Good News on Listing | Frost & Sullivan Assists Jiu Fang Fortune Holdings Limited to Successfully List on the Hong Kong Stock Exchange (9636.HK)

Jiufang Fortune Holdings Limited (hereinafter referred to as 'Jiufang Fortune') successfully listed on March 10, 2023. The company plans to issue a total of 5,961.85 million H shares globally, with about 10% being sold in Hong Kong and an additional 15% comprising over-allotment rights. The issue price per share is HK$17.00, raising approximately HK$906 million net proceeds.

During the Hong Kong listing process, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, uncovering, supporting, and highlighting the issuer's competitive advantages through objective market data analysis, assisting the issuer, investment banks, and other intermediaries in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and providing feedback on various industry-related issues to the Hong Kong Stock Exchange.

The company is the second-largest provider of online investment decision-making solutions in China;

The company is committed to providing digital professional financial content and information for individual investors, cultivating their investment and financial management skills, and facilitating the investment decision-making process.

The company's unique traffic pool is crucial for continuously expanding its audience base and acquiring new customers. Leveraging strong content production and distribution capabilities, the company produces and distributes high-quality content through various media platforms (including traditional media, internet terminals, and MCN channels) to reach potential customer groups;

The company has a professional and experienced team to provide investment decision-making solutions;

According to a report by Frost & Sullivan:

- Based on the order volume of online investment decision-making services (including online high-end investment education services, online financial literacy education services, and financial information software services), the company is the second-largest provider of online investment decision-making solutions in China, with a market share of 5.9%;

- Based on the order volume of online investor content services (including online high-end investment education and financial literacy services), the company is the largest provider of such services in China, with a market share of 11.2%;

- Calculated based on the order volume of online high-end investment education services, the company is China's largest provider of such services, with a market share of 31.9%.

In recent years, the scale of individually investable financial assets in China has maintained a steady upward trend. Investors are gradually diversifying their portfolios to earn higher returns. Calculated by order flow, the market size of online investment decision-making solutions in China increased from 19.8 billion yuan in 2017 to 34 billion yuan in 2021, with an annual compound growth rate of 14.6% during this period. With the increasing demand for financial education and content services in personal wealth management, the online investment decision-making solutions market is expected to maintain a growth trend, reaching 872 billion yuan by 2026, with an annual compound growth rate of 20.7% starting from 2021.

Based on total order amounts, in 2021, the top five online investment decision-making solution providers in China accounted for a combined market share of 25.5%. Among them, the company is the second-largest online investment decision-making solution provider in China, with a market share of 5.9%.

Benefiting from technological development, the content service market for online investors in China has maintained a rapid growth trend in recent years. The content service market for online investors in China mainly consists of two parts: (i) the online high-end investment education service market, and (ii) the online financial literacy education service market. The scale of the content service market for online investors in China reached 124 billion yuan in 2021, a decrease compared to 2020, mainly due to strict regulation of online financial literacy education services. Driven by the increasing demand for financial knowledge among users and continuous improvement in the regulatory environment, it is expected that the content service market for online investors in China will reach 346 billion yuan by 2026, with an annual compound growth rate of 22.7% during this period.

The rapid development of the Chinese economy has driven an improvement in the quality of life for residents and the accumulation of wealth among individual investors. From 2017 to 2021, the scale of individual investable financial assets in China increased from 136.0 trillion yuan to 196.2 trillion yuan, with an annual compound growth rate of 9.6% during that period. The growth of individual investable financial assets has driven an increase in the market demand for content services for online investors.

As the personal wealth accumulation of Chinese residents continues to grow and their education level improves, more individuals are starting to invest in financial management to hedge against inflation risks and earn returns in a low-interest environment. As a result, the public's demand for strengthening financial knowledge is rising continuously, driving the growth of online investor content service markets.

With the emergence of online live streaming, short videos, and other multimedia channels, the online investor content service industry has benefited from user traffic provided by emerging media channels in acquiring new customers. For example, online investor content service providers collaborate with MCNs to place advertisements in financial programs or content, helping to identify potential customers interested in investment and financial knowledge and promote online investor content services to them.

Financial information software services refer to the provision of various financial market-related information support, data analysis, and investment decision-making support through software terminals for individual investors and institutional investors. The Chinese financial information software service market mainly consists of different software terminals, including (i) individual investor software terminals, and (ii) institutional investor software terminals. Individual investor software terminals provide investors with financial market-related information, data, analysis, and intelligent tools. Users can typically access the software service terminals via PCs and mobile devices. Institutional investor software terminals provide daily securities trading information analysis, investment decision-making support, system operation, and maintenance for financial institution investors such as fund companies, private equity firms, securities companies, etc.

The growth of the personal investor software service market is closely related to the growth of personal investable financial assets. With the rapid development of China's financial markets, the financial personal investor software service market increased from 3.2 billion yuan in 2017 to 7.4 billion yuan in 2021, with a compound annual growth rate of 22.7% during this period, accounting for 65.5% of the total financial information software service market in 2021. The growth of the institutional software service market has been relatively stable because financial software terminals are usually considered part of the infrastructure of financial institutions. The institutional financial information software service market is expected to grow from 2.6 billion yuan in 2017 to 3.9 billion yuan in 2021, with a compound annual growth rate of 10.3% during this period, accounting for 34.5% of the total financial information software service market.

This project is led by Jia Pang, Partner and Managing Director of Frost & Sullivan Greater China, with the participation of several core members from various business units.

TradeGo, a subsidiary of Frost & Sullivan, has extensive research experience in the financial and business services industry. It assists well-known enterprises in successfully listing on capital markets. Successful listings include: LICN.NASDAQ, Noah Holdings (6686.HK), Cadey Advisory (2176.HK), B&R Cloud Innovation (6608.HK), EXCELSIOR Business Services (6989.HK), Huazhu (1179.HK), Zhongguancun Technology Leasing (1601.HK), Baolong Commercial (9909.HK), Travel Orange Culture (8627.HK), Yincheng Life Services (1922.HK), International Yongsheng (8441.HK), Xinyuan Property (1895.HK), Taixiao Lending (1915.HK), CIH.NASDAQ, Haitong Hengxin (1905.HK), Asia Times (ATIF.NASDAQ), Liancheng Technology (8635.HK), Aoyuan Health (3662.HK), Joyoung (2168.HK), Ruive Asset Management (1835.HK), TradeGo (8017.HK), Baying Leasing (8525.HK), Ziyuan Yuan (8223.HK), Weixin Jinko (2003.HK), Huifu Tianxia (1806.HK), Tianping Daohe (8403.HK), Junyi Global Finance (8350.HK), Shengye Capital (8469.HK), China Art Finance (1572.HK), Xingzheng International (8407.HK), Bank of Communications Leasing (1606.HK).