New stock news | Wondertech Technology files for listing on the Hong Kong Stock Exchange, focusing on the research and development of artificial intelligence and big data technologies for smart city construction.

According to the disclosure of the Hong Kong Stock Exchange on August 13th, Qingdao Wenda Tong Technology Co., Ltd. (referred to as Wenda Tong Technology) has submitted an application to list on the main board of the Hong Kong Stock Exchange, with Shenwan Hongyuan International and Huabo Capital as its joint sponsors. The prospectus reveals that Wenda Tong Technology focuses on the research and development of artificial intelligence and big data technology for smart city construction. The company was restructured as a limited liability company in December 2011, and its shares were listed on the New Third Board in January 2014. According to Frost & Sullivan data, based on revenue calculations, the company ranked second among innovative private enterprises in the comprehensive smart city solution industry in Shandong province in 2023. The Chinese big data technology industry experienced significant growth from 2019 to 2023, with revenue increasing from RMB 539.7 billion to RMB 1,903 billion, with a compound annual growth rate of 37.0%, showing a strong upward trend. This growth reflects the increasing application of big data technology across various industries, driven by the demand for efficient data processing and analysis. It is expected that the related market will continue to expand, reaching RMB 6,724.1 billion by 2028, with a compound annual growth rate of 28.9% compared to 2024. Similarly, the Chinese artificial intelligence technology industry saw revenue grow from RMB 263.2 billion in 2019 to RMB 578.4 billion in 2023, with a compound annual growth rate of 21.8%. This growth reflects the accelerating application of artificial intelligence technology in areas such as image recognition, natural language processing, and predictive analytics. In the past, Wenda Tong Technology generated revenue primarily from four business lines: information system integration solution services, property services, community life services, and others. In terms of community life services, as of the last practicable date, Wenda Tong Technology operated 14 offline stores in various neighborhoods, selling necessities and fresh goods to surrounding communities, and providing pre-sale pickup services. In terms of online services, the company operates the "City Guide" WeChat mini program as a platform for users to place orders online and choose delivery services. The company's catering services mainly include providing restaurant contracting services for government departments, enterprises, educational institutions, and large communities, as well as delivering fresh goods to local restaurants. Financially, the company's revenue for 2021, 2022, 2023, and up to March 31, 2024, was approximately RMB 647 million, RMB 980 million, RMB 1.115 billion, and RMB 186 million respectively. During the same period, the annual net profits were RMB 53.238 million, RMB 81.758 million, RMB 65.576 million, and RMB 7.74 million respectively. The prospectus warns that the termination or non-renewal of a large number of property management service contracts could have significant adverse effects on the company's business, financial condition, and operating performance. In the past, part of the company's revenue came from property management services. In the financial years of 2021, 2022, 2023, and the three months ended March 31, 2024, revenue from property management services accounted for 50.4%, 38.8%, 36.5%, and 53.8% of total revenue respectively. As of December 31, 2021, 2022, and 2023, and March 31, 2024, the number of properties with contracted building areas was 349, 400, 399, and 379 respectively. Pre-contract property management service agreements made before the first homeowners' meeting or the establishment of a homeowners' association may be terminated when a new property management service provider is selected by the homeowners at the homeowners' meeting and a new contract is signed by the homeowners' committee. During the past period, there were no developers or homeowners terminating the pre-contract property management service agreements with the company through a homeowners' meeting. There is no guarantee that the services provided by the company will receive sufficient satisfaction to ensure that the homeowners choose to enter into subsequent property management service contracts with the company.