Huitongda Network Co., Ltd.: history, ownership, mission, how it works & makes money

Founded in 2010 to digitize and supply rural family-run retailers, Huitongda Network Co., Ltd. (listed on the Hong Kong Main Board in February 2022 under ticker 9878.HK) has grown into a vast retail ecosystem with over 248,000 member stores across 21 provinces and municipalities as of December 31, 2024, targeting roughly 250,000 stores and serving more than 300 million consumers; its business model blends direct sales, marketplace services, supply-chain and inventory solutions, and subscription-based SaaS+ offerings, while strategic moves in 2025-including an August AI collaboration with Alibaba Cloud and a November integration of DeepSeek generative AI-helped AI-related services account for over 20% of service revenue in H1 2025 and its self-owned brands deliver sales exceeding RMB80 million in that period (a 490% year-on-year increase), underscoring how Huitongda monetizes scale, data and tech to expand into new channels like hard discounts, instant retail and cross-border e-commerce as it advances its mission to drive rural digital transformation.

Huitongda Network Co., Ltd. (9878.HK) - Intro

• 2010 - Company founded to serve rural family-run retail stores with digital supply-chain services.
• February 2022 - Listed on the Main Board of the Hong Kong Stock Exchange (9878.HK).
• By December 31, 2024 - Retail ecosystem exceeded 248,000 member stores across 21 provinces and municipalities.
• August 2025 - Entered comprehensive AI collaboration with Alibaba Cloud to co-develop AI+ digital solutions for rural markets.
• November 2025 - Integrated its SaaS+ platform with DeepSeek (open-source generative AI) to boost operational efficiency for suburban and rural stores.
• As of December 18, 2025 - Continues expanding its digital ecosystem and AI capabilities to support rural retail development.

• Publicly listed entity: trades as 9878.HK on the HKEX since Feb 2022.
• Typical governance elements include board oversight, independent directors and disclosures in annual reports filed post-listing; ownership structure evolved post-IPO with institutional and retail holders.

• Retailer onboarding: enrolls family-run stores into a digital membership platform providing ordering, inventory, and merchandising tools.
• Demand aggregation: consolidates micro-orders from member stores to negotiate bulk procurement from manufacturers and distributors.
• Logistics & distribution: coordinates downstream delivery and inventory replenishment tailored to township-level operations.
• SaaS & digital services: provides store-management software, payment and credit facilitation, and localized marketing tools.
• AI integration: uses partnerships (Alibaba Cloud, DeepSeek) to introduce model-driven demand forecasting, automated merchandising suggestions and operational automation for store-level decisions.

• Trade margin: markup on products sold to member stores sourced through the platform.
• Commission and service fees: charging suppliers, brands and partners for access to the retailer network and promotional services.
• Logistics and fulfillment fees: revenue from distribution, warehousing and last-mile services.
• SaaS/subscription fees: platform subscription and value-added digital services sold to retailers and channel partners.
• Fintech income: interest, financing fees and transaction fees from credit and payment solutions to retailers.
• AI-enabled premium services: monetization of advanced analytics, demand forecasting, and generative-AI features to optimize store operations (post-2025 partnerships).

• Deepen AI capabilities across sourcing, inventory and store operations via Alibaba Cloud and DeepSeek collaboration.
• Expand SaaS+ offerings to increase recurring revenue and retailer stickiness.
• Enhance last-mile logistics and cost efficiency to serve more township- and village-level retailers.
• Broaden monetization of data and platform services while maintaining affordability for family-run stores.

