上市捷报丨沙利文助力华视集团控股有限公司成功赴港上市(1111.HK)

Huashi Group Holdings Limited (Stock Code:1111.HK) on2023year11month10The company successfully listed on the main board of the Hong Kong capital market. It is a brand, advertising, and marketing service provider located in Hubei Province, China. It offers services throughout the entire value chain, from market research (through cooperation with research institutions) to brand, advertising, and event execution. By collaborating with different media resource providers, it assists brand owners, advertisers, and agencies in formulating and implementing effective service plans to meet their promotional needs and marketing objectives, thereby further enhancing the brand's reputation among its target audience, as well as improving the competitiveness and market share of its products or services. Frost & SullivanFrost & Sullivan,Frost & Sullivan, referred to below as the 'Frost & Sullivan Group', provides exclusive industry advisory services for the listing of Huasheng Group Holdings Limited. We hereby extend our warmest congratulations on its successful listing.

Vision Group Holdings Limited (hereinafter referred to as 'Vision Holdings') was incorporated on2023year11month10The company plans to go public on the 1st of July1.25100 million sharesHstocks, among which90%For international distribution,10%For public offering. Issue price per share1.04HK$, with the total raised funds amounting to approximately1.30HK$10 billion.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Investment highlights

The company has developed strategic formulation and data analysis capabilities;

The company has a good track record in providing high-quality brands, advertising, and marketing services;

The company has established stable long-term business relationships with various media platforms and advertising resource providers;

The company has developed the capability to customize creativity and concepts, enabling it to produce various forms of brand content on various media platforms.

Advertising and marketing content;

The company maintains business relationships with customers across various industries;

The company has a senior management team with rich industry knowledge.

According to a report by Frost & Sullivan, by2022Annual sales revenue, company:

Accounts for approximately0.02%market share;

account for approximately0.3%market share;

Approximately0.008%market share.

China's comprehensive brand, advertising and

Marketing Service Market Overview

Integrated brand, advertising, and marketing service providers mainly offer one-stop services across the entire value chain, from market research to the execution of advertising campaigns. They assist advertisers in formulating effective marketing plans, enhancing the brand's reputation among target audiences, and improving the competitiveness and market share of products or services. With the rapid development of the Chinese advertising market and the emergence of diversified advertising media (including television advertisements, outdoor media advertisements, and online media advertisements), advertisers have higher demands for customized brands and marketing plans that meet their specific requirements, such as marketing objectives, advertising effectiveness evaluation, and budgets. This has promoted the development of China's integrated brand, advertising, and marketing service market.2017Year-end2022In [year], total expenditure in China's comprehensive brand, advertising and marketing services market grew rapidly, from RMB6,241RMB 100 million increased to RMB10,498yuan, with a compound annual growth rate of11.0%.

China's comprehensive brand, advertising, and

Competitive landscape of the marketing service market

As comprehensive brand, advertising, and marketing service providers can expand their business scope to various market segments (including the brand service market, advertising service market, and event planning and execution service market), the market size of China's comprehensive brand, advertising, and marketing service market refers to the sum of the market sizes of each segment, which also includes market participants that only provide some of these services.2021year2022In the year, the Group's sales revenue accounted for approximately0.014%and0.02%.

Overview of China's Brand Service Market

Brand services refer to a series of services provided for brand owners, aimed at gaining customer recognition of the brand, enhancing brand reputation, disseminating the unique concepts of the brand owner, and strengthening their competitive advantage. Brand services mainly include market research for the customer's industry, brand and marketing planning, corporate visual identity system design, product packaging design, advertising planning, etc. Brand service fees generally depend on the research costs and labor costs incurred during the project period, and brand service providers usually charge based on a cost-plus method according to the scope of services, project duration, and customer requirements.

