As China's largest market share holder in digital marketing, consistently ranking first on the Chinese Academy of Sciences' "Internet Weekly" digital marketing company rankings for multiple years, and possessing comprehensive full-chain service capabilities as an AI digital marketing leader, Leo Group Co.,Ltd. (002131.SZ) recently submitted its application to the Hong Kong Stock Exchange, with Huatai International and China Galaxy International serving as sponsors. This Hong Kong listing represents not only a crucial step in the company's "capital internationalization" strategy but also leverages the technological advantages and global layout of its dual core businesses of "AI digital marketing + intelligent pump systems" to build unique investment value, attracting significant market attention.

In the A-share market, Leo Group has gained deep recognition from value investors, with its market capitalization continuously breaking through over the past year. As of September 30, 2025, the market cap reached RMB 38.193 billion, representing approximately 210% growth compared to September 30, 2024.

In fact, industry leaders across sectors have been pursuing dual A-H listings this year, with targets like Chifeng Jilong Gold Mining (06693) receiving capital favor after listing. Leo Group, with its triple attributes of "AI digital marketing leader + capital internationalization + global layout," demonstrates more prominent investment attractiveness compared to similar targets. Through comprehensive AI technology empowerment of its dual core businesses, the company both opens up industry growth space and builds new growth curves through global operations. This Hong Kong listing is full of highlights and may bring new opportunities for investors.

**AI Digital Marketing: Maintaining Industry Leadership Position with Irreplaceable Competitive Advantages Built on "Position + Model + Technology"**

Leo Group has been deploying digital marketing business since 2014, and after more than 10 years of intensive cultivation, has become the absolute leader in China's AI digital marketing field, establishing insurmountable competitive barriers across market share, business models, and technical capabilities.

First is market position: leading in dual dimensions with significant head advantages. According to Frost & Sullivan data, based on 2024 revenue, Leo Group ranks first in China's digital marketing market with a 1.29% market share, 32% higher than the second place. In the digital advertising agency segment, it maintains the industry's top position with an 8.72% market share, leading the second place by 29%, confirming its leadership status across both dimensions. The company has also received multiple "Digital Advertising Leading Enterprise" honors from the Shanghai Advertising Association and has consistently topped authoritative industry rankings for years, with its brand and voice firmly positioned in the first tier.

Second is business model: full-chain closed loop with precise breakthroughs in vertical fields. The company operates an integrated "brand-effect-sales" full-chain model that connects the marketing ecosystem, with two major segments of integrated marketing and digital advertising agency precisely covering core industry clients. Integrated marketing has prominent advantages in the automotive vertical field, serving leading automotive brands and providing customized solutions from "brand consulting to sales conversion." Digital advertising agency focuses on network services and gaming fields, deeply cooperating with domestic leading media and mainstream mobile phone manufacturers, even participating in technical co-development.

The stable business model supports continuously leading revenue, with segment revenues reaching RMB 15.931 billion, RMB 16.514 billion, and RMB 16.435 billion in 2022-2024 respectively, maintaining industry-leading scale. As the company's core pillar, this segment contributed 77.1% of revenue in the first half of 2025, providing strong assurance for steady performance growth.

Finally, technical capabilities: AI reconstructs the entire process, leading industry standardization development. As an AI-driven digital marketing leader, Leo Group uses technological barriers to differentiate from peers, not only achieving efficiency improvements but also leading industry AI application standards, further consolidating its leadership position.

The company has comprehensive coverage across four technical system layers, including building a four-layer technical product system of "AI infrastructure - AI agent framework - AI agent applications - AI application interaction," covering the full chain of "demand insights, creative generation, advertising placement, post-placement optimization, customer service response," with over 100 supporting intelligent agent tools developed, resulting in significant productivity improvements. For example, AI e-commerce trading tools can achieve 22x productivity improvement in single segments, and during the 2024 "Double Eleven" period, helped a well-known e-commerce platform increase advertising consumption by 40% year-over-year.

As an industry standard setter, the company led the development of the dual group standards "Internet Advertising Creative Material Metadata Management Guide Based on Generative Artificial Intelligence" by the China Advertising Association and China Communications Standardization Association. In 2025, it pioneered the launch of the advertising industry's first programmatic advertising tool fully supporting the MCP protocol, driving industry AI adoption and becoming one of the "rule makers" in the AI marketing field.

From a market space perspective, China's AI-driven digital marketing market reached RMB 53 billion in 2024, maintaining mid-to-high double-digit compound growth, but with only 4.17% penetration rate, indicating enormous room for improvement. Leo Group, with its leadership and first-mover advantages, will preferentially benefit from penetration rate improvement dividends and further expand market share.

**Intelligent Pump Systems: Global Cash Cow Business with AI + Industrial Chain Integration Strengthening Advantages**

Intelligent pump systems represent Leo Group's second major business, with equally solid industry leadership position. This business serves as the company's cornerstone, not only providing high gross margins and stable "cash cow" returns but also achieving integrated global layout of production, sales, and R&D. In recent years, through AI upgrades and industrial chain extension, it continues to enhance international competitiveness.

In terms of market share, this business maintains second place domestically and first in exports. According to Frost & Sullivan data, based on 2024 revenue, Leo Group ranks second in China's pump and system industry. By export volume, it ranks first in China's civilian pump export field, with products covering over 160 countries and regions, deep cooperation with over 300 distributors, and core clients including globally renowned equipment brands and domestic leading infrastructure central and state-owned enterprises, creating deep customer barriers.

