Written | Planet
Source | Bedouin Finance
Recently, Tuhu Automobile Co., Ltd. (hereinafter referred to as "Tuhu Automobile") passed the Hong Kong Stock Exchange's listing hearing and disclosed the information set after the hearing (ie, the prospectus). According to Bedo Finance’s understanding, Tuhu Automobile had submitted forms to the Hong Kong Stock Exchange three times on January 21, 2022, August 29, 2022, and March 30, 2023.
According to the prospectus, Tuhu Yangche was established in 2011. It is an online and offline integrated automobile service platform. Relying on the customer-centric model and supply chain, it provides services ranging from tire and chassis parts replacement to automobile maintenance, repair, One-stop car service such as car beauty.
According to the China Insights Consulting report, as of March 31, 2023, Tuhu Yangche has the largest and most accurate auto parts database in China, covering 286 brands and more than 66,000 models, with a matching accuracy of 99.99%. Its proprietary store and technician management system "Blue Tiger" ranks first in China in terms of daily active users.
As of June 30, 2023, Tuhu Yangche's flagship app "Tuhu Yangche" and online interface had approximately 105 million registered users and an average monthly active user of 9.9 million. In the twelve months ended June 30, 2023, Tuhu Automobile had approximately 18 million transaction users, with a repurchase rate of 61.6%.
In 2019, 2020, 2021, 2022 and the first quarter of 2023, the revenue of Tuhu car maintenance will be 7.040 billion yuan, 8.753 billion yuan, 11.724 billion yuan, 11.547 billion yuan and 3.265 billion yuan respectively; loss during the year/period They are 3.428 billion yuan, 3.928 billion yuan, 5.845 billion yuan, 2.138 billion yuan and 279 million yuan respectively.
Measured in accordance with non-IFRS, Tuhu’s adjusted net losses in 2019, 2020, 2021, and 2022 are 1.036 billion yuan, 894 million yuan, 1.264 billion yuan, and 552 million yuan, respectively. In the first quarter of 2023, the company's adjusted net profit was 90.849 million yuan, turning losses into profits.
Although the revenue and profit fluctuate greatly, thanks to the changes in the product and service category mix, the gross profit margin of Tuhu Auto has continued to rise. In 2019, 2020, 2021, 2022 and the first quarter of 2023, the company's gross profit margins will be 7.4%, 12.3%, 16.0%, 19.7%, 17.9% and 24.2%, respectively.
Beido Finance found that the "main contributor" to the growth of Tuhu's car maintenance gross profit margin is its continuous improvement of its car maintenance business. During the reporting period, the business realized gross profits of 396 million yuan, 604 million yuan, 1.018 billion yuan, 1.192 billion yuan, and 396 million yuan respectively, and the gross profit rate also increased from 21.2% in 2019 to 29.6% in 2022.
In addition, the increase in Tuhu's franchise service income has promoted the development of its advertising franchise business. In 2019, 2020, 2021, 2022 and the first quarter of 2023, the business will achieve gross profits of 189 million yuan, 349 million yuan, 545 million yuan, 596 million yuan and 185 million yuan respectively.
Although there is not much difference between the gross profit of Tuhu’s tire and chassis parts business and advertising, franchising and other businesses, due to the high procurement costs, the gross profit margin of the company’s tire and chassis parts business during the same period was 3.9% and 7.8% respectively. %, 9.0%, 14.1% and 16.2%, far less than the advertising franchise business.
According to the prospectus, Tuhu’s performance in the first half of 2023 will grow steadily, achieving revenue of 6.5 billion yuan, a year-on-year increase of 19.3%; adjusted net profit of 214 million yuan, and a net profit of -414 million yuan in the same period in 2022, realizing a turnaround In order to be profitable, the overall gross profit margin was also maintained at 24.2%.
Tuhu Yangche stated in the prospectus that its main stores are divided into three types, including self-operated Tuhu workshop stores, franchised Tuhu workshop stores and third-party cooperative stores. As of June 30, 2023, Tuhu Yangche's store network includes 161 self-operated stores, 4,968 franchised Tuhu Factory stores, and more than 20,000 cooperative stores.
Among them, joining the Tuhu factory store is the strategic focus of Tuhu's car maintenance, promoting its efficient expansion through the asset-light model. In addition, as a supplement to Tuhu's workshop stores, the company has also established a large number of cooperative stores across the country, mainly providing installation services to customers who place orders through Tuhu's online interface.
Because of this, the income of Tuhu car maintenance is highly dependent on franchisees. During the reporting period, the company’s revenue from joining Tuhu Factory Stores was 3.938 billion yuan, 5.485 billion yuan, 8.119 billion yuan, 8.757 billion yuan, and 2.635 billion yuan, accounting for approximately 55.94%, 62.67%, 69.25%, and 75.85% and 80.71%.
During the same period, the revenue of cooperative stores was 1.265 billion yuan, 1.183 billion yuan, 1.241 billion yuan, 674 million yuan and 133 million yuan respectively, accounting for 17.97%, 13.51%, 10.59%, 5.84% and 4.08%; self-operated Tuhu The revenues of workshop stores were 503 million yuan, 525 million yuan, 591 million yuan, 563 million yuan and 168 million yuan respectively.
It is worth mentioning that, in addition to providing services for fuel vehicles, Tuhu also follows the market development trend and explores products and services that are more suitable for new energy vehicles. According to the prospectus, the company has established business cooperation with new energy vehicle brands (such as Leap Motors and Beiqi Jihu) to provide car services for new energy vehicle owners.
In addition, Tuhu Yangche has established partnerships with several mainstream new energy battery solution providers to provide its customers with battery-related services, such as battery capacity testing and maintenance, battery recycling, and electrical system replacement. In 2022, the company will complete about 20,000 orders for battery repair and maintenance services.
According to Bedo Finance, Tuhu Auto has completed several rounds of financing. Investors include Tencent, Sequoia Capital, Qiming Venture Capital, Hillhouse Capital, Goldman Sachs, and CICC. Among them, Tencent holds a total of 19.61% of the shares for Tuhu Auto. largest shareholder.
In contrast, Chen Min, co-founder, chairman, CEO and executive director of Tuhu Yangche, holds 10.86% of the shares, and Hu Xiaodong, co-founder, president and executive director of Tuhu Yangche, holds 3.26% of the shares. At the same time, Joy Capital holds 9.07%, Sequoia China holds 7.64%, and Fountain Capital holds 5.51%.
In addition, Legend Capital holds 3.89%, Star World Capital holds 3.64%, Qiming Venture Partners holds 3.15%, Goldman Sachs holds 2.45%, CICC holds 2.34%, and Hillhouse Capital holds 2.09%. Due to the adoption of the different voting rights structure, Chen Min is the controlling shareholder of Tuhu Yangche and the actual controller of the company.
Currently, Yao Leiwen, deputy general manager of Tencent's investment department, is a non-executive director of Tuhu Yangche.