Key dates:
Public sale deadline: November 9, 2017 at 12:00 p.m.
Public Notice Application Results: 2017/11/15
Listing date: November 16, 2017
Joint insurance recommender:
Citigroup Global Financial Asia Limited
Credit Suisse (Hong Kong) Limited
Statistical data summary:
Number of shares offered globally: 878,680,000 shares Percentage of shares offered in Hong Kong: 10%
Offer Price: HK$6.60 to HK$7.70
Estimated amount raised: $5.799 billion to HK$6.766 billion
Admission fee per hand: HK$3,888.79
Group Overview
According to Frost & Sullivan's report, based on the number and price of automobile retail transactions in 2016, the Group is the largest Internet automobile retail trading platform in China. For the full year ending December 31, 2016, the group contributed to the total value of automobiles involved in automobile retail exchanges exceeding RMB 18 billion.
The business of group management is divided into two major divisions: (i) the trading platform business, which mainly includes facilitating consumer car purchase transactions and providing advertising and membership services for car manufacturers, auto dealers, auto financing partners and insurance companies; and (ii) self-financing business, which mainly provides automobile financing solutions to consumers through loan leases and operating leases.
Industry Overview
China's Internet automobile retail trading market has developed rapidly since 2012. According to Frost & Sullivan's report, the compound annual growth rate of car retail transactions on the Internet from 2012 to 2016 was 60.3%. The projected compound annual growth rate from 2016 to 2021 will be 39.2%. In line with this trend, the compound annual growth rate of Internet automobile retail transactions from 2012 to 2016 was 65.5%. The transaction amount is expected to reach 568.1 billion yuan in 2021, and the compound annual growth rate from 2016 to 2021 will be 41.3%.
risk
valuations
The group's business history is limited, especially since it operated as an independent company for a short period of time. With limited operating history and rapid development of business models, past growth rates may not necessarily represent the future expression of the group. Furthermore, the Group's business focus continues to expand and adjust. In 2014 and 2015, the Group's growth was mainly driven by advertising and membership services. In 2015, the Group launched its own financing business and quickly became the main source of revenue. The group's business may continue to change in the future, making it difficult to evaluate the group's business by comparing the operating performance of each period.
Based on the prospectus, assuming that the global offering was completed on June 30, 2017, 6,276,322,474 shares will be issued as expected after the close share sale is completed, equivalent to a net value range of HK$2.27 to HK$2.42 per share adjusted for unaudited notes (converted at the exchange rate of RMB 1.00 to HK$1.1738).
