Miduoduo Group Inc. has applied for a Hong Kong listing, aiming to capitalize on a strategic pivot towards outbound e-commerce and social media platforms despite reporting three years of losses. The company, a provider of cross-border e-commerce marketing services, attributes its recent financial performance to a growing partnership with TikTok and a focus on Southeast Asian markets. This shift is intended to position the firm as a high-tech operator rather than a traditional ad services provider.

The company reported a net loss of $16.4 million in 2023, $163,000 in 2024, and $24.5 million in 2025. Over the same period, revenue grew from $70.9 million to $71.1 million, reaching $138.1 million in 2025. On an adjusted basis, excluding certain non-cash items, the company reported a net profit of $59,000 in 2023, a loss of $87,000 in 2024, and a profit of $2.3 million in 2025. The filing comes after rule changes in 2018 that removed the Hong Kong Stock Exchange's previous requirement for two years of profitability before an IPO.

Financial Performance

Miduoduo's revenue surge in 2025 was driven primarily by its relationship with TikTok, which began in 2024. Revenue from services provided through TikTok increased from $9.7 million in 2024 to $38.9 million in 2025. Consequently, TikTok's share of total revenue rose from 0.2% in 2023 to 30.3% in 2025. This shift helped improve the company's gross margin from 4.1% in 2023 to 8.6% in 2025, with gross profit increasing from $2.9 million to $11.8 million over the same period.

Strategic Shifts and Market Position

The company is evolving from a domestically focused ad services provider to an integrated operator of cross-border online selling services. It plans to use IPO proceeds to fund localization and e-commerce warehouses in Thailand, Indonesia, Vietnam, and Malaysia. In 2025, the company's own direct overseas e-commerce operations, conducted via TikTok Shop, contributed revenue of $4.2 million with a gross margin of 72.1%. This business sold products to consumers in the U.S., Malaysia, Thailand, and Vietnam.

Miduoduo ranks fifth in China's outbound e-commerce marketing services market with a 0.5% share, while Guangdong Advertising Group leads with 17.2%. The company's backers include sovereign wealth fund Central Huijin Investment, whose funding last year valued Miduoduo at HK$5 billion ($638 million). The company faces headwinds from regulatory changes in the U.S. and Europe regarding tariff waivers for low-value parcels, prompting its strategic focus on Southeast Asia.