Henan United Information Resubmits Listing Application: High Revenue Growth Coexists with Sharp Losses

ZC Asia has learnt that the Hong Kong Stock Exchange's Growth Enterprise Market recently disclosed that Henan United Information Technology Co., Ltd. (hereinafter referred to as ‘United Information’) resubmitted its listing application on 17 November. This marks the company's second attempt following its initial filing on 25 April this year.

United Information's principal business spans three key domains: financial IT solutions, smart city IT solutions, and digital education IT solutions. The company is actively expanding its digital education business, having launched the AI-empowered ‘Instant Learning’ digital education solution.

From an industry perspective, China's IT solutions services market exhibits sustained growth momentum. Industry data indicates this market size is projected to increase from RMB 3.83 trillion in 2024 to RMB 6.53 trillion by 2029, maintaining a stable compound annual growth rate.

Revenue growth coexists with widening losses

Financial performance reveals a pronounced dichotomy. Revenue reached approximately RMB 238 million in 2024, marking significant growth from RMB 148 million in 2023.

However, profitability continued to deteriorate, with a net loss of approximately RMB 133 million in 2024 – a more than 23-fold expansion from the RMB 557,000 loss recorded in 2023. This trend persisted unabated in the first half of 2025, with losses widening by 264% year-on-year.

Multiple Challenges Remain Unresolved

Data disclosed in the prospectus reveals several operational risks facing the company. Regarding customer concentration, the top five clients contributed 90.2% of revenue in 2024, with the single largest client accounting for 61.8% – indicating substantial reliance risk.

The quality of accounts receivable is equally concerning. As of 30 June 2025, the company held ¥32.3 million in accounts receivable aged over six months, with 94.5% originating from smart city projects. Some of these overdue payments have exceeded two years.

Furthermore, the company faces issues of high supplier concentration, with the top five suppliers accounting for 88.1% of procurement in 2024, including the largest supplier representing 70.6%. Operating cash flow has been negative for three consecutive years, reflecting the company's insufficient self-sustaining capacity.

Regarding corporate governance, the prospectus indicates ultimate control is concentrated in the hands of Mao Guanjun alone. In terms of compliance, four out of six leased properties used by the company cannot provide property ownership certificates, while there are also outstanding social insurance and housing fund contributions amounting to approximately RMB 5.5 million.

Henan United Information's second attempt to list on the Hong Kong Stock Exchange demonstrates the persistent efforts of Chinese IT solution providers to access capital markets. While achieving revenue growth, the company must effectively control losses, improve cash flow, mitigate customer concentration risks, and successfully complete its business transformation. These factors will determine the success of its listing and future development. For investors, while noting its growth potential, it is essential to fully recognise the multiple risks involved.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.