Recently, Bedok Finance learned from people familiar with the matter that Tick Tick Travel management has already held a roadshow on the Hong Kong Stock Exchange IPO. If all goes well, Tick Tick Chuxing will launch a stock offering on the Hong Kong Stock Exchange in the near future, leading to a listing.
It is worth mentioning that Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the 2024 Lujiazui Forum on June 19 that the CSRC's attitude towards overseas listings is to speed up the filing; we are now a little faster than before. Meanwhile, Fang Xinghai said, “We support mainland Chinese companies to go public more in Hong Kong when they go public overseas.”
In fact, Tick Tick Chuxing obtained an IPO registration from the China Securities Regulatory Commission in February 2024. Not long ago, Tick Tick Chuxing passed the Hong Kong Stock Exchange listing hearing and disclosed the prospectus after the hearing. In addition to Tick Tock Travel, such as Qi Chuxing and Cao Cao Chuxing, etc. have also submitted prospectus and are also preparing to be listed on the main board of the Hong Kong Stock Exchange.
According to the prospectus, Tick Tock Travel, established in 2014, is a technology-driven travel platform that specializes in the two major businesses of ride-hailing and smart taxis. It aims to create more transportation efficiency and create a sustainable travel method that explores potential efficiency by not adding additional on-road vehicles.
In terms of total transactions and number of ride rides, Tick Tick Chuxing operated the second-largest ride platform in China in 2023. The total number of ride cars was RMB 8.6 billion and the number of ride rides was 130 million. The market share in terms of total transactions was 31.8%, and the market share in terms of number of ride rides was 31%.
In 2017, Tick Tick Chuxing launched a smart taxi service. Currently, it provides online taxi service in 98 cities in China. Specifically, Tick Tick Travel uses an asset-light model, connects private cars, taxi drivers, and passengers in the form of an information service aggregation platform, and charges boarding service fees facilitated by its online services.
In 2021, 2022, and 2023, Tick Tick Chuxing's revenue was 781 million yuan, 569 million yuan and 815 million yuan respectively, with net profit of 1,731 million yuan, -188 million yuan and 300 million yuan respectively. Adjusted net profit was 238 million yuan, 84.708 million yuan and 226 million yuan respectively.
According to the business structure, Tick Tick Travel's revenue mainly comes from the ride shuttle business, online taxi services, and advertising and other services. Among them, the ride-hailing business is the core. During the reporting period, the company's revenue from providing ride platform services was 695 million yuan, 515 million yuan and 774 million yuan respectively, accounting for 89.0%, 90.5% and 95.0%, respectively.
In 2021, 2022, and 2023, Tick Tock Travel facilitated about 35.5 million, 21.5 million, and 12.1 million online taxi rides, respectively. In the same year, Tick Tick Travel's total transactions were approximately RMB 827 million, RMB 427 million, and RMB 224 million, respectively.
Based on the asset-light model, Tick Tick Chuxing's gross margin is at a high level. In 2021, 2022 and 2023, the company's gross profit was 631 million yuan, 428 million yuan and 605 million yuan respectively, with gross margins of 85.4%, 79.5% and 75.9%, respectively, which can be sustainable.
Currently, Tick Tock Travel also has sufficient financial reserves. As of December 31, 2023, Tick Tick Travel held $686 million in cash and cash equivalents. During the reporting period, the net cash amount of Tick Tick Travel's operating activities was approximately RMB 135 million, RMB 107 million, and RMB 230 million, respectively, and the cash flow remained stable.
Since its establishment, Tick Tock Travel has received multiple rounds of financing. Investors include IDG, EasyCar, NIO Capital (NIO Capital Fund), Huaxing Capital, and JD. According to the prospectus, Tick Tock received Series A financing of 3 million US dollars in December 2014 and Series B financing of 20 million US dollars in February 2015.
In July 2015, Tick Chuxing completed Series C financing of US$100 million, with a cost of US$0.7184 per share. In August 2017, Tick Chuxing received approximately US$29.132,900 in Series D financing, with a cost of US$0.4286 per share; in 2018, Tick Chuxing once again completed Series E financing of approximately US$135.6 million, with a cost of $0.4954 per share.
In the pre-listing shareholding structure, 5 Brothers Limited was the controlling shareholder of Tick Tock Travel, holding 33.57% of the company's shares and holding 50% of the voting rights. According to the prospectus, 5brothers Limited is co-owned by the five co-founders of Tick Tock Travel, including Song Zhongjie, Li Jinlong, Zhu Min, Duan Jianbo, and Li Yuejun.
Among them, Song Zhongjie is the executive director, chairman and CEO (CEO) of Dick Tock Travel, Li Jinlong, Duan Jianbo, and Li Yuejun are all executive directors and vice presidents, and Zhu Min is the executive director. In addition, NIO Capital Fund, IDG, Huaxing Capital, Easy Car, Gaolin Capital, JD, and Ctrip are also shareholders of Tick Tick Travel.
With this sprint launch, Tick Tick Travel will use the amount of capital raised to expand the user base and strengthen marketing and promotion activities, enhance technical capabilities and enhance safety mechanisms, and enhance monetization capabilities.