In the brand service market, the total amount paid by brand owners to advertising service providers is2017Renminbi in [year]29Rapid growth of hundreds of millions to2022Renminbi in [year]57yuan, with a compound annual growth rate for the period of14.5%This is mainly due to Chinese companies' increasing emphasis on brand image and growing demand for brand services.2022In [year], the total sales revenue from brand services from all advertising service providers in Hubei Province reached approximately RMB4Yuan, accounting for approximately7.4%In the future, it is expected that the total amount paid by brand owners in China's brand service market to advertising service providers will continue to grow and will be2027RMB reached98yuan,2023Year-end2027The compound annual growth rate for the year is10.4%This is mainly due to the increasing number of advertising service providers engaging in brand services, with the scale of their operations approximately5%The compound annual growth rate continues to increase.

Key market drivers in the Chinese brand service market

· Consumption upgrade has made brands popular

According to2021year3A series of policies and regulations issued by the government during the 14th Five-Year Plan period, including the '14th Five-Year Plan for National Economic and Social Development', propose to carry out China brand creation initiatives, enhance the influence and competitiveness of independent brands, and cultivate a group of high-end brands in fields such as cosmetics, clothing, home textiles, and electronic products. The Chinese government has vigorously promoted brand building. Coupled with the development of the service industry and increased demand for consumption upgrading, well-known brands are becoming more sought-after, easier to gain customer recognition, and rapidly spread in the market. Therefore, Chinese enterprises attach greater importance to their brand reputation, strive to promote brand image through effective brand strategies, stimulate market demand for brand services, and promote the development of China's brand service market.

· Increased exposure opportunities for brand image

Due to the acceleration of public infrastructure construction, the diversification of brand sponsorship forms, and the continuous development of various media such as television, internet, and outdoor advertising space, brand images have received more exposure opportunities. Therefore, the increase in brand image exposure opportunities has stimulated the growth in brand service demand.

· The demand from small and medium-sized brand owners is constantly growing

As the competitive environment becomes increasingly fierce and awareness of building brands grows, Chinese enterprises are placing greater emphasis on expanding business scale, occupying markets, and gaining competitive advantages through effective marketing strategies. This is mainly due to the lack of strong marketing capabilities among some companies (especially small and medium-sized brand owners) to formulate effective brand strategies. As a result, they tend to outsource brand services, providing broad development potential for the brand service market. At the same time, integrated brand, advertising, and marketing service providers can leverage the synergistic effects of brand services and advertising services. For example, they can optimize marketing plans based on their various advertising resources and effectively purchase and place advertisements according to brand strategies, which is conducive to their development of brand service businesses.

Overview of the Chinese Advertising Market

According to the type of communication channels, the advertising market can be divided into two main sub-markets: traditional offline media advertising market and online media advertising market. Offline media advertising delivers information through magazine and newspaper advertisements, radio, television, and outdoor media. At the same time, with the further popularization of the Internet (especially mobile devices), more and more advertisers tend to publish advertisements through online channels due to their favorable attributes such as no geographical coverage limitations, timeliness, and inclusiveness.

The main dissemination channels for traditional offline media advertising include television, outdoor media in different outdoor settings (such as commercial buildings, subway lines, airports, buses), and others (such as elevators and cinemas, newspapers and magazines, as well as radio advertisements).2017Year-end2022In the year, advertisers' total expenditure on offline media advertising services in China was RMB2,676Yuan increased slightly to RMB2,757yuan, with a compound annual growth rate of0.6%In the future, mainly due to the increasing number of TV programs and outdoor advertising scenarios, advertisers' spending on TV ads and outdoor advertising is expected to continue to grow.2027The total expenditure of advertisers in China's offline media advertising service market will reach RMB2,980yuan, in2023Year-end2027The compound annual growth rate for the year is1.3%.

Television advertising and outdoor media advertising, as major traditional offline media, have entered a mature development stage. Advertisers' expenditures on television advertising and outdoor media have maintained a moderate growth.2017Year-end2022The compound annual growth rates for the years are2.2%and2.6%, is expected to be launched in2023Year-end2027The compound annual growth rates for the years will be2.1%and2.2%The market drivers of the outdoor media advertising service market in China mainly include the continuous increase in public places available for outdoor media advertising, the sustained growth in outdoor entertainment demand, and the increasing popularity of digital outdoor media advertising.

