【IPO Focus】Tianxiaxiu's "A+H" Faces Test: Regulatory Inquiries and Declining Profits Drag Progress

Text | Xiao Fang

Source | Bowang Finance

Traffic is still surging, but brand advertising investments are no longer as aggressive as in previous years. The industry is still expanding, and the once-booming influencer marketing sector is now facing dual challenges of efficiency and boundaries. At this critical moment, Tianxiaxiu Digital Technology (Group) Co., Ltd. (referred to as “Tianxiaxiu”) has submitted its prospectus, preparing for a Hong Kong listing.

However, as Tianxiaxiu approaches the Hong Kong stock market, the first obstacle it faces is a request for supplementary filing materials, commonly known as being “named.” On March 2, 2026, the China Securities Regulatory Commission (CSRC) website published the “Public Notice of Requirements for Supplementary Materials for Overseas Issuance and Listing Filing (February 9, 2026 – March 2, 2026),” in which Tianxiaxiu appears in the list of companies requiring supplementary filings.

01

Two markets, Tianxiaxiu needs to provide more transparent and predictable regulatory basis

The CSRC requires that Tianxiaxiu clarify and have legal counsel verify and issue clear legal opinions on: “The specific operational status of the issuer and its subsidiaries’ businesses related to ‘advertising publishing; advertising design, agency; social and economic consulting services; organization of cultural and artistic exchange activities; cultural entertainment agency services; performance brokerage.’” From the public notice, this directly relates to the scope of Tianxiaxiu’s business operations. For a company that brands itself as an influencer marketing platform and is now applying for a Hong Kong listing, this question must be answered.

Image source: China Securities Regulatory Commission official website
Public Notice of Requirements for Supplementary Filing Materials (February 9, 2026 – March 2, 2026)

The reason is straightforward. If a company only operates in A-shares, the market’s focus on the boundaries between “platform,” “service provider,” “agent,” and “broker” differs; but once dual listing in Hong Kong is involved, the complexity of rules becomes more apparent. Dual listing requires compliance with two markets and resources, providing more transparent and predictable regulatory basis. From another perspective, the A+H listing pathway remains open, but the entry standards are clearer.

Tianxiaxiu now faces such a critical point. Its prospectus cites data from Frost & Sullivan, stating that in 2024, with a 26.1% market share, it ranks first in China’s influencer marketing solutions platform industry and has maintained the largest market share for five consecutive years. Globally, it holds a 16.5% market share, ranking first in the world. Industry position-wise, Tianxiaxiu remains a front-runner. However, the CSRC’s supplementary questions do not primarily focus on market share rankings but instead inquire about the specific operational details of certain businesses, which may go beyond just “number one.”

It’s worth noting that the CSRC’s “Administrative Measures for Information Disclosure by Listed Companies (promulgated on January 30, 2007, by CSRC Order No. 40; revised on March 18, 2021, by CSRC Order No. 182)” states that “for securities and derivatives that are simultaneously issued and traded domestically and abroad, the information disclosed abroad should be simultaneously disclosed in the domestic market.”

Image source: China Securities Regulatory Commission “Administrative Measures for Information Disclosure by Listed Companies” screenshot

This means that if Tianxiaxiu completes its A+H listing, the content disclosed in the overseas market must be synchronized with disclosures in the domestic market. The consistency of business titles, operational content, and disclosed information will attract more attention. For Tianxiaxiu, this supplementary filing request is not only about responding once but also about ensuring consistency between disclosures in two jurisdictions.

In other words, being “named” by the CSRC may not be just a minor hurdle in the Hong Kong listing process. The public notice indicates that the CSRC does not deny Tianxiaxiu’s qualification to list in Hong Kong, but during the process, it needs to first supplement details about its business operations, legal review opinions, and the correspondence between business titles and actual activities. Relying solely on the “market share first” data cannot replace these disclosure requirements. To accelerate and smoothly pass the A+H process, the first step is not to present a bigger growth vision but to clearly define and comply with operational boundaries.

02

Pursuing A+H is not just about adding another listing venue but also about the company’s fundamental strength

Viewing Tianxiaxiu’s Hong Kong listing solely as an additional capital market financing opportunity may underestimate the practical significance of this step. While legally operating in two markets, this does not mean that compliance alone guarantees full support; the market will also consider operational data, disclosure information, and fundraising purposes comprehensively. For Tianxiaxiu, applying for H-shares is more like adding a potential financing platform outside A-shares, expanding future growth possibilities.

