New Stock Preview | Woker exceptional: deeply cultivating the blue ocean of the Southeast Asian consumer market, realizing high growth with the "brand + digitalization + supply chain" digital new retail model.

Against the background of global supply chain reconstruction and deep integration with the digital economy, Shenzhen Woque Extraordinary Technology Co., Ltd. (hereinafter referred to as Woque Extraordinary) officially submitted its application for listing on the main board of the Hong Kong Stock Exchange on January 20, with Huatai International as the sole sponsor. This cross-border new retail enterprise with full digital capabilities and a focus on the Southeast Asian market not only represents the strategic transformation of China's manufacturing industry from "product export" to "brand export", but also reveals structural investment opportunities in the upgrading of consumption in emerging markets. Deeply cultivating the "blue ocean" of the Southeast Asian consumer market with strong growth and profitability According to the Frost & Sullivan data in the prospectus, the retail market in Southeast Asia is at a critical stage of simultaneous expansion in scale and transformation in structure. The market size is expected to grow steadily from approximately USD 879.9 billion in 2024 to USD 1.2 trillion in 2029 at a compound annual growth rate of about 6.4%. This growth rate is significantly higher than that of most mature markets globally, making it one of the core engines driving global consumption growth. However, beneath the surface prosperity of the market lies profound structural efficiency gaps. In key countries such as Indonesia, Vietnam, and the Philippines, traditional offline retail channels still dominate with absolute market shares of 58.5%, 46.6%, and 55.4% respectively. The vast number of small and medium-sized retailers that make up the capillaries of these markets are generally trapped in a triple operational dilemma: high procurement costs, low logistics efficiency, and a lack of digital capabilities. At the same time, consumers face dual pain points: on one hand, as income levels rise, the middle class and quasi-middle class continue to expand, and the demand for consumption upgrades becomes increasingly prominent, leading to a growing pursuit of branded and quality products; on the other hand, there is a clear gap in the market supplyinternational brands, although well-known, often do not align with local lifestyles, aesthetic preferences, and are generally priced beyond the reach of most consumers; while local white-label or low-price products, although price competitive, lack guarantees in terms of quality, safety, and after-sales service, putting consumers in a dilemma between pursuing quality and budget considerations. Woque Extraordinary's business model precisely addresses the market gaps mentioned above through precise strategic design: firstly, targeting the demand for consumption upgrades. The company focuses on three major categories: 3C accessories and small household appliances, home improvement materials, designing products for local middle and quasi-middle class populations, while providing quality assurance with a "one-year replacement" policy and offering highly cost-effective prices. Secondly, deeply covering local small and medium-sized retail channels, providing one-stop purchasing, door-to-door delivery, terminal upgrade services, shortening the intermediary chain, improving logistics efficiency, significantly reducing the costs of traditional retail channels, and increasing efficiency. By 2024, the company has become the number one cross-border 3C accessory brand in the Indonesian market. Looking deeper, the essence of Woque Extraordinary is not simply product sales and brand export, but driven by its underlying fully digital capability, as well as highly localized team and infrastructure. One core element of its full digital capability is through a self-developed technology platform that integrates the entire chain from design and manufacturing in China, cross-border circulation, to local fulfillment, providing small and medium retailers with stable, efficient, and visual supply chain services, directly empowering them to reduce costs, increase efficiency, and enhance competitiveness. Based on observations, the latest financial data disclosed by Woque Extraordinary provides strong quantitative validation for its business model in the Southeast Asian cross-border new retail field. Its core financial characteristics can be summarized as follows: while revenue is steadily expanding, gross margin continues to optimize, the cost structure remains stable under strategic investments, ultimately driving a significant improvement in profitability. This indicates that the company has moved beyond the early stage of relying solely on capital investment for scale, and has entered a healthy development trajectory of simultaneous "scale growth" and "efficiency enhancement". Specifically, the company's revenue has grown from CNY 908 million in the fiscal year 2023 to CNY 1.049 billion in the fiscal year 2024, an increase of 15.5% year-on-year. As of the nine months ended September 30, 2025, revenue reached CNY 881 million, up 17.6% from the same period in 2024, showing accelerated growth momentum, indicating strong growth potential. The company's core competitive advantages are not only reflected in steady revenue growth, but also in brand position (leading market share in local markets, continuous increase in gross margin) and full-depth coverage of retail channels, achieving deep brand recognition among local consumers, building long-term localized competitive barriers, and laying a solid foundation to support sustainable development in overseas markets. The prospectus specifically points out that revenue from other countries such as Vietnam, Thailand, and the Philippines increased significantly by 68.5% in the first nine months of 2025 compared to the same period last year. This data is strategically significant, providing strong evidence that the company's strategy of "deepening Indonesia and radiating to ASEAN" is successful. Emerging markets are becoming the driving force for the company's next phase of growth, with the "leverage effect" of market expansion beginning to show. The steady increase in gross margin is one of the most eye-catching indicators in the latest financial report. During the period, the company's gross margin increased from 33.6% in 2023 to 35.6% in 2024, and further to 36.9% in the first nine months of 2025. This demonstrates that the company's market-leading position is continuously consolidating, the market is willing to accept increased brand premium, and scale effect and supply chain bargaining power are enhanced. With the expansion of purchasing volume, the companys bargaining power with upstream manufacturers has increased, with the proportion of sales costs to revenue dropping from 66.4% to 63.1%. While the gross margin continues to improve, the company's cost structure reflects the management's balance between growth and efficiency. The sales and distribution expenses as a percentage of revenue increased slightly from 18.4% in 2023 to 22.1% in the first nine months of 2025, reflecting necessary investments in online channels and the expansion of new country markets. These investments are key to building a channel moat and are strategic expenditures. General and administrative expenses have shown a positive trend, decreasing significantly