Huitongda Network Co., Ltd. (9878.HK): History

• Public listing: Huitongda Network Co., Ltd. is publicly listed on the Hong Kong Stock Exchange under ticker 9878.HK.
• Incorporation & sector: Incorporated in the People's Republic of China; operates in technology and network services focused on rural/suburban retail digitalization.
• Retail footprint (Dec 31, 2024): Over 248,000 member stores across 21 provinces and municipalities in China.
• AI partnerships:
  • Aug 2025 - Comprehensive AI collaboration with Alibaba Cloud to co-develop AI+ digital solutions for rural markets.
  • Nov 2025 - SaaS+ platform integrated with DeepSeek (open-source generative AI) to boost operational efficiency of family-run retail stores.
• Strategic focus (as of Dec 18, 2025): Expanding digital ecosystem and AI capabilities to support rural retail businesses.

• Ownership structure highlights:
  • Public shareholders: Listed equity traded on HKEX under 9878.HK.
  • Corporate domicile: PRC-incorporated operating entity serving rural commerce via a network model.
• How Huitongda works:
  • Onboards family-run and small retail stores as member stores to form a distributed retail network.
  • Provides SaaS+ tools, procurement, POS/ERP integration, logistics coordination and digital marketing support.
  • Leverages partnerships (e.g., Alibaba Cloud, DeepSeek) to deliver AI-driven inventory, pricing, and customer-engagement solutions.
• How it makes money:
  • Transaction and service fees from member stores for SaaS, platform services, and value-added capabilities.
  • Marginal gains from aggregated procurement and logistics facilitation across the retail network.
  • Commercial partnerships and AI-enabled premium services for data/analytics and targeted marketing.

Huitongda Network Co., Ltd. (9878.HK): Ownership Structure

• Mission: Create a better life for rural people through stable, efficient supply chain solutions and SaaS+ services for family-owned retail stores.
• Core values: tech-driven efficiency, supply chain value creation, social responsibility, and building a niche digital ecosystem for stakeholders.
• Coverage goals: Empower ~250,000 member stores and serve over 300 million rural consumers.

• Supply chain platform: aggregates procurement for rural retailers to lower costs and improve availability of fast-moving consumer goods (FMCG).
• SaaS+ services: subscription and value-added services (inventory management, POS integration, marketing tools) to member stores.
• Logistics and warehousing: revenue from distribution, logistics fees and platform-enabled fulfillment.
• Transaction-related fees and margin on goods: earns margin on product sales and fees for platform transactions and promotional placements.

Huitongda Network Co., Ltd. (9878.HK): Mission and Values

• Scale and coverage: a digital ecosystem connecting over 248,000 member stores across 21 provinces and municipalities in China.
• One-stop supply chain solutions: centralized procurement, warehousing, logistics and category management to reduce SKU-level costs and inventory turnover days for member stores.
• SaaS+ services: subscription and transaction-based software tools (inventory management, ordering, promotions) that integrate with field operations and local distributors.
• AI integration: platform-level AI (including the DeepSeek analytics capability) that provides demand forecasting, personalized assortment recommendations and automated promotional optimization to improve sell-through for family-run retailers.
• Brand and manufacturer partnerships: coordinated programs with leading brands and high-quality manufacturers to expand availability of higher-margin fast-moving consumer goods (FMCG) and premium SKUs at the last mile.
• Data-driven services: monetization of behavioral, sales and inventory data to offer targeted marketing solutions, category insights and performance-based marketing for stakeholders.
• Channel and category expansion: active development of new product categories (e.g., fresh produce, personal care, instant food) and alternative distribution channels to match evolving rural consumer demand.

• Wholesale distribution margin: buying at scale from manufacturers and selling to member stores at a markup; leverage of centralized logistics to drive gross margin improvements.
• SaaS and service fees: recurring subscription or per-transaction fees for POS, inventory and ordering software, plus premium analytics or marketing modules.
• Platform transaction fees and promotional services: commissions and paid marketing from brands for in-store promotions, placement and data-driven campaigns.
• Value-added logistics and financing: logistics fee income and potential working capital / supply-chain financing solutions for partners and stores.

