Kwai Fu discloses risk factors: business is highly regulated and faces major competition from other companies.

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Sina Technology News on November 5th evening news, Kwai Fu formally submitted to the Hongkong stock exchange IPO prospectus. According to the prospectus, the company’s revenue increased from 8.3 billion yuan to 39.1 billion yuan from 2017 to 2019, and realized revenue of 25.3 billion yuan as of June 30, 2020.
The risk factors of the prospectus show that the company’s business is highly regulated and faces significant competition from Internet companies operating content social platforms, online marketing businesses and e-commerce platforms in China.
The following are the risk factors for the disclosure of Kwai Fu prospectus:
1. Whether we can retain existing users, maintain user participation or acquire new users in an efficient and low-cost way;
2. Whether we can attract, cultivate and retain content creators, and whether content creators will continue to contribute valuable content to our users;
3. Whether we can maintain a unique community culture and a vibrant ecosystem, as well as retain existing business partners or attract new business partners;
4. Our industry is constantly changing, and whether we can keep up with changes in user preferences or behavior, or continue to innovate technology or design functions that meet user expectations;
5. Our business is increasingly complex and whether we can manage growth effectively;
6. We have a net loss during the period of business record and may not be able to achieve or maintain a profit level in the future;
7. Whether we can continue to expand or maintain our live pay user base and increase the average income of live pay users;
8. Whether we can attract new advertisers, retain existing advertisers or maintain their demand for our online marketing services;
9. Our e-commerce and other liquidation strategies may not always be effective or constantly improved, and we cannot guarantee that we can successfully develop new liquidation channels and achieve sustained growth;
10. Users’ illegal and improper content may adversely affect our brand image, business and business performance. We may also be liable for the information or content displayed, obtained, linked or disseminated to our users on our platform or website;
11. China’s Internet business is highly regulated;
12. We may be subject to third-party intellectual property infringement claims or other charges for information or content displayed, acquired, linked or disseminated to our users on our platform or web page, or proprietary information embezzled by former employees;
13. Concerns about the collection and use of user personal information and other privacy related and data security issues may damage our reputation and hinder existing and potential users from using our products and services; and
14. We face significant competition from Internet companies operating content social platforms, online marketing businesses and e-commerce platforms in China, and whether we can compete effectively.