Shunfeng’s car business market share reached 65%, Dida Travel officially went to Hong Kong for IPO-Economic Observer Network-Professional Financial News Website



[ad_1]

Tong Fengliang, Reporter for the Economic Observer Network On the evening of October 8 Beijing time, Dida Travel formally submitted a prospectus to the Hong Kong Stock Exchange. If it goes well, it can become “the first part of China carpool.”

Related information shows that Tide Travel was established in 2014, and its predecessor was the “Tide Carpool” which focused on private car sharing and car owners and passengers. In 2018, the Dida carpool brand was upgraded to Dida Travel. The current business consists mainly of two main segments: Shunfeng and taxis.

According to the prospectus presented by Dida Travel, if calculated based on the number of trips on trips in 2019, Dida Travel currently occupies 65% of the market share, making it the largest private travel platform in China. As of June 30, 2020, Dida Travel offers a shared transportation platform in 366 cities across the country, with approximately 19.2 million registered private car owners. Regarding the taxi business, based on the same number of trips in 2019, Dida Travel’s taxi business ranked second among travel platforms. As of June 30, 2020, Dida Travel has provided taxi rank services in 86 cities and has established strategic alliances with taxi associations at the municipal or district level in 17 cities.

In terms of revenue model, at present, Dida Travel’s ride-sharing business primarily collects service fees from private car owners who provide rides on the Dida Travel platform; and in the taxi business, Dida Travel started charging taxi drivers in August 2019. It collects service fees and also generates revenue from advertising and other services.

In terms of important financial data, Tide Travel’s prospectus shows that Tide Travel’s revenue from 2017 to 2019 was RMB 49 million, RMB 118 million, and RMB 581 million. In terms of net profit, due to the large investment in the travel industry and a long payback period, Dida Travel experienced a high loss stage in the initial period. Data shows that Dida Travel’s adjusted net loss in 2017 and 2018 was 0.97. Trillions and 1,068 million yuan. However, since 2019, Dida Travel has been profitable. In 2019 and the six months ended June 30, 2020, Dida Travel’s adjusted net profit was 172 million yuan and 151 million yuan, respectively. Adjusted net profit margins were respectively 29.7% and 48.6%.

Both Tide Travel’s initial losses and current earnings are related to the “money-for-market” travel platform’s subsidy war. The subsidy was significantly controlled in 2019, which has become an important factor in its current profitability. Reflected in financial data, in 2017, 2018 and 2019, the cost of Tide Travel’s service was 25 million RMB, 48 million RMB and 120 million RMB, respectively, accounting for 50.5%, 41, 4% and 20.5% of total income during the same period. %; In terms of selling and marketing expenses, Tide Travel spent 99 million RMB, 1,094 million RMB and 219 million RMB in the same period, which represents 203.0%, 930.7% and 37.7% of the total revenue in the same period. period.

Although the Shunfeng car market share has ranked first and the taxi market share second, there are still pressures and challenges at Tide Travel. Tide Travel’s prospectus shows: “Our competitive position may be affected (among other things) by our ability to retain and attract users to expand, our ability to provide a superior user experience, and the reputation and popularity of our services compared to our competitors. The impact of grade, price, availability, ease of use, performance and reliability. “

Furthermore, Dida Travel said that government policies and oversight in the travel industry and the online car calling industry are also important factors. The data shows that the Dida Travel Shunfengche platform has received a total of 77 administrative fines, each of which ranges from 5,000 to 30,000 yuan. As of the latest practicable date, the total fines amounted to RMB 2.07 million.

From an industry perspective, Didi Chuxing’s biggest competitor is Didi Chuxing. The latter has the largest share of the online car calling market. Didi Chuxing is currently gradually competing with Didi Chuxing in cars and taxis. Resuming its carpool business, and at the same time, this year, has Qingcai independent carpooling and has deployed Huaxiaozhu tours, “disguised” to increase private trips; For the taxi business, Didi recently announced that it will relaunch Kuaidi to implement and improve its rental. Automobile business.

In the prospectus presented by Tide Travel this time, the specific issue price and issue volume were not disclosed. The information shows that the institutional shareholders of Dida Travel include NIO Capital, IDG, Chongde Investment, Bitauto, Hillhouse Capital, JD, Ctrip, etc., before the listing of Dida Travel, their participation rates were 21.60%, 10.23%, 7.15%, 4.95%, 4.14%, 4.14%, 2.86%.

Copyright notice:The above content is the original work of “Economic Observer”, and copyright belongs to “Economic Observer”. It is strictly forbidden to reprint or duplicate without the authorization of the “Economic Observer”; otherwise, the relevant actors will be liable in accordance with the law. For cooperation on copyright, call:[010-60910566-1260].

[ad_2]