US Stock IPO Outlook | With high revenue growth and a turnaround in net profit, how does Jianying International tell a good story about sports nutrition product distribution?

After more than eight years of deep cultivation in the sports nutrition distribution industry, Jianying International has finally begun to impact the capital market.

According to the Zhitong Finance APP, sports nutrition product distributor Jianying International submitted its public prospectus (F-1 document) to the SEC for the first time on August 11, aiming to list on NASDAQ under the code "FIT." Notably, Jianying International submitted a confidential application to the SEC as early as May 2, 2025.

According to the F-1 document, Jianying International plans to issue 2 million shares in this IPO, with a price range of $4 to $5 per share, aiming to raise between $8 million and $10 million.

In terms of performance, Jianying International has achieved rapid growth. Data shows that in 2023 and 2024, Jianying International's revenue was $11.8994 million and $19.4613 million, respectively, with a revenue growth rate of 63.5%. The corresponding net profits were -$765,000 and $1.0197 million, with a successful turnaround to profitability in 2024.

B2B+B2C Sales Model Covers Over 1,000 Sales Points

Jianying International was founded in Hong Kong in 2016. After more than eight years of accumulation, the company has developed into a sports nutrition product distributor operating in Hong Kong, mainland China, and Malaysia, offering a rich variety of SKUs to provide diverse choices for customers.

According to the prospectus, as of December 31, 2024, Jianying International has over 30 brands of sports nutrition products from 10 brand partners and more than 10 distributors, with over 300 SKUs. These products are mainly divided into three categories: protein powder, ready-to-eat snacks and packaging materials, and other products including meal replacements, health supplements, and special dietary products.

It is noteworthy that these products are primarily imported from the United States and Europe and then distributed in Asia. As of December 31, 2024, Jianying International holds exclusive distribution rights for 193 SKUs in Hong Kong, while other SKUs sold in Hong Kong and all SKUs in mainland China are non-exclusive distributions.

From a market perspective, Hong Kong is Jianying International's base and main market, accounting for 65.5% of revenue in 2024, followed by the mainland China market at 33.7%, while Malaysia's revenue share is relatively small. However, Jianying International began to expand into the Malaysian market in May 2024 through exclusive cooperation with one of the world's largest gym chain brands.

In terms of sales channels, Jianying International has penetrated and established a multi-channel network, including gyms, supermarkets, convenience stores, membership stores, specialty stores, e-commerce platforms, and online markets. As of December 31, 2024, it has over 1,000 sales points in Hong Kong, mainland China, and Malaysia.

Regarding the sales model, Jianying International has adopted a combination of B2B and B2C to build its channel network. In the B2B aspect, Jianying International focuses on distributing sports nutrition products to wholesalers and retailers (or a combination of both). As of December 31, 2024, Jianying International has distributed products to over 130 B2B customers in Hong Kong and China, covering more than 800 sales points In terms of B2C, Jianying International mainly expands its business through online stores, vending machines, and third-party e-commerce platforms. Among them, Jianying International operates two online stores, with a total of over 9,000 registered members. One store serves the Hong Kong market, while the other serves customers in mainland China through the WeChat e-commerce platform. As of December 31, 2024, Jianying International has strategically deployed 230 vending machines in Hong Kong, mainland China, and Malaysia, directly providing products to consumers. In addition, Jianying International has collaborated with third-party platforms such as HKTV Mall, Decathlon, and Tmall to market products and promote B2C sales.

According to the prospectus, in 2023, Jianying International's sales revenue from B2C accounted for 49.3%, which decreased to 34.9% in 2024. Nevertheless, it is evident that B2C has become an important sales channel for Jianying International.

From the perspective of revenue structure, Jianying International's revenue mainly comes from protein powder, which accounted for nearly 70% of the company's total revenue in 2024. In addition to selling sports nutrition products, Jianying International also utilizes an omnichannel sales and distribution network to provide customized marketing services for sports nutrition brands and other distributors, aiming to create a new growth curve for the company. However, the revenue from customized marketing services only accounted for 6.5% in 2024.

