Source: Securities Times

Author: Zhong Tian

vending machine operator$UBOX ONLINE (02429.HK)$The stock offering ended on October 27 and will be listed on the main board of the Hong Kong Stock Exchange on November 3. At that time, it will become the “first unmanned retail stock of Hong Kong stocks”. Youbao Online was listed on the new third board in February 2016, then delisted in March 2019, and then began sprinting into the Hong Kong Stock Exchange.

Recently, the Hong Kong stock IPO market has shown signs of recovery, and many institutions predict that the Hong Kong stock IPO market is expected to return to the top five positions in the world by the end of the year. In this context, new developments have also been reported frequently for companies delisted from the New Third Board, which are impacting the listing of Hong Kong stocks. Among them, Happy Meeting will launch a IPO next Monday. Brand Family plans to delist from the New Third Board and may launch a Hong Kong stock listing. E-Sou Technology, US-China Jiahe, and Ping Pong Sing are still waiting.

Youbao Online will be launched on November 3

According to the schedule, Youbao Online will offer shares from October 24 to October 27, and is expected to be listed on the Hong Kong Stock Exchange on November 3. Youbao plans to issue 22.5765 million shares in this IPO. Of these, 2,258,000 shares were publicly sold in Hong Kong and 20.318,500 shares were sold internationally. The issuance range is HK$9.4 to HK$11.4 per share.

According to Youbao Online's prospectus documents, about 80.0% of the IPO proceeds will be used to expand the coverage and penetration rate of the network of points. It is planned to increase the number of points in different consumption scenarios such as schools, factories, restaurants, offices, public places and other high-quality places in the first-tier, first-tier, second-tier and third-tier cities in mainland China; about 5.0% will be used to further develop operational capacity and enhance warehousing and/or logistics management capabilities through the construction and upgrading of warehousing and/or logistics systems across mainland China; about 7.0% will be used to further develop R&D capabilities and enhance operating systems and vending systems in mainland China Machine technology; and about 8.0% for working capital and other general corporate purposes.

It is worth mentioning that Youbao Online has introduced 4 core investors in its IPO. Among them, Nai Xue's Tea (02150.HK) subscribed for about HK$61.91 million (including transaction commission fees, etc.), Shang Tang (00020.HK) subscribed for about HK$27.22 million through SensePower, Wei Jinbing subscribed for about HK$15.63 million, and Melaka Internet Technology subscribed for HK$10.78 million of shares (including transaction commission fees, etc.). Previously, Youbao Online had received investment from institutions such as Ant Group, Chunhua Capital, CCB International, Guoxin Energy Fund, and Haier Group in the primary market. Ant Group made two rounds of strategic investment in Youbao Online in 2018 and 2019. In 2019 alone, it led the investment of 1.6 billion yuan in Youbao Online's financing. Before the IPO, Ant Group held 16.68% of Youbao's shares, making it the largest external investor.

Youbao Online is the largest unmanned retail dealer in mainland China. As of June 30, 2023, the company has more than 61,888 vending machine locations in 28 provincial administrative districts and 157 cities across the country, of which 87.3% are concentrated in Tier 1, New Tier 1, and Tier 2 cities. As of June 30, 2023, the cumulative number of identifiable transaction users is about 355 million, and about 5.4 billion transactions have been completed. According to Frost & Sullivan, based on total product sales in 2022, Youbao Online accounted for 7.4% of the market share of the vending machine operator industry in mainland China. From 2019 to 2022, Youbao Online ranked first in the unmanned retail industry in mainland China from 2019 to 2022.

In terms of operating networks. As of June 30, 2023, Youbao Online has operated 106 warehouses and 212 sorting centers, and has carried out strategic cooperation with 13 well-known international FMCG brands. As of the same date, the company's fleet had 372 owned vehicles and around 900 operators. In 2021, the company used existing warehouses to launch shared warehouse services, and used the “small warehouse” model with high density and low inventory to provide commodity wholesale customers with more efficient and flexible services to help them reduce storage costs.

In terms of performance, the prospectus shows that in 2020, 2021, 2022 and the first half of 2023, Youbao Online generated net losses of 1,184 million yuan, 188 million yuan, 283 million yuan and 147 million yuan respectively, with a net loss of 1,802 million yuan over three and a half years.

