New Stock News | Xinyilinhe Technology Submitted an Application to the Hong Kong Stock Exchange as one of the top five online MRO procurement service providers.

According to the disclosure of the Hong Kong Stock Exchange on January 30, Shanghai Xinyilinhe Technology Co., Ltd. (hereinafter referred to as "Xinyilinhe Technology") submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Huatai International as its exclusive sponsor. The prospectus shows that, according to Zhoushi Consulting, in terms of total commodity trading volume, Xinyilinhe Technology is one of China's leading online MRO procurement service providers, serving as the fifth largest online MRO procurement service provider and the second largest online sub-terminal MRO procurement service provider. As of September 30, 2025, according to Zhoushi Consulting, the company's downstream customer network covers over 220,000 retail hardware stores nationwide, with a penetration rate of over 20.0%. Company Profile According to the prospectus, Xinyilinhe Technology was established in 2013 and is a comprehensive industrial group in China that combines digital trading platforms with independent manufacturing capabilities of MRO products. With a proprietary end-to-end digital infrastructure and a nationwide network of warehouses, distribution centers, maintenance, and repair facilities, the company connects upstream suppliers and downstream customers to enhance transactions and overall circulation efficiency in the MRO supply chain. Xinyilinhe Technology uses transaction and performance data generated through digital platforms to guide product selection, planning, research and development, and manufacturing, achieving on-demand production and sales-oriented product iteration. Through such market insights, Xinyilinhe Technology provides stable, quality-controlled, and cost-effective MRO product supplies to customers in China and overseas. Xinyilinhe Technology's business model is centered on the integration of digital trading platforms and manufacturing capabilities, both of which together form a self-reinforcing operational model. The company's digital platform business currently includes (i) a national self-operated platform (Rigushangcheng), providing industrial buyers across China with one-stop online procurement and trading services, and (ii) a set of proprietary mobile app portfolios operated by the company, enabling regional partners to receive online orders and access standardized performance services. Through acquisitions, Xinyilinhe Technology has established a manufacturing business serving overseas brands and channel customers in an OEM/ODM model, providing comprehensive capabilities ranging from market demand insights, product development, manufacturing to delivery guarantees to meet diverse customer needs. The company has established a data-driven operational flywheel that continuously enhances product competitiveness, supply efficiency, and customer coverage. Looking ahead, the two business segments are expected to further explore selectively sharing channel resources and operational capabilities, including supporting cross-selling of products. During the track record period, Xinyilinhe Technology's cumulative total commodity trading volume on the digital platform reached approximately RMB 8.5 billion, establishing partnerships with over 3,000 MRO product manufacturers and suppliers, covering over 220,000 downstream customers. As of the same date, Xinyilinhe Technology offers approximately 3.4 million SKUs covering 26 product categories. Financial Data Revenue In the fiscal years 2023, 2024, and the nine months ending on September 30, 2025, the company achieved revenue of approximately RMB 0.505 billion, RMB 0.877 billion, and RMB 1.124 billion, respectively. Net Loss in the Year/Period In the fiscal years 2023, 2024, and the nine months ending on September 30, 2025, the company incurred a net loss of approximately RMB 0.653 billion, RMB 0.774 billion, and RMB 0.489 billion, respectively. Gross Margin In the fiscal years 2023, 2024, and the nine months ending on September 30, 2025, the company's corresponding gross margins were 20.0%, 23.7%, and 19.5%, respectively. Industry Overview MRO products refer to goods that support production or business operations but do not become part of the final product, used for general purposes or specific industrial scenarios, covering a wide range of consumables and equipment categories. MRO product types include mechanical products, electrical products, tools, safety products, and equipment, among others. MRO procurement services refer to sourcing, purchasing, and other services related to the supply chain of MRO products. In terms of total commodity trading volume, the global MRO procurement services market increased from RMB 7.1 trillion in 2020 to RMB 9.0 trillion in 2024, with a compound annual growth rate of 6.2%, and is expected to further increase to RMB 10.5 trillion by 2029 at a compound annual growth rate of 3.0%. In terms of total commodity trading volume, the size of the Chinese MRO procurement services market increased from RMB 3.0 trillion in 2020 to RMB 3.7 trillion in 2024, with a compound annual growth rate of 5.6%. It is expected to reach RMB 4.5 trillion by 2029, with a compound annual growth rate of 4.2%. Online MRO procurement services shift the MRO procurement process from offline to online, in forms such as e-commerce platforms, digital purchasing system interfaces, or digital purchasing devices. Online MRO procurement services simplify the procurement process and provide data insights to suppliers and customers, thereby improving the reliability and transparency of the procurement process, reducing costs, and increasing the efficiency of the entire supply chain. The market size of China's online MRO procurement services industry increased from RMB 0.2 trillion in 2020 to RMB 0.4 trillion in 2024, with a compound annual growth rate of 20.8%. It is expected that this market size will further expand to RMB 0.6 trillion by 2029, corresponding to a compound annual growth rate of about 10.6%. The penetration rate of China's online MRO procurement services (defined as the market size of online MRO procurement services divided by the market size of MRO procurement services) was 9.5% in 2024. It is expected to reach 12.9% by 2029, driven by increasing acceptance of online MRO procurement services due to their convenience, transparency, and cost-effectiveness. Board Information The company's board of directors consists of nine directors, including four executive directors, two non-executive directors, and three independent non-executive directors. The company's board of supervisors includes three supervisors. Equity Structure As of the latest practicable date, Mr. Gao Yang has the right to exercise approximately 30.00% of the total issued share capital's voting rights of the company, including direct ownership of approximately 7.33% of the issued share capital, indirect ownership through serving as general partners of Shanghai Qianye, Shanghai Beirong, and Shanghai Mingdong of approximately 13.98%, 4.04%, and 1.97% of the issued share capital, indirect ownership through serving as general partners of Shanghai Chuanrui, Shanghai Qianduo, and Shanghai Shengyong of approximately 1.47% of the issued share capital held by Shanghai Guri. As of the latest practicable date, the relevant companies hold 33.62%, 33.61%, and 32.77% of the shares of Shanghai Guri, respectively, and (iv) authorized by Ms. Lin Rongzhen, Mr. Gao exercises the voting rights associated with approximately 1.22% of the shares held by Ms. Lin. Following the completion of the [editing], Mr. Gao, through Shanghai Qianye, Shanghai Beirong, Shanghai Mingdong, Shanghai Guri, and the voting rights proxy agreement, will directly and indirectly have the right to exercise approximately [editing] of the voting rights of the company (assuming [editing] is not exercised). Therefore, Mr. Gao, together with Shanghai Qianye, Shanghai Beirong, Shanghai Mingdong, Shanghai Chuanrui, Shanghai Qianduo, Shanghai Shengyong, and Shanghai Guri, will constitute the single largest shareholder group of the company. Intermediary Team Exclusive Sponsor: Huatai Financial Holdings (Hong Kong) Limited Company Legal Counsel: Linklaters, JunHe LLP, King & Wood Mallesons Exclusive Sponsor Legal Counsel: Han Kun Law Offices LLP, Haiwen & Partners Auditors and Reporting Accountants: PricewaterhouseCoopers Huazhen LLP Industry Consultant: Zhoushi Industry Consulting Co., Ltd. Compliance Consultant: JL Capital Limited