On June 28, Tianju (Suzhou) Technology Co., Ltd. (hereinafter referred to as "Tianjudihe" or "Aggregate Data", HK: 02479) was listed on the main board of the Hong Kong Stock Exchange. In this listing, the issue price of Tiandi Aggregation is HK$83.33 per share, and the number of shares offered is 4,818,200 shares, with a total amount of about HK$402 million and a net proceeds of about HK$349 million.
On the first day of listing, the opening price of Tianju Dihe was HK$113.00 per share, an increase of 35.61% from the IPO issue price, and once rose to HK$117.20 per share during the session. As of the close, the share price of Tianju Dihe closed at HK$60.15 per share, a decrease of 27.82% from the issue price, an amplitude of 63%, and a total market capitalization of about HK$3 billion.
It is worth mentioning that Tiandi Aggregation has received orders from a number of cornerstone investors, including Reynold Lemkins, Yuan Feng, Xuzhou Economic and Technological Development Zone (Hong Kong), and Gold Wings, with a total subscription of US$41.04 million (about HK$320 million), accounting for 79.62% of the offering ratio and 7.66% of the total share capital after the offering.
This means that cornerstone investors such as Ruikai Group have already suffered large losses on their books, totaling about HK $89 million. It is also reported that cornerstone investors have a six-month lock-up period. If the share price of Tiandi Aggregation continues to fall, then the paper losses of these cornerstone investors will further widen. On the contrary, it is expected to achieve a positive and profitable performance.
Previously, Tianjudihe had tried to list on the A-share market. In November 2018, the company submitted a prospectus to the Growth Enterprise Market of the Shenzhen Stock Exchange, but chose to withdraw it in 2019. In September 2022, Tianju planned to submit an application for listing on the Shanghai Stock Exchange, but it was not accepted, and was suspended in February 2023.
Tianjuhe said in the prospectus that due to the large number of listing applicants on the STAR Market, the company is concerned that the large number of applications may delay the approval process, leading to uncertainty in the timeline. In addition, the company is also concerned about whether the regulator will propose additional requirements or measures during the approval process.
On the other hand, due to the relatively low number of listing applications in the Hong Kong market, Tianju will have better expectations and certainty about the overall listing timetable. The Hong Kong market also has a good track record in attracting innovative technology companies to go public. As such, the Company believes that applying for listing on the HKEX may be more suitable for the Company's needs.
According to the prospectus, Tianjudihe is a comprehensive API (i.e., "application program") data circulation service provider, providing standard API services and customized data governance solutions. According to the Frost & Sullivan report, the company is the largest integrated API data circulation service provider in China in terms of revenue in 2022, with a market share of 6.1%.
In 2021, 2022 and 2023, the revenue of Tianju Dihe will be about 260 million yuan, 329 million yuan and 441 million yuan respectively, the gross profit will be about 89.912 million yuan, 108 million yuan and 125 million yuan respectively, and the net profit will be about 45.966 million yuan, 41.284 million yuan and 35.061 million yuan respectively.
Overall, the company's revenue continued to grow, as did its gross profit. However, Bedo Finance found that the company's net profit scale has declined in 2023. In this regard, Tianjudihe explained in the prospectus that it was mainly due to non-recurring listing expenses in 2023 and an increase in impairment losses on financial and contract assets.
Correspondingly, the net profit margin of Tianju has also continued to decline, from 17.7% in 2021 to 12.6% in 2022, and further to 7.9% in 2023. Tianjudihe said in the prospectus that it was mainly due to the decline in the company's gross profit margin and the increase in total expenses.
Since its establishment, Tianjudihe has received multiple rounds of financing, including China Cultural Industry Investment Fund, JD Technology, etc., of which JD Technology became the second largest shareholder of Aggregate Data in 2014. Since then, JD Technology has continued to increase its investment in aggregated data.
Tianyancha App information shows that Tianjudihe was established in February 2010 and was formerly known as Suzhou Xinkeland Technology Co., Ltd. At present, the registered capital of the company is 45.36 million yuan, the legal representative is Zuo Lei, and the main shareholders include Zuo Lei, Jingdong Technology, China Cultural Industry Investment Fund, Qiu Jianqiang, etc.
Prior to this listing, Zuo Lei held a total of approximately 53.33% of the total share capital of Tianju Dihe, including approximately 43.59% beneficial interest, 0.15% spousal interest and 9.59% interest in Yiju Liuhe and Liuju Liuhe (i.e. Zuo Lei's controlled legal corporation). Among them, Hua Huan is Zuo Lei's wife, holding 0.15% of the shares.
At the same time, Jingdong Technology holds 16.48% of the shares, Qiu Jianqiang holds 8.91% of the shares, Hua Yong holds 3.11% of the shares, Zhou Lijun holds 2.08% of the shares, Suzhou Guofa No. holds 1.63% of the shares, Ren Yuan holds 1.39% of the shares, Tahoe Growth holds 1.26% of the shares, Fan Shebin holds 1.19% of the shares, Tahoeland holds 1.15% of the shares, Shao Zhenkai holds 1.08% of the shares, and Shanghai Keluopu holds 0.82% of the shares.
In addition, Zhongxin Venture Capital, Mao Sipian, Chu Xiaogang and Zhong Weiwei held 0.81% of the shares, ABC Investment held 0.66%, Yu Fangbiao held 0.65%, Taihao Growth II held 0.46%, Wang Bin held 0.41%, Datong Qikai held 0.38%, Li Zhicong, Chen Zhixin, Gu Guomin, Yang Xiaoning and Wang Liping held 0.22%, 0.19%, 0.16%, 0.11% and 0.06% respectively.
Among them, Zuo Lei is the chairman, chief executive officer and executive director of Tianjudihe, Yang Yanjun is the executive director, deputy general manager, secretary of the board of directors and joint company secretary, Shao Chuangye is the chief financial officer, and Shao Lida, Wei Zheng, Han Jianfeng, Dong Chuanzu, Wang Lei and Ji Shilin are all deputy general managers.