Happy to start offering shares next Monday

After Youbao ended its stock offering online,$XXF GROUP (810192.HK)$A listing press conference will be held on October 27, and stock placement will begin next Monday (October 30).

Xixiangfeng is a well-known automobile retailer that mainly provides automobile financial leasing services through its own sales outlets in China. Its main business includes automobile retail and financing, selling most non-luxury cars through direct financial leasing, as well as automobile-related businesses, mainly providing car management and leasing services and other automobile-related services. The company has established an extensive sales network, and sales outlets are mainly located in second-tier cities, third-tier cities and below in China. As of October 20, 2023, the company operated 77 sales outlets in 25 provinces and municipalities directly under the Central Government in China.

Huang Wei, founder, chairman of the board and CEO of Xixiangfeng, is the controlling shareholder of the company. Pearl Capital, Precious Luck, Happy Gain, and Southern Fortune controlled by Huang Wei collectively hold about 31.18% of the company's issued share capital. Didi Chuxing holds 6.83% of the shares through Hit Drive.

According to the Insight Advisory Report, in terms of direct financial leasing transaction volume, Happy Day ranked fourth and had a market share of about 4.1% in China in 2022. In terms of the retail car finance leasing transaction volume (including direct financial leasing and after-sales leaseback) of all retail car finance leasing companies, the company ranked 19th and had a market share of about 0.7% in China in 2022.

Happy Love was listed on the New Third Board in December 2015, then delisted in December 2016. After being delisted, Happy Encounter has submitted to the Hong Kong Stock Exchange seven times since 2019, and the first six submissions failed. It finally passed the Hong Kong Stock Exchange hearing on October 25, 2023. According to the China Securities Regulatory Commission's filing notice, Xixiangfeng Group has issued no more than 137.5 million shares of common stock at most.

In terms of performance, from 2020 to 2022, Happy Fun realized revenue of about 750 million yuan, 1,171 billion yuan, and 1,142 million yuan respectively; in the same period, realized profit of about RMB 10.253 million, RMB 306.87 million, and RMB 77.082 million, respectively.

On October 11, Brand Family, a well-known company on the New Third Board, issued the “Indicative Notice on Intent to Apply for Termination of the Listing of Company Shares in the National SME Share Transfer System”, stating that according to the company's strategic development needs, in order to maximize the interests of the company and all shareholders, it intends to apply for the termination of the listing of the company's shares in the national SME share transfer system. Industry insiders believe that after Premium Family is delisted from the New Third Board, it may launch plans to go public on the main board of the Hong Kong Stock Exchange. Brand Family's financial data for the past three years has met the conditions for listing on the main board of the Hong Kong Stock Exchange. If Brand Family is listed on the main board of the Hong Kong Stock Exchange in the future, it will receive more financing channels, which will help support the company's expansion and development plans.

Premium Family is an enterprise specializing in the construction and operation of alcohol chain terminals. Based on alcohol wholesale business, with franchise as the main model, it cooperates with well-known domestic and foreign wine companies and wineries, including Maotai, Wuliangye, Luzhou Laojiao, Guotai, Renhuai Sauce Group, Swan House, etc., to operate a series of imported wines in original bottles such as Royal France, Australia, Australia, Poland, and Spain's Lusha. The products cover famous liquor, wine, brandy, rice wine, imported beer, etc., and successfully listed in 2016.

From 2020 to 2022, Premium Family's operating income was 1.02 billion yuan, 1.34 billion yuan, and 1.05 billion yuan respectively; net profit after deduction was 79 million yuan, 120 million yuan, and 85 million yuan respectively. In the first half of this year, the company achieved operating income of 630 million yuan and net profit after deducting 56 million yuan.

In addition, companies that have been delisted from the New Third Board, such as Yisou Technology, US-China Jiahe, and Ping Pong Hing, are also impacting the Hong Kong stock market. Among them, Yisou Technology was listed on the New Third Board in 2017 and later delisted in 2019. Yisou Technology is committed to applying various “data-to-human connection” scenarios based on artificial intelligence recommendation technology. The company operates four business lines, covering digital reading platform services, digital marketing services, online game distribution services, and other digital content services. Shanghai Shengda, SoftBank, and Jinhe Capital are all shareholders of Yisou Technology. In applying for listing, the company plans to raise capital to improve R&D capabilities, enhance its strength as an independent third-party digital reading platform, expand digital marketing services, restart online game distribution services, working capital, and general corporate use.

edit/new