Shanghai-based Fuiou Payment Services Co., Ltd. has submitted its sixth IPO application in ten years to the Hong Kong Stock Exchange on May 9, 2025. This marks the company’s third attempt at a Hong Kong listing after two previous filings lapsed without progress.
Financial Performance Raises Concerns
Key financial indicators show concerning trends:
Net profit attributable to shareholders dropped 43.43% from 149 million yuan in 2021 to 84.06 million yuan in 2024
Domestic payment service gross margins declined from 23.1% to 20.4% between 2022-2024
Merchant acquisition service margins fell to 19.1% in 2024
Controversial Dividend Practices
The payment processor has distributed 365 million yuan in cash dividends since 2021 – representing about 91% of its total net profits during the period. This aggressive payout strategy occurred alongside its persistent IPO efforts, raising questions about capital allocation priorities.
Market Positioning Challenges
Fuiou operates in an increasingly concentrated payments landscape:
- Holds just 0.8% market share in China’s 268.6 trillion yuan digital payment market
- Faces dominant duopoly of Alipay and WeChat Pay controlling 92% of mobile payments
- New competitors like Douyin and Meituan entering through license acquisitions
Regulatory and Governance Issues
The company has faced multiple regulatory actions:
- 2022: 1.4 million yuan penalty for foreign exchange violations
- 2023: 4.55 million yuan fine for AML compliance failures
- 2024: Additional 650,000 yuan forex penalty
Governance concerns persist regarding:
- Disputed “no controlling shareholder” claim despite founder Chen Jian’s influence
- Pending litigation involving 125 million yuan from former P2P partnerships
- Recent shareholder exits including complete divestment by Shanghai Qinyi and others
IPO History Highlights Obstacles
Fuiou’s listing attempts have consistently stalled:
- 2015-2016: First A-Share attempt with Industrial Securities (terminated)
- 2018-2021: Second A-Share effort with Orient Securities (terminated)
- 2021-2024: Third A-Share try with Guojin Securities (terminated)
- 2024: Two Hong Kong applications lapsed without approval
Industry analysts remain skeptical about the current Hong Kong IPO prospects given the company’s contracting profitability, competitive pressures, and unresolved compliance issues. The payment processor’s decade-long pursuit of public listing continues to face significant headwinds in an increasingly challenging market environment.
Related topics:
Global Deflation Risks Overshadow Tariff Inflation Fears
Market Volatility Intensifies as EUR/USD and USD/JPY Face Critical Juncture
Gold Underperforms Silver as White Metal Surges to 12-Year High
