The First A+H Listed Company In The Printing And Packaging Industry! Jihong Stock Opened At A High Price Upon Opening

Jihong Co., Ltd. (02603. HK) was listed on the Hong Kong Stock Exchange today and became the first "A+H" cross-border social e-commerce stock. It opened up 43% to HKD 11, breaking the efficiency of the capital market by entering the Hong Kong Stock Connect upon listing. Its independently developed Giikin system empowers the entire AI chain, raising HKD 505 million to invest in Southeast Asian warehousing and AI technology upgrades, anchoring the trillion dollar new blue ocean of cross-border e-commerce.
On May 27, 2025, Jihong Co., Ltd. (002803.SZ, 02603. HK) officially listed on the Hong Kong Stock Exchange, becoming the first cross-border social e-commerce enterprise to complete the A+H dual listing. In addition, on May 26th, the Shanghai Stock Exchange issued a notice to add Jihong Shares to the list of Hong Kong Stock Connect targets under the Shanghai Hong Kong Stock Connect, becoming the first company to be listed on the Hong Kong Stock Connect.
In this IPO, Jihong Holdings will issue 67.91 million H-shares globally at a price of HKD 7.68 per share, raising a net amount of approximately HKD 505 million for overseas market expansion, technology research and development, and brand building.
On the first day of listing, Jihong shares opened at HKD 11 per share, up 43.23% from the issue price, with a market value exceeding HKD 5 billion, demonstrating the market's recognition of the "dual track leader".
Currently, the social e-commerce industry is undergoing a period of deep transformation driven by cutting-edge technologies such as AI and big data, and the industry landscape is expected to be restructured. From the perspective of valuation, Jihong Group has a leading position and significant technological barriers in the social e-commerce field. With the wave of AI reshaping e-commerce logic and green economy restructuring supply chain, it is expected to achieve a rapid leap in value.

Double track leading position solidified, AI technology empowers the entire chain
According to data, Jihong Co., Ltd. was founded in 2003 and listed on the main board of the Shenzhen Stock Exchange on July 12, 2016. Initially, it mainly provided one-stop paper packaging products and services for fast-moving consumer goods enterprise customers, focusing on providing marketing strategies, product design, process design, technical planning, transportation, and logistics.
Due to the fact that the core of paper packaging business is based on product design and marketing, ultimately centered on addressing the needs of end consumers and stimulating their purchasing desire, Jihong Group has accumulated a profound understanding and experience in product marketing and identifying consumer needs.
In addition to its decades long paper packaging business, Jihong Group is also seeking to expand its business. In 2017, relying on the experience accumulated in paper packaging business for many years, Jihong shares keenly captured the emerging cross-border e-commerce opportunities brought about by the development of mobile Internet. By building cross-border social e-commerce business, it successfully helped mainland Chinese suppliers connect with consumers in Asia, Europe and North America, and successfully created a second growth curve and became a major source of income.
Public information shows that currently, Jihong Group's main business covers precision marketing cross-border social e-commerce business on the ToC end and comprehensive marketing design and packaging services on the ToB end, and has established a leading position in the industry in the two core business sectors mentioned above.
According to data from Zhuoshi Consulting, in 2024, the revenue scale of Jihong Group's Asian social e-commerce business ranked second among Chinese B2C export e-commerce enterprises, with a market share of 1.3%; Paper based fast-moving consumer goods packaging business ranks first among paper based fast-moving consumer goods sales packaging companies in mainland China, with a market share of 1.2%.
As a "data-driven, technology driven" enterprise, Jihong Group has significantly enhanced its core competitiveness through the integration of digitalization and AI technology.
With the help of AI algorithms and models, Jihong Group has independently developed the Giikin system for cross-border social e-commerce business. By integrating AI applications into the Giikin system, it is possible to seamlessly connect various stages of business processes with minimal human intervention, driving the optimization of the entire chain from product selection, advertising placement, product procurement to transportation and logistics, and successfully realizing the innovation of the "goods finding people" business model, reducing dependence on a single platform and achieving high-quality operation.
Jihong Group has created four core technological advantages for the company, including an intelligent decision-making center, content generation engine, precision delivery system, and intelligent fulfillment network, through the deep integration of its independently developed Giikin system with large-scale models such as GPT.

