On February 9, 2024, BAIWANG CO., LTD. (referred to as "Baiwang Cloud") from Beijing submitted its prospectus to the Hong Kong Stock Exchange, intending to list on the main board of the Hong Kong Stock Exchange. This is another application since its filing failed on June 28, 2023.
Baiwang Cloud signed a counseling agreement with CSC Securities in preparation for its A-share listing on January 7, 2021. Due to the overall A-share approval process, it suspended its listing counseling in September 2021.
Link to Baiwang Cloud prospectus:
https://www1.hkexnews.hk/app/sehk/2024/106228/documents/sehk24020900353_c.pdf
Main Business
Founded in 2015, Baiwang Cloud is a provider of enterprise digital solutions, focusing on providing intelligent solutions for SaaS finance and tax digitization and data-driven through the Baiwang Cloud platform. In 2016, the company assisted Taobao in establishing the "Ali Invoice Platform." In 2023, Taobao and Baiwang Cloud signed a collaborative framework agreement. Taobao agreed to grant the company the permission to use the brand name "Ali Invoice Platform" for the online invoice platform and allowed Baiwang Cloud to become the tax service provider on the platform. According to the Frost & Sullivan report in 2022:
In 2022,
Based on revenue, Baiwang Cloud ranked first in China's cloud-based finance and tax-related transaction digitalization market, with a market share of 6.6%;
Baoying Cloud's cloud solution has processed approximately 700 million invoice processing requests, ranking first among financial and tax-related transaction digital solution providers in China;
Through its cloud-based solutions, Baiwang Cloud issued approximately 1.7 billion value-added tax invoices, ranking second among the financial and tax-related transaction digitalization solution providers in China;
Based on income, Baiwang Cloud ranked second in China's big data analysis market for micro, small, and medium-sized enterprise financing-related transactions, with a market share of 5.9%.
Baiwang Cloud is committed to connecting enterprises of different industries and sizes, promoting the digital processing and circulation of transaction vouchers (including but not limited to invoices, receipts, vouchers, and other accounting vouchers). In addition, the company has launched a set of digital solutions that cover critical business transaction processes, from procurement and reconciliation to automated management of accounts receivable and payable and tax reporting. With valuable business insights into a large amount of transaction data and advanced big data analysis capabilities, it promotes the automation and digitization of business decisions for financial service providers and other enterprise clients.
The Baoying Cloud platform developed by the company is an intelligent business platform that integrates cutting-edge technologies such as digital certificates, digital signatures, electronic document cases (OFD), big data analysis, artificial intelligence and blockchain, and provides reliable, comprehensive, and modular solutions for customers in vertical industries.
Shareholder Structure
In the shareholder structure before the listing, Chen Jie, the controlling shareholder, holds 27.10% of the shares and controls about 43.22% of the voting rights through controlling Ningbo Xiuan and Tianjin Duoying (Employee Incentive Platform) with 9.23% and 6.89% shares respectively.
Alibaba (09988.HK), holds 11.87% of the shares;
Beijing Watertek Information Technology (300324.SZ), holds 9.91% of the shares;
Fosun Int'l (00656.HK), holds a total of 5.31% through Fosun High Technology, Fosun Weishi, Fosun Venture Capital, and Beijing Xingshi, with each holding 1.43%, 1.43%, 0.89%, and 1.57%, respectively;
Shanghai Dazhong Public Utilities (600635.SH), holds 3.23% of the shares;
Oriental Rich Sea Investment holds 2.89% and 1.92% of the shares through Shenzhen Oriental Rich Sea and the SME Development Fund, respectively;
Shanghai State-owned Assets Supervision and Administration Commission holds 2.57% of the shares through Shanghai Guoxin;
Hongta Securities (601236.SH) holds 2.16% of the shares through Hongzheng Junfang;
The Greater Bay Area Company (HK) holds 1.81% of the shares through Common Home;
Shenzhen Capital Group holds 1.8% of the shares through Dongguan Hongtu and Shenzhen Hongtu.
Ninezhao Kangqian (GP) holds 1.25%, 0.93%, 0.14%, 0.11%, and 0.02% respectively through Ninezhao Yaqian, Ninezhao Hexuan, Ninezhao Yunlian, Ninezhao Anyuan, and Pingxiang Ninezhao.
