On December 17, 2023, Zhubajie Co., Ltd. (“Pig Bajie Co., Ltd.”) from Chongqing once again submitted a prospectus on the Hong Kong Stock Exchange and plans to go public in a Hong Kong IPO. This is another application after two forms failed on October 14, 2022 and April 14, 2023.

Pig Bajie was approved by the China Securities Regulatory Commission on March 30, 2023 by the China Securities Regulatory Commission for foreign stocks listed overseas (“road rules”), and is valid for 12 months.

Pig Bajie's prospectus link:

https://www1.hkexnews.hk/app/sehk/2023/106043/documents/sehk23121700053_c.pdf

Main business

Pig Bajie, founded in 2006, is a major e-commerce platform for customized enterprise services in China. Through the platform, it intelligently matches the service needs of enterprise employers with the skills of service providers, matches transactions between enterprise employers and service providers, and provides convenient enterprise services covering the entire life cycle of enterprises to enterprise employers. With the success and experience of the Pig Bajie platform, the business has expanded to smart enterprise services, industrial services, education and financial services.

According to iResearch's report, in terms of GMV in 2022,

• Pig Bajie ranked first in China's comprehensive customized enterprise service e-commerce market, with a market share of 27.3%;

• Pig Bajie ranked second in the e-commerce market for customized enterprise services in China, with a market share of 2.4%;

• Pig Bajie ranked first in the financial and tax e-commerce market for customized chemical businesses in China, with a market share of 5.5%;

• Pig Bajie ranked second in China's customized intellectual property e-commerce market, with a market share of 7.3%;

• Pig Bajie ranked second in China's custom-designed e-commerce market, with a market share of 8.2%;

• Pig Bajie ranked second in the e-commerce market for customized IT services in China, with a market share of 6.3%.

As of June 30, 2023, enterprise employers can purchase more than 810 types of enterprise services on the Pig Bajiao platform. The cumulative number of registered users on the Pig Bajiao platform reached 34.6 million, of which the cumulative number of enterprise employers reached 26.9 million, and the cumulative number of service providers reached 7.7 million.

In the past performance period, Pig Bajie's revenue mainly came from providing (i) corporate services (through corporate service platforms such as Pig Bajie platforms, public procurement platforms, and intellectual property trading platforms), (ii) smart enterprise services, (iii) industrial services, and (iv) promoting cooperation in the government's regional enterprise service ecosystem.

• The enterprise service platform generates revenue by providing corporate services to corporate employers and third party service providers through the Pig Bajie platform, including matching services, membership services, advertising services, and tools and subscription services.

• Smart enterprise services, revenue mainly comes from intelligent industrial and commercial taxation services, intelligent intellectual property services, and smart technology consulting services.

• Industrial services, revenue mainly comes from (i) Entrepreneurship and Innovation Park services, which provide customized office space and independent desks to enterprises in the Entrepreneurship and Innovation Park, and provide basic services such as property, water, electricity, and networks; and (ii) industrial solution services, which provide various industrial solution services for large and medium-sized enterprises and government customers.

• The government regional enterprise service ecosystem promotes cooperation, and provides local governments with a government regional enterprise service ecosystem to promote cooperative services to generate revenue. Companies cooperate with local governments to help them build enterprise service platforms to attract and solicit enterprise service providers to enter local industrial parks and promote the development of local industrial parks.

Shareholder structure

According to the prospectus, in Pig Bajie's shareholder structure before listing,

Mr. Zhu Mingyue holds 28.09% of shares through Bajie Industrial and Duilong Gaolaozhuang;

Mr. Liu Chuanyu, holding 1.12% of shares;

Mr. Zhu Tao, holding 1.35%

The above shareholders are the founders, who act in concert with Mr. Zhu, and hold a total of about 30.55% of shares.

Duilong Tianyao (employee shareholding platform), holding 2.84% of shares;

Duilong Tianwen (employee shareholding platform), holding 0.95% of shares;

Liangjiang Industrial Group, holding 17.45% of shares;

Chongqing Boen Technology, holding 15.51% of shares;

Zhirong Zhuoxin holds 6.58% of the shares;

Cyberle Tenze, holding 3.29% of shares;

Cyberle Henghui holds 3.08% of the shares;

Hangzhou Leyi, holding 2.71% of shares;

Deqing Wenyi holds 2.62% of shares;

Cyberle Greentech, holding 2.19% of the shares;

Cyberle wins, holding 2.15% of shares;

Qiaoqiang Construction Project, holding 1.60% of shares;

Mr. Li Qinghui holds 1.58% of the shares;

Ningbo Sai Neng holds 1.54% of the shares;

Xinyu Sanori holds 1.35% of shares;

Xinyang Shipbuilding, holding 0.51% of shares;

Jiaxing Zhetu holds 0.50% of the shares;

Chongqing Caixin holds 0.41% of the shares;

Han River Fund, holding 0.33% of shares;

Changjiang Fund, holding 0.33% of shares;

Komsomolsk-on-City Hartley, holding 0.27% of shares;

Beijing is like-minded and holds 0.22% of shares;

Mr. Qin Weidong holds 0.20% of the shares;

Yuhai, Beijing, holds 0.19% of shares;

Cyber Rakuten and holds 0.18% of the shares;

Tongsheng Luke holds 0.18% of the shares;

Yunding Green Technology holds 0.16% of the shares;

Cyberle Tianchuang holds 0.15% of the shares;

Effective No. 1, holding 0.13% of shares;

Cyberspace Tianyu holds 0.08% of the shares;

Cyberhenda, holding 0.08% of the shares;

Mr. Jin Peiyi holds 0.06% of the shares.

Management

Pig Bajie's board of directors consists of 9 directors, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors.

Board of Directors (9 members)

Auditors (3)

Executives (5)

Executives include Mr. Zhu Mingyue, Chairman of the Board and CEO, Mr. Yuan Jin, Executive Director and Vice President, Mr. Liu Chuanyu, Executive Director, Mr. Zhang Jun, Chief Financial Officer, and Mr. Hu Wei, Vice President, Board Secretary and Co-Company Secretary.

Company performance

According to the prospectus, in 2020, 2021, 2022 and the first half of 2023, Pig Bajie's operating income was 757 million, 768 million, 541 million and 252 million yuan respectively. The corresponding net losses were 268 million, 366 million, 230 million and 78 million yuan, respectively. The corresponding adjusted net losses were RMB 04 million, 220 million, 132 million and 71 million yuan respectively.

Intermediary team

Pig Bajie's intermediary team for the IPO mainly includes: CITIC Securities and CCB International as co-sponsors; KPMG as its auditors; Jingtian Gongcheng and Slida are the company's Chinese lawyers and the company's Hong Kong and US lawyers; Haiwen and Meifu are their Chinese lawyers and brokerage firm Hong Kong and US lawyers respectively; David Leung is their independent property valuer; and iResearch as its independent industry adviser.