Specifically, with the support of Giikin's AI algorithm, Jihong Group has shortened its product selection cycle by 60% and improved its accuracy in predicting popular products to 82%. This has also enabled Jihong Group's cross-border social e-commerce business to have excellent inventory management capabilities and ROI performance.
According to data from Zhuoshi Consulting, from 2022 to 2024, the inventory to sales ratio of Jihong Group's cross-border social e-commerce business will be 3.7%, 3.2%, and 4.0%, respectively, all lower than the industry average, reflecting its efficient supply chain management capabilities; During the same period, the ROI of Jihong Co., Ltd. was 208.3%, 189.8%, and 191.1% respectively, higher than the industry average, indicating a good market response to its sales products.
At the same time, Jihong Group has also closely cooperated with several well-known enterprises in technology research and development, especially in the field of e-commerce AI applications, and has achieved significant results. As of March 31, 2025, Jihong Group has 4 patents and 140 software copyrights, covering cross-border social e-commerce business algorithms, software systems, and other technological development.
According to a report by Zhuoshi Consulting, Jihong Group is one of the first companies in mainland China to apply AI technology to its business, and was awarded the Global Navigation Award by TikTok for business innovation in 2023, fully reflecting the industry's high recognition of its technological strength.
Jihong Group has a significant first mover advantage, continuously investing and accumulating technology, using AI to build its own technological moat, and is transforming its first mover advantage into a sustainable competitive advantage.

High growth+strong profitability, highlighting resilience through cycles

Performance is the touchstone of strategy and model, and in the Hong Kong stock market, value will eventually return to fundamentals and performance, making high-performance stocks have a stronger value logic.
In the wave of Chinese brands going global, Jihong Group's cross-border e-commerce business has rapidly risen. According to recent financial reports of Jihong Group, its cross-border social e-commerce business generated revenue of 3.107 billion yuan, 4.257 billion yuan, and 3.366 billion yuan from 2022 to 2024, accounting for about 60% of the total revenue, namely 57.8%, 63.6%, and 60.9%.
At the same time, the gross profit margin of Jihong Group's cross-border social e-commerce business is also considerable. In 2023 and 2024, the gross profit margin has exceeded 60% for two consecutive years, significantly higher than the industry average, confirming the success of the "technology premium" model and supporting the overall gross profit margin to remain at a good level.
According to the latest Q1 report of this year, both revenue and profit of Jihong Group have returned to an upward trend, achieving a revenue of 1.477 billion yuan in the first quarter of 2025, a year-on-year increase of 11.55%; The net profit for the same period was 62.47 million yuan, a year-on-year increase of 57.97%. Even after deducting non recurring gains and losses, the year-on-year growth rate of net profit attributable to shareholders after deducting non recurring gains and losses of Jihong Shares reached 51.04%.
In the first quarter of 2025, the net cash flow generated by Jihong Group's operating activities reached 67.96 million yuan, a year-on-year increase of 143%. While maintaining a net cash flow inflow, it can provide sufficient ammunition for business expansion.
From the perspective of the industry, the improvement of Internet and mobile penetration has promoted the development of the global B2C cross-border social e-commerce industry, making more and more consumers around the world increasingly accustomed to digital shopping experiences, including receiving and responding to advertisements through social media platforms. Cross border e-commerce is in a golden period of rapid growth, providing a new growth engine for Geehong.
On the other hand, in the paper packaging business, with the increasing demand of global consumers for diversified and personalized products, the dependence of enterprises on high-quality packaging materials is gradually increasing. With its advantages in technological innovation and supply chain management in paper packaging, Jihong Group is expected to continue expanding its market share in the coming years.
Despite impressive performance and promising development prospects, Jihong Group also does not forget to repay its shareholders.

