New Stock News: Ying Tong Holdings plans to list its Hong Kong IPO. The China Securities Regulatory Commission requires a clarification on the fulfillment of domestic direct investment foreign exchange registration procedures by the main domestic operating entities.

On August 23, the China Securities Regulatory Commission (CSRC) announced the requirements for supplementary materials for overseas issuance and listing registration (from August 16, 2024 to August 22, 2024). The announcement mentioned that the CSRC required Ying Tong Holdings to provide further explanation on the procedures for domestic entities to fulfill domestic direct investment foreign exchange registration, among other things. As disclosed by the Hong Kong Stock Exchange on July 18th, Ying Tong Holdings submitted an application for listing on the main board of the Hong Kong Stock Exchange, with BNP Paribas and CITIC SEC as its joint sponsors. Specifically, the CSRC announcement stated that Ying Tong Holdings is requested to provide further clarification on the following matters and to have lawyers verify and provide clear legal opinions: 1. Regarding the compliance of the equity structure establishment, please explain: (1) the acquisition by the company of shares of Ying Tong Shanghai, Guangzhou Huisheng, Shanghai Yongxin by means of mergers, and if there are other domestic entities acquired through mergers, please explain the considerations of the price of the equity transfer, basis of pricing, fairness, payment methods, payment terms, tax payments, and whether it complies with the "Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors"; (2) the specific situation of the domestic entities for the direct investment foreign exchange registration; (3) the conclusion on the legality and compliance of the foreign exchange registration, offshore structure, re-investment abroad, foreign investment, tax payments, etc. 2. Regarding compliance operations, please explain: (1) whether the business scope of the domestic entities involves consulting services in the field of social surveys as stipulated in the "Special Measures for Foreign Investment Market Access (Negative List) (2021 Edition)"; (2) if the business scope of the domestic entities includes activities such as "advertising design, agency; advertising release; advertising production," please explain the actual operations of the relevant business; (3) the situation of online sales business involving the development and operation of apps, mini programs, collection and storage of user information scale, data collection and usage, whether there is a case of providing information to third parties, as well as arrangements or measures for personal information protection and data security before and after listing; (4) if the business scope of the domestic entities involves internet sales, please explain whether it involves value-added telecommunications services and the compliance with relevant regulatory procedures. 3. Regarding the actual controlling person, Chen Huizhen, wife of Liu Juran, holds 10% of the company's shares, please explain the reasons and rationality for not recognizing Chen Huizhen as a co-controlling person. 4. Please explain the source of the company's stock options incentive plan implemented prior to this initial public offering approval; and the progress of the internal decision-making process for the employee incentive plan to be implemented after the listing. According to the prospectus, based on the retail sales in 2023, Ying Tong Holdings is the largest perfume brand management company in mainland China, Hong Kong, and Macau. The company has a large and diversified brand portfolio, including not only perfumes, but also cosmetics, skincare products, personal care products, eyewear, and home fragrances. According to Frost & Sullivan, based on retail sales in 2023, Ying Tong Holdings is the third largest perfume group in mainland China, Hong Kong, and Macau. Based on retail sales in 2023, the company is also the only perfume brand management company among the top five perfume groups in mainland China and the combined markets of mainland China, Hong Kong, and Macau. As of the last practicable date, the company manages a total of 63 brands, including Herms, Van Cleef & Arpels, Chopard, Albion, and Laura Mercier, covering a diverse range of pricing levels and functions to meet the differentiated needs of consumers in mainland China, Hong Kong, and Macau. The company has over 7,500 offline sales points in more than 400 cities in mainland China, Hong Kong, and Macau. In addition to offline sales channels, Ying Tong Holdings also sells products online through well-known e-commerce and social media platforms in mainland China, Hong Kong, and Macau. Financially, as of March 31, 2022, March 31, 2023, and March 31, 2024, the company's revenue was RMB 1.675 billion, RMB 1.699 billion, and RMB 1.864 billion, respectively. During the same period, the net profit for the year was RMB 171 million, RMB 173 million, and RMB 206 million, respectively.