"Red Celebrity Economy First Stock" Tianxia Show Strives for Hong Kong Stock Exchange: Profits "Three Consecutive Declines," Increasing Fundraising and Globalization

After nearly six years of listing on the A-shares market, “Red Celebrity Economy’s First Stock” Tianxia Xiu (600556.SH) officially launched a bid for the Hong Kong Stock Exchange.

On January 5th, the HKEX website showed that Tianxia Xiu Digital Technology (Group) Co., Ltd. (hereinafter “Tianxia Xiu”) submitted a listing application to HKEX, with Deutsche Bank, CICC, and Guotai Junan International serving as joint sponsors.

According to the prospectus, Tianxia Xiu was established in 2009 and is the first domestically mature influencer marketing solution platform company. It aims to become a “super connector” in the global influencer marketing industry by building bridges between advertisers, influencers, MCNs (multi-channel networks), and major third-party UGC (user-generated content) platforms.

Tianxia Xiu’s business is mainly divided into two segments: influencer marketing solution platform and innovative influencer economy ecosystem. The former is its main revenue source, providing influencer marketing solutions to advertisers through its proprietary platform WEIQ. As of the third quarter of 2025, the platform had approximately 222,600 registered advertisers, about 20,200 MCN agencies, and nearly 3.5862 million registered influencers.

Image source: Tianxia Xiu Prospectus

According to Frost & Sullivan data, based on 2024 revenue, Tianxia Xiu ranks first in China’s influencer marketing solution platform industry with a 26.1% market share, maintaining this position for five consecutive years; simultaneously, it holds a 16.5% market share globally, leading the global influencer marketing solution platform industry.

Behind its impressive market share, Tianxia Xiu’s recent financial performance has been less optimistic. The prospectus shows that from 2023 to the first three quarters of 2025, the company achieved revenues of 4.202 billion yuan, 4.066 billion yuan, and 2.734 billion yuan, respectively; net profits for the same periods were 80.964 million yuan, 43.353 million yuan, and 32.573 million yuan. During this period, Tianxia Xiu’s revenue growth rates were 1.77%, -3.23%, and -10.21%; net profit year-over-year declined by 48.49%, 46.45%, and 46.2%.

Additionally, from 2023 to the first three quarters of 2025, the company’s net cash flow from operating activities was 299 million yuan, 154 million yuan, and negative 36.499 million yuan. As cash flow turned negative, Tianxia Xiu’s accounts receivable remained high. By the end of Q3 2025, trade receivables and notes receivable reached 1.968 billion yuan, accounting for nearly 44% of total current assets of 4.468 billion yuan.

In the prospectus, Tianxia Xiu states that some small and medium-sized clients have experienced financial difficulties, delayed promotional activities, or even business termination, leading the company to recognize bad debt provisions in 2023 and 2024. For the years ending December 31, 2023, and 2024, the company recorded impairment losses on receivables of 98.114 million yuan and 76.459 million yuan, respectively, both exceeding the company’s net profit for those periods.

Regarding the use of proceeds, the prospectus clearly states that funds raised from this H-share offering and listing will mainly be used for: global strategic expansion and business development, including establishing and operating overseas offices; expanding its influencer economy ecosystem through synergy initiatives and diversification efforts, including consumer brand incubation and development plans, creation and commercialization of virtual influencer IP, and strategic collaborations with celebrities and artists; seeking strategic investments, acquisitions, and partnerships aligned with the company’s long-term growth strategy and with significant synergy potential; and for working capital and general corporate purposes.