Futu News on June 19, China's largest second-hand consumer electronics trading and service platform$AiHuiShou International Co.Ltd. (RERE.US) $Officially landed on the New York Stock Exchange today. The stock rose 28.64% to $18.01, with a market capitalization of $4.584 billion.
Previously, according to the prospectus, AiHuiShou International plans to issue 16.233 million American depositary shares (ADS) in the IPO, with every three American depositary receipts representing two Class A common shares at a price range of $13 to $15 per ADS. On the eve of listingAiHuiShou International priced its IPO at $14 a share.
China's largest trading and service platform for second-hand consumer electronic products
AiHuiShou International Group (AiHuiShou International) is a circular economy enterprise of "Internet + environmental protection" type. It includes four business lines: AiHuiShou International, Paicaitang, Paipai and AHS Device. It spans both ends of the industrial chain and provides services covering the whole process from recycling, testing, grading, pricing to resale.
In the field of second-hand 3C transactions and services, AiHuiShou International Group ranked first in the Chinese market in 2020 in terms of the number of transactions and GMV (both payment transaction data), and higher than the second to fifth places in the industry combined, according to the Zhenshi Consulting report. As of March 31st, AiHuiShou International Group has opened 755 stores and more than 1500 self-service stations in 172 cities in China.
The company has realized the closed loop of the whole industry chain of "C2B+B2B+B2C", serving businessmen and consumers at the same time, and promoting the large-scale, standardized and efficient development of the industry.
In terms of financial position, as of March 31, 2021, the company's overall revenue in the past 12 months was 5.68 billion yuan, an increase of 49.4% over the same period last year. The overall revenue in 2020 was 4.858 billion yuan, of which the core business revenue was 4.709 billion yuan, an increase of 38.2% over the same period in 2019.
The platform take rate (fee rate) rose from 0.5 per cent in 2018 to 2.4 per cent in 2019 and 4.1 per cent in 2020, driving gross profit margins from 14.1 per cent in 2018 to 25.7 per cent in 2020.
In the first quarter of 2021, the company's transaction GMV was 6.2 billion yuan, up 106.7% from the same period last year; revenue was 1.514 billion yuan, up 118.8% from the same period last year. Nonmuri GAAP adjusted operating loss of 33.57 million yuan, a substantial reduction over the same period last year.
In terms of industry, according to the CIC report, the number of second-hand electronic products in China will grow rapidly from 189 million in 2020 to 546 million in 2025, with a compound annual growth rate of 24%. In the same period, the total volume of market transactions will increase from 252.2 billion yuan in 2020 to 967.3 billion yuan in 2025, with a compound annual growth rate of 31 percent.
Since 2012, AiHuiShou International Group has received multiple rounds of investment from Wuyuan Capital, World Bank investment agency IFC, JD.com Group, Tiantu Capital, Kaihui Fund, Venture Capital, fresh Capital, Guotai Junan International and other investment institutions.
Before IPO, JD.com Group held 34.7% of shares, while Wuyuan Capital held 14% of Internet Fund IV Pte. Ltd. The shareholding is 7.3%, while Tiantu Capital holds 8.5%.
In terms of fund-raising purposes, the funds raised by the company's IPO will be used for the following purposes: about 30 per cent will be used to provide diversified services on the platform; about 30 per cent will be used to further expand the network of offline stores and develop new sales channels for Paipai; and about 20 per cent will be used for general corporate purposes.