Preview of US stocks | Bright performance as a bonus, how will Wayne Industries (DNJF.US) break through the "double squeeze"?

In December 18, 2025, the U.S. Securities and Exchange Commission (SEC) approved Nasdaq's overall plan to raise the IPO liquidity threshold. The plan includes two key adjustments: first, raising the minimum public shareholding market value threshold for global enterprise IPOs from $5 million to $15 million; second, setting a higher fundraising requirement of $25 million for companies primarily operating in China. This marks a further shift in U.S. stock listing supervision from "formal compliance" to "substantive risk control." The $15 million global new threshold became effective on January 17, 2026, significantly narrowing the channel for small and medium-sized enterprises to finance in the U.S. The $25 million special requirement for Chinese companies is still in proposal stage, not yet implemented, with further developments pending further observation. Against the backdrop of raising the threshold for U.S. listings, there are still Chinese companies looking to enter the U.S. capital market, including Riverstone Ltd from Hong Kong. After secretly submitting a form to the SEC on April 11, 2025, Riverstone Ltd submitted a public prospectus to the SEC on December 29, 2025, applying to list on Nasdaq under the code "DNJF." According to the prospectus, Riverstone Ltd is a vertically integrated, B2B and B2C fast fashion supply chain management service provider. It is expected to issue 2.5 million common shares in this IPO at a price of $5-7, raising about $12.5-17.5 million. Based on the midpoint of the issuance price range, Riverstone Ltd's market value will reach $75 million. Riverstone Ltd's standout performance may be its "confidence" in listing in the U.S. The company's revenue and profit have seen double-digit growth from 2023 to 2025 (12 months ended March 31). Despite achieving steady growth in performance, if Nasdaq requires Chinese companies to increase their fundraising to $25 million, Riverstone Ltd will still need to raise more funds to successfully list. This depends on whether Riverstone Ltd can gain enough investor recognition to support a higher valuation or larger issue size. Strong performance in product sales, scale effects boost gross profit margin improvement Founded in Hong Kong, Riverstone Ltd has expanded globally. In 2010, the company's founders established D&J in Hong Kong, providing a complete range of clothing supply chain services. By 2017, the company had established Jia Yi Development Co., Ltd. in Hong Kong, initiating its initial attempts at group operations. 2020 was a critical year for Riverstone Ltd's international expansion. The company established WEDRESS PTY LTD in Australia and Zuoer Supply Chain Technology Group Co., Ltd. in Hong Kong, marking the beginning of building its global service network. By 2023, Riverstone Ltd had established a production base in mainland China - Weian Clothing (Ganzhou) Co., Ltd., and established a U.S. company, WEDRESS INC, indicating the company's accelerated integration of upstream and downstream resources, strengthening its vertical integration model. By 2024, Riverstone Ltd's global layout had further accelerated, with branches established in the UK and Mexico, and holding companies established in the Cayman Islands and the British Virgin Islands to set up the holding structure required for listing. In the same year, the company established a Guangzhou branch at its Ganzhou factory, further improving its production layout. As of now, Riverstone Ltd has developed into a vertically integrated fashion supply chain management service provider focusing on fast fashion, providing customers with comprehensive services ranging from initial design concepts, procurement, production, quality assurance, packaging, to logistics. Artificial intelligence ("AI") and 3D auxiliary services. As a one-stop clothing solution service provider, Riverstone Ltd's advantage lies in its ability to provide customers with a simplified and comprehensive supply chain experience, covering every step from initial design concepts, procurement, production, quality assurance, packaging, and logistics. By designing, planning, executing, controlling, and monitoring supply chain activities, Riverstone Ltd can provide customers with a competitive supply chain infrastructure. According to the prospectus, Riverstone Ltd has built a diversified business model, conducting both B2B and B2C businesses. In the B2B sector, Riverstone Ltd provides comprehensive clothing solutions to global renowned fashion retailers and supports designers in launching their own brands. In the B2C sector, Riverstone Ltd also designs and produces clothing under its own brand, such as "DOUBLE CRAZY." Currently, Riverstone Ltd's business covers countries such as Australia, Mexico, the UK, and the U.S., establishing long-term partnerships with leading fashion brands such as BOOHOO, PRETTY LITTLE THING, CIDER, SHOWPO, Fashion Nova, GIRL IN MIND, and has established solid strategic collaborations with a carefully selected regional factory network. From a revenue perspective, Riverstone Ltd has two main business segments: product sales revenue and royalty revenue. Product sales revenue refers to the revenue recorded for providing professional women's clothing design, pattern-making, production, processing, customization, and sales integrated services to international brands and retailers. Royalty revenue refers to customers using the company's trademark to sell clothing to the purchasing party, from which Riverstone Ltd collects royalty fees at a certain percentage. Riverstone Ltd's continued growth in performance is mainly attributed to the strong