In-Depth Analysis Report on the Core Competitiveness of LEO Group's Digital Marketing 2.0

LEO Group Co., Ltd. is a leading Chinese listed company with two core businesses: “machinery manufacturing + digital marketing”, with stock code 002131.SZ, and is currently advancing its Hong Kong stock listing application[1][2]. The company’s predecessor was LEO Group founded in 1995, listed on the Shenzhen Stock Exchange in 2007, and is a large private enterprise group in Zhejiang Province, ranked among the Top 500 Chinese Manufacturing Enterprises[3][4].

The main entity of the company’s digital marketing business is LEO Digital Network. Since 2014, it has gradually built a complete digital marketing ecosystem through a series of strategic acquisitions. After more than a decade of in-depth development, LEO Digital Network has grown into one of the most potential and commercially valuable digital marketing groups in China[5][6].

is positioned as an , adopting an integrated “Brand-Effect-Sales” full-link service model to connect the business ecosystem of all marketing links[7][8]. This model consists of two business groups: the Integrated Marketing Business Group and the Media Agency Business Group. The former focuses on strategy, creativity, and integrated communication, while the latter specializes in media resource placement and effect optimization. The two collaborate to form a complete marketing closed loop[9][10].

The technological advantages of LEO Group’s Digital Marketing 2.0 lie in the complete establishment of a four-layer technology product system:

[11][12]. The company is one of the early domestic enterprises to deploy AI in digital marketing applications, and has built an industry-leading AI technology barrier:

• AIGC Ecological Platform “LEOAIAD”
  : An industry-wide AIGC content production platform covering full-link functions such as inspiration collection, content generation, and automated review[13][14]
• Marketing Domain Large Model “Leo Guiyi”
  : An AI optimizer for the entire marketing industry, realizing deep integration of human wisdom and AI technology through the “Dual Optimizer Paradigm”[15][16]
• Full-Link AI Agent Matrix
  : Covers four categories: strategy agents, creative agents, placement agents, and operation agents, with more than 100 agent tools and workflows[17][18]
• “Pangu Engine” Intelligent Placement Tool
  : An MCP application built exclusively for programmatic advertising scenarios, realizing seamless connection between AI agents and advertising tool ecosystems[19][20]

In 2025, LEO Digital launched the industry’s first , which is the first domestic programmatic advertising tool fully supporting the MCP protocol. It provides full-link, standardized system connection capabilities for large language models and AI Agents, successfully realizing deep connection between LEO Digital’s internal systems and external AI ecosystems[21][22]. This service includes three core systems: identity authentication and security system, programmatic advertising intelligent hub, and enterprise system integration engine, promoting the AI transformation of the programmatic advertising market[23][24].

LEO Digital has a

, covering all traffic entry points such as information flow, search, mobile terminals, video, and portals, supporting one-click cross-platform publishing for customers[25][26]:

Media Platform	Cooperation Level
ByteDance	Core Agent
Kuaishou	Core Agent
Tencent	Core Agent
Baidu	Core Agent
360	Core Agent

The company has achieved full coverage of agency services for advertising platforms of five major domestic mobile phone manufacturers: , providing a priority implementation environment for AI productized placement with front-line traffic and terminal-side access[27][28].

On Xiaohongshu, LEO Digital was awarded the “2024 Xiaohongshu Commercialization Integrated Marketing Agency” and “2024 Xiaohongshu Commercialization Automotive Industry Agency” licenses. In 2024, it became the top-ranked agency in Xiaohongshu’s automotive industry, with a [29][30].

With more than a decade of operational accumulation in the digital marketing field, LEO Digital has accumulated a

[31][32]:

• Automotive Industry
  : Covers various headline automotive brands, including Volvo, Chery Automobile, etc., building core competitive advantages in the vertical automotive marketing field[33][34]
• Fast-Moving Consumer Goods (FMCG) Industry
  : Serves headline FMCG brands such as Tsingtao Brewery[35][36]
• Internet Services Industry
  : Has built a complete group of internet service clients[37]
• Gaming Industry
  : Has accumulated a large number of high-quality customer resources in the gaming field[38]

Through self-developed AI tools and data algorithms, the company integrates AI into the entire marketing link, providing customers with one-stop solutions from brand communication to effect conversion, forming a

[39][40]. This deeply adaptive service model not only increases customer dependence on LEO, but also significantly enhances customer stickiness.

