Leidi.com Lei Jianping September 29
Lalalamove officially submitted its prospectus again, updated its financial report data, and applied to be listed on the main board of the Hong Kong Stock Exchange. The listing entity's name is "Lalatech" (English name: Lalatech).
First-half revenue of US$600 million
Lalamove was established in Hong Kong in 2013. It is committed to solving the main logistics needs in intra-city and cross-city freight transactions, while providing diversified logistics services and value-added services to merchants and truck drivers.
The prospectus shows that in the six months ended June 30, 2023, Lalamove’s platform facilitated more than 260 million completed orders, and global freight GTV reached US$3.927 billion (27.358 billion yuan). In the six months ended June 30, 2023, Lalamove had an average of approximately 12.2 million monthly active merchants and an average of approximately 1.1 million monthly active drivers.
Lalamove's revenue in 2020, 2021, and 2022 will be US$529 million, US$845 million, and US$1.036 billion respectively, with a compound annual growth rate of 39.9%; gross profits will be US$204 million, US$333 million, and US$556 million respectively; Operating profits were -US$176 million, -US$661 million, and US$2.629 million respectively.
In 2022, after years of expansion and investment in business growth, Lalamove achieved adjusted profits (non-IFRS) of US$53.23 million.
Lalamove’s revenue in the first half of 2023 was US$600 million, an increase of 24.8% from US$481 million in the same period last year; among which, Lalamove’s domestic platform service revenue in China in 2023 was US$547 million, and its overseas revenue was US$53.37 million. .
Lalamove's gross profit margin in the first half of 2023 was 61%, compared with 51.5% in the same period last year; Lalamove's adjusted profit in the first half of 2023 was US$150 million.
The road freight industry has huge growth potential
In recent years, digital platforms for road freight services have begun to emerge. These platforms facilitate seamless connections between merchants and drivers, effectively solve industry pain points, and are developing rapidly.
On these platforms, merchants have real-time access to a large number of drivers and can reduce waiting times. Various models can meet the needs of merchants in different scenarios (such as transporting different products). Likewise, drivers can conveniently choose the best route that fits their schedule to increase vehicle utilization and generate more revenue. Therefore, merchants and drivers can make informed decisions based on fair and transparent pricing set by the platform. In addition, artificial intelligence-powered self-learning algorithms continuously improve order matching and allocation efficiency, which translates into a better user experience. Merchant and driver background and vetting can also enhance mutual trust and enhance transaction transparency and security.
According to Frost & Sullivan, at present, the online penetration rate of the global road freight industry is still low and there is huge growth potential. Only 1.9% of road freight GTV in 2022 will be facilitated through digital platforms. Online penetration is expected to jump over the next five years, reaching 2.7%. According to Frost & Sullivan, for China's intra-city freight market, online penetration is expected to increase significantly, from 4.1% in 2022 to 7.3% in 2027.
Currently, there are many types of digital platforms, mainly including information release platforms and closed-loop trading platforms. The closed-loop trading platform can facilitate the end-to-end process from order placement, pricing, advance payment, freight matching, order tracking to payment settlement confirmation. Throughout the closed transaction loop, it generates valuable insights that can be analyzed and used to improve the quality and efficiency of platform services. Therefore, closed-loop trading platforms can better solve industry pain points and seize the value created by opportunities.
In contrast, pure information publishing platforms usually only provide a publishing place for freight orders. The platform displays freight requests and contact information of drivers and merchants, and has no or limited support for key aspects of road freight transactions, such as pricing and settlement. , so pricing and settlement need to be completed offline.
Closed-loop trading platforms usually have higher user stickiness and stronger monetization potential.
According to Frost & Sullivan, in 2022, 23.8% of global online road freight GTV will come from closed-loop transactions. According to the same data source, the ratio rose to 24.7% in the first half of 2023. On the other hand, more than 90% of the transactions completed through the Lalamove platform in 2022 are closed-loop transactions, which is higher than the industry average.
Hillhouse Sequoia Shunwei Xianghe is a shareholder
The executive directors of Lalamove are Zhou Shengfu and Tan Wenbao; the non-executive directors are Huang Liming, Ms. Wang Mengqiu, Guo Shanshan, and Zhang Ruiqi; the independent non-executive directors are Wu Jiwei, Chen Fuchang, and Li Tingbin.
Zhou Shengfu is the founder and CEO of Lalamove. In 1995, he became the first top ten pick in the history of Hong Kong New Territories. In 1999, he served as a consultant at Bain & Company. In 2000, he received a bachelor's degree in economics from Stanford University.
Major shareholders of Lalamove include Hillhouse, Sequoia, Concept Capital, Shunwei, Qingliu Capital, Xianghe, etc.
In the last week of September 2023, the Hong Kong stock market set off a small climax of listings, including the listing of many companies such as Tuhu Car Care, Youzhiyou Biotech, Lecai Logistics, 4Paradigm, Zhongxu Future, Neusoft Xikang, etc. At the same time, recently Zhixing Automobile, October Rice Field, Tiantu Capital, Luyuan Electric Vehicle, Ubao and many other companies have passed listing hearings and are preparing for IPOs.
Judging from the trend, Lalamove may also accelerate its pace of listing in the future.
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