• AI-enabled efficiency: DeepSeek and allied AI modules analyze POS and inventory data to reduce stockouts, shrink promotional waste and recommend SKU rationalization for small-format stores.
• Data assets: aggregated transaction and consumer behavior data across 248,000+ outlets used to segment demand, identify fast-growing SKUs and tailor brand promotions.
• Product assortment play: collaborate with brands to introduce higher-margin and premium SKUs into rural channels while introducing private-label or exclusive SKUs that improve retailer margins.
• Channel innovation: pilot programs for fresh produce, cold chain items and omni-channel distribution (store pick-up, micro-fulfillment) to broaden consumer options and increase basket sizes.

• Brands and manufacturers: joint assortment planning, co-funded promotions and data-sharing agreements to accelerate penetration into suburban/rural markets.
• Local distributors and logistics partners: integrated logistics network to improve last-mile delivery efficiency and reduce lead times for member stores.
• Member stores: low-touch SaaS onboarding, training and incentive schemes to increase adoption and lifetime value of member outlets.

Huitongda Network Co., Ltd. (9878.HK): How It Works

• Marketplace & direct sales: provides an online marketplace where merchants (and Huitongda's self-owned brands) list products for sale to consumers and neighborhood stores; transaction fees, margin on direct sales and logistics-related fees generate revenue.
• SaaS+ subscription services: intelligent business and marketing SaaS tools are sold on subscription and transaction-fee models to member stores and brand partners.
• Merchant solutions: end-to-end services including supply chain management, inventory optimization, demand forecasting, in-store replenishment and localized marketing campaigns-billed as service fees or bundled into subscription plans.
• Self-owned brands: proprietary brands sold via Huitongda's channels, contributing retail margin and brand-level gross profit (sales exceeded RMB 80 million in H1 2025, +490% YoY).
• AI and advanced services: AI-driven pricing, assortment, demand forecasting and marketing automation-AI-related service revenue accounted for over 20% of total service revenue in H1 2025.
• Expansion initiatives: strategic moves into hard discounts, instant retail (fast delivery/eg. community instant retail) and cross-border e-commerce to diversify revenues and capture new customer segments.

Huitongda Network Co., Ltd. (9878.HK): How It Makes Money

• Network scale: over 248,000 member stores across 21 provinces and municipalities - a core asset for distribution and data-driven services.
• Strategic tech partnership: collaboration with Alibaba Cloud to co-develop AI+ digital solutions for rural markets, accelerating AI adoption in retail operations and supply chain optimization.
• Expansion roadmap: moving into hard-discount formats, instant retail and cross-border e-commerce to capture evolving rural consumption patterns and new margin pools.

• Distribution & procurement services: earning gross margin on product resale and procurement-facilitation fees from consumer packaged goods (CPG) suppliers.
• Value-added digital services: subscription and transaction fees for inventory management, CRM, payments, targeted promotions and logistics coordination driven by its digital ecosystem and AI tools.
• Advertising & platform income: promotional fees from brands for in-store and digital marketing access to the retailer network and shopper data.
• New channels & product categories: revenue from hard-discount assortments, instant retail fulfilment fees and commissions from cross-border e-commerce.

• Defensive reach: deep penetration in lower-tier and rural markets gives Huitongda structural advantages versus urban-focused competitors.
• AI & data moat: its comprehensive digital ecosystem and in-house AI capabilities position it at the forefront of AI adoption for retail-in-rural scenarios, improving assortment, demand forecasting and logistics efficiency.
• Partnership leverage: the Alibaba Cloud collaboration enhances product roadmap speed and scalability for AI+ solutions tailored to rural commerce.
• Category and channel expansion: planned moves into hard-discount, instant retail and cross-border e-commerce aim to diversify revenue mix and capture higher-margin services.
• Social & policy fit: operations dovetail with national priorities (Digital China, Rural Revitalization), supporting access to local partners and potential policy facilitation.
• Profitability path: management targets steady rises in gross profit margin and net profit margin to establish a basis for eventual dividend payouts and stable long-term investor returns.