Haikou, Hainan, has successfully gone public, serving over 5,000 outbound companies with a gross profit margin of approximately 47%.

Source: Gelonghui New Stocks

As Chinese companies continue their internationalization, overseas supply chains are being reshaped, and the “Belt and Road” initiative promotes further expansion, China’s foreign direct investment (FDI) continues to grow. However, the destinations for Chinese FDI are highly concentrated in offshore financial centers such as Hong Kong, Singapore, and the Cayman Islands.

Against this backdrop, service providers that assist outbound companies with offshore company registration, structuring, and compliance reporting have rapidly developed. Now, some professional service providers from Haikou, Hainan, are even competing for IPO listings.

Gelonghui has learned that recently, ICS Corporate Services Group Inc. (referred to as “ICS Group”) submitted a prospectus to the Hong Kong Stock Exchange, planning to list on the Main Board, with China Merchants International as the sole sponsor.

Is it easy for professional outbound services to do business now? Let’s take a closer look through ICS Group.

01

Haikou, Hainan, Achieves IPO Success, Distributes a Pre-Listing Dividend

ICS Group is a professional service provider for outbound companies, dedicated to helping Chinese enterprises expand overseas.

Their services include offshore company registration, structuring, compliance reporting, and fund administration. Some companies seek their help to implement overseas strategies, optimize tax structures, reduce operational risks, and facilitate cross-border capital flows.

ICS Group’s main office and key operations in China are located in Meilan District, Haikou City, Hainan Province. As of September 2025, the company has 182 full-time employees, with 126 involved in operations.

The company traces its origins back to 2016, when founders Li Dandan and Li Yifei began providing corporate services through ICS Group’s China subsidiaries. When established, both founders had accumulated extensive experience in corporate services from their previous work.

Li Dandan, 41, is Chairman and CEO. She earned a Bachelor of Law from China University of Political Science and Law in 2007, obtained a legal professional qualification certificate in 2011, and earned a Master of Laws from Osgoode Hall Law School at York University in Canada in 2018. She previously worked as Sales and Operations Manager at Yili Food Group (Shanghai) Co., Ltd., and also served as a manager under Yan Qing’s management.

Li Yifei, also 41, is General Manager. He graduated in 2008 with a Bachelor of Logistics Management from Beijing Jiaotong University and earned an MBA from Cheung Kong Graduate School of Business in Shanghai in 2025. He has held positions at Beijing Ershang Food Co., Ltd., China Electronics Corporation, and Yan Qing Management.

In 2020, ICS Group obtained a Category 3 registered agent license from the British Virgin Islands Financial Services Commission and a corporate service license from the Cayman Islands Monetary Authority. In 2021, it was authorized by the Financial Services Commission to act as a Recognized Person (under BVI Securities and Investment Business Law), beginning to provide fund administration services.

Regarding ownership structure, before this issuance, Li Dandan indirectly held about 94.4% of the company, making her the controlling shareholder. Zhang Wei held 5.6%.

Notably, from January to September 2025, ICS Group declared dividends of USD 2.6 million (about RMB 18.5 million).

For this Hong Kong IPO, the company plans to raise funds to upgrade IT infrastructure comprehensively, strategically expand its operational regions, develop new service offerings, enhance client engagement and brand influence, pursue potential strategic acquisitions, and support working capital and general corporate purposes.

02

Over 90% of Revenue Comes from Corporate Services, Relying on Five Major Suppliers

The upstream of the corporate outbound services industry mainly includes government regulatory and registration agencies in offshore jurisdictions, such as the Cayman Islands Monetary Authority (CIMA), the British Virgin Islands Financial Services Commission (FSC), and banking institutions, responsible for setting industry rules, policies, and cost bases.

The midstream consists of various service providers specializing in overseas expansion, whose competitiveness depends on licensing and qualifications, global networks, service integration capabilities, and compliance risk control standards. Besides ICS Group, competitors include U&IGROUP, TCGROUP, Hanton Morgan, Ogier Global, TMF Group (Hong Kong), and Tricor Group.

The downstream comprises end clients seeking cross-border operations, including multinational corporations, startups, private equity, and venture capital funds.

Source: Frost & Sullivan; images from the prospectus

ICS Group’s suppliers include regulatory agencies that charge relevant government fees; notaries, lawyers, accountants, tax advisors, and other professional consultants and agencies that meet specific client needs; and office space landlords.

During the reporting period, procurement from the top five suppliers accounted for 87.9%, 93.3%, and 90.3% of total procurement, respectively, with the largest single supplier representing over 40% of procurement in each period, indicating high supplier concentration.