Tongxiang Zhongrun holds 0.93%.
Jinjiang Ark holds 0.9%.
Yancheng Yannan Fund holds 0.88%.
Suzhou Wanjia holds 0.79%.
Mr. Zhang Lianwen holds 0.67%.
Mr. Guo Xixing holds 0.53%.
Galaxy Yuanhui holds 0.53%.
Henghui Ruicheng holds 0.51%.
Jinan Haiwang holds 0.46%.
Peking Cuihu holds 0.37%.
Tianning Hongya holds 0.36%.
Ms. Yan Xia holds 0.36%.
Tianjin Jinxintong holds 0.34%.
Qingdao Hongma holds 0.19%.
Zhongxin Jialiang holds 0.18%.
Qingdao Ruibeita holds 0.16%.
Changzhou Xinxing holds 0.16%.
Suzhou Muhua holds 0.16%.
Mr. Wen Xiaoming holds 0.16%.
The board of directors of Paiwango consists of 10 directors, including 4 executive directors: Ms. Chen Jie (Chairman and General Manager of the Board), Mr. Yang Zhengdao (Chief Executive Officer), Mr. Zou Yan (Chief Marketing Officer) and Ms. Jin Xin (Chief Operating Officer); 2 non-executive directors: Mr. Huang Miao and Mr. Diao Junhuan; and 4 independent non-executive directors: Mr. Tian Lixin, Mr. Wu Changhai, Dr. Song Hua and Mr. Wu Guoxian.
Haitong Int'l is the exclusive sponsor of Paiwango for its IPO; Deloitte is its auditor; Tian Yuan and Wilson Sonsini are its Chinese and Hong Kong/US legal advisors respectively; Tengshang and Rui Sheng are the Chinese and Hong Kong/US legal advisors respectively for the brokerage; Foster Sullivan is its independent industry advisor.
In the prospectus, Paiwango had operating revenues of RMB 454 million, RMB 526 million and RMB 713 million in 2021, 2022 and 2023, respectively, and corresponding net losses of RMB 448 million, RMB 156 million and RMB 359 million during the same period.
Aside from the executive directors, senior management includes Vice President and Chief Financial Officer and Board Secretary Mr. Hou Shifei.
Mr. Chen Xin, with a shareholding of 0.03%.
Mr. Ma Jingping, with a shareholding of 0.03%.
Mr. Huang Miao, with a shareholding of 0.02%.
Mr. Liu Ning, with a shareholding of 0.006%.
Ms. Yu Xiao, with a shareholding of 0.006%.
Mr. Shi Zhenyi, with a shareholding of 0.005%.
Board of directors and executives
The board of directors of Baiwang Cloud consists of 10 directors, including 4 executive directors (Chen Jie, Yang Zhengdao, Zou Yan, and Jin Xin), 2 non-executive directors (Huang Miao and Diao Junhuan), and 4 independent non-executive directors (Tian Lixin, Wu Changhai, Song Huabo, and Wu Guoxian).
The supervisory board of Baiwang Cloud consists of three supervisors (Li Yunfeng, Shi Haixia, and Luo Wenhong).
Baiwang Cloud's senior management team consists of 5 members, in addition to Chairman of the Board of Directors and Executive Director and CEO Chen Jie, Executive Director and COO Zou Yan, Executive Director and CMO Yang Zhengdao, Executive Director and CFO Jin Xin, and Vice President Hou Shifei.
Corporate Performance
According to the prospectus, Baiwang Cloud's revenue for 2020, 2021, 2022, and the first nine months of 2023 was RMB 291 million, RMB 454 million, RMB 526 million, and RMB 468 million, respectively, with corresponding net losses of RMB 389 million, RMB 448 million, RMB 156 million, and RMB 213 million.
Intermediary Team
Baiwang Cloud’s intermediary team includes Haitong International as its sole sponsor; Deloitte as its auditor; Tianyuan Law Firm and Wilson Sonsini as its legal advisers in China and Hong Kong and the United States, respectively; Tongshang Law Firm and Rui Sheng Law Firm as its brokerage legal advisers in China and Hong Kong and the United States, respectively; and Frost & Sullivan as its independent industry consultant.