Preview of new stocks | Three years of losses of 1.4 billion, from light to heavy, Thinking era goes to Hong Kong IPO, where is the "watershed" of profitability in the industrial Internet?

In the past few years, the industrial Internet has become a track that has been repeatedly validated but still full of controversy in the capital market. From early steel, e-commerce matching platforms, to later supply chain restructuring and SaaS empowerment, different models have taken turns to appear, but there are not many cases that truly achieve both scale and profitability. Recently, another industrial Internet target, Kaisi Times, submitted an application for listing to the Hong Kong Stock Exchange, intending to be listed on the main board, with CICC acting as the exclusive sponsor. It is understood that Kaisi Times was established in 2015, positioned as a digital intelligence platform empowering China's automotive aftermarket, connecting OEMs, auto parts manufacturers, dealers, repair shops, and car owners through AI-driven digital infrastructure. As a "platform for empowering automotive aftermarket enterprises", the company also needs to face the core issues of long-term scale growth and profitability that have always existed in the industrial Internet. From "Auto Parts 1688" to the full-chain empowerment of F2B2b2C It is understood that Kaisi Times' business system revolves around the entire chain of the automotive aftermarket, forming a multi-level structure of "F2B2b2C", connecting upstream manufacturers, dealers, automotive service shops, and end car owners, attempting to break through the information and transaction barriers in the traditional fragmented chain. Specifically, the company mainly builds its ecosystem through three types of platform products: a procurement platform for the supply side, a trading platform for the stores, and an extended store system that extends to end services. Within this framework, the company not only plays the role of information matching, but also gradually extends to supply chain integration and standard formulation. In terms of industry status, according to third-party data, by 2025, Kaisi Times ranked first among China's automotive aftermarket enterprise empowerment platforms in terms of GMV, SKU quantity, and registered store numbers. In terms of scale, the company has covered more than 375,000 automotive service shops, spread across 329 cities nationwide, with over 48 million SKUs, forming a certain network effect foundation. This is particularly crucial in the automotive aftermarket. Different from the high standardization of consumer goods e-commerce, the auto parts industry has long been plagued by issues such as complex SKUs, strong non-standard attributes, and opaque information. The value of the platform lies more in the comprehensive capabilities of "connection + screening + fulfillment" rather than simply distributing traffic. It is worth noting that, originally focused on transaction matching in the early stages, the company's current revenue structure shows that its business focus is shifting towards the supply chain end. In 2025, revenue from F2B business (strictly selected supply chain business) accounted for over 70%, becoming the core growth engine, indicating that the company is transitioning from a "light platform" to a "heavy transaction" model. This kind of transition is not uncommon in the industrial Internet, as it is difficult to scale simply by relying on matching, and revenue volume can be quickly increased through a semi-owned or fully-owned model. However, the trade-off is also evident - platform attributes are weakened, capital occupation and operational complexity are significantly increased, and the business model becomes closer to traditional supply chain companies. From an industry trend perspective, this kind of transition is to some extent a passive choice. Although the space in the automotive aftermarket is huge, the structure is highly decentralized and lacks unified standards, making it difficult for platforms to form high gross margin closed loops like consumer Internet platforms. Therefore, companies often need to participate in transactions in a "heavier" way to build competitive barriers. In terms of revenue, the company has maintained steady growth in the past three years. From 2023 to 2025, revenue was 685 million yuan, 742 million yuan, and 930 million yuan respectively, with a year-on-year growth of about 25% in 2025. At the same time, the platform's GMV reached 7.6 billion yuan, showing a clear amplification effect between transaction volume and revenue. In terms of gross profit, the company's gross profit for the same period was 185 million yuan, 220 million yuan, and 263 million yuan respectively, with a gross profit margin of around 28%, relatively stable overall. On the profit side, the company incurred a net loss of 575 million yuan, 448 million yuan, and 400 million yuan respectively, although the scale of losses has narrowed, but it is still in a significant loss state, with a cumulative net loss of over 1.4 billion yuan in three years. The AB side of the trillion-dollar aftermarket From a macro industry perspective, China's automotive aftermarket is at the intersection of stock competition and incremental transformation. According to Frost & Sullivan data, the total size of China's automotive aftermarket reached about 1.58 trillion yuan in 2025, and is expected to cross the threshold of 2.25 trillion yuan by 2030 with a compound annual growth rate of 7.4%. The increasing average age of vehicles and mileage provide a solid demand base for repair and maintenance. More importantly, the rapid increase in the penetration rate of new energy vehicles (NEVs) is reshaping the landscape of the auto parts supply chain. The "three electric systems" of NEVs require higher repair technology, and traditional scattered repair shops urgently need digital platforms to provide technical support and standardized parts. In this process, if Kaisi Times can use its existing digital intelligence base to seize the blue ocean of new energy vehicles, it will undoubtedly gain a second growth curve. From a long-term perspective, the automotive aftermarket where Kaisi Times is located has obvious structural opportunities. However, along with opportunities come a series of structural challenges. Firstly, there is demand elasticity - although the automotive aftermarket has essential attributes, during an economic downturn, consumers may postpone repairs or choose lower-cost alternative solutions, thereby affecting the overall market size and transaction frequency. Secondly, there is uncertainty brought about by technological change - NEVs have simpler structures and lower failure rates, which may reduce the frequency of repair needs in the long term, posing a potential impact on the traditional auto parts system. Thirdly, there is the competitive landscape - currently, the market not only has traditional distribution systems but also e-commerce platforms, regional supply chain companies, and other industrial Internet players, making it difficult for the industry to achieve absolute monopoly. Moreover, the platform ecosystem itself also has vulnerabilities - Kaisi Times' business relies on the coordinated efforts of manufacturers, dealers, and stores. Once there is a loss or intensified competition in any link, the platform's transaction volume may be directly affected. Lastly, the issue of trust will always be a pain point in the industry - the quality of auto parts products varies, and any occurrence of counterfeit goods or service disputes could have a long-term impact on the platform's brand. Overall, the value logic of Kaisi Times can be summarized in one sentence: standing in a market large enough, using digital means to improve efficiency, and attempting to build barriers through scale. From a positive perspective, the company has already established a leading advantage in terms of store numbers, SKU scale, and transaction network, with the potential to become the industry infrastructure; at the same time, the gradual narrowing of the loss rate also indicates that its business model is transitioning towards scale effects. However, at the same time, the company's profitability has yet to be proven, with its business structure leaning towards a heavy asset supply chain, making it difficult to enjoy the high valuation premium of a pure platform; and the complexity and uncertainty of the industry itself determine that its growth path will not unfold in a linear manner. For the capital market, companies like this often do not lack "narratives of space", the real watershed lies in whether, after expanding in scale, they can transition from transaction-driven to ecosystem control. Looking to the future, as the digital transformation of the automotive aftermarket enters the second half, Kaisi Times not only needs to alleviate cash flow pressure through listing "transfusion", but also needs to prove to the market that its "F2B2b2C" model, once scale effects are evident, has the internal drive to transition from "increased revenue but not increased profit" to sustained profitability.