New stock news | Wise Accounting Hong Kong Stock IPO prospectus failed, with a cumulative loss of nearly 1.5 billion yuan in three years.

HuiSuanZhang Holdings Limited (HuiSuanZhang) submitted a Hong Kong IPO prospectus on June 14, 2024, which expired after 6 months on December 14. CITIC SEC was the exclusive sponsor at the time of submission. According to the prospectus, HuiSuanZhang is a provider specializing in financial and tax solutions for small and medium-sized enterprises. Based on data from Frost & Sullivan, HuiSuanZhang has been China's largest in terms of total revenue from 2021 to 2023. The company operates in a highly fragmented market that is still in its early stages of digitization. In terms of revenue, the company's market share in 2023 was 0.5%, almost five times that of its second largest competitor. The company offers AI-enabled financial and tax solutions including accounting, invoicing, tax compliance, and comprehensive financial management. Thanks to high customer satisfaction and strong brand awareness in the industry, HuiSuanZhang achieved a customer retention rate of 79.4% in 2023, higher than the industry average. The company has established a nationwide service network to enhance operational efficiency and help clients succeed. Through sales and marketing initiatives and strong brand awareness, SATP system served 672,085 small and medium-sized enterprises in 2023. In terms of the number of small and medium-sized enterprises directly served in 2023 (reaching 211,158), the company is the largest provider of financial and tax solutions for small and medium-sized enterprises in China. Financially, in 2021, 2022, and 2023, HuiSuanZhang achieved revenues of approximately RMB 347 million, RMB 516 million, and RMB 539 million respectively; with losses of approximately RMB 683 million, RMB 506 million, and RMB 302 million respectively.