New Stock Preview | Leading the Way in AI Digital Marketing, Leo Group Co., Ltd. starts a new journey towards capital internationalization and business globalization with the "A+H" listing.

As the largest market share in China and the leader of digital marketing companies in the Internet Weekly of the Chinese Academy of Sciences for many years, Leo Group Co., Ltd. (002131.SZ), which also has the capability of providing full-service AI digital marketing, recently submitted an application to the Hong Kong Stock Exchange, with Huatai International and China Galaxy International as the sponsors. This listing in Hong Kong is not only a key step in the company's "capital internationalization" strategy, but also leverages the technical advantages and global layout of its dual-core business of "AI digital marketing + smart pumps and systems" to create unique investment value, attracting high market attention. In the A-share market, Leo has been deeply recognized by value investors, with its market value continuously breaking through over the past year. As of September 30, 2025, the market value was 38.193 billion yuan, a significant increase of about 210% compared to September 30, 2024. In fact, this year, leaders in various industries are seeking dual listings in A and H shares, and assets such as Chifeng Jilong Gold Mining (06693) have been favored by capital after going public. With its "AI digital marketing leader + capital internationalization + global layout" triple attributes, Leo stands out more in attracting investment compared to similar assets. It empowers its dual-core business with AI technology, opening up industry growth space and building a new growth curve through global operations. This Hong Kong listing is full of highlights and may bring new opportunities to investors. AI Digital Marketing: Maintaining the leading position in the industry, building an irreplaceable competitive advantage through "position + model + technology" It is understood that Leo has been involved in digital marketing business since 2014, and after more than 10 years of deep cultivation, it has become the absolute leader in the domestic AI digital marketing field, establishing insurmountable competitive barriers in terms of market share, business model, and technical capabilities. Firstly, in terms of market position: dual-dimensional first place, significant head advantage. According to Frost & Sullivan data, based on the revenue in 2024, Leo ranks first in the size of the digital marketing market in China, with a market share of 1.29%, 32% higher than the second place; in the sub-segment of digital advertising agencies, it ranks first in the industry with 8.72% market share, leading the second place by 29%, confirming its leading position. At the same time, the company has been awarded the "Digital Advertising Leading Enterprise" honor by the Shanghai Advertising Association many times, has been the leader in industry authoritative rankings for many years, and its brand and voice have been firmly in the top tier. Secondly, in terms of business model: full-link closed loop, precise breakthrough in vertical areas. The company uses an integrated full-link model of "brand-effect-sales" to connect marketing ecology, with two major sections of integrated marketing and digital advertising agencies, accurately covering core industry clients: the integrated marketing sector has outstanding advantages in the vertical field of the automobile industry, serving top automobile brands and providing customized solutions from "brand consulting to sales conversion"; the digital advertising agency focuses on network services and gaming fields, deep cooperation with domestic leading media and mainstream mobile phone manufacturers, and even participates in technology co-construction. The stable business model supports continuous revenue leadership, with revenues of 15.931 billion yuan, 16.514 billion yuan, and 16.435 billion yuan respectively from 2022 to 2024. As the company's core pillar, this sector contributed 77.1% of the revenue in the first half of 2025, ensuring stable and strong growth performance. Lastly, in terms of technical capabilities: AI reconstructs the entire process, leading the standardization of industry development. As a leading AI-driven digital marketing company, Leo has used technical barriers to widen the gap with its peers, not only improving its own efficiency, but also leading the industry in AI application standards, further consolidating its leading position. The company has a four-layer technology system that covers the full range, including building a four-layer technology product system of "AI infrastructure - AI intelligent body framework - AI intelligent body application - AI application interaction," covering the full chain of "demand insight, creative generation, advertising delivery, post-investment optimization, customer service response," and supporting the development of over a hundred intelligent body tools, significantly improving human efficiencye.g., the AI e-commerce pitching tool can achieve a 22-fold increase in human efficiency in a single link, and during the "Double 11" period in 2024, it helped a well-known e-commerce platform increase advertising spending by 40% year-on-year. Leo Group has led the drafting of dual-track standards for Internet advertising based on generative artificial intelligence metadata management, and in 2025, it took the lead in launching the industry's first programmatic advertising tool fully compliant with the MCP protocol, promoting the industry's AI integration process and becoming one of the "rule makers" in the AI marketing field. Based on the market space, the size of the AI-driven digital marketing market in China reached 53 billion yuan in 2024, maintaining a compound growth rate in the high double digits, but with a penetration rate of only 4.17%, leaving huge room for improvement. With its leading position and first-mover advantages, Leo will be able to enjoy the benefits of increased penetration rate and further expand its market share. Smart Pumps and Systems: Global cash cow business, building advantage through AI + industry chain integration Smart pumps and systems are Leo's second largest business, with a similarly stable industry-leading position. This business, as the cornerstone of the company's operations, not only has high gross margins and provides stable "cash cows," but has also achieved globalized production, sales, and research, continuing to enhance international competitiveness in recent years through AI upgrades and extending the industrial chain. In terms of market share, this business ranks second domestically and first in exports. According to Frost & Sullivan data, based on revenue in 2024, Leo ranks second in the domestic pump and system industry; based on export value, it ranks first in the domestic civil pump field exports, with products covering more than 160 countries and regions, deep cooperation with over 300 distributors, and core customers including globally renowned equipment brands and domestic leading infrastructure state-owned enterprises, with deep customer barriers. In terms of profitability, the business boasts high gross margins and stable