New Stock News | New Rayli submitted to the Hong Kong Stock Exchange, ranking first in the Chinese commercial vehicle service market by revenue in 2025.

According to the disclosure on June 26th by the Hong Kong Stock Exchange, Zhejiang Xinruili Auto Parts Co., Ltd. (referred to as "Xinruili") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Nomura International as its exclusive sponsor. Based on data from Zhoushi Consulting, Xinruili ranks first in the Chinese commercial vehicle service market in terms of revenue in 2025 and the number of operating stores as of December 31, 2025. Company Overview: The prospectus shows that Xinruili is a leading commercial vehicle service provider and supply chain platform in China. The company's business mainly focuses on automotive parts supply chain services. As a platform service provider, the company provides cross-brand product procurement, strict quality assurance, end-to-end integrated supply chain operation, and cost-effective solutions to meet the diverse needs of the commercial vehicle service market. With Xinruili's national store network and integrated warehousing and logistics infrastructure, supported by a digital operating system, the company directly connects upstream automotive parts manufacturers with downstream customers through a comprehensive one-stop supply chain platform. Xinruili offers a wide range of products to meet the daily operation, maintenance, and repair needs of commercial vehicle customers across different scenarios. The company's product portfolio covers chassis system parts, general parts, transmission parts, electrical and electronic parts, engine parts, and body and accessories. With the company's integrated supply chain capabilities, it procures products from different suppliers and manufacturers, enabling the company to provide a wide range of products covering different categories, brands, and specifications. As of the last feasible date, the company offers over 326,000 SKUs for domestic and international markets to meet diverse market demands. The company adopts a differential expansion strategy for domestic and overseas markets to effectively penetrate individual markets. In China, the company mainly operates through a tightly controlled network of operating stores, supported by an extensive warehousing and logistics network, and a digital operating system. The company has also developed a joint venture operating model with local state-owned public transport groups, combining its procurement, operations, and digital capabilities with the regional resources and customer channels of local partners. As of the last feasible date, the company has established 63 joint ventures, enabling the company to build long-term stable relationships with public transportation customers and deepen its market penetration in selected regional markets. As of the last feasible date, the company has established a national network of 265 operating stores in 30 provincial-level administrative regions in mainland China. Overseas, the company mainly expands through a global distribution network, with distributors in approximately 100 countries and regions worldwide. As of the last feasible date, Xinruili has served over 222,000 customers. The company's domestic customers mainly include automotive repair stores, automotive parts stores, OEMs, fleet operators, joint venture stores, public transport enterprises, and distributors, while overseas customers mainly include distributors and OEMs. Financial Information: Revenue: In the financial years of 2023, 2024, and 2025, the company achieved revenues of approximately RMB 2.676 billion, RMB 2.715 billion, and RMB 2.504 billion respectively. Gross Profit and Gross Margin: In the financial years of 2023, 2024, and 2025, the company recorded gross profits of approximately RMB 442 million, RMB 435 million, and RMB 396 million respectively, with corresponding gross profit margins of 16.5%, 16.0%, and 15.8%. Net Profit: In the financial years of 2023, 2024, and 2025, the company recorded net profits of RMB 8.71 million, RMB 42.513 million, and RMB 70.182 million respectively. Industry Overview: Commercial vehicles are motor vehicles primarily used for commercial operational purposes, such as transporting passengers, goods, or towing trailers, with typical production data attributes. They are distinct from passenger vehicles primarily used for personal transportation. Commercial vehicles are widely used in key sectors of the national economy such as long-haul logistics, urban distribution, public transportation, engineering operations, sanitation services, and specialized transport. This has laid a solid industry foundation for the automotive parts supply chain services and commercial vehicle maintenance services, as well as related aftermarket services. As of 2025, the global commercial vehicle inventory has reached 164.2 million vehicles, with significant differences in volume across regional markets. China is a core single commercial vehicle market globally, with an inventory of 39.2 million commercial vehicles in 2025, accounting for 23.9% of the global market share. The inventories in Asia (excluding China), North America, and Europe are 51.1 million vehicles, 41.6 million vehicles, and 26.4 million vehicles respectively, accounting for 31.1%, 25.3%, and 16.1% of the global total. With steady growth in the global economy, the global commercial vehicle inventory will continue to grow steadily, with the overall size expected to increase to 193.4 million vehicles by 2030, with a compound annual growth rate of 3.3% from 2025 to 2030. With the upgrade of the modern logistics system, increased infrastructure investment, increasing replacement demand, and increasing penetration of new energy commercial vehicles, it is expected that the growth rate of commercial vehicle sales in China will be higher than the global average. It is estimated that from 2025 to 2030, the compound annual growth rate of commercial vehicle inventory in China will reach 4.0%, and the inventory is expected to increase to 47.7 million vehicles by 2030. Commercial vehicle services refer to a series of services provided after the sale of commercial vehicles to meet the diverse needs throughout the vehicle's life cycle, mainly covering automotive parts supply chain services and maintenance services. Automotive parts supply chain services primarily focus on the sales and aftermarket support of high-value quantity parts, vulnerable parts, and maintenance consumables for commercial vehicles, achieving parts procurement, warehousing scheduling, and efficient distribution through a sound supply chain system to meet the full scene parts demand for commercial vehicles. Maintenance and service restore the normal operating functions of vehicles through professional technical means and extend the vehicle's service life through preventive maintenance, including preventive maintenance, aftertreatment system specialized maintenance, major repairs of core components, chassis and tire system maintenance, and accident repairs. By 2025, the global commercial vehicle service market is estimated to be RMB 328.84 billion, expected to reach RMB 382.64 billion by 2030, with a compound annual growth rate of 3.0%. The size of the commercial vehicle service market in China is growing steadily, from RMB 61.87 billion in 2021 to RMB 75.80 billion in 2025, with an annual compound growth rate of 5.2%. Among them, the automotive parts supply chain service is a core component of the market, with a market size of RMB 51.60 billion in 2025. With the domestic commercial vehicle inventory maintaining a high level, the aging of fuel vehicles increasing, emission regulations continuously upgrading, and the demand for fleet fine operation increasing, it continues to drive the demand for commercial vehicle service market. By 2030, it is estimated that the size of the commercial vehicle service market in China will reach RMB 90.85 billion, with a compound annual growth rate of 3.7% from 2025 to 2030. The market size of automotive parts supply chain services is expected to grow from RMB 51.60 billion in 2025 to RMB 62.54 billion in 2030 with a compound annual growth rate of 3.9%. Board Information: The company's board of directors consists of eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors. Equity Structure: The company's controlling shareholders include Mr. Zhang, Ms. Chi, Rui Li Company, Rui Li Ruiheng, Rui Li Ruichuang, Xin Ruili Yihao, and Rui Li 52. As of the last feasible date, the controlling shareholders collectively hold approximately 89.21% of the voting rights exercised by the company's issued shares. According to the Securities and Futures Ordinance, (a) as of the last feasible date, Mr. Zhang is deemed to have an interest in the shares held by Rui Li Company (a company owned by Mr. Zhang holding 82.92% of the shares). Since Mr. Zhang controls over one-third of the voting rights at the shareholder meeting of Rui Li Company, he is deemed to have an interest in the shares held by Rui Li Company; (b) as of the last feasible date, Rui Li Company is deemed to have an interest in the shares held by Rui Li Ruiheng and Rui Li Ruichuang, and Rui Li Ruiheng and Rui Li Ruichuang are wholly owned by Rui Li Company. Since Mr. Zhang controls over one-third of the voting rights at the shareholder meetings of Rui Li Ruiheng and Rui Li Ruichuang, he is deemed to have an interest in the shares held by Rui Li Ruiheng and Rui Li Ruichuang; (c) Rui Li Ruiheng is deemed to have an interest in the shares held by Xinruili Yihao. As of the last feasible date, Xinruili Yihao holds approximately 0.02% of the equity held by Rui Li Ruiheng as an executive general partner, and the limited partners of Xinruili Yihao have not contributed more than one-third of its capital; and (d) Rui Li Ruichuang is deemed to have an interest in the shares held by Rui Li 52. As of the last feasible date, Rui Li 52 holds approximately 1.67% of the equity held by Rui Li Ruichuang as an executive general partner, and the limited partners of Rui Li 52 have not contributed more than one-third of its capital. Mr. Zhang and Ms. Chi are spouses and are therefore each deemed to have an interest in the shares held by the other. Intermediary Team: Exclusive Sponsor: Bank of Agricultural International Finance Limited Company Legal Advisor: Regarding Hong Kong law: King & Wood Mallesons; Regarding Chinese law: King & Wood Mallesons; Regarding International Sanctions Law: Jun He Law Offices LLC; Regarding Chinese Sanctions Law: King & Wood Mallesons Exclusive Sponsor Legal Advisor: Regarding Hong Kong law: Fangda Partners; Regarding Chinese law: Fangda Partners Auditors and Reporting Accountants: Ernst & Young Industry Consultant: Zhoushi Enterprise Management Consulting (Shanghai) Co., Ltd. Compliance Advisor: Jianquan Finance Co., Ltd.