US IPO Outlook | AM PM Group: Can the IPO be used to complete a closed loop of collaboration between the three sectors with an increase of more than 20% in net revenue and profit?
After almost a year of filing, AM PMGroup's $34 million IPO appeared particularly absurd against the backdrop of a general reduction in insurance prices for small, medium, and Chinese securities going to the US during the same period, and even abandoning the filing due to an increase in fund-raising thresholds.
According to the Zhitong Finance App, AM PM Group submitted its statement to the SEC as early as August 18, 2025. When the Hong Kong marketing company first submitted a prospectus, it planned to issue only 1.5 million shares and raise 7 million US dollars, corresponding to a market value of about 120 million US dollars based on the median value. Nearly a year later, the plan suddenly changed to 7.5 million shares, raised about 34 million US dollars, and the distribution scale quadrupled, but the valuation declined slightly.
Looking at the coordinates of the Hong Kong marketing industry, the timing was just right. In 2025, Hong Kong's total advertising expenditure was HK$33.9 billion, down 3% year on year, but rebounded 5% in the fourth quarter, and the market showed signs of stabilization at the end of the year. More critical structural changes are taking place within the racetrack: social media advertising spending bucked the trend by 15%, IP-themed campaigns are viewed by retailers as a core means to break through offline, and the transformation of the “fan economy” into physical traffic is becoming a new source of added value for marketing services. The traditional project-based advertising market hasn't grown larger, but IP exhibitions, content production, and experiential marketing are cutting back on the incremental volume. AM PM packages “activity+content+IP” into the same narrative, targeting this gap in the industry, which is currently dividing.
Behind the double growth in performance
AM PM Group was founded in 2009. The company's business mainly focuses on three areas: event management and arrangement, content production and design, and IP exhibitions.
In terms of performance, AM PM Group handed over a steady double increase questionnaire in fiscal year 2025: achieved revenue of US$12.073 million, an increase of 36.5% year on year; net profit of US$95.11 million, up 24.0% year on year.
Let's take a look at disassembling the revenue structure. Revenue growth in 2025 was mainly driven by the event management and decoration sector, which jumped from $4.262 million to $10.53 million, accounting for 83.6% of total revenue. At the same time, the company strategically focused on its business portfolio based on the market environment, concentrating resources on early execution of offline activities, while the content production and design sector maintained a relatively stable basic market, falling slightly by 3.7% to US$1,964 million.
In the process of rapid scale expansion, the company's overall gross margin remained at a steady level of 28.75%, which is basically the same as 28.88% in 2024. Specifically, in the event management sector, although during the period of scale expansion, the gross margin of this sector was adjusted from 36.4% to 29.6% in order to seek large-scale projects, this is essentially a strategic choice for the company to exchange moderate profits for market share and scale effects when dealing with large customers; overall net profit still achieved a steady increase of 24%.
It is worth noting that the company has shown strong refined management capabilities in terms of cost control and operational efficiency. In 2025, the company's operating revenue reached US$1.621 million, an increase of nearly 60% over the previous year. This was mainly due to significant optimization of sales and marketing expenses, which fell from $103,000 to $42,000.
Furthermore, judging from the cash flow statement, the company's operating cash flow continues to improve. Net cash flow from operating activities in 2025 was -3241,000 US dollars, which is significantly narrower than 2024's - 1921,000 US dollars. Cash flow management results are remarkable. This confirms from the side that the true hematopoietic capacity of the company's main business is being quickly repaired.
Focusing on core scenarios, offline experience marketing becomes the “main force” to break through
Zhitong Finance App believes that what is most worthy of market attention in AM PM Group's prospectus is the change in its business structure.
The IP exhibition business, which contributed 2.504 million US dollars in revenue in 2024, underwent a phased contraction in 2025; content production and design remained stable at around $1,964,000; while the event management and decoration sector ushered in a full-scale explosion, soaring from $4.262,000 to $1.0052 million, accounting for 83.7% of total revenue.
Looking at the current marketing industry in Hong Kong, this shift in business focus is in line with the industry's development trend. In 2025, the total advertising expenditure in Hong Kong was about HK$33.9 billion. Although the overall market did not increase significantly, the structure was drastically divided. As the government vigorously promotes the event economy and various large-scale exhibitions, concerts, and shopping mall festivals proliferate, offline experiential marketing is becoming the core means for brands to break through. Faced with this huge incremental market, AM PM Group focused its resources on the most demanding and deterministic event management and decoration process. By undertaking large-scale projects on a large scale, the company not only achieved revenue growth, but also accumulated rich resources from leading customers and rich practical experience.
According to the market, this “single engine strong drive” model has provided solid support for the company's development at this stage. According to the prospectus, the surge in event business in 2025 was mainly due to undertaking larger concert-related projects. Currently, large-scale project revenue has the characteristics of large single transactions and strong brand effects. The successful operation of such heavyweight activities has not only verified the company's strong coordination and implementation capabilities, but also built a very high credit endorsement for its subsequent expansion into other businesses.
As far as the long-term development of the company is concerned, content production, IP exhibition and event management originally have strong potential for collaboration. Once the event management sector establishes a stable infrastructure through scale, in the future, the company will be fully capable of relying on this huge offline traffic pool and customer network to reverse empower and restart high-value-added IP and content businesses, thus achieving a closed loop of collaboration between the three major sectors.
It is worth mentioning that AM PM Group's phased adjustments to the business structure are also reflected in the company's financing use for its current US IPO. The company plans to raise about 34 million US dollars. According to the capital use plan, 30% will be used to expand content production and talent recruitment, 20% will be used for geographical coverage to expand the customer base, and 20% will be used for strategic acquisitions. This set of allocations reflects the company's strategic vision: using external funding, on the one hand, to replicate existing superior activity management business geographically to maintain growth, and on the other hand, to provide sufficient ammunition to restart content and IP narratives.