Advertisers' expenditure on online media advertising services in China is2017RMB approximately3,518RMB billion increased to2022RMB approximately7,662yuan, with a compound annual growth rate of16.8%.2022In [year], advertisers' spending on online media advertising services decreased mainly due to the adverse impact of the economic recession on advertisers' marketing budgets. As the most popular and effective advertising method, short video ads are2022The only advertising channel with positive growth in the year. As of2022year12Month-on-month, short videos accounted for the highest proportion of users' online time, exceeding25%And will continue to grow at a high rate in the future. More and more advertising agencies are expanding their business into short video advertising. Some advertising agencies that have just entered this field may choose to partner with experienced ones because they possess more resources and capabilities to meet diverse needs.

Therefore, although2022In the face of industry negative growth, online media advertising service providers with rich experience, specific online advertising advantages (such as stable relationships with media providers), and professional marketing teams still achieved rapid growth.2022In [year], the total advertising media service sales revenue of all online media ad service providers in Hubei Province reached approximately RMB129Yuan, accounting for approximately % of advertisers' total advertising media service expenditures in China1.7%.

In the future, it is expected that the number of internet users in China will be2023Year-end2027The year will be according to3.3%The compound annual growth rate increased, and the Internet penetration rate was from2023year79.8%increased to2027year91.3%Moreover, as more advertisers prefer online advertising due to its powerful effects and efficiency, it is expected that advertisers' expenditures in the online media advertising service market in China will be8.9%The compound annual growth rate further increased, to2027By the end of the year, it will reach approximately RMB12,274Yuan, and advertisers' expenditures on advertising design, production and other services, as well as advertising media services, are expected to be at7.3%and9.1%Compound annual growth rate increases.

The competitive landscape of the Chinese advertising market

As of2022year12month31Today, there are more than5,000Home TV advertising media service provider.2022The total sales revenue of TV advertising media services from all TV ad service providers in Hubei Province in 2023 was approximately RMB7100 million yuan.2022In the year, based on the sales revenue of TV advertising media services, the Group accounted for approximately0.3%.

Online media advertising services include advertising media services, advertising design, production services, and advertising placement services.2022In [year], the total sales revenue of online media advertising services in Hubei Province reached approximately RMB218yuan. Yu2022In [year], the Group's online media advertising services (including advertising placement services) generated sales revenue accounting for approximately0.008%.

View the prospectus

Frost & Sullivan has extensive research experience in the cultural and entertainment industries, assisting well-known enterprises in successfully accessing the capital market. Successful listings include: Lehua Entertainment (2306.HK), Wangchen Technology2458.HK), Starry Sky Chinese (6698.HK),Grindr Inc.（GRND.NYSE), Ningmeng Film Industry9857.HK), Bovy Intelligence1204.HK), Deying Holdings2250.HK), Celadon Games6633.HK), Pop CultureCPOP.NASDAQ), Ponytail Bear2125.HK), Cook MusicKUKE.NYSE), Changxin MediaXJB.SGX), Glorious Tomorrow1351.HK), Yale TechnologyYALA.NYSE), Lexiang Interactive6988.HK), Zuolong Entertainment9990.HK), Blue City BrothersBLCT.NASDAQ), Lvtian Film Industry9958.HK), Nine Digital Entertainment (1961.HK), Yusheng Culture1859.HK), Lvtu Technology1745.HK), Neolithic Culture1740.HK), Heartbeat Company2400.HK), Travel Orange Culture8627.HK),Friend Times（6820.HK), Wanda SportsWSG.NASDAQ), Tuyi Holdings1701.HK), hometown interaction3798.HK), Feiyang Group1901.HK), Huoyan Holdings1909.HK), Lingbang Group2230.HK), Haitian Tiandi Travel (1832.HK), ZenTour Technology2660.HK), Ruixin HoldingsRUHN.NASDAQ), Fosun Culture & Tourism1992.HK), Dream World1119.HK), iQiyun Entertainment3700.HK), Tiger FangHUYA.NYSE), Python Pitbull1337.HK), Readplus Group （0772.HK), Meitu1357.HK), China Digital Video8280.HK), Yashiv1993.HK), Wald Animation1566.HK).