Car Maintenance E-Commerce Platform Tuhu Updates Prospectus to Debut in Hong Kong

Tuhu Car or truck Inc., an e-commerce system for car servicing, has up-to-date its prospectus on March 30 to debut on the Hong Kong Inventory Exchange. This marks the company’s third submission of a prospectus and it is currently being jointly sponsored by Goldman Sachs, CICC, Financial institution of The united states, and UBS.

Tuhu, a Shanghai-dependent enterprise established in 2011 with the intention of simplifying car or truck servicing, delivers buyers a variety of solutions and items this kind of as tire replacement, auto detailing, and automotive materials. The organization submitted its prospectus for an IPO to the Hong Kong Inventory Exchange in January 2022. Nevertheless, its application status was improved to “invalid” in July of that calendar year mainly because it did not move the listening to in just six months of submitting its prospectus. Tuhu resubmitted an updated listing software on March 30 just after its preceding prospectus turned invalid once more in March on the Hong Kong Stock Exchange.

SEE ALSO: Car or truck Maintenance E-Commerce Platform Tuhu to Debut in Hong Kong

In accordance to the up-to-date prospectus, as of the stop of 2022, there are a whole of 4,653 shops covering 302 cities in China. This represents a substantial improve of 20.8{49e09b23eae7466ccc7574c19ebb3019301c9a11d2999feff81a3526451546a5} when compared to the earlier yr. Moreover, the range of registered consumers has also enhanced by 22.3{49e09b23eae7466ccc7574c19ebb3019301c9a11d2999feff81a3526451546a5}, achieving a complete of 95.5 million individuals compared to the previous year.

In 2022, Tuhu produced a overall revenue of 11.55 billion yuan ($1.69 billion), but incurred a net reduction of 3.29 billion yuan. In excess of the previous four decades, Tuhu’s gross profits were as follows: 520 million yuan in 2019, 1.08 billion yuan in 2020, 18.7 billion yuan in 2021 and finally, an amazing boost to achieve up to 22.7 billion yuan in 2022 with corresponding gross income margins of 7.4{49e09b23eae7466ccc7574c19ebb3019301c9a11d2999feff81a3526451546a5}, 12.3{49e09b23eae7466ccc7574c19ebb3019301c9a11d2999feff81a3526451546a5}, 16{49e09b23eae7466ccc7574c19ebb3019301c9a11d2999feff81a3526451546a5} and 19.7{49e09b23eae7466ccc7574c19ebb3019301c9a11d2999feff81a3526451546a5}.

According to Tuhu CEO Chen Min, the key to attracting offline buyers lies in offering quality products and services at strategic locations. However, this industry is highly aggressive with very low margins and entry limitations. For that reason, rather of hoping to monopolize the industry, Tuhu’s method is to concentration on segmenting marketplaces and providing differentiated services although controlling costs as a result of stock reduction and funds stream management.

Chen emphasized that their objective is not just to receive extra shoppers but to return to the core rules of offline business. He believes that leveraging technologies can help optimize cost management by lowering consumer acquisition fees while strengthening consumer fulfillment.

In 2022, Tuhu and TÜV Rheinland, an internationally major independent 3rd-occasion screening, inspection, certification, coaching, and consulting business, jointly launched a tire general performance evaluation certification technique. On March 29 in Shanghai, the two get-togethers held a certificate award ceremony exactly where they issued China-mark certification certificates for 15 solutions from 10 very well-acknowledged domestic and international tire manufacturers.