New stock news | Hongxin Long plans to go public in Hong Kong, the China Securities Regulatory Commission requires it to provide transparent explanations of shareholders holding more than 5% of the shares.

On July 26, the China Securities Regulatory Commission (CSRC) announced the requirements for supplemental materials for overseas issuance and listing filings (from July 19, 2024 to July 25, 2024). Among them, the CSRC requires Hongxinlong to provide detailed information on shareholders holding more than 5% of the shares. Recently, Hongxinlong submitted its prospectus to the Hong Kong Stock Exchange, with Extol Capital as the exclusive sponsor. Specifically, the CSRC publicized the following requirements for Hongxinlong to provide supplementary explanations and for lawyers to verify and provide clear legal opinions: 1. Please provide detailed information on shareholders holding more than 5% of the shares based on the requirements in the "Regulatory Rules Application Guide - Number 2 on Overseas Issuance and Listing." 2. Please explain the calculation method and basis for the number of shareholders. 3. Your company's business scope involves Type II value-added telecommunications services. Please explain whether your company is actually engaged in this business. 4. Please explain the situation of the websites, apps, mini-programs, and official accounts developed and operated by your company, the scale of collection and storage of user information, the use of collected data, whether there is any provision of information to third parties, and arrangements or measures for personal information protection and data security before and after listing. The prospectus shows that Hongxinlong is headquartered in Yangzhou and is a chain operator of supermarkets and convenience stores, operating retail and wholesale businesses under the brand "Hongxinlong." According to the prospectus, based on sales revenue, the company ranked second in supermarket operators in Yangzhou in 2023, with a market share of 9.1%, and ranked fifth among supermarket operators in central Jiangsu with a market share of 2.3%. Financially, from 2021 to 2023, Hongxinlong achieved revenues of 1.43 billion yuan, 1.329 billion yuan, and 1.4 billion yuan respectively; corresponding gross profits of 283 million yuan, 302 million yuan, and 301 million yuan; and profits of 35.08 million yuan, 51.07 million yuan, and 51.6 million yuan, with net profit margins of 2.4%, 3.8%, and 3.7% respectively.