The rapid growth of Jianying International's performance in 2024 is mainly attributed to the continuous increase in revenue from various sales models in different markets. According to the prospectus, in mid-2024, Jianying International's revenue from the B2B model surged by 89.1%, while revenue from the B2C model grew by 15.9%. This drove product sales revenue to increase by 53%, and combined with marketing services that recorded $1.2593 million in revenue, the total revenue growth for 2024 reached 63.5%. From a regional perspective, the revenue growth in the Hong Kong market was 55.7%, in mainland China it was 79%, and in other Asian regions it was 201.4%, with significant revenue growth in all regions.

While revenue is growing, Jianying International's gross margin in 2024 increased by 5 percentage points to 31.7%, driven by economies of scale and improved supply chain efficiency. The gross margin for the B2B model increased by 5 percentage points, while the gross margin for the B2C model increased by 5.8 percentage points. The growth in revenue and the increase in gross margin led to a 93.8% surge in Jianying International's gross profit to $6.1684 million in 2024. Additionally, thanks to a moderate increase of 21.1% in total operating expenses, profits were fully released, resulting in a turnaround to profitability with a profit of $1.0197 million during the period.

Opportunities and Challenges Coexist, Aiming to Create New Growth Points through Marketing Services and Cross-Border Expansion

From an industrial perspective, the sports nutrition industry is a "long slope with thick snow" track. Over the past two decades, thanks to the increase in health awareness, participation in sports and fitness activities, and the general growth of disposable income, sports nutrition products have rapidly penetrated the market. The consumer base has extended from professional athletes to the general population, with fitness enthusiasts accounting for over 60%. Middle-aged and elderly individuals, women ("she economy"), and young white-collar workers have become emerging consumer forces in this industry, and consumption motives have expanded from "muscle gain and fat loss" to comprehensive needs such as "health management" and "immune enhancement."

With the continuous expansion of the covered population and the increasing diversity of consumption motives, the sports nutrition industry has achieved sustained growth. Taking China as an example, the top three categories in China's sports nutrition food market are protein powder, sports drinks, and energy bars. According to relevant data, from 2017 to 2023, the market size of energy bars and protein bars in China grew from 1.31 billion yuan to 2.45 billion yuan, and it is expected to reach 4.513 billion yuan by 2028. Relevant data predicts that from 2022 to 2028, China's market size is expected to rank sixth among the world's 18 major sports nutrition food markets, with a compound annual growth rate as high as 40%, far exceeding the average growth rate of the global sports nutrition food industry.

From the perspective of industry participants, the sports nutrition industry in the Hong Kong market and mainland China has long been dominated by international brands. However, the strong market growth has gradually attracted numerous local and international brands to join, and adjacent brands (such as traditional snack brands) are also entering this market, intensifying market competition. The sports nutrition industry in Malaysia is similar, where international brands occupy a strong position in the industry due to their good reputation, but local brands and small domestic brands are gaining market share by providing affordable alternatives that cater to local tastes and preferences.

In the face of continuous industry growth but fierce competition and a highly fragmented industry landscape, distributors of sports nutrition products like Jianying International must build multi-dimensional core competitiveness in areas such as product portfolio optimization, sales network, ecosystem construction, data-driven strategies, cross-border operations, and supply chain management to grow stronger.

From Jianying International's current layout, its more than 300 SKUs and coverage of over 1,000 sales points through B2B and B2C methods indicate that Jianying International has certain advantages in product portfolio and sales network construction. On this basis, the company has begun to explore data-driven development of customized marketing services and has entered Southeast Asia to expand into the Malaysian market, aiming to create a new growth curve for the company from both service and regional perspectives. However, as of now, both marketing services and the expansion into the Southeast Asian market are still in the initial stages, and their short-term impact on the company's performance is relatively limited, requiring further observation for any subsequent progress.

Additionally, the relatively high customer concentration of Jianying International is also worth noting for investors. According to the prospectus, by mid-2024, the revenue share of Jianying International's top five customers will account for 43.3%, with the largest customer accounting for as much as 17.8%, close to one-fifth. A relatively high customer concentration can lead to several potential operational risks, including increased revenue volatility, weak bargaining power, and high accounts receivable. Exploring a more diversified and healthy customer structure is beneficial for the long-term stable development of the enterprise