
First, the company is required to provide additional details on the specific operations of advertising design, agency services, advertising production, advertising publishing, self-owned media advertising, internet information services, and value-added telecommunications services conducted by the company and its subsidiaries. The feedback requests clarification on whether necessary qualifications and permits have been obtained, whether business scope and actual operations involve restricted or prohibited foreign investment areas, foreign shareholding ratio limits, and whether the company will continue to comply with foreign investment access requirements after the IPO.
Second, in accordance with the "Regulatory Rule Application Guidelines - Overseas Issuance and Listing Category No. 2: Filing Material Content and Format Guidelines," the company must supplement information about its largest shareholder following the requirements for controlling shareholders and actual controllers, including basic information and any pledge or freeze status of their shareholdings, and whether this could lead to major ownership disputes.
Third, the company must strictly compare against Article 8 of the "Interim Measures for the Administration of Overseas Securities Issuance and Listing by Domestic Enterprises" and supplement explanations on whether there are any prohibitive circumstances for overseas issuance and listing.
Fourth, the company needs to clarify whether it and its subsidiaries are involved in developing or operating websites, mini-programs, apps, official accounts and other products, whether they provide information content to third parties, the types of information content provided, and information content security protection measures. Additionally, the company must explain the scale of user information collected and stored, data collection and usage situations, and arrangements or measures for personal information protection and data security before and after listing.
On June 25, Bluefocus Intelligent Communications Group Co.,Ltd. submitted its listing application to the Hong Kong Stock Exchange's main board, with HTSC International, Guotai Junan International, and China Renaissance as joint sponsors. The fundraising will primarily be used to alleviate liquidity crisis, support AI strategy implementation, and expand global channels.
While Bluefocus has achieved revenue exceeding 60 billion yuan, its media rebate model constrains gross profit margins. Core overseas business accounts for approximately 80% of revenue, with media procurement costs consuming 95% of income, resulting in an overseas business gross margin of only 1.73%. The company faces overall performance losses, continuously rising asset-liability ratios, high accounts payable proportions, and poor cash generation from operating activities. These factors have negatively impacted Bluefocus's A-share market performance and increased refinancing difficulties.
Although Bluefocus has announced an "All in AI" strategy, the company's R&D investment ratio remains extremely low, with R&D expenses accounting for less than 0.1% of revenue in 2024. Under these circumstances, whether the company can successfully present its AI story in the Hong Kong stock market remains highly uncertain.
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