cash flow. This business is a typical high-gross-margin cash cow, with an average gross margin of over 25% in the past three years, reaching 25.6% in the first half of 2025. With revenue of 4.234 billion yuan in 2024, a year-on-year growth of 21.56%, continuous and stable revenue scale from 2022 to 2024, and contributing 77.1% of the revenue in the first half of 2025, this sector provides strong support for the company's performance growth. Furthermore, Leo empowers intelligent manufacturing through AI, breaking through core technological bottlenecks. The company has established a 5G-AI and digital twin smart pump manufacturing factory in Wenzhou, Zhejiang, which has been selected as a national level 5G-connected demonstration workshop by the Ministry of Industry and Information Technology, utilizing AI big models to establish a fault model library, achieve autonomous fault early warning, diagnosis and optimization, reduce downtime, and build a digital twin platform to provide accurate data support for production scheduling and strategic decision-making. At the same time, the company continues to break through core technologies by developing pumps' "power heart" motors and "central" controllers, applying permanent magnet motor technology to products that exceed the IE5 standard in efficiency; developing a full intelligent variable frequency drive system, which adapts to a wide temperature range of -30C to 110C, and improves the efficiency of some product systems by 8% to 12%; incubating Shimen Semiconductor, realizing the industrial and automotive-grade commercialization of IGBT and SiC high-end power modules, breaking through the core power semiconductor technology bottleneck in controllers, and forming an industry ecosystem of "pumps + core components + water technology." The Chinese pump and system industry is evolving from traditional equipment to "intelligent systems - smart platforms," and Leo, with its AI and core technology layout, has always been at the forefront of the industry, opening up new growth opportunities. Global Layout + Capital Internationalization: Dual-drive, opening up new overseas growth curve Leo's growth is not only based on the domestic market but also on the construction of new growth poles through "global operations + capital internationalization," with the overseas business showing an eye-catching growth rate and great future potential. Overseas business has become an important growth engine for the company, leading in growth rate, and its revenue contribution is continuously increasing. From the data, overseas revenue has become the core of the company's resilient growth: overseas revenue grew by 25.54% in 2024, and continued to grow by 22% in the first half of 2025, with the revenue share rising from 7.7% in 2023 to 12.2% in the first half of 2025, showing significant results in expanding into emerging markets. This is mainly due to the company's global operations, including the layout of the entire chain of manufacturing + sales + industrial chain, building an efficient global operating system. On the manufacturing side, Leo has established five modern manufacturing bases in Wenzhou, Zhejiang, Xiangtan, Hunan, Dalian, Liaoning (domestic), Indonesia, Hungary (overseas), with the overseas base close to core markets in Europe, America, and Southeast Asia, effectively avoiding trade barriers and shortening delivery cycles; on the sales side, relying on over 300 overseas distributors and its own sales team, Leo has established a pattern covering "160+ countries and regions and deep penetration in key areas," with professional sales teams targeting the building and water conservancy sectors in seven major industries, accurately matching customer needs; on the industrial chain side, it holds a controlling stake in Shimen Semiconductor upstream and develops permanent magnet motors independently, achieving autonomous control of core components, reducing supply chain risks and costs; expanding downstream into water technology services, participating in international projects such as the Qatar World Cup, South-to-North Water Diversion Project, enhancing the international premium of its brand. It is worth noting that the wave of international expansion in the digital marketing industry is on the rise, with the overseas revenue of Guangdong Advertising Group achieving a compound annual growth rate of 49.6% from 2022 to 2024, and continuing to grow by 37% in the first half of 2025. As a leader in AI digital marketing, Leo, with its technological and service advantages, has strong competitiveness in the overseas market, and the future expansion of digital marketing overseas is expected to become a new growth highlight. At the same time, Leo is accelerating its pace of capital internationalization, landing on both A and H platforms to empower global development. This listing in Hong Kong is a key step in the company's "capital internationalization" strategy: on the one hand, building an "A+H" dual capital platform to attract global investors and provide funding for the expansion of overseas manufacturing bases and the expansion of digital marketing internationally; on the other hand, leveraging the international attributes of the Hong Kong stock market to enhance brand influence globally and pave the way for future global business. Conclusion Leo's listing in Hong Kong is expected to attract value investors to be well received, mainly based on three major highlights: first, a strong fundamental base, with a stable industry-leading position in AI digital marketing and smart pumps and systems, forming a dual-drive business structurethis is the core foundation for capturing the AI investment trend; second, using the basic position as a track for AI applications, with a first-mover advantage in opening up growth space comprehensively, achieving significant results in the application of AI technology, and being able to enjoy the trend dividend first; third, under the global layout, overseas markets will provide important growth opportunitiesrelying on the global system built on its leading position, it is expected to become an important carrier for the international expansion of AI business. These three major highlights are essentially a deep integration of "AI investment trends + industry leaders," building a strong core competitive advantage for the company. This listing in Hong Kong aligns with the company's globalization strategy and is the first step in the capital globalization process, also paving the way for creating an international brand with more global investor supportthis capital move will further amplify the value of "AI investment trend + industry leader" for the company, providing funding for AI upgrades and overseas expansion of its leading business, attracting investors who recognize the logic of "trend + leader." In addition, the company has been highly recognized by investors in the A-share market, maintaining an upward trend in market value for the past three years, and with the listing on the Hong Kong stock market, leveraging its solid fundamentals (leading position) and growth logic (AI trend), the accelerated linkage of A and H shares is expected to further drive up valuation in both markets.