On September 1, Xinyin (0625.HK) closed at 48.5 Hong Kong dollars on its first day of trading on the Hong Kong stock market, down 0.12% from the issue price. Its valuation dropped significantly from over 100 billion US dollars at its peak to approximately 26.5 billion US dollars. Although the stock price remained close to the issue price at the beginning of trading and once fell below 25 billion US dollars, it was eventually stabilized by institutions such as Goldman Sachs. However, the Hong Kong stock market showed weak preference for consumer goods IPOs, with the subscription multiple for international offerings being only 2.59 times. Financial data showed that Xinyin’s revenue growth has slowed over the years; in the first quarter of 2026, it increased by only 1.1% year-on-year, and net profit decreased by 38.7% year-over-year. Additionally, marketing and fulfillment expenses accounted for more than 60% of total costs, resulting in a 50% reduction in net profit margin to 4.9%. External factors, such as the US’s cancellation of tax exemptions for small packages, EU regulations tightening, and French fines, further exacerbated market concerns about its growth sustainability.
On September 1, Xian (0625.HK) closed at 48.5 Hong Kong dollars on its first day of trading, down 0.12% globally. Its valuation dropped from a peak of 100 billion US dollars to approximately 26.5 billion US dollars. The opening price was the same as the issue price, and it once fell below 25 billion US dollars during the session. In the end, Goldman Sachs managed to stabilize the price but failed to change the pricing power landscape. The offering range was set at 47.6 to 49.5 Hong Kong dollars, with a net fundraising of approximately 13.214 billion Hong Kong dollars. The Hong Kong stock market favors AI and hard technology sectors; the enthusiasm for consumer goods IPOs was weak, with international offerings receiving only 2.59 times the amount of subscriptions. Financial data showed that revenue growth has been slowing over the years. In the first quarter of 2026, revenue increased by 1.1% year-on-year, while net profit decreased by 38.7% year-over-year. Marketing and fulfillment costs accounted for over 60% of total expenses, and net profit margin was halved to 4.9%. External factors such as the U.S. cancellation of tax exemptions for small packages, EU regulations tightening, and French fines have increased market concerns about its sustainability.