performance of its product sales revenue. The prospectus shows that from 2023 to 2025, Riverstone Ltd's product sales revenue was $28.4348 million, $39.3037 million, and $46.2931 million respectively, representing a compound annual growth rate of 25.87%. During the same period, royalty revenue was $0, $1.1894 million, and $1.288 million, showing an improving trend, but still accounting for a small proportion of total revenue, less than 3% in the 2025 fiscal year. With the continuous growth in revenue scale, scale effects have driven Riverstone Ltd's gross profit margin to continuously improve. From the 2023 to 2025 fiscal years, Riverstone Ltd's gross profit margin was 3.7%, 11.2%, and 16.4%, showing a continuous upward trend, accelerating the release of the company's profit margin. Therefore, Riverstone Ltd's net profit for the 2023 to 2025 fiscal years was $299,000, $2.5188 million, and $3.0116 million respectively. It is worth noting that the net profit growth rate of Riverstone Ltd in the 2025 fiscal year has slowed down, mainly because the ratio of sales and marketing expenses to revenue has increased from 2.7% in the 2024 fiscal year to 7.4%. Riverstone Ltd stated that this was due to the increase in employees and sales staff due to business expansion and related expenses for this IPO. Expected to benefit from the accelerated development of the industry, but facing multiple potential challenges In fact, Riverstone Ltd's continued growth in performance is directly related to the development of the industry. Frost & Sullivan stated that despite the significant challenges posed by the outbreak of the pandemic on the global economy, the fast fashion industry still shows noticeable resilience. From 2019 to 2023, the global fast fashion supply chain management service market has shown strong growth, with the market size increasing from $36.4 billion to $46.7 billion, a compound annual growth rate of 6.4%. The continuous expansion of the industry size provides opportunities for Riverstone Ltd's growth. Frost & Sullivan believes that driven by the advancement of supply chain management technology, the increasing demand from consumers for fast turnover fashion, and the expansion of fast fashion brands into emerging markets, the global fast fashion supply chain management service market is expected to grow from $52 billion in 2024 to $79.7 billion in 2028, with a compound annual growth rate increasing to 11.2%. While industry development accelerates opportunities for Riverstone Ltd, a closer look at its business development reveals multiple potential challenges. First and foremost is intense market competition. Currently, the global fast fashion supply chain services market has matured, showing a highly competitive and fragmented landscape. Riverstone Ltd needs to face international giants such as Zara, H&M, and Uniqlo, who have built high industry barriers with strong brand influence, efficient supply chain systems, and sustainable practices. Furthermore, the industry is also impacted by online fast fashion brands driven by digitization, such as SHEIN, which further compresses the survival space for small and medium-sized enterprises with their flexible supply chain and extreme cost-effective strategies. Although Riverstone Ltd has established a service network in Australia, Mexico, the UK, and the US through its vertically integrated model and emphasized environmental practices for differentiation, under the dual pressures of giant scale effects and emerging models, it needs to continuously improve its supply chain response speed, digital capabilities, and brand value to secure a stable foothold in the highly fragmented market. Secondly, Riverstone Ltd's customer concentration is not low. According to the prospectus, Riverstone Ltd relies on a few major customers, with revenues from these major customers accounting for 28% and 34% in the 2024 and 2025 fiscal years, respectively, showing a slight increase in concentration. Riverstone Ltd does not have long-term agreements with these major customers, but conducts transactions on a per-order basis; if these major customers are lost, it could have a certain impact on the company's performance. At the same time, the high concentration of Riverstone Ltd's suppliers is also a focal point for investors. In the 2024 and 2025 fiscal years, purchases from four independent contract manufacturers accounted for 60% and 67% of the total purchases, respectively. Although concentrated purchases offer cost advantages, they also increase supply chain risks. If major suppliers fail to supply effectively and new suppliers cannot be found, this could create supply chain risks. Additionally, Riverstone Ltd's proportion of trade receivables is slightly high, posing a relatively high credit loss provision risk. Data shows that in the 2024 and 2025 fiscal years, Riverstone Ltd's accounts receivable accounted for 33.1% and 37.9% of the company's total assets during the respective periods, and credit loss provisions for accounts receivable were incurred in both reporting periods, indicating the possibility of future provisions. In conclusion, Riverstone Ltd has achieved continued growth in performance through its vertically integrated model, service network layout in Australia, Mexico, the UK, and the US, and differentiation formed by emphasizing environmental practices. However, as a small enterprise in the highly competitive fast fashion industry, it needs to build more solid core competitive barriers. Furthermore, the high customer and supplier concentration in its business structure, as well as the potential financial and operational risks brought by the large scale of trade receivables, need to be continuously monitored in its future development.