BAIWANG CO., LTD., from Beijing on June 26, 2024 (“Baiwang Shares” for short) The prospectus was disclosed to the Hong Kong Stock Exchange after the hearing, or was listed on the Hong Kong Main Board soon. The forms were submitted twice, on June 28, 2023 and February 9, 2024.
Link to the prospectus after the hearing of Baiwang Co., Ltd.:
https://www1.hkexnews.hk/app/sehk/2024/106228/documents/sehk24062601573_c.pdf
Main business
Baiwang Co., Ltd. was founded in 2015 as an enterprise digital solution provider, focusing on providing SaaS fiscal digitization and data-driven intelligent solutions through the Baiwang Cloud platform. The company assisted Taobao in establishing the “Ali Invoicing Platform” in 2016. In 2023, Taobao and Baiwang Co., Ltd. signed a collaborative framework agreement. Taobao agreed to grant the company permission to use the online invoicing platform under the “Alibaba Invoicing Platform” brand name and let Baiwangyun act as a tax service provider on the platform.
According to the Frost & Sullivan report, in 2023:
In terms of revenue, Baiwangyun ranked first in the digital market for cloud finance and tax-related transactions in China, with a market share of 7.1%; ranked second in the digital market for fiscal and tax-related transactions in China, with a market share of 4.9%;
Baiwangyun's cloud-based solution completed about 700 million invoice processing requests, ranking first among digital solution providers for financial and tax-related transactions in China;
Baiwangyun's cloud-based solution issued about 2.6 billion VAT invoices, ranking second among digital solution providers for financial and tax-related transactions in China;
In terms of revenue, Baiwangyun ranked second in China's transaction-related big data analysis market for financing small and micro enterprises, with a market share of 6.4%.
Baiwang Co., Ltd. is committed to connecting enterprises in different industries and sizes to promote the digital processing and circulation of transaction documents (including but not limited to invoices, receipts, documents and other accounting documents). In addition, the company has launched a set of digital solutions covering key enterprise transaction processes, from procurement, reconciliation, and invoicing to automated management of accounts receivable and payable and tax reporting. With valuable business insight into large amounts of transaction data and advanced big data analysis capabilities, financial service providers and other enterprise customers can make automated and digital business decisions. As of December 31, 2023, Baiwang Co., Ltd. processed 14.3 billion transaction certificates, covering the business activities of 101.9 million enterprises.
The Baiwang Cloud platform developed by the company is an intelligent business platform integrating cutting-edge technologies such as digital certificates, digital signatures, electronic documents (OFD), big data analysis, artificial intelligence and blockchain, to provide reliable, comprehensive and modular solutions for customers in vertical fields of the industry.
Shareholder structure
According to the prospectus, in the shareholder structure of Baiwang Co., Ltd. before listing, the controlling shareholder, Ms. Chen Jie, held 27.10% of the shares, and controlled 9.23% and 6.89% of Ningbo Xiu'an and Tianjin Duoying (employee incentive platform) as GP, respectively, controlling a total of about 43.22% of voting rights.
Alibaba (09988.HK) holds 11.87% of the shares;
Cyclone Information (300324.SZ), holding 9.91% of shares;
Fosun International (00656.HK) holds 1.43%, 1.43%, 0.89%, and 1.57% of shares through Fosun Hi-Tech, Fosun Venture Capital, and Beijing Xingshi respectively; a total of 5.31% of the shares;
Dazhong Public (600635.SH), holding 3.23% of the shares;
Dongfang Fuhai Investment holds 2.89% and 1.92% of the shares respectively through Shenzhen Dongfang Fuhai and the SME Development Fund;
The Shanghai State-owned Assets Administration Commission holds 2.57% of the shares through Shanghai Guoxin;
Hongta Securities (601236.SH) holds 2.16% of shares through Hongzheng Junfang;
Greater Bay Area Limited (HK) holds 1.81% of the shares through Common Home;
Shenzhen Venture Capital Group holds 1.08% and 0.72% of the shares through Dongguan Red Clay and Shenzhen Red Clay respectively, for a total of 1.8%;
Jiuzhao Kangqian (GP) held 1.25%, 0.93%, 0.14%, 0.11%, and 0.02% of shares through Jiuzhao Yaquan, Jiuzhao Yunlian, Jiuzhao Anyuan, and Pingxiang Jiuzhao, respectively;
Tongxiang Zhongrun holds 0.93% of the shares;
Jinjiang Ark holds 0.9% of the shares;
Yancheng Yannan Fund holds 0.88% of the shares;
Suzhou Wanjia holds 0.79% of the shares;
Mr. Zhang Lianwen holds 0.67% of the shares;
Mr. Guo Xixing holds 0.53% of the shares;
Galaxy Yuanhui holds 0.53% of the shares;
Henghui Ruicheng holds 0.51% of the shares;
Jinan Haiwang holds 0.46% of the shares;
Beijing Cuihu, holding 0.37% of the shares;
Tianning Hongya holds 0.36% of the shares;
Ms. Yan Xia holds 0.36% of the shares;
Tianjin Jinxintong holds 0.34% of the shares;
Qingdao Red Horse holds 0.19% of the shares;
Sino-Singapore Jialiang holds 0.18% of the shares;
Qingdao Rebeta holds 0.16% of the shares;
Changzhou Xinxing, holding 0.16% of the shares;
Suzhou Muhua holds 0.16% of the shares;
Mr. Wen Xiaoming holds 0.16% of the shares;
Ms. Zhu Liping holds 0.11% of the shares;
Nobutaka Chiyama holds 0.09% of the shares;
Chuanjiang Investment holds 0.09% of shares;
Mr. Wong Sin-fan holds 0.05% of the shares;
Mr. Chen Xin holds 0.03% of the shares;
Mr. Ma Jingping holds 0.03% of the shares;
Mr. Huang Miao holds 0.02% of the shares;
Mr. Liu Ning holds 0.006% of the shares;
Ms. Yu Xiao holds 0.006% of the shares;
Mr. Shi Zhenyi holds 0.005% of the shares.
Directors and Executives
The board of directors of Baiwang Co., Ltd. consists of 10 directors, including:
4 Executive Directors: Ms. Chen Jie (Chairman of the Board, General Manager), Mr. Yang Zhengdao (CEO), Mr. Zou Yan (Chief Marketing Officer), and Ms. Jin Xin (Chief Operating Officer);
2 non-executive directors: Mr. Huang Miao and Mr. Diao Junhuan;
Four independent non-executive directors: Mr. Tian Lixin, Mr. Wu Changhai, Dr. Song Hua, and Mr. Wu Guoxian.
Three members of the Supervisory Board: Mr. Li Yunfeng, Ms. Shi Haixia, and Mr. Luo Wenhong.
In addition to the executive director, executives include Mr. Hou Shifei, Vice President, Chief Financial Officer and Board Secretary.
Company performance
According to the prospectus, in the past 2021, 2022 and 2023, the operating income of Baiwang Co., Ltd. was RMB 454 million, $526 million and RMB 713 million, respectively, and net losses for the corresponding period were RMB 448 million, 156 million and 359 million yuan, respectively.
Intermediary team
The intermediary team for this IPO of Baiwang Co., Ltd. mainly consists of Haitong International as its sole sponsor; Deloitte as its auditor; Tianyuan and Wilson Sanzini are the company's Chinese lawyers and the company's Hong Kong and US lawyers respectively; Commerce and Latham are its Chinese lawyers and Hong Kong and US lawyers respectively; and Frost Sullivan is its independent industry advisor.