On November 20, 2024, Jihong Corporation announced that it had decided to distribute cash dividends to all shareholders based on a total share capital of 384849288 shares, after deducting 80000 restricted shares that have been repurchased and cancelled, as well as 6025700 shares held in the repurchase account. The specific distribution plan is to distribute cash dividends of RMB 1.80 (including tax) for every 10 shares, totaling RMB 68.1738 million in cash dividends to be distributed.
The dividend policy of Jihong Corporation is a core component of its long-standing corporate culture. The company ensures that shareholders can directly benefit from the company's profits and growth through continuous cash dividends. This shareholder centered business philosophy has not only gained widespread recognition in the market, but also enhanced shareholders' confidence and expectations for the future development of Jihong Co., Ltd.
In the past three years, Jihong Shares has accumulated a total of 322.1 million yuan in cash dividends (including cash dividends and repurchases). In addition, on November 6, 2024, Jihong Group also announced a share repurchase plan of 60 million to 100 million yuan, which further reflects the company's confidence in future business development. This business strategy that balances shareholder interests and long-term development of the company has made Jihong Corporation stand out in the industry and become a leader among peers.
 

Trillion track dividend released, dual dimensional card position of technology and region

In 2024, despite numerous uncertainties in global trade, China's cross-border e-commerce still delivered a remarkable performance in headwinds. According to data from the General Administration of Customs, in 2024, the import and export of new cross-border e-commerce formats reached 2.63 trillion yuan, an increase of 10.8%, which is 1 trillion yuan more than in 2020.
With the continuous integration of global trade, the B2C export e-commerce market in China is bursting with vitality, with Asia being the largest and fastest-growing segmented market. According to Zhuoshi Consulting, based on revenue, it is expected that the scale of China's B2C export e-commerce market will reach 927.6 billion US dollars in 2029, accounting for 11.4% of the global B2C e-commerce market. The compound growth rate from 2024 to 2029 will be 15.2%, and the scale of the Asian sub market will reach 458.4 billion US dollars, with a compound growth rate of 15.8% during the same period, faster than the overall market.

Firstly, as a leading B2C export social media e-commerce company, Jihong Co., Ltd. is located in a track characterized by "large scale+high growth", which naturally provides ample room for imagination in the future.
According to the prospectus, from 2022 to 2024, Jihong Holdings has signed for over 41 million orders for 17 million consumers, maintaining a high signing rate of 84.9%. The number of SKUs on the platform has exceeded 611000, demonstrating the increasingly strengthened economies of scale. During the same period, the gross profit margin of Jihong Group's cross-border social e-commerce business remained at a high level of 59.1% -63.1%, with significantly better profitability than the industry average.
Secondly, Jihong Group is proactively deploying cutting-edge technologies such as AI and big data to empower new forms of social e-commerce from multiple perspectives, creating more personalized, precise, and attractive consumer experiences for overseas consumers.
Through the systematic deployment of AI technology, Jihong Group has achieved cost reduction and efficiency improvement in areas such as material generation, advertising copy optimization, and multilingual translation, resulting in a significant improvement in overall operational efficiency. The data shows that during the reporting period, the inventory to sales ratio of the company's cross-border social e-commerce business ranged from 3.2% to 4.0%, usually achieving product delivery within 7 days, and the supply chain efficiency indicators were better than the industry average.
Finally, in terms of business distribution structure, Jihong Holdings contributes over 80% of its cross-border e-commerce revenue to the Asian market. In light of the escalating trade tariff war in recent times, Jihong Group is deeply focused on the rapidly growing sub market of Asia. This regional strategy also shields it from the impact of fluctuations in European and American tariff policies, providing stronger business stability.