In profitability terms, gross margins remain high with stable cash flow. This business represents a typical high-margin cash cow, with average gross margins exceeding 25% over the past three years, reaching 25.6% in the first half of 2025. Revenue reached RMB 4.234 billion in 2024, growing 21.56% year-over-year, with revenue scale remaining consistently stable from 2022-2024 and the first half of 2025, providing sufficient cash flow for the company's AI R&D and global layout.

Additionally, Leo Group empowers intelligent manufacturing through AI, achieving technological breakthroughs in core bottlenecks. The company uses its Zhejiang Wenling base to create a 5G-AI and digital twin water pump manufacturing intelligent factory, successfully selected for the Ministry of Industry and Information Technology's 2025 Excellence-level Intelligent Factory list, building a 5G fully-connected demonstration workshop. It applies AI large models to establish fault model libraries, achieving autonomous equipment fault warning, diagnosis, and optimization, reducing downtime. It builds digital twin platforms providing precise data support for production scheduling and strategic decision-making.

Meanwhile, the company continues breaking through core technologies: developing the pump's "power heart" motor and "central hub" controller, applying permanent magnet motor technology to products with energy efficiency exceeding IE5 standards; self-developing fully intelligent variable frequency drive systems adapted to wide temperature ranges from -30°C to 110°C, with some product system efficiency improvements of 8%-12%. It has also incubated Shimen Semiconductor, achieving large-scale commercial application of industrial-grade and automotive-grade IGBT and SiC high-end power modules, breaking through core power semiconductor technology bottlenecks in controllers and forming an industrial ecosystem of "pumps + core components + water technology."

Currently, China's pump and system industry is evolving from traditional equipment toward "intelligent systems - smart platforms." Leo Group, with its AI and core technology layout, consistently remains at the industry forefront, opening new growth spaces.

**Global Layout + Capital Internationalization: Dual-wheel Drive Opening New Overseas Growth Curves**

Leo Group's growth is based not only on the domestic market but also constructs new growth poles through "global operations + capital internationalization," with overseas business showing impressive growth rates and enormous future potential.

Overseas business has become an important growth engine for the company, with growth rates consistently leading and revenue proportion continuously rising. From the data perspective, overseas revenue has become the core of the company's resilient performance growth: overseas revenue grew 25.54% year-over-year in 2024, continuing to grow 22% in the first half of 2025, with revenue proportion rising from 7.7% in 2023 to 12.2% in the first half of 2025, demonstrating significant results in emerging market expansion.

This primarily benefits from the company's global operations, including manufacturing + sales + industrial chain full-chain layout, constructing an efficient global operating system. In manufacturing, it has five modern manufacturing bases in Zhejiang Wenling, Hunan Xiangtan, Liaoning Dalian (domestic), and Indonesia, Hungary (overseas), with overseas bases close to core European, American, and Southeast Asian markets, effectively avoiding trade barriers and shortening delivery cycles. In sales, relying on over 300 overseas distributors and proprietary sales teams, it forms a pattern of "160+ countries and regions coverage with deep penetration in key regions." The pump and system business has established professional sales teams for seven major industries including construction and water conservancy, precisely matching customer needs. In the industrial chain, it controls upstream Shimen Semiconductor and self-develops permanent magnet motors, achieving autonomous control of core components, reducing supply chain risks and costs. Downstream, it expands water technology services, participating in international-level projects such as the Qatar World Cup and South-to-North Water Diversion, enhancing international brand premium.

Notably, the current digital marketing industry is experiencing an overseas expansion wave, with Provincial Advertising Group achieving 49.6% compound growth in overseas revenue from 2022-2024, still growing 37% in the first half of 2025. Leo Group, as an AI digital marketing leader, possesses extremely strong overseas market competitiveness through technological and service advantages, with future digital marketing overseas expansion expected to become a new growth highlight.

Simultaneously, Leo Group accelerates capital internationalization pace through A/H dual platform implementation, empowering global development. This Hong Kong listing represents a crucial step in the company's "capital internationalization": on one hand, building an "A+H" dual capital platform to attract global investors, providing funding support for overseas manufacturing base expansion and digital marketing overseas expansion; on the other hand, leveraging Hong Kong stock market's international attributes to enhance global brand influence, paving the way for subsequent business globalization.

**Conclusion**

Leo Group's Hong Kong listing may attract value investor competition based on three major highlights: first, a strong fundamental base with stable industry leadership positions in AI digital marketing and intelligent pump systems, forming a dual-driven business structure - this represents the core foundation for capturing AI investment opportunities; second, using the fundamental base as an AI application track, comprehensively opening growth space through leadership first-mover advantages, with significant AI technology implementation results enabling preferential access to market opportunities; third, global layout providing important growth opportunities in overseas markets - the global system built upon leadership positions will become an important vehicle for AI business overseas expansion in the future.

These three highlights essentially represent deep integration of "AI investment opportunities + industry leadership," building solid core competitiveness for the company. This Hong Kong listing aligns with the company's globalization strategy, representing the first step in capital globalization while bringing more global investor support for building international brands. This capital move will further amplify the value of "AI investment opportunities + industry leadership," providing funding for leadership business AI upgrades and overseas expansion, attracting global investors who recognize the "opportunity + leadership" logic.

Furthermore, the company has gained high recognition from investors in the A-share market, with market capitalization maintaining an upward trend over the past three years. After Hong Kong listing, with solid fundamentals (leadership position) and growth logic (AI opportunities), accelerated A-H linkage may drive further valuation increases in both markets.