According to Frost & Sullivan data,

[41][42]. The company has maintained its position as a leader in the domestic digital marketing industry for many consecutive years, and has received multiple authoritative industry certifications:

Honor/Certification	Issuing Body	Year
First in Revenue Scale in China’s Digital Marketing Market	Frost & Sullivan	2024
First in Market Share in Digital Advertising Agency Market (8.72%)	Frost & Sullivan	2024
Top of the 2024 Digital Marketing Company Ranking	Internet Weekly (Chinese Academy of Sciences)	2024
“2024 AI Innovation Company”	Authoritative Industry Institution	2024
Campaign Asia’s “2023 Best Digital Media Innovation Company”	Campaign Asia	2023

As a

, LEO Digital actively participates in promoting the standardization of industry AI applications[43][44]:

• China’s First AIGC Technology Advertising Standard
  : In January 2025, Internet Advertising - Guidelines for Metadata Management of Creative Materials Based on Generative Artificial Intelligence (Standard No.: T/CAAAD 014–2024, T/CCSA 281–2023) was officially implemented. This is China’s first recommended standard for AIGC technology in the field of advertising creative material management. LEO Digital put forward proposals and led the drafting of the standard as the head of the writing group[45][46]
• Programmatic Advertising MCP Service End Security Standard
  : Jointly initiated the standard project Requirements for Permission Control and Security Verification of Model Context Protocol (MCP) Service End for Programmatic Advertising Trading Systems with the China Advertising Association and the China Academy of Information and Communications Technology, filling the gap in special security standards for context protocol service end tools in the programmatic advertising field[47][48]

LEO’s “AI Creative Factory”, upgraded with MCP as its infrastructure, was successfully , demonstrating LEO Digital’s leading position in the forefront of AI marketing technology exploration[49][50].

LEO Digital provides a complete service chain covering

, etc.[51][52]:

: Deeply engages in customers’ businesses, starting from customer needs, to provide customized solutions covering brand consulting, creative communication, media reach, and sales conversion[53][54]

: Has built full-link service capabilities from media strategy, media resources, media creativity, to media placement for two customer groups: internet services and games[55][56]

LEO Group has built a

around core links such as strategy formulation, creative production, placement, and operation, realizing intelligent upgrade of the entire marketing link[57][58]:

AI Coverage Across the Entire Marketing Link
├── Demand Insight → AI Intelligent Analysis of User Portraits
├── Content Creation → Batch Production via AIGC Platform
├── Ad Placement → AI Optimizer Intelligent Optimization
├── Post-Placement Optimization → Real-Time Data Monitoring and Adjustment
└── Customer Service Response → AI Intelligent Customer Service System

With the in-depth empowerment of AI agents, LEO Digital has achieved significant efficiency improvements:

Efficiency Indicator	Improvement Range
Information Flow Ad Placement Optimization Efficiency	Increased from 1.75 million operations per person to approximately 2.95 million operations per person (+68.6%)
AI Ad Optimizer Operation Efficiency	Approximately 15-fold improvement
Labor Efficiency in Creation Scenarios	6 to 30-fold improvement
Programmatic Trading System Operation Speed	Over 1,200 operations per second
Human-Machine Coupling Operation Efficiency of Optimizers During Peak Periods	Exceeding 2 million operations per day
Content Availability Rate	Over 90%
Production Cost	Reduced by 70%

LEO Digital’s

is a generative creative system operated by multiple self-developed agents, covering the full link from inspiration collection, content generation, to automated review[59][60]. This system has achieved large-scale commercial implementation in multiple industries such as automotive, finance, and e-commerce, becoming a benchmark for large-scale application of AI technology in the marketing field[61][62].

The revenue scale of LEO Group’s digital marketing business maintains a steady growth trend:

Year	Digital Marketing Business Revenue	Year-on-Year Growth
2022	Approximately RMB 15.931 billion	—
2023	Approximately RMB 16.514 billion	+3.7%
2024	Approximately RMB 18.8 billion	+13.8%
First Half of 2025	RMB 7.477 billion	—

In the first half of 2025, LEO Group achieved operating revenue of RMB 9.635 billion, of which the digital marketing business contributed

, accounting for approximately 77.6%[63][64]. The company achieved net profit attributable to shareholders of RMB 478 million, a , successfully turning losses into profits[65][66].