With the moat built by "technology empowerment+regional deep cultivation", Jihong Group is expected to continue leading in this trillion dollar track.
In terms of paper packaging business, Jihong Group has also achieved steady growth through professional services, and has established long-term cooperative relationships with well-known fast-moving consumer goods companies such as Yili and Luckin Coffee, as well as multiple fast food restaurants (QSRs) operating in mainland China.
During the track record period, the output of Jihong Group's paper packaging business increased from 846.7 million square meters in 2022 to 925.3 million square meters in 2023, and further increased to 1.0261 billion square meters in 2024.
Faced with plastic bans implemented in 139 countries around the world, Jihong Group has taken the lead in laying out three alternative solutions: firstly, in the field of biodegradable materials, Jihong Group has developed PLA/PBAT coated paper products, which can achieve 180 days of natural degradation and pass the EU EN13432 certification. They are applied in coffee cups, meal box Hanbao wrapping paper, environmentally friendly waterproof paper bags, and shopping bags.
Secondly, in the field of lightweight structures, Jihong Group's micro corrugated cardboard box technology and joint research and development with paper mills have reduced material usage by 15%, increased compressive strength by 20%, and improved waterproofing by 40%, becoming a core supplier of cold chain packaging for many customers.
Thirdly, in the field of recycling systems, Jihong Co., Ltd. has collaborated with customers to launch the "Paper Recycling Plan", which tracks the flow of packaging through variable QR codes and achieves a recycling rate of up to 70%.
In summary, Jihong Group has developed a dual wheel driven strategic layout of "cross-border social e-commerce business+paper-based fast-moving consumer goods packaging business", forming a synergistic and complementary business matrix, and opening a new growth cycle.

Technology going global+brand upgrading, opening up long-term growth space

In this IPO, Jihong Group plans to use the funds raised to expand its cross-border social e-commerce business, enhance its research and development capabilities, data analysis capabilities, and develop its own brand in Southeast Asia, Europe, and Latin America markets.
First of all, unlike the global mature e-commerce market, the Asian e-commerce market outside China is still in the development stage, but has a huge population base, growing Internet penetration, relatively low cross-border logistics costs and other advantages, showing strong growth potential. Specifically in Southeast Asia, the overall potential of the cross-border e-commerce industry is enormous, with high social media penetration and low e-commerce penetration, becoming a new blue ocean for cross-border e-commerce competition.
In addition, the social media e-commerce markets in Europe and Latin America are in their early stages, providing ample opportunities for growth and expansion. According to data from Zhuoshi Consulting, the penetration rates of social media e-commerce in Europe and Latin America have increased from 11.4% and 11.5% in 2020 to 12.6% and 13.3% in 2024, respectively. With the experience of Jihong Group in the Asian market, it is expected to seize this emerging market.
Looking at the expansion of paper packaging business overseas, in 2024, Jihong Group and Oman based VENUS Trading FZCO reached a strategic cooperation, investing 976 million yuan to build a Middle East base, focusing on the production and sales of tobacco packaging, waterproof paper, tobacco transport cartons, household paper, baby diapers, environmentally friendly packaging, and other products in the Middle East and Africa.
This project will introduce Chinese equipment and process standards, with a localized procurement rate of over 60% and production capacity covering 20 countries in the Middle East and Africa. With a localized channel network, its market share in tobacco packaging and shipping cartons will see significant growth.
Secondly, in the field of cross-border social e-commerce, Jihong Group provides diversified products and services through an independent website model, and has built a rich product lineup including self-developed AI digital models, Giikin digital operation management systems, and the "Jimeow Cloud" SaaS service platform, providing cross-border e-commerce suppliers with a full chain digital solution covering precision marketing, intelligent advertising placement, and traffic conversion.
By investing in research and development to enhance data analysis capabilities, Jihong Group's series of AI tools can obtain deeper and more accurate insights, improve algorithm accuracy, enhance product selection and advertising efficiency, and ultimately translate into higher profitability.

Finally, leveraging years of accumulated marketing data and technological advantages to incubate its own brands, Jihong Group has now developed its own brands such as SENADABIKES, Veimia, Konciwa, and PETTENA, with products covering electric assisted bicycles, underwear, sunshades, and pet supplies.
On the one hand, the internal incubation of brands by Jihong Group provides innovative opportunities for employees, as well as opportunities for the company to expand its market share beyond the global cross-border social e-commerce market and enhance its revenue generating capabilities. In the future, it may be possible to strengthen its differentiation advantages and sales conversion efficiency through technology.
On the other hand, Jihong Group can reach more consumers by incubating its own brand, thereby enhancing its brand influence and feeding back cross-border e-commerce business, forming a new growth curve.
The listing of Jihong Group on the Hong Kong stock market is not only a milestone in the capital market, but also a model of China's manufacturing "technology going global". Under the wave of AI reshaping e-commerce logic and green economy restructuring supply chain, its "dual wheel drive+regional deep cultivation" strategy is expected to continue to achieve high growth.