Source: Beast Finance Author: Beast Finance
Beast Finance learned that Luo Keshi, a human resources management company from Beijing, has recently submitted a prospectus to the US Securities and Exchange Commission (SEC), applying for an IPO listing on Nasdaq, with the stock code (LGCL). Rocus plans to issue 750,000 common shares at a price of US$8.50 per share through this Nasdaq IPO listing, and raise US$6.4 million in funds.
Business
Logos Technology (Beijing) Co., Ltd. (hereinafter referred to as "Rokers") was formally established in 2011. It is an enterprise employment, health management, and vocational training service company with AI+PaaS platform as its core.
Management is led by Founder, Chairman and CEO Howard Lee, who has been with the company since its inception in 2011 and previously served as Vice President of Corporate Development at Western Digital (WDC). The products and services of ROXIS
mainly include:
(1) headhunting solutions
(2) flexible employment solutions
(3) comprehensive health solutions
Investors including Jianglian Capital and Tianyun Data have received US$17.4 million in investment.
Industry Overview
According to iResearch's 2022 market research report, the size of China's online recruitment market in 2021 will be US$2.25 billion.
Compared with 2021, the growth rate is 48.2%.
The main drivers of this expected growth are the increased demand for employees in small and micro businesses and their increasing use of online means to recruit new employees.
Rocus’ main competitors in this industry include:
(1) online agency-centric service providers;
(2) online human resource service providers
(3) traditional human resource companies
(4) traditional workforce solution providers
The following is the industry situation of China's online recruitment market:
financial situation
According to the prospectus, Luo Keshi's financial performance is as follows:
(1) Slowing revenue growth
(2) Declining gross profit
(3) Gross profit decline
(4) Sharp decrease in operating cash flow
Total income: As of June 30, 2022, the total income of Roxas in 2020, 2021, and 2022 are: US$32.42 million, US$97.18 million, and US$45.11 million, respectively.
Gross profit (loss): As of June 30, 2022, the gross profit of Rocus in 2020, 2021, and 2022 are: 8.1429 million US dollars, 26.685 million US dollars, and 13.826 million US dollars.
Gross profit margin: As of June 30, 2022, the gross profit margins of Rocus in 2020, 2021, and 2022 are: 25.11%, 27.46%, and 30.65%, respectively.
Operating profit (loss): As of June 30, 2022, Rocus' operating profit in 2020, 2021, and 2022 are: US$407,000, US$5.53 million, and US$2.639 million, respectively.
Comprehensive income (loss): As of June 30, 2022, the comprehensive income of Rocus in 2020, 2021, and 2022 are: US$622,200, US$5.875 million, and US$2.763 million, respectively.
Cash flow from operating activities: As of June 30, 2022, Rocus' operating cash flows in 2020, 2021, and 2022 are: US$342,300, US$9.033 million, and US$1.147 million, respectively.
As of June 30, 2022, Roxos had $4.3 million in cash and $14.6 million in total liabilities.
Roxos' free cash flow for the twelve months ended June 30, 2022 was $5.8 million.
Agency
The bookrunners for Rocus’ IPO listing on Nasdaq are The Benchmark Company and Huasheng Securities.