• Gross Profit Margin: 8.78%, a year-on-year increase of 5.18 percentage points
• Net Profit Margin: 4.84%, a year-on-year increase of 167.88 percentage points
• Net Operating Cash Flow: RMB 205 million, turning from negative to positive compared to the same period last year

In the first half of 2025, LEO Digital focused on the collaborative efforts of the two business groups: media agency and integrated marketing, with

as the core, continuously deepening its full-link marketing service capabilities[67][68]:

• Media Agency Business
  : Continuously consolidated strategic cooperative relationships with mainstream media platforms such as ByteDance, Kuaishou, Tencent, Baidu, and 360
• Integrated Marketing Business
  : Focused on “differentiated scenario construction”, jointed high-quality resource providers to create exclusive marketing solutions that fit industry characteristics, with a focus on serving two core industries: automotive and FMCG

LEO Group has successfully built a

[69][70]:

Positive Ecological Cycle
High-Stickiness Customers → Stable Traffic and High-Quality Conversion → Deepened Cooperation with Headline Media
    ↑                                      ↓
    ←←←←←←←← Win-Win Collaborative Model ←←←←←←←←←←←

This ecological synergy model has continuously injected impetus into the large-scale growth of the digital marketing segment[71][72]:

• High-stickiness customers bring stable traffic and high-quality conversion to LEO in reverse
• Deepens LEO’s cooperation with headline media platforms
• Forms a win-win collaborative model with media
• Further strengthens LEO’s unshakable advantageous position in the media ecosystem

LEO Digital will continue to take AI as its core driving force, and deepen its development around the following directions:

• Continuously iterate the capabilities of the “Leo Guiyi” marketing large model
• Expand the coverage of the AI agent tool matrix
• Deepen AI cooperation with headline media platforms
• Promote the replication and application of AI technology in more industry customers

LEO Group is advancing its Hong Kong stock listing, aiming to:

• Deepen its global strategy
• Enhance overseas financing capabilities
• Improve its international brand image
• Lay a foundation for the overseas expansion of its AI digital marketing business

As a scarce “AI + Manufacturing” dual-core business leader in the Hong Kong stock market, LEO Group is expected to continue to exert efforts in the following areas:

• AI Digital Marketing: Continuously consolidate its industry leading position and expand market share
• AI Intelligent Manufacturing: Achieve breakthroughs in emerging fields such as data center liquid cooling pumps and nuclear power pumps
• Cross-Field Synergy: Leverage the synergistic advantages of the two core businesses to create value where “1+1>2”

The core competitiveness of LEO Group’s Digital Marketing 2.0 can be summarized as

:

1. AI Technology Advantages
   : Full-link AI agent matrix, industry-leading four-layer technology product system
2. Media Resource Advantages
   : Omnichannel media resource coverage, headline media core agency qualifications
3. Customer Resource Advantages
   : Deep binding with headline clients, high-stickiness customer ecosystem
4. Market Position Advantages
   : First in revenue scale in China’s digital marketing market
5. Innovation Capability Advantages
   : Industry standard setter, benchmark for AI innovation cases
6. Scale Advantages
   : Complete full-link service capability, synergistic effect of two business groups

The positive ecological cycle of “Customer — LEO — Media” tripartite linkage, realizing sustainable large-scale growth.

Through the deep integration of technological innovation and resource integration, LEO Group’s Digital Marketing 2.0 has built a strong competitive barrier, seized a first-mover advantage in the AI-driven new era of digital marketing, and is expected to continue leading the development of the industry.

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[1] LEO Group Pursues the “First Stock of AI Digital Marketing + AI Intelligent Manufacturing” - Sina Finance

[2] Investment Value Research Report on LEO Group (LEOGroup) - Caifuhao

[3] LEO Group: Net Profit Attributable to Shareholders Increases by 164% to Turn Losses into Profits, AI Innovation Strengthens Dual-Business Competitiveness - Securities Times

[4] LEO Group Co., Ltd. - HKEX Announcement

[5] In-Depth Research Report on LEO Group (002131) - East Money

[6] LEO Group: LEO Digital Again Participates in Leading the Standard Project of AI Marketing, Continuously Leading Industry Development - Securities Times

[7] LEO’s Chairman Leads the Way, LEO Digital Breaks Through with Full-Link AI, Consolidating Its Leading Position in Digital Marketing - Jiemian News

[8] 2025 H1 Financial Reports of BlueFocus, Focus Media, Gravity Media, LEO Group, and Provincial Advertising Group - MarTech Ecology

[9] Comprehensive Comparison of Listed Companies in the Digital Marketing Industry in 2025 - Forward-looking Industry Research Institute

[10] 2025 Q1 Financial Reports of Gravity Media, LEO Group, and Provincial Advertising Group: Who Earned the Least?

[11] Full Sorting of AI Concepts_Leo Group (002131) Stock Bar - East Money

[12] Business - HKEXnews