Recently, Bedo Finance learned from the ChiNext board of the Shenzhen Stock Exchange that the listing process of Tubatu Group Co., Ltd. (hereinafter referred to as "Tubatu") has been suspended due to the investigation of the issuer's lawyer, Beijing King & Wood Mallesons, on January 26, 2022.
This means that the issuance and listing of Tuba Rabbit will enter the shutdown stage. With the same fate as Tuba Rabbit, there are also Defu Technology, Ailian Technology, Enwei Pharmaceutical, Motie Culture, Jiuxian Network, State Grid Intelligence, Qingyue Technology, Yunzhou Intelligence, etc., with a total of more than 30 companies lined up for listing.
According to Bedo Finance, TubaTu submitted a prospectus on the Gem on June 30, 2021 and was accepted, and experienced the first round of inquiries in August 2021. As of now, TubaTu has not publicly replied to the first round of inquiries from the GEM Listing Committee, and is still in the early stage.
Prior to this, Tubatu had suspended its issuance and listing review by the Shenzhen Stock Exchange in September 2021 because the financial information recorded in the IPO application documents had expired and needed to be submitted additionally. In November of the same year, the Shenzhen Stock Exchange resumed its issuance and listing review as the issuer had completed the updating of its financial information.
Twists and turns, has not yet returned to its former glory
Earlier, TubaTu had also submitted listing application materials on the Hong Kong Stock Exchange in August 2018, but failed to pass the hearing and conduct an IPO. In contrast, Qeeka Technology (HK:01739), which operates Qeeka.com, landed on the Hong Kong Stock Exchange on 12 July 2018.
Today, Tuba Rabbit has chosen to switch to A shares, but the road to listing has been tossed and turned, and it has fallen into a state of suspension many times. According to TubaTu's prospectus, its comparable company is Qeeka Technology. In 2020, the revenue of some businesses in the Internet home improvement platform was 556 million yuan, accounting for 60.65% of the total revenue.
In addition, Kujiale's parent company, Group Nuclear Technology, filed an F-1 prospectus with the U.S. Securities and Exchange Commission (SEC) in June 2021 to apply for listing on the NASDAQ. At present, the listing process of Group Nuclear Technology (Kujiale) has been postponed indefinitely.
In contrast, Qeeka Technology (Qeeka)'s revenue scale is the highest among the three, and it has achieved continuous profitability. In 2020, Qeeka's total revenue was RMB916 million, an increase of 18.8% year-on-year, and the net profit attributable to equity holders of the adjusted company was RMB45.1 million, a decrease of 26.1% year-on-year.
Similarly, Tuba Rabbit as a whole remains profitable. In 2018, 2019 and 2020, TubaTu's revenue was 583 million yuan, 680 million yuan and 615 million yuan, and net profit was 38.6297 million yuan, 79.679 million yuan and 86.5975 million yuan, respectively.
In particular, TubaTu's earlier prospectus submitted on the Hong Kong Stock Exchange shows that its revenue in 2017 has reached 881 million yuan. Today, Tubatu's annual revenue from 2018 to 2020 has failed to reach its previous peak, only slightly higher than the 571 million yuan in 2016.
In contrast, Group Nuclear Technology (Cool House) is in a state of long-term loss. The revenue of Group Nuclear Technology in 2019 and 2020 was 282 million yuan and 353 million yuan respectively, an increase of 25.19% year-on-year. In the first quarter of 2021, the revenue of Qunnuo Technology was 101 million yuan, an increase of 33.32% compared with 75.675 million yuan in the same period of 2020.
In 2019 and 2020, the net loss of Group Nuclear Technology was 261 million yuan and 297 million yuan, respectively. In the first quarter of 2021, its net loss was 117 million yuan, compared with a net loss of 48.746 million yuan for the same period in 2020. Qunnuo Technology also warned of risk in the prospectus, saying that it may not be able to achieve or maintain profitability in the future.
It is worth mentioning that Tuba Rabbit's "Tuba Rabbit Decoration" APP has been named for infringing on the rights and interests of users. On August 31, 2020, the Ministry of Industry and Information Technology notified the fourth batch of 101 apps that infringed on the rights and interests of users in the fourth batch of 2020, and the Tubatu Decoration APP was listed for "illegal use of personal information".