from 7.8% in 2023 to 5.4% in the first nine months of 2025. This clearly demonstrates the operational leverage as revenue scale increases, the fixed costs of backend management are effectively diluted, highlighting the role of digital platforms in improving management efficiency. Driven by revenue growth and gross margin improvement, the company's profitability indicators have significantly increased. Operating profit margin increased from 5.7% in 2023 to 8.8% in the first nine months of 2025. Net profit margin increased from 2.0% in 2023 to 4.7% in the first nine months of 2025, more than doubling. Adjusted sales net profit margin (excluding specific accounting impacts such as fair value changes related to equity financing-related financial liabilities) increased from 5.2% in 2023 to 7.1% in 2025. With continuous growth in revenue scale and steady reduction in marginal costs, the company has achieved profitability at scale and entered a healthy development cycle. Woque Extraordinary has demonstrated its ability to translate market opportunities into sustainable financial returns with solid financial data. The continuous optimization of gross margin and the emergence of operational leverage collectively point to the efficiency advantages inherent in its business model. While strategic investments are still needed for future growth (reflected in sales expenses), the clear upward trend in its overall profitability curve is evident. Building a "cross-border new retail operating system" Defining a new paradigm for overseas expansion with triple barriers The core competitive barrier constructed by Woque Extraordinary, its operational model behind it represents a transition in the paradigm of brand expansion from "traffic leveraging" to "system empowerment". Essentially, it has built a "cross-border new retail operating system based on data intelligence", this system uses a full digital platform as the algorithm hub, deep localization infrastructure as the physical execution layer, and a synergistic network of brands and supply chains as the value realization portal. Through the closed-loop circulation of data flow, logistics, and fund flow, these three elements have collectively evolved into a high-level business model with positive network effects and economies of scale. The full digital platform has transcended the scope of traditional ERP or supply chain management tools, evolving into a real-time, intelligent, and automatic digital neural network. Its core value lies in the platform's ability to achieve real-time optimization of the overall supply chain utility, as well as digital asset deposition, establishing a profound digital moat. In the non-standard infrastructure and highly decentralized market of Southeast Asia, rapid brand dominance in the retail market cannot solely rely on the layout of online e-commerce platforms; it also requires deep coverage through offline physical networks. Woque Extraordinary's investment in local infrastructure is a strategic supply-side reform. Through widely managed and standardized retail terminals, self-operated warehousing, and controllable logistics systems, the company has essentially redefined a new model for rapidly and deeply covering traditional retail markets in emerging markets. Lastly, Woque Extraordinary's combination of "private label + partnership brand" will support the creation of higher value-added services in its retail network. The extensive coverage of its offline small and medium-sized retail terminal network, as a high-density distributed demand aggregation and service access network, not only accommodates the development of its own brands but also supports third-party brands entry at very low marginal costs and creates value. At the same time, economies of scale and scope begin to manifest. The company's private label is the most direct monetization vehicle for its digital capabilities, with its entire process from concept to sell-out being data-driven, realizing a positive cycle of gross margin improvement (value capture) and data feedback (enhanced capabilities). The synergistic network serves as an amplifier of Woque Extraordinary's ecological value. By integrating flexible manufacturing resources from China with diverse channel demands in Southeast Asia, the company has built a supply chain ecosystem. On this system, manufacturing companies receive stable and data-verified orders, retail terminals receive reliable and cost-effective sources, and Woque Extraordinary achieves supply chain control and efficiency enhancement through matching and empowerment, converting brand assets effectively into business benefits and commercial value, realizing the landing and realization of brand value to enterprise profit, occupying a core hub position in the ecosystem. Its business model has evolved from earning price differences to sharing overall value increment brought by enhanced ecological efficiency. Woque Extraordinary's barriers lie in the simultaneous advancement of algorithm iteration, heavy asset investment, ecological relationship building, and organizational capability evolution within dynamically changing multi-country markets. Therefore, the rise in gross margin and operational leverage effects demonstrated in its financial performance are not the result of cyclical cost control, but the inevitable manifestation of its systemic complexity transformed into competitive advantages in the financial model. Adapting to the trend of retail market upgrading Building a moat for cross-border new retail ecology It is believed that Woque Extraordinary's development process and growth logic closely follow the trend of retail market upgrading in Southeast Asia, clearly demonstrating the shared evolution path of "channel empowerment", "category penetration", and "ecosystem construction", with the company evolving from a product supplier to a leading brand and retail solutions provider. Continuing the above developmental logic, in terms of market replication, the company will focus on deep penetration in the Indonesian market and efficient replication in emerging markets such as Vietnam, Thailand, and the Philippines in the future, with proven model scalability (emerging market revenue surge by 68.5%), the core lies in unlocking operational leverage and achieving scale expansion. In terms of value deepening, the company will leverage its brand advantage and stable omni-channel network to expand from high-value products to high-margin, high-value products (such as smart 3C products and small household appliances). In terms of ecosystem construction, the company will build upon a full digitalized supply chain foundation to upgrade to a data intelligence-driven cross-border retail ecosystem. Through value-added services such as retail terminal upgrades, supply chain empowerment, and third-party brand integration, enhancing the lifetime value and stickiness of small and medium retail customers, the company will shift from a transaction price difference model to sharing the value dividends of the ecosystem, becoming a core industrial hub connecting Chinese manufacturing and Southeast Asian consumption. Ultimately, the investment value of Woque Extraordinary lies in its systemic output of Chinese supply chain and digital capabilities and their deep integration into complex system competitive advantages that are difficult to replicate locally. This advantage is expected to support its ability to navigate through cycles and achieve sustainable high-quality growth.