On April 23, 2024, Marketingforce Management Ltd. (hereinafter referred to as “Mifushi Management”) from Shanghai submitted a prospectus on the Hong Kong Stock Exchange to be listed on the Hong Kong Main Board. It was submitted three times: November 21, 2022, May 29, 2023, and March 15, 2024.
On February 7, Maifushi Management received the Overseas Issuance Listing Filing Notice (China Cooperation Letter (2024) No. 330) issued by the International Cooperation Department of the China Securities Regulatory Commission to issue no more than 46.517 million shares of overseas listed common shares.
Link to the McFTSE Management Prospectus:
https://www1.hkexnews.hk/app/sehk/2024/106310/documents/sehk24042300272_c.pdf
Main business
As a marketing and sales SaaS solution provider in China, Maifushi Management provides marketing and sales SaaS solutions through the MarketingForce platform. Enterprise customers provide services from content and experience, advertising and promotion, social networking and relationships, sales and pleasure, data and analysis to strategy and management. The company also provides advertisers with one-stop cross-media online marketing solutions to help companies accurately and effectively reach target audiences on leading media platforms.
According to Frost & Sullivan, in terms of 2022 revenue, Maifushi Management is the largest marketing and sales SaaS solution provider in China, with a market share of 2.6%.
The revenue managed by McFTSE comes from SaaS business and precision marketing services.
In the SaaS business, revenue mainly comes from various cloud marketing and sales solutions. Maifushi Management mainly provides two iconic SaaS products, namely one-stop marketing of SaaS products T-Cloud and one-stop sales of SaaS products, which combine a series of functional modules to solve the pain points faced by enterprises in marketing and sales activities. As of December 31, 2023, the company has 237 functional modules available for use in SaaS products. Users can subscribe and add additional functional modules to their subscribed SaaS products to achieve more personalized results.
Precision marketing services include online advertising solution services and online advertisement distribution services. Services mainly include advertising campaign planning, advertising content production, continuous monitoring and real-time optimization.
Shareholder structure
According to the prospectus, in the pre-listing shareholder structure, Maifushi managed
Mr. Zhao Xulong holds 23.74% and 1.24% of the shares through Willam Zhao Limited and Willian Zhao I Limited, respectively, for a total of 24.97%;
Ms. Zhu Shuina holds 26.04% of the shares through Shuina Zhu Limited;
Together, Mr. Zhao and Ms. Zhu hold about 51.01% of the shares and are a group of controlling shareholders.
The employee shareholding platform Shanghai Hongyu Limited holds 8.40% of the shares; Shanghai Hongyu Limited is 39.41% owned by Executive Director and Senior Vice President Xu Jiankang, while 15 other employees own 60.59%.
Ms. Zhao Fangqi (sister of Mr. Zhao) holds 6.72% of the shares through Fangqi Zhao Limited;
Bi Kefa, Sun Yongchao and four other individual shareholders hold 1.97% of the shares through Shanghai Zhiyu Limited;
Tan Kaihua holds 1.68% of the shares through Kaihua Tan Limited;
Guo Peiming holds 0.44% of shares through Peimin Guo Limited;
Xu Wenhua holds 1.24% of shares through Wenhua Xu Limited;
Isle Wealth, a restricted share unit plan, holding 4.59% of the shares;
Zhenjun He holds 1.15% of the shares;
Wang Jia, holding 0.82% of the shares;
Top Mountain holds 0.66% of the shares;
Wu Yi holds 0.49% of the shares through the Hong Kong Joint Stock Exchange;
Shanghai Shunyi, holding 2.46% of the shares;
Mr. Zhu Zhengguo holds 1.58% and 9.23% of the shares through Jiaxing Hengjie and NB Digital respectively;
CCB International Overseas holds 2.62% of the shares;
Shanghai Haorong holds 0.61% of shares through Haorong;
Chen Chi holds 3.94% of the shares through Rongjing, a subsidiary of Flying Shark Entertainment;
Fu Gang holds 0.39% of the shares through Miracle International.
Directors and Executives
The management board of MagFTSE consists of 7 directors, including:
2 Executive Directors: Mr. Zhao Xulong (Chairman and CEO), Mr. Xu Jiankang (Senior Vice President);
2 non-executive directors: Ms. Zhao Fangqi and Mr. Huang Shaodong;
Three independent non-executive directors: Mr. Yang Tao, Mr. Qin Ci, and Mr. Chen Chen.
In addition to the executive director, executives include Mr. Liu Huan, Senior Vice President and Joint Company Secretary; Mr. Wang Shiyi, Vice President; Mr. Chen Hailin, Chief Technology Officer; and Mr. Ma Jin, Chief Financial Officer.
Company performance
According to the prospectus, in the past three fiscal years of 2021, 2022 and 2023, the operating income managed by Maifushi was RMB 887 million, RMB 1,143 million, and RMB 1,232 million, respectively. The corresponding net losses were RMB 273 million, RMB 216 million and RMB 169 million respectively. The corresponding adjusted net losses were RMB 138 million, RMB 141 million and RMB 36 million, respectively.
Intermediary team
The main intermediary team that manages the IPO is: CICC and CCB International as co-sponsors; Ernst & Young as its auditors; Jun He and Gao Weishen are the company's Chinese lawyers and Hong Kong lawyers respectively; Commerce and Forrest are its Chinese lawyers and Hong Kong lawyers respectively; and Frost Sullivan is its industry advisor.