Where is the imagination space for the automotive aftermarket where is the digital empowerment of Tuhu?

The reporter learned that Tuhu Yangche recently officially submitted an IPO prospectus to the Hong Kong Stock Exchange.

According to the DOCUMENTS of the Hong Kong Stock Exchange, Tuhu Has submitted an application for listing hearing on the main board of the Hong Kong Stock Exchange, and the co-sponsors are Goldman Sachs, CICC, Bank of America Securities and UBS Group. Previously, Tuhu Car has gone through several rounds of financing, and has been praised by investors such as Goose Factory, Goldman Sachs Sequoia Capital, Hillhouse Capital, Legend Capital, Qiming Venture Capital, and CICC Capital.

In recent years, mainland automotive aftermarket services have ushered in explosive growth, with a compound annual growth rate of 12.3% from 2016 to 2020, one of the few in the global automotive service market. It is estimated that in 2025, the size of the mainland automotive aftermarket will reach 1.7 trillion yuan. As a player who has laid out the B2C track in this market since 2011, Tuhu Yangche has gone through several rounds of market reshuffle, and there are few competitors left.

According to the listing application, Tuhu Yangche's revenue in the first three quarters of 2021 increased by 41.8% year-on-year (from 6 billion yuan to 8.4 billion yuan). In 2020, despite the impact of the epidemic, the company's total revenue for that year still increased by about 24.3% (from 7 billion yuan to 8.8 billion yuan) compared with 2019. The steady and sustained growth of revenue confirms that the variables in the uncertain environment are relatively controllable, and the first IPO in the automotive aftermarket is worth looking forward to.

In addition to revenue, gross profit is also an important factor for investors to consider. Previously, some analysts believed that the automotive aftermarket market was fiercely competitive, and it was too difficult for large chains to make money. According to the listing application, Tuhu has reduced procurement costs and continuously improved gross profit margins by optimizing its product mix, providing diversified products, and expanding its product and service portfolio.

According to the china insight consulting report, a typical Tuhu car workshop store has an area of 300-400 square meters, and the average number of workstations is 6.5, which is higher than the industry average of 4.2 car workstations per store. While leading in the number of workstations, Tuhu's daily service turnover rate per car station can reach 2.4, which is much higher than the industry average (about 1 time per car station per day), ensuring the efficiency of service.

Compared with traditional stores, digitalization has always been the advantage of Tuhu Car. The workshop store, which began to test the water in 2015, adopted the "customer-driven + digital" model to promote the flywheel effect and expand the market space. As of September 30, 2021, it has more than 3,300 "Tuhu Car Workshop Stores" and more than 33,000 cooperative stores, and its offline service network covers most prefecture-level cities and continues to expand.

At the same time, the company's flagship app "Tuhu Yangche" and online interface transaction users reached 13.9 million, an increase of 35.6% from 10.3 million as of September 30, 2020. Tuhu's digital capabilities provide users with affordable, genuine, high-quality product and service experiences, optimize the management capabilities of small and micro entrepreneurs through digital solutions, and help common prosperity.

Industry insiders predict that with the continuous improvement of the penetration rate of new energy vehicles, the use of market resources to further cooperate in smart retail and supply chain finance may become a new direction for the incremental expansion of Tuhu car breeding.

Author: Zhang Xiaoming

Edit: Zhan Yue

Editor-in-Charge: Zhou Yuan

*Wenhui exclusive manuscript, please indicate the source when reprinting.