Similarly, in December 2020, "Cool Jiale Decoration Butler (5.9.3)" under Qunnuo Technology was also notified by the Zhejiang Provincial Communications Administration for a number of violations; Cool Jiale Designers (5.18.4) were also notified in 2021 for illegal collection of personal information.
The gross profit margin is high, and the traffic business has both joys and worries
Earlier, Tuba Rabbit had carried out its own home improvement business, but it began to clear zero in 2020. TubaTu disclosed that "based on the adjustment of business strategy, it took the initiative to terminate the self-operated home improvement business". According to the prospectus, TubaTu's self-operated home improvement business revenue in 2018 accounted for as much as 13.77%.
According to the prospectus, Tubatu's main source of income is online platform business, including intelligent order matching services, value-added services, financial promotion services, material supply chain and other platform services, and advertising business. From 2018 to 2020, such revenue was 500 million yuan, 655 million yuan and 615 million yuan, accounting for 5.72%, 96.34% and 99.94% respectively.
Among them, the contribution of intelligent order matching services under the platform information service division to TubaTu is about 70%. In 2018, 2019 and 2020, this type of revenue was 390 million yuan, 512 million yuan and 469 million yuan respectively, accounting for 66.84%, 75.29% and 76.25% of the total revenue, respectively.
The prospectus shows that the comprehensive gross profit margin of Tuba Rabbit is extremely high. In each period of the reporting period, the comprehensive gross profit margin of Tuba Rabbit was 81.59%, 91.37% and 93.85% respectively, and the reporting period showed an upward trend year by year. During the same period, the gross profit margin of Qeeka Technology (Qeeka)was 59.09%, 65.97% and 56.8%, respectively.
As an Internet platform company, TubaTu is not stingy about traffic procurement. From 2018 to 2020, Tubatu's traffic acquisition expenses for purchasing Internet advertising traffic were 142 million yuan, 206 million yuan and 215 million yuan, accounting for 24.28%, 30.31% and 35.00% of the total revenue, respectively.
From this point of view, Tuba Rabbit can be regarded as a "traffic dealer". In this regard, TubaTu explained that due to the continuous rise in online traffic costs and the company's increased precision traffic procurement to promote the sustainable development of the business. As a result, its total traffic acquisition fees and their proportion of current revenue during the reporting period showed an upward trend.
The analysis believes that as Tuba Rabbit becomes more and more dependent on external traffic, and Internet traffic has changed from an incremental market to a typical stock market. In the case of limited growth space in the future, the traffic will become more and more expensive, which means that the cost of Tuba Rabbit will gradually increase, and the scale of profits may be eroded.
In terms of intellectual property rights, Tubatu disclosed in the prospectus that it has obtained 91 patents and 66 software copyrights. According to the data of Wisdom Bud, Tuba Rabbit has applied for a total of 283 patents, of which 103 are valid patents, mainly focusing on computer equipment, servers, databases and other aspects.
Since its establishment, Tuba Rabbit has accumulated investment from many well-known institutions such as Jingwei China and Sequoia China. Among them, in December 2011, Tuba Rabbit obtained the A series investment of Matrix Partners China, completed the B series financing of Matrix Partners China and Sequoia China in 2014, and completed the Series C financing of Matrix Partners China, Sequoia China and 58.com in March 2015.
In the pre-listing shareholding structure, Pour La Vie holds 20.59%, Sequoia Capital China holds 14.90% and 58 Shenqi (58.com) holds 10%. Among them, Pour La Vie is a related party of Matrix Partners (Matrix Partners).
At the same time, Wang Guobin and Xie Shuying jointly hold a total of 50.63% of the company's shares. Among them, Wang Guobin directly holds 49.06% of the shares of Tuba Rabbit, and indirectly holds 0.0008% of the shares of Tuba Rabbit through Shenzhen Zhai Satisfaction Consulting Partnership (Limited Partnership), and holds a total of 49.06% of the shares of Tuba Rabbit, which is the controlling shareholder.
At present, Wang Guobin serves as the chairman and general manager of TubaTu, and Xie Shuying is the deputy general manager.
Source: Bedo Finance