According to public information, recently, Hangzhou Yugu Technology Co., Ltd. (hereinafter referred to as “Ugu Technology”) updated the initial public offering of shares and the prospectus for listing on GEM. The sponsor is CITIC Securities Co., Ltd.
Gelonghui learned that Yuya Technology is a leading domestic provider of electric two-wheeler charging and switching equipment and services. Relying on self-developed core technologies such as intelligent hardware, cloud collaboration, big data, and AI, it provides customers with safe, intelligent and convenient charging and switching products and services.
In terms of the shareholding structure, as of the date the prospectus was signed, Liu Aiming and Xiao Jie controlled a total of 56.32% of the company's voting rights through direct and indirect shareholding, and were the actual controllers of the company. With this listing application, Uya Technology plans to raise about 1,094 billion yuan in capital for intelligent power exchange product production and operation center projects, R&D center construction projects, and supplementary working capital.
Fundraising usage, image source: prospectus
In terms of performance, from 2020 to 2022, Uya Technology achieved operating income of about 94 million yuan, 229 million yuan, and 559 million yuan respectively, with corresponding net profit of 15.2569 million yuan, 33.473 million yuan, and 81.3426 million yuan, respectively.
Uya Technology expects revenue from January to September 2023 to be about 655 million yuan to 670 million yuan, a change of 72.02% to 75.95% from the same period last year; net profit attributable to shareholders of the parent company is expected to be 95 million yuan to 107 million yuan, a change of 85.24% to 108.64% over the same period last year.
Key financial data and financial indicators, image source: prospectus
Specifically, Uya Technology's main products and services are power exchange services and charging and switching equipment. During the reporting period, the company's share of power exchange service revenue showed an upward trend, accounting for more than 97% in 2022, which is an important source of revenue for the company. A power exchange service means that the company provides customers with power exchange services through software and hardware independently produced and developed, including lithium batteries, power exchange cabinets, and power exchange systems. End users operate it through user applications such as mobile apps to enable offline self-service battery replacement.
The consumer group in the electric two-wheeler electricity exchange market is currently dominated by riders and other instant delivery agents. In the future, if the downstream industry's consumption habits change or the power exchange penetration rate falls short of expectations, it may affect the company's business development.
The revenue composition of the company's main business. Image source: Prospectus
From 2020 to January to June 2023, Uya Technology's comprehensive gross margin was 44.58%, 33.82%, 28.54%, and 26.58%, respectively, showing a downward trend year by year, mainly due to the increase in the purchase price of raw materials and the increase in costs due to the advance investment of equipment, which led to a decline in the gross margin of power exchange services and a decline in the share of sales revenue of charging and switching equipment with relatively high gross margins.
Uya Technology faces the risk of concentration of important suppliers. During the reporting period, the company mainly procured batteries needed to produce lithium batteries from Funeng Technology. The purchase amount accounted for more than 70% of the purchase amount of similar raw materials, accounting for 41.03%, 39.33%, 35.21% and 36.13% of the company's total procurement, which is relatively high. If the cooperative relationship between Uya Technology and major suppliers changes, it may affect the company's production and operation.