The story of cross-border e-commerce has been told for ten years, and the market has always focused on platforms, sellers, and supply chains. But as the iron curtain of global regulation slowly fell, a hidden and rigid link surfaced — compliance.
On September 3, Shenzhen Eurotax Holdings Co., Ltd. (VATAI Holdings) officially submitted a statement to the Hong Kong Stock Exchange and began the IPO process. It brings not a new consumer brand, but a business that protects “China's overseas travel”: cross-border e-commerce compliance services.
This is a typical “water seller” circuit — when thousands of troops and horses flock overseas, it is often people who help people apply for visas, file taxes, and obtain certificates. What is special about Eurotax Connect is that it uses “AI Agent+ Agental Skills + API + RPA” to reconstitute a standardized and scalable platform.
To understand European Tax Connect, you must first understand the three underlying judgments: compliance is changing from a “cost item” to a “survival item”; going overseas is being upgraded from “store competition” to “product competition”; and technical services are replacing manual agents as the mainstream delivery form. Once these three trends are established, their investment value will have a fulcrum.
AI agents - the underlying logic of achieving 52.9% gross margin
According to Insight Consulting data, according to 2025 sales, Eurotax is the number one cross-border e-commerce compliance service provider in the world and mainland China; the market share of China's cross-border compliance platforms reached 21.5%, with sales exceeding the second to eighth place combined; as of June 30, 2026, it has served more than 264,000 paying users. Up to now, the company has accumulated services covering 121 countries and regions around the world.
Unlike the traditional model where intermediaries rely on human resources, Eurotax Connect uses a cross-border compliance platform business model to deliver verifiable compliance business results to customers, and has embarked on a growth path where technology, commerce, and industry resonate.
The traditional cross-border compliance industry has long relied on offline manual agents, and is highly dependent on the individual experience of practitioners. The process is black boxed, the delivery cycle is long, and the cost is uncontrollable. The seller's procurement is only an “agency process”, but the final compliance results cannot be guaranteed.
With the underlying technology foundation of “AI Agent+Agentic Skills+API+RPA”, European Tax Connect reshapes the industry service paradigm, opens up official interfaces with multinational tax offices, trademark offices, environmental protection agencies, and e-commerce platforms, disassembles scattered and complex multinational compliance rules into standardized product modules, and automates mass reporting, data verification, and risk screening tasks.
In terms of business layout, Eurotax has built seven major business platforms and a complete matrix of four core business segments: covering corporate fiscal compliance, environmental compliance, product inspection and certification, and intellectual property protection, and fully covering the compliance requirements of cross-border sellers throughout the life cycle of going overseas.
The verification of the financial content of Eurotax Connect's technology base is reflected in three “firsts”: the world's first full-stack cross-border compliance cloud platform, the world's first AI-driven compliance inspection tool, and China's first cross-border compliance AI agent “Little O” launched in August 2026.
AI doesn't tell stories; it has solid data to back it up.
According to the prospectus, Eurotax's AI-enabled material review process has processed 22,520 service orders, accounting for 97% of similar orders, with an accuracy rate of more than 95%; VAT and EPR service orders per capita increased 77% year over year; Eurotax's OCR engine serves all seven major brands, increasing document processing efficiency by about 80% and reducing manual data input costs by about 70%. This enterprise-level smart network is the root cause of Eurotax Connect's ability to maintain high revenue growth while stabilizing gross margin at 52.9% — compliance services have changed from “manpower tactics” to “AI leverage.”
The three-year compound revenue growth rate is about 48%
Investors ultimately look at numbers. European tax's financial performance over the past three years is the most persuasive section of this A1 form.
According to the prospectus, Eurotax Connect's revenue in 2024 was 350.5 million yuan, up 45.8% year on year; in 2025, revenue further increased by 50.8% to 528.5 million yuan, with strong growth momentum. In 2025, the company's adjusted net profit exceeded 100 million. The adjusted net profit margin was 19.3%, and the gross margin remained stable above 52% for a long time.
Looking at the breakdown, the three-year revenue compound growth rate was about 48%. The adjusted net profit exceeded 100 million yuan in 2025, yet the gross margin stabilized at 52.5% — 53.2% for three years — this is extremely rare in To-B services, which directly confirms that the operating leverage brought by “technology instead of labor” is being realized.
The profit quality was also solid: net cash inflow from operating activities in 2025 was 269 million yuan, higher than net profit for the same period.
There is more intuitive evidence for the “flywheel effect.” The net revenue retention rate (NDR) climbed all the way from 104% in 2023 to 126% in 2025, which is significantly higher than the industry average — not only are old customers not leaving, but are also continuing to buy more. ARR increased 49.5% year-on-year in 2025, and the cumulative number of paying users increased from 87,000 in 2023 to 246,000 in 2025, while the top five customers accounted for only 2.8% of revenue, and the concentration was extremely low.
In terms of business structure, the share of environmental compliance (EPR, carbon compliance) revenue rose from 39.5% to 44.5%, becoming the largest business line, confirming the outbreak of new demand for “green compliance”; the share of product testing and certification rose from 7.1% to 13.7%. More than 83% of revenue in 2025 comes from European-related compliant products, which are highly consistent with the world's most heavily regulated markets — both an advantage and a hint of room for imagination for expansion in America and Asia.
epilogue
The essence of investing in Eurotax Connect is to bet on a simple proposition: the deeper globalization, the more complex compliance; the more complex compliance, the more standardized and intelligent infrastructure is needed.
It turns the most uncontrollable parts of cross-border trade — tax differences, rule changes, certification processes, intellectual property — into measurable, manageable, and subscriptable cost items. Legal mandates and system-level interfaces form a natural barrier. AI and data assets make this wall taller and higher, and the 126% retention rate proves that customers are willing to stay for a long time. On the stage of the Hong Kong Stock Exchange, being on a policy-driven, anti-cyclical circuit like this, it is already rare for a global leader and a solid financial target.
Going out to sea is never a path without wind and waves. But when the tide hits the world, the most worthwhile thing to own is often the one who calibrates the compass and processes customs clearance documents for everyone. The listing of Eurotax Connect gave the capital market the first opportunity to carefully examine this business of “turning uncertainty into determining income.”