Yueshi Holdings, based in Shenzhen, has recently submitted a listing application to the Hong Kong Stock Exchange, marking its second attempt at an IPO. This follows the expiration of its initial filing in January 2026, with Shenwan Hongyuan Hong Kong serving as the sole sponsor.
The company has experienced rapid revenue growth, but it also reported a combined net loss of 2.011 billion yuan over the past three years, alongside a low gross margin. However, after a funding round in December 2025, its post-investment valuation reached approximately 7.15 billion yuan.
Three Years of Net Losses Total 2.011 Billion Yuan
Founded in 2017, Yueshi is an industrial internet company that uses a dual-model approach of "cold chain digital tools and agricultural product trading" to enter the highly fragmented cold chain sector in China. Unlike typical fresh produce traders, the company's core narrative is centered on a data-driven dual-business closed loop.
At its core is the Yueshi Smart Cold Chain Cloud Platform, which serves as the foundational technology. On one side, it provides comprehensive cold chain digital solutions to operators of wholesale markets, food processing plants, agricultural product parks, and import ports. On the other side, the company uses data from its platform to guide global procurement, demand forecasting, and inventory management of cold chain agricultural products, thus running its agricultural product sales business. The data from its technology services supports product selection, procurement, and customer operations for its trading division.
The company's digital solutions segment has achieved nationwide coverage. The system is now deployed with over 750 cold chain operators across approximately 30 provinces, municipalities, and autonomous regions, offering standardized digital tools for warehouse operations, logistics coordination, and merchant management.
The cold chain agricultural product sales business is the primary driver of the company's scale. Its products include meat, seafood, and fruit, and it serves over 1,200 downstream customers, mainly small and medium-sized agricultural product wholesalers. Yueshi has built a global procurement network spanning over 40 countries and regions, with more than 1,000 suppliers, including over 690 overseas suppliers, to mitigate supply risks from single origins. In 2025, the customer repurchase rate for this segment was 36.6%, indicating a degree of customer loyalty.
According to data from Frost & Sullivan, the domestic digital cold chain agricultural product sales market is highly fragmented. In 2025, the top ten companies held a combined market share of only 14.1%. By cold chain agricultural product sales revenue, Yueshi ranked sixth in 2025 with a 1% market share. Within the broader domestic cold chain agricultural product sales market, the company ranked among the top 100, holding a 0.2% market share, suggesting significant room for industry consolidation.
In 2025, the company's cold chain agricultural product sales revenue reached 5.9 billion yuan. Financially, the company shows rapid revenue growth but a sharp divergence in profit indicators. According to its prospectus, from 2023 to 2025, revenue grew from 1.254 billion yuan to 5.937 billion yuan. In the first four months of 2026, revenue reached 2.805 billion yuan, a year-on-year increase of 88.77%.
Net losses for 2023, 2024, and 2025 were 28 million yuan, 219 million yuan, and 1.764 billion yuan, respectively, totaling a net loss of 2.011 billion yuan over three years. In the first four months of 2026, the company reported a net profit of 35.882 million yuan. However, looking at adjusted net profit, which better reflects core operations, the figures were a loss of 6.043 million yuan in 2023, and profits of 29.691 million yuan and 68.717 million yuan in 2024 and 2025, respectively. The total adjusted net profit over three years was 92.365 million yuan, with a further 35.882 million yuan in the first four months of 2026.
Gross Margin as Low as 2.84%
A key concern is that the company's overall gross margin has been persistently low due to the nature of its bulk agricultural product trading business. During the reporting periods (2023-2025 and the first four months of 2026), the gross margins were 1.82%, 2.72%, 2.84%, and 2.6%, respectively.
For comparison, A-share comparable company Guolian shares has maintained a gross margin of 5.4%-6.48% in recent years, while DFJSC's margin has declined due to cross-border trade competition but remains above 10%. A low gross margin is a characteristic of the bulk agricultural product distribution industry, meaning profitability depends heavily on turnover efficiency. While scaling up, it also consumes working capital, a common challenge for industrial internet trading companies.
On the capital front, Yueshi has completed a full funding chain from Angel to Series E rounds. In 2024, it received investment from a fund under the All China Federation of Supply and Marketing Cooperatives. In 2025, it secured investment from a fund under the Guangdong Agricultural Reclamation Group. The involvement of state-owned capital provides synergies for its supply chain and industrial resources. After the Series E round in December 2025, the company's post-investment valuation was about 7.15 billion yuan. It has also been listed among China's Top 500 Hidden Unicorn Enterprises for two consecutive years, in 2024 and 2025.
Within the broader industry context, the domestic cold chain for agricultural products has long suffered from long chains, information opacity, and a lack of standardization. The goal of industrial internet involvement is to use digital tools to transform traditional wholesale, import, and distribution channels. Yueshi's innovation lies in its attempt to avoid being just a pure software provider or a middleman. Instead, it tries to connect upstream and downstream through a "tools for data, data for trade" path.
However, the challenges are clear: its high-margin digital solutions business is still small in scale, with the majority of revenue coming from low-margin agricultural product sales. Whether the company can scale its technology business value and convert its data capabilities into sustainable profitability will be key for the capital market in assessing its long-term value.
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