China Fund News reporter Amman
On the evening of May 13, the website of the Shanghai Stock Exchange was updated that due to the application of Taiying Technology Group Co., Ltd. (hereinafter referred to as Taiying Technology) and the sponsor China International Capital Corporation Limited to withdraw the application documents, in accordance with the relevant regulations, the Shanghai Stock Exchange decided to terminate the review of its initial public offering and listing on the main board.
According to public information, Taiying Technology's IPO application was accepted by the Shanghai Stock Exchange in early March 2023, and after receiving the first round of inquiries from the Shanghai Stock Exchange at the end of last year, there has been no progress. Until the application was withdrawn, the company did not update the financial data in a timely manner.
He once earned 1.9 billion yuan to do customer service for Ali and Didi
According to public information, Taiying Technology is a business process outsourcing service provider, focusing on providing digital middle and back office operation management services for enterprises. Through element innovation, process reengineering, organizational change, and efficiency improvement, the company effectively manages the interactive relationship between enterprises and their customers with the help of information technology and high-quality services, improves the stickiness of existing customers, and assists enterprises in the efficient operation of middle and back office processes.
To put it simply, this company is a customer service center for large enterprises.
In terms of customers, the prospectus shows that China CITIC Bank, China Merchants Bank, Shuidi Mutual Aid Group, Alibaba, Ant, ByteDance, Meituan, JD.com, SF Express, Didi, China Mobile, China Telecom, etc. are all customers of Taiying Technology. Among them, Alibaba was the largest customer from January to June in 2019, 2020 and 2022, accounting for 15.19%-22.36% of sales.
Taiying Technology, which has such a strong "circle of friends", has also shown a growth trend in revenue and net profit. During the reporting period, the revenue was 1.085 billion yuan, 1.45 billion yuan, 1.9 billion yuan and 1.085 billion yuan respectively; The net profit was 62 million yuan, 126 million yuan, 140 million yuan and 77 million yuan respectively.
According to the Sullivan industry report, in terms of revenue from digital middle and back office outsourcing service solutions in 2021, the company ranks first in the industry in the Chinese market with a revenue scale of about 1.9 billion yuan.
After the privatization of the U.S. stock market, I fell in love with buying a house
After Alibaba was listed on the U.S. stock market in September 2014, and in 2015, following in the footsteps of Alibaba, Taiying Technology was also listed on the New York Stock Exchