IPO Preview | Crushed by RMB 550 Million in Debt, Juxing Media Seeks Hong Kong Listing to Raise Funds for a Cash Infusion

Annual revenue exceeds RMB 8.3 billion, yet the net margin is only 0.9%, and cash on hand is less than RMB 100 million. Is Juxing Media, China's largest brand IP content marketing service provider, seeking a Hong Kong listing to "replenish capital"? It is understood that Juxing Media recently submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with SPDB International as the sole sponsor. According to Frost & Sullivan, based on 2025 revenue, the company is China's fifth-largest integrated marketing service provider, China's largest brand IP content marketing service provider, and China's fourth-largest celebrity and KOL marketing service provider. The company has built a comprehensive service matrix around the full marketing chain, including brand IP content marketing, celebrity and KOL marketing, performance marketing, livestream e-commerce marketing, and international marketing. Since 2013, the company has been one of the largest local advertising agencies for leading video platforms such as Youku, iQIYI, and Tencent Video, and is also one of the largest local advertising agencies for short-video and social media platforms such as Douyin and Weibo. Juxing Media's performance has grown steadily. From 2023 to 2025, revenue grew at a compound annual rate of 15.8%, and revenue in Q1 2026 grew 44.1%, with profits growing in tandem. However, the company's profit margin is very low, with net margins attributable to shareholders of 1.1%, 0.8%, 1.1%, and 0.9% over the above periods, respectively. Its operating cash flow is unstable, with a net outflow of RMB 140 million in Q1 2026. As of June 2026, it had cash equivalents of only RMB 97 million, while current loans and borrowings amounted to as much as RMB 550 million. Under short-term debt pressure, this listing may be seeking a capital injection. So, as the largest domestic brand IP marketing service provider, will investors buy into it? Diversified drivers of revenue growth, but low profitability It is understood that Juxing Media was founded in 2011, starting with brand IP content marketing services as its business origin, and has built the advantages and characteristics of a full-chain marketing service system, helping clients integrate their brands with high-quality IP, including films and TV dramas, variety shows, short dramas, and sports events. During the track record period, the company cooperated with more than 50 media platforms, covering long-video platforms, short-video platforms, social media platforms, e-commerce platforms, and search platforms. The company's businesses include brand IP content marketing services, celebrity and KOL marketing services, performance marketing services, livestream e-commerce marketing services, and international marketing services. Among them, brand IP content marketing is the largest revenue contributor, with business growing every year, up 33.9% in Q1 this year, accounting for 49.2% of revenue. Performance marketing services are the second-largest core business, with volatile revenue but maintaining growth since 2025, accounting for 38.4% of revenue in Q1 this year. Data source: Company hearing materials Juxing Media's clients come from multiple industries, including cosmetics, daily necessities, food and beverages, electronics and home appliances, internet services, gaming, and more than 20 industries in total. The number of clients has maintained a growth trend. From 2023 to Q1 2026, the number of clients was 1,258, 1,318, 1,597, and 883, respectively, among which major clients include 69 China 500 companies and 14 Fortune Global 500 companies. The company's clients are relatively dispersed. In Q1 2026, the top five clients contributed 27.3% of revenue, and the largest client contributed 6.7%. However, the company's supplier concentration is very high, with procurement from the top five suppliers accounting for more than 80% in past years, and the largest supplier accounting for nearly 50%. It is worth noting that, following the AI wave, the company increased investment in technology starting at the end of 2023 and generated R&D expenses in 2024, but the amounts were not large. R&D expenses in 2024, 2025, and Q1 2026 were RMB 1.379 million, RMB 3.291 million, and RMB 748,000, respectively. As of March 2026, the company had a dedicated R&D team of 82 employees. In 2025, the company developed an internal AI-enabled software platform, namely the Xinghe AI Full-Chain Workbench, built on a variety of industry-leading large models, including Volcano Engine's Doubao model, Alibaba Cloud's Qwen model, the DeepSeek model, and Tencent Cloud's Hunyuan model. The Xinghe AI Full-Chain Workbench consists of five core functional modules, namely Xingce, Xingxuan, Xingchuang, Xingtou, and Xingmai. Almost all employees use the workbench. During the track record period and up to the latest practicable date, the highest single-day token usage was approximately 1.7 billion, supporting the generation of more than 2,300 AIGC videos per day. At present, AI mainly empowers operational efficiency and enhances profitability. Juxing Media's profitability is relatively stable, with gross margin remaining in the 4%-4.3% range. In Q1 this year, the gross margin of brand IP marketing was 3.8%, and the gross margin of performance marketing was 1.7%. In addition, various expenses are stable. In Q1 this year, the selling expense ratio was 0.9%, the administrative expense ratio was 1.9%, the financial expense ratio was 0.2%, and the net margin attributable to shareholders was 0.9%, remaining at a low level. The industry maintains double-digit growth, but the market may not buy into the listing for capital replenishment From an industry perspective, according to Frost & Sullivan, the value chain of the full-chain integrated marketing services industry includes brand IP content marketing, celebrity and KOL marketing, performance marketing, and e-commerce operations. In 2025, the global integrated marketing solutions market size was RMB 9 trillion, with a compound growth rate of 8.8% over the past five years, of which the Chinese market was RMB 1.9 trillion, with a compound growth rate of 9.6%. It is expected that by 2030, the global and Chinese market sizes will be RMB 11.7 trillion and RMB 2.95 trillion, respectively. The growth rate of the Chinese market is slightly higher than the global rate. By category, in 2025, China's brand IP content marketing market size was RMB 139.4 billion, with a compound growth rate of 14.5% over the past five years, and is expected to reach RMB 255.4 billion by 2030, with a compound growth rate of 13.3%. The performance advertising marketing market size was RMB 900.2 billion, accounting for the highest share, with a compound growth rate of 16.5% over the past five years, and is expected to reach RMB 1.47 trillion by 2030, with a compound growth rate of 10.1%. The industry is highly fragmented. In 2025, the top ten service providers together accounted for only about 8.2% of market share. By integrated marketing-related revenue, Juxing Media ranks fifth among service providers in China, with a market share of about 0.4%, and is the only full-chain integrated marketing service provider among the top ten that simultaneously covers all business segments. In addition, based on 2025 revenue, the company ranks first in China's brand IP content marketing with a 3.2% market share, and fourth in celebrity and KOL marketing with a 0.9% market share. Juxing Media's two core businesses, brand IP marketing and performance marketing, have promising industry prospects and certain scale advantages. Its growing and highly dispersed client base brings growth resilience through business cycles. However, it should be noted that the company's liquidity is relatively tight. As of June 2026, among current assets, receivables and prepayments together accounted for more than 96%, while cash equivalents were only RMB 97 million, and their proportion has consistently remained low. More importantly, its current loans and borrowings have increased year by year, rising to RMB 550 million, which is RMB 454 million higher than cash equivalents. Overall, Juxing Media's performance is mediocre. Its revenue structure is diversified, and its two core businesses are driven by a dual-engine model with steady growth. Industry prospects are good, maintaining double-digit growth. The company has scale advantages and has developed the Xinghe AI Full-Chain Workbench for internal empowerment, giving it a first-mover advantage, and its performance may continue to grow. However, the company's profitability is poor, with both gross margin and net margin low, and operating cash flow is in a net outflow trend. This listing may be for capital replenishment, and the market may not necessarily buy into it.