The company has also outlined clear plans in its prospectus. It aims to strengthen its position as an influencer marketing solutions platform and ecosystem innovator through strategies such as: expanding global and local presence to enhance international capabilities; advancing technological innovation and AI integration; reinforcing the influencer economy ecosystem and diversification; seeking strategic investments, acquisitions, and partnerships to drive sustainable growth.

In its 2025 semi-annual report, Tianxiaxiu states that, in response to opportunities brought by internet iteration, it will continue to promote its globalization strategy, consolidate its industry position, and explore applications of digital technologies like AI, MR, VR, and blockchain to improve service capabilities and discover new business models and growth points.

Its prospectus shows that as of September 30, 2025, revenue from its influencer marketing solutions platform accounted for 95.7%, while influencer ecosystem innovation contributed 4.3%.

Image source: Tianxiaxiu Prospectus

According to the prospectus, as of September 30, 2025, the company had 222,644 advertisers, 20,155 MCN registered accounts, and 3,586,248 influencer registrations. Compared to 2023 and 2024, these metrics are still expanding, indicating ongoing platform growth.

Image source: Tianxiaxiu Prospectus

However, the growth in clients and registrations has not yet translated into profit growth. Whether scale and revenue can form a positive cycle is a key question. This raises the issue of whether Tianxiaxiu needs new capital to support new businesses, overseas expansion, and R&D. For Tianxiaxiu, A+H may not be optional. If core operations continue high growth and profits remain steady, Hong Kong listing might be more of a bonus. But whether A+H can secure room for future maneuvering, whether capital markets are willing to provide new space, and whether Tianxiaxiu can gain more development opportunities remain uncertain.

03

Beyond a 26.1% market share, net profit attributable to parent in the first three quarters of 2025 down 45.49% YoY

The contrast in Tianxiaxiu’s current situation is reflected in its prospectus and financial reports: high market share but relatively thin profits. The prospectus states that in 2024, its market share in China’s influencer marketing solutions platform industry was 26.1%, and globally 16.5%, maintaining the top position in China for five consecutive years. In terms of ranking, Tianxiaxiu remains a leader. However, looking at its 2025 semi-annual and third-quarter reports in A-shares, the picture is different.

The 2025 semi-annual report shows revenue of 1.844 billion yuan, down 8.01% year-over-year, with net profit attributable to parent of 36 million yuan, down 19.28%.

Image source: Tianxiaxiu 2025 semi-annual report

The third-quarter report indicates that from January to September 2025, revenue was 2.734 billion yuan, down 10.21% YoY, with net profit still at 36 million yuan, but down 45.49%. Combining this with the semi-annual data, the industry-leading position does not fully translate into profit performance.

Image source: Tianxiaxiu 2025 third-quarter report

From gross margin perspective, Tianxiaxiu’s fundamentals have not experienced drastic fluctuations. The gross margin listed in its prospectus was 17.3% in 2023, 16.6% in 2024, and 17.2% in the first three quarters of 2025. However, these figures show no significant improvement that would markedly boost profitability.

Image source: Tianxiaxiu Prospectus

The 26.1% market share, as Tianxiaxiu pursues A+H listing, carries dual implications. It reflects Tianxiaxiu’s competitive moat, indicating industry advantage; but it also presents a contrast: leading in share does not necessarily mean profits are rising in tandem. If market share advantages do not translate into profit performance, then the industry-leading position may bring not only market status but also higher performance expectations.

Currently, Tianxiaxiu’s pursuit of A+H listing embodies both proactive transformation and the reality of core business pressure. Its platform remains intact, with clients, MCNs, and influencers still growing, and the industry still developing. However, declining profits and stricter regulatory scrutiny mean that the market will not separate market share “first” from revenue and profit figures. Whether Tianxiaxiu can turn its share advantage into profit growth, and whether its strategic plans involving AI and other technologies will translate into tangible growth, are real challenges. Changes in the market environment, influencer ecosystem, and related strategies are variables it must face.

Tianxiaxiu currently has no shortage of reputation or platform scale, but the key is how to achieve growth certainty in both markets simultaneously. If this certainty can be established, its dual A+H listing could become a new starting point for further expansion; if subsequent financial data show failure to reverse the trend, the two markets may also reassess its growth prospects. For Tianxiaxiu, being “named” by regulators is just the beginning—more significant tests lie ahead: how to convince the public markets that its platform scale and innovation strategies have growth potential, which will require time and profit growth to prove.

Author’s note: Personal opinions are for reference only.