Hangzhou Relian Group Refiles for Hong Kong IPO, 2025 Revenue RMB270.48 Billion, Net Profit RMB1.44 Billion

Hangzhou Relian Group Co. , Ltd. submitted its listing application to the Hong Kong Stock Exchange on August 11, 2026, with China International Capital Corporation (CICC) acting as sponsor. The company was established in 2001 and restructured into a joint-stock company in 2009. Headquartered in Hangzhou, Zhejiang Province, it is ultimately controlled by the Hangzhou State-owned Assets Supervision and Administration Commission. Prior to this offering, Hangshi Group, Zhejiang Lianyu and their related shareholding platforms and individual shareholders collectively controlled approximately 95.70% of the voting rights at the company's shareholders' meeting.

Relian Group is a commodity industry service provider and trader, purchasing and selling over 294 types of physical commodities, including ferrous metals and raw materials, chemical products, non-ferrous metals, and other categories. The company has established a global footprint, with subsidiaries and offices in 17 countries and regions, and has conducted trading activities in more than 80 countries and regions over the past few years. The company typically applies derivatives (mainly futures contracts) to most of its spot commodity transactions to form a basis trading approach. It conducts commodity trading primarily through four models: domestic trade, import trade, export trade, and third-country trade.

For 2023, 2024, 2025, and January-May 2026, the company's revenue was RMB252.13 billion, RMB270.63 billion, RMB270.48 billion, and RMB110.49 billion, respectively; net profit for the same periods was RMB1.03 billion, RMB1.43 billion, RMB1.44 billion, and RMB0.55 billion. During the reporting periods, the company's gross margin was 0.9%, 0.7%, 0.6%, and 1.9%, respectively, and return on equity was 13.4%, 15.9%, 16.4%, and 8.0%. In 2025, ferrous metals and raw materials accounted for 54.8% of revenue, with steel and iron ore at 38.6% and 13%, respectively; chemical products accounted for 37.5%, with polyester and aromatics at 11.1% and 10.5%; non-ferrous metals and other categories accounted for 5.8% and 1.9%, respectively.

The company's suppliers mainly include large steel mills, mining companies, coking plants, chemical manufacturers, and major commodity trading firms, while its customers mainly include trading companies and companies across various industries. In 2025, sales to trading companies accounted for 72.7% of revenue. As of the end of May 2026, the company had 191 employees focused on industry research, of whom approximately 74% held master's degrees or above. During the reporting period, the number of commodity types traded increased from 234 in 2023 to over 294 in January-May 2026, and total trading volume rose from 96.3 million tonnes in 2023 to 142 million tonnes in 2025.

During the reporting period, the company's inventory balance continued to grow, from approximately RMB11.4 billion at the end of 2023 to nearly RMB21.0 billion in May 2026. Trade receivables and notes receivable balances were approximately RMB5.14 billion, RMB6.40 billion, RMB5.59 billion, and RMB6.39 billion, respectively, with recognized impairment provisions of approximately RMB0.57 billion, RMB0.39 billion, RMB0.46 billion, and RMB0.51 billion. In 2024, 2025, and January-May 2026, the company's operating cash flows were net outflows of approximately RMB1.88 billion, RMB4.82 billion, and RMB2.27 billion, respectively, mainly due to funds occupied by increased inventories, prepayments, and other assets. The company declared dividends of approximately RMB0.75 billion, RMB0.65 billion, and RMB0.57 billion in 2023, 2024, and 2025, respectively, and did not declare dividends in the first five months of 2026.

Commodities refer to bulk-traded physical goods that enter circulation but not retail, possessing commodity attributes and used in industrial and agricultural production and consumption, mainly including ferrous metals and raw materials, chemical products, non-ferrous metals, and other categories. Commodity industry services refer to providing logistics, warehousing, distribution, and other supporting services around commodity trading. Commodity trading refers to identifying market opportunities arising from factors such as time mismatches or supply-demand imbalances through industry research and market analysis, and buying and selling commodities to achieve profitability.

Asian market commodity trading volume increased from 26.3 billion tonnes in 2021 to 27.7 billion tonnes in 2025, representing a compound annual growth rate of 1.3% during this period. In 2025, in the Asian market, the top five companies by commodity trading volume held a combined market share of 4.5%, and the top five by commodity sales revenue held a combined market share of 5.8%. In the Chinese market, by 2025 trade volume and sales revenue, Relian Group ranked as the fifth-largest commodity industry service provider and trader in China, with market shares of 0.9% and 0.8%, respectively.