Reported by Lei Jianping on February 11
Huitongda Network Co., Ltd. (abbreviation: "Huitongda", stock code: "09878") is expected to be listed on the Hong Kong Stock Exchange on February 18, 2021.
Huitongda introduced 6 cornerstone investors this time, including Skyworth, SenseTime, Jinglin, Gold Mantis Construction, Windfall, and Heilan Group. There is a 6-month lock-up period.
The above-mentioned cornerstone investors subscribed a total of US$150 million, of which Skyworth subscribed for US$50 million, Golden Feather (Gold Mantis) subscribed for US$40 million, Windfall and Heilan Group subscribed for US$20 million, and SensePower (Shangtang) and Jinglin respectively subscribed $10 million.
Huitongda originally planned to raise US$1 billion, but the current Hong Kong stock market is very bleak, which greatly affects the valuation of Huitongda.
It is expected that the issue price of Huitongda will be set at the lowest end, about HK$43, which is the lowest end of the issuance range from HK$43 to HK$48.
This means that if the over-allocation option is not exercised, the funds subscribed by cornerstone investors will account for 52.65% of the total size; if the over-allocation option is exercised, they can subscribe for 45.78% of the total size.
Of course, once Huitongda is listed, it also means that Wang Jianguo, the actual controller of Huitongda, will gain another listed company, and Wang Jianguo's business landscape will be greatly enhanced.
9-month revenue of 46.5 billion
Huitongda is a transaction and service platform for corporate customers in the retail industry in the sinking market. It is committed to providing retail industry chain participants with online and offline supply chain solutions, store SaaS+ services, Business solutions and other comprehensive services.
Huitongda claims to be "the first stock in the sinking market", that is, by focusing on "ten years as a day" of township retail stores for couples, it has created a set of comprehensive retail solutions for the sinking market, transforming the "people" of mom-and-pop stores , "goods" and "market", which endow it with stronger competitiveness.
Based on the member retail stores, Huitongda provides them with trading business and service business - the former supplies small B merchants in rural member retail stores; the latter provides them with store SaaS and solutions - not only to help buy, but also to help sell.
According to the prospectus, Huitongda’s revenue in 2018, 2019, and 2020 will be 29.8 billion yuan, 43.633 billion yuan, and 49.629 billion yuan respectively; gross profits will be 1 billion yuan, 1.279 billion yuan, and 1.345 billion yuan.
Huitongda's income mainly comes from self-operated business, which is divided into several categories: consumer electronics, household appliances, agricultural production materials and machinery, and transportation.
Huitongda's operating profits in 2018, 2019, and 2020 were 207 million yuan, 334 million yuan, and 407 million yuan; annual losses were 276 million yuan, 300 million yuan, and 280 million yuan; adjusted profits were 124 million yuan , 249 million yuan, 322 million yuan.
Huitongda’s revenue in the first nine months of 2021 was 46.496 billion yuan, an increase of 35.1% from 34.419 billion yuan in the same period last year; operating profit was 439 million yuan, compared with 196 million yuan in the same period last year; 100 million yuan, and the loss in the same period last year was 306 million yuan.
Huitongda's adjusted net profit in the first nine months of 2021 was 346 million yuan, compared with 139 million yuan in the same period last year.
As of September 30, 2021, Huitongda held 2.276 billion yuan in cash and cash equivalents.
Ali and the central enterprise fund are shareholders
The chairman and non-executive director of Huitongda is Wang Jianguo; the executive directors are CEO Xu Xiuxian and Zhao Liangsheng; the non-executive directors are Wang Jian, Cai Zhongqiu and Wang Yi; the independent non-executive directors are Liu Xiangdong, Cheng Zichuan and Huang Shun.
Before Huitongda submitted the prospectus, it had obtained financing many times.
The A round of Huitongda came from Xintianyu, Huasheng Capital, Jiangsu Gaotou, Shunwei Capital, etc.; the A+ round came from Coastal Capital, Huaxia Life Insurance, etc.; the B round came from China Merchants Bank; the C round came from China-US Green Fund. After these rounds, a total of 1.8 billion yuan was raised.
In April 2018, Alibaba and Five Star Holdings reached a strategic cooperation, and Alibaba strategically invested in Huitongda, with a total amount of 4.5 billion yuan.
On December 25, 2020, the Central Enterprise Fund and the State Research Fund invested 500 million yuan and 700 million yuan in Huitongda respectively, with a total amount of 1.2 billion yuan.
In January 2021, Shanghai CMB transferred 13,813,069 shares (approximately 2.72% equity) in Huitongda to Nanjing Yuanbai (a limited partnership controlled by Wang Jianguo) for a consideration of 270 million yuan;
In February 2021, Sino-US Green transferred 10,785,788 shares (approximately 2.12% equity) in Huitongda to the central enterprise fund at a consideration of 500 million yuan;
During the same period, Jiangsu Coastal Fund transferred 6,471,472 shares (approximately 1.27% equity) in Huitongda to the central enterprise fund at a consideration of 300 million yuan; based on this calculation, Huitongda is valued at 23.6 billion yuan.
In April 2021, Nanjing Yuanbai transferred 2,157,158 shares (approximately 0.42% equity) in Huitongda to Minsheng Investment for a consideration of 100 million yuan; in April 2021, Tianjin New Vision transferred 431,432 shares in Huitongda to Miner Consulting shares (approximately 0.08% equity), the consideration is 20 million yuan.
Before the IPO, Wang Jianguo held 30.27% of the shares directly and 2.29% through Five Star Holdings. Wang Jianguo held 68.4% of the shares in Five Star Holdings. Alibaba holds 19.08% of the shares. Xu Xiuxian holds 14% of the shares, and Wang Jian, president of Five Star Holdings, holds 5.71% of the shares;
The state-owned enterprise fund holds 5.3% of the shares, China Life Insurance holds 3.22%, the State Research Fund holds 2.67%, and Shenzhen Huasheng holds 2.19%. China-US Green holds 1.92% of the shares, and Jiangsu Coastal Fund holds 1.63%. In addition, Jiangsu Venture Capital, Shunwei, and Minsheng Investment are also shareholders.
Wang Jianguo is also a serial entrepreneur. He once founded Five Star Electric, which was once a leading enterprise in the domestic electrical appliance retail industry. In 2006, Five Star Electric was introduced to Best Buy. Later, Wang Jianguo transferred all the shares he held in Five Star Electric to Best Buy, leaving the electrical appliance industry.
In the same year, Wang Jianguo founded Kids King. Currently, Kidswant is listed on the Shenzhen Stock Exchange.
After the IPO, Wang Jianguo directly held 27.48% of the shares and held 2.08% of the shares through Five Star Holdings. Alibaba holds 17.33% of the shares. Xu Xiuxian holds 12.72% of the shares, and Wang Jian, president of Five Star Holdings, holds 5.18% of the shares;
The central enterprise fund holds 4.81% of the shares, China Life Insurance holds 2.92%, the State Research Fund holds 2.43%, and Shenzhen Huasheng holds 1.99%. Sino-US Green holds 1.74% of the shares, and Jiangsu Coastal Fund holds 1.48% of the shares.
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