New Stock Preview | Inmyshow Digital Technology (600556.SH): Mentioned in the past two months, "A+H" sprint encountered obstacles?

Two months after the submission of the application, the leading platform in China's red celebrity marketing solution industry, Inmyshow Digital Technology (600556.SH), whose revenue has been continuously declining, was mentioned by the China Securities Regulatory Commission. Recently, the China Securities Regulatory Commission issued the "Supplementary Materials Requirements for Foreign Issuance and Listing Registration (February 9, 2026 - March 2, 2026)", with supplement material requirements for 7 companies, including Inmyshow Digital Technology, requesting further explanation of the specific operational status of its business related to "advertising placement, socio-economic consulting services, cultural entertainment brokerage services and performance brokerage" of itself and its subsidiaries, and requesting lawyers to verify and provide clear legal opinions. According to Frost & Sullivan's data, Inmyshow Digital Technology is a pioneer and leader in China's red celebrity marketing industry. In terms of revenue for the year 2024, the company ranked first in the Chinese red celebrity marketing solution platform industry with a market share of 26.1%, maintaining the largest market share in the industry for five consecutive years. It also ranked first in the global red celebrity marketing solution platform industry with a market share of 16.5%. The company's business segments mainly consist of two categories, namely red celebrity marketing solution platform business and red celebrity economic ecosystem innovation business. However, the company's business model mainly involves service fees from advertisers. In the supplementary documents requested by the China Securities Regulatory Commission, the company's hearing materials did not provide relevant operating data. However, the company's performance is not impressive, with both revenue and net profit continuously declining in the first three quarters of 2024 and 2025, with revenue declining by 3.2% and 10.2% respectively, and profits declining by 46.4% and 46.2% in the same periods. Inmyshow Digital Technology was founded in 2009 and officially launched the WEIQ platform in 2013, mainly to facilitate intelligent matching and efficient transactions in the red celebrity economy, and to monetize through scenarios with advertising clients on the WEIQ platform. The company has six subsidiary companies that contribute significantly to its main business, including Beijing Inmyshow Digital Technology Advertising, Beihai Tianxia Weixing, Inmyshow Digital Technology Advertising, Shanghai Xiutian, Beijing Inmyshow Digital Technology Information Technology, and Inmyshow Digital Technology Technology. In terms of business scope, the three companies have similar ranges, including advertising, exhibitions, and organizing cultural and artistic exchange activities, while Beijing Inmyshow Digital Technology Advertising does not include performances in its cultural and artistic exchange activities. The company has not disclosed the operational status of these core subsidiary companies, but has disclosed the operation process and business model of WEIQ. Inmyshow Digital Technology's WEIQ uses self-developed algorithms and platform tools to connect advertisers with suitable red celebrities on China's major third-party UGC platforms. Advertisers use WEIQ to select red celebrities, and WEIQ generates revenue by charging service fees to advertisers based on the service mode selected by advertisers. The service process primarily involves initiating marketing campaigns, selecting celebrities, producing and executing marketing content, settling accounts, and reporting on marketing campaigns. Specifically, the company enters into long-term framework agreements with advertisers for large-scale and complex red celebrity marketing solutions services, and signs advertising and marketing activity orders for each marketing campaign, including marketing campaign objectives, celebrity selection, content format, execution schedule, and pricing arrangements. The pricing of services usually follows a cost-plus model determined by project purchase orders, with advertisers paying the total service fees for marketing projects, and the company responsible for settlement with third-party UGC platforms. From this business model perspective, Inmyshow Digital Technology primarily monetizes through its platform, with core content output platforms mainly being third-party UGC platforms. However, the company has disclosed that one of its subsidiaries, Beijing Zhenxiu Entertainment Technology, is involved in broadcasting, television, film, and audio production. As for the decline in revenue and profits, the company's customer base covers various industries such as skincare, fast-moving consumer goods, consumer electronics, automobiles, food and beverages, baby products, and tourism. As of September 2025, the company had approximately 223,000 advertisers, 20,200 MCNs, and 3.586 million registered celebrities, all of which were showing an upward trend. With its vast resources and customer base, the company maintains a leading position in the Chinese market. In addition, the company has over 40 specific red celebrity categories on its WEIQ platform, covering various vertical industries such as anime games, food, technology, lifestyle, beauty, parenting, fashion, fitness, travel, and education, with each celebrity being tagged based on their content focus, audience interaction style, and behavior on third-party UGC platforms for advertisers to select. Although the company's operational indicators show an upward trend, its performance has been declining year after year. The company's two main businesses, the red celebrity marketing solution platform business and the red celebrity economic ecosystem innovation business, with the former accounting for over 95% of past revenues, have seen revenue declines of 3.7% and 12.1% in the first three quarters of 2024 and 2025, respectively, leading to an overall revenue decline. The Chinese red celebrity marketing solution industry, however, has been growing at a compound annual growth rate of 9.5% from 2020 to 2024. Due to declining competitiveness, the company's sales expenses have continued to rise, squeezing its profitability. The company's gross profit margin is relatively stable, mainly due to the core cost of advertising placement fees paid to third-party UGC platforms. However, the sales expense rate was high at 8.63% in the first three quarters of 2025, an increase of 3.38 percentage points year-on-year. In the first three quarters of 2024 and 2025, the company's net profit margin was 1.06% and 1.2% respectively, remaining at a low level. It is worth noting that Inmyshow Digital Technology is keeping pace with the trend of AI development, empowering its business through AI+ marketing. In 2025, its WEIQ introduced the BOSS Red Celebrity Smart Investment feature, providing advertisers and content creators with AI-driven marketing solutions such as DIGIHUMANIP generation, virtual live broadcasting, creative short film production, and other content creation support. Furthermore, leveraging its scale advantage, the company is actively expanding into overseas markets, with a strategic focus on serving the red celebrity marketing needs of Chinese enterprises going abroad and local clients overseas. It has established overseas offices in Japan, Singapore, and Malaysia, as well as a regional office in Hong Kong, to promote the international development of the Chinese red celebrity economy model. However, the effectiveness of AI empowerment and overseas market performance have not yet made a significant contribution and remain uncertain. In conclusion, Inmyshow Digital Technology was mentioned by the China Securities Regulatory Commission and needs to provide supplementary documents, mainly related to operational data. From the company's business model perspective, its revenue mainly comes from platform service fees from various industries' advertisers, but the specific business segments were not disclosed. However, it seems that some supplementary business data may have a low contribution. The company's performance has been unsatisfactory, with declining revenue and profits, despite its active investment in AI and overseas markets, the effectiveness of which still needs to be verified over time.