Good News on Listing | Frost & Sullivan Assists Jin Xin Technology Holdings to Successfully List on the US Securities Exchange (NASDAQ:NAMI)

Jinxin Technology Holdings Company (hereinafter referred to as 'Jinxin Technology') successfully went public on December 6, 2024, issuing a total of 1.25 million ADSs at a price of $4 per ADS, raising a total of $5 million.

During the process of listing in the US, 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 overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer communicate with the SEC and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing various SEC feedbacks on industry-related issues.

• The company is a market leader with strong brand value;

   

• The company has a high-quality and comprehensive product portfolio and rich educational content;

   

• The company has built an extensible and collaborative business model;

   

• The company possesses leading technology and data insights;

   

• The company has a visionary management team.

According to the Frost & Sullivan report, based on related business revenue for 2022, the company:

• It is a leading provider of K-9 digital education content services in China;

   

• Ranked first among K-9 digital textbook service providers in China.

Benefiting from the vigorous development of the mobile internet industry and the innovation and progress of learning tools, the K-9 education market in China has undergone rapid digital transformation in recent years. Technological advancements such as artificial intelligence recommendation algorithms, automatic speech recognition (ASR), and natural language processing (NLP) have significantly improved students' digital learning experiences and the quality of digital educational content.

The Chinese K-9 digital education content service market can be divided into three sub-markets: (i) K-9 digital textbook services, (ii) K-9 digital self-study material services, and (iii) K-9 digital reading services. According to Frost & Sullivan the data, the revenue of the Chinese K-9 digital education content service market increased from 3.5 billion yuan in 2018 to 9.6 billion yuan in 2022, with a compound annual growth rate of 29.1%. It is expected that the market will continue to show an upward trend, reaching 237 billion yuan in revenue by 2027, with a compound annual growth rate of 19.8% from 2022 to 2027.

Source: Frost & Sullivan report

The growth drivers of the China K-9 digital education content service market include:

● The popularization of mobile internet and 5G. China has experienced a vigorous development in the mobile internet industry and has accumulated a large user base for mobile internet services over the past decade. As a result, students can conveniently access smart devices and online educational resources. The popularization of mobile internet and 5G has also enhanced the awareness of stakeholders such as parents, students, and teachers about the effectiveness and practicality of online education.

● Technological progress improves learning efficiency. The advancement of teaching methods, interactive tools, artificial intelligence, ASR, NLP, and other technical capabilities, as well as other content functions, contribute to continuously enhancing students' learning experiences and efficiency. The interactive features of advanced technology bring students a more personalized learning experience, stimulate their interest in the learning process, and promote their participation.

● The population structure is shifting towards a generation more knowledgeable about technology. The rise of the 'Generation Alpha,' born during the era of mobile internet penetration, has made them more familiar and comfortable with digital educational tools and resources. In addition, China is experiencing a demographic shift; parents born in the 1980s and 1990s tend to be more tech-savvy than previous generations, and they have become a key consumer group for educational content services. The 'Generation Alpha' has become the main group of K-9 students.

The development trends of the China K-9 digital education content service market include:

● Increase the penetration rate of digital learning content. The rapid development of 5G, the internet, and smart devices in China has paved the way for a significant increase in the use of digital learning content. With the continuous popularization of electronic devices such as smartphones and tablets, students and parents are increasingly accepting digital learning.

● Wider and deeper application of digital education hardware and technology. With the continuous progress of information technology, it is inevitable that digital education hardware and technology will be applied more widely and deeply. The maturity of emerging technologies and continuous breakthroughs in AI technology will drive the application of intelligent functions in a wider range of learning content, making education more attractive and effective. Some innovative companies have already combined digital education content with metaverses and used AR/VR to provide students with immersive learning experiences.

The popularization of digital education content services is becoming an inevitable trend. Digital education content services have become the key to improving learning efficiency and reducing teachers' workload. This trend will continue in the future as many pilot cities in China have already started promoting digital education content services, and nationwide promotion is expected to become a reality.

The K-9 digital textbook service mainly refers to providing digital versions of printed textbooks for schools, requiring access and viewing of content through electronic devices. With advanced technical capabilities and diverse educational content delivery models, digital textbook services are becoming increasingly popular among students and parents because they offer flexible, interactive, and efficient educational solutions that improve students' learning outcomes.

According to Frost & Sullivan the data, the revenue of China's K-9 digital textbook service market increased from 694 million yuan in 2018 to 1.779 billion yuan in 2022, with a compound annual growth rate of 26.5%. It is expected that the revenue will further increase to 5 billion yuan by 2027, with a compound annual growth rate of 23.0% starting from 2022.

Source: Frost & Sullivan report

The growth drivers of the China K-9 digital textbook service market include:

● The government's strong support for e-textbooks is reflected in the introduction of national standards. For example, the State Administration for Market Regulation has issued national standards for digital textbooks used in primary and junior high schools. These standards came into effect on November 1, 2022, indicating the government's commitment to promoting the growth of the digital textbook industry. With government support, the market for digital textbook services is expected to experience sustainable and healthy growth in the coming years.

● Continuously improve learning efficiency through e-textbooks. As a supplement to traditional printed textbooks, digital textbooks provide students with access to multimedia content such as embedded videos, interactive elements, and audio readers, creating a more immersive and attractive learning environment. Therefore, the demand for digital textbooks is expected to continue rising, further driving market growth in the foreseeable future.

The K-9 digital textbook service market in China is relatively concentrated, with the top five participants accounting for a combined market share of 33.5% in terms of revenue before 2022. According to Frost & Sullivan data, Jinxin Technology ranks first among Chinese K-9 digital textbook service providers, with a market share of 12.7%.