The company has served over 5,500 clients across industries such as technology, financial services, manufacturing, and consumer goods, mainly Chinese enterprises and agencies seeking global expansion, cross-border operations, or overseas financing.

Most of ICS Group’s revenue comes from corporate services, fund administration, and financial reporting and tax services. In 2023, 2024, and the first nine months of 2025, over 90% of revenue was from corporate services.

Corporate services require ensuring that client entities continuously comply with legal and regulatory requirements across multiple jurisdictions. ICS Group not only helps clients establish and register entities but also provides management and renewal services, including supervising regulatory compliance, submitting annual filings, updating company information, organizing annual shareholder meetings, handling share issuance and transfers, and assisting with deregistration.

The company also offers comprehensive fund services for USD-denominated equity funds in jurisdictions like the BVI and Cayman Islands. Its role is limited to administrative, accounting, and compliance services; it does not participate in fund management, control, or investment decisions.

Revenue breakdown by business segment is shown in the prospectus.

It’s important to note that most of ICS Group’s income depends on ongoing client management and renewal services. Failure to acquire new clients or retain existing ones could impact its performance.

03

2024: China’s Second Largest Corporate Outbound Service Provider, Facing Policy Risks

In recent years, as Chinese companies expand their overseas operations and cross-border investment and financing needs grow, demand for professional overseas expansion services has increased.

In 2024, the Chinese outbound professional services market reached RMB 20 billion, with an expected surpassing of RMB 59 billion by 2029. The compound annual growth rate (CAGR) from 2025 to 2029 is projected at 25.8%, higher than the 12.4% CAGR from 2020 to 2024.

Source: Frost & Sullivan; images from the prospectus

Against this growth backdrop, ICS Group’s performance has been improving over the past two years, driven by an increase in registered entities under management, management and renewal services, and expansion into emerging business areas.

In 2023, 2024, and the first nine months of 2025, ICS Group’s revenue was approximately RMB 132 million, RMB 200 million, and RMB 210 million, respectively. Gross profit margins were 45.8%, 47%, and 46.6%, with net profits of about RMB 34.3 million, RMB 61.8 million, and RMB 65.9 million.

It’s noteworthy that as revenue grows, service costs also increase.

Service costs mainly include government fees, employee benefits, and professional service fees. During the reporting period, most service costs were government fees, which are set and periodically adjusted by authorities in the BVI and Cayman Islands, generally trending upward.

Summary of income statements and comprehensive income, from the prospectus.

The company’s growth is directly linked to China’s outbound investment and cross-border business scale, and its operations are highly sensitive to macroeconomic, regulatory, and political changes in the jurisdictions where it operates.

Due to foreign exchange controls and capital outflow restrictions, further tightening of these controls—such as stricter approval procedures for foreign investment activities and foreign exchange compliance—could weaken demand for the company’s core services.

Additionally, ICS Group’s operations are affected by evolving laws and regulations in offshore jurisdictions. Governments and regulators in these jurisdictions are increasingly enforcing stricter standards on anti-money laundering, tax transparency, and economic substance. Stricter global regulatory scrutiny and increased compliance burdens could raise operational costs and reduce client demand.

The company also faces reputational risks from improper client conduct or misuse of entities. ICS Group’s involvement in establishing and managing various companies and funds, which may involve complex cross-border arrangements, could be exploited for illegal purposes (such as fraud, money laundering, tax evasion, or sanctions evasion). Whether or not the company is aware or involved, such misuse could damage its reputation.

The competitive landscape in the professional services market is intense. ICS Group faces competition from large international players with stronger financial resources, broader global influence, and more established brands. Meanwhile, many local agencies benefit from lower operating and compliance costs, enabling price competition in basic services.

Currently, the market for Chinese outbound professional services is still dominated by international providers, but some domestic firms with deep understanding of Chinese clients’ needs and flexible responses are emerging rapidly.

Based on revenue from domestic clients, the top five Chinese outbound professional service providers in 2024 hold a combined market share of 36.9%. ICS Group ranks second with a 10.5% share and is the only domestic provider with a full licensing qualification.

Source: Prospectus

The market for USD fund administration services in China is relatively fragmented. In 2024, the CR5 (top five firms) accounted for 26.9% of revenue from USD fund administration services to domestic clients. The three largest international providers, leveraging extensive overseas networks and long-term strategic acquisitions, hold significant market shares. ICS Group ranks fourth with a 1.6% share.

Overall, amid the explosive growth in Chinese outbound demand, ICS Group has grown steadily by leveraging its full licensing and domestic expertise, establishing a position in the market. However, it faces challenges such as upstream supplier concentration, regulatory policy changes, and competition from international giants and low-cost local providers.