New Stock Update: China Enterprise Cloud Chain Plans Hong Kong IPO. China Securities Regulatory Commission (CSRC) requires clarification on whether there is any situation of providing information to third parties.

On November 17, the China Securities Regulatory Commission (CSRC) issued the "Supplementary Materials Requirements for Overseas Issuance and Listing Filing Announcement (November 10, 2023 to November 16, 2023)". The CSRC issued supplementary material requirements for Cloud Chain, a Chinese enterprise, which involve share changes, operational compliance, and user data collection and usage. It is reported that Cloud Chain submitted its prospectus to the Hong Kong Stock Exchange on October 18, with China Securities Co., Ltd. International, ICBC International, and CMB International as joint sponsors. Specifically, the CSRC requested Cloud Chain to provide additional explanations on the following matters and asked lawyers to verify and provide clear legal opinions: 1. Please provide a list and explanation of the price determination basis and reasonableness for each share change since November 2021. 2. Regarding operational compliance, please provide information on the industry authorities for various businesses and whether relevant qualifications or licenses are required for business operations. If financial information services are provided, please explain compliance with the "Regulations on the Management of Financial Information Services". 3. Please provide information on the progress of the identification management procedure for state-owned shareholders, internal decision-making for this issuance and listing and "full circulation," as well as the progress of the cancellation of the value-added telecommunications business operation license and changes in business registration. 4. Please provide information on the development and operation of websites, apps, mini-programs, and other products, the scale of user information collection and storage, whether there are situations of providing information to third parties, and arrangements or measures for personal information protection and data security before and after listing. According to the prospectus, based on Frost & Sullivan's data, Cloud Chain is the largest independent digital enterprise rights confirmation platform in China in terms of confirmed rights amount and financing amount in 2022, with market shares of 25.9% and 31.3% respectively. The company's independent platform is also the first independent digital enterprise rights confirmation platform to exceed 1 trillion yuan in cumulative confirmed rights amount. As of the end of the fiscal year on December 31, 2022, the company had 163,226 active users on its platform, mainly including core enterprises, affiliated enterprises, and financial institutions. The retention rates of core enterprises on the platform were approximately 83.1%, 87.3%, and 88.5% as of the fiscal years ending in 2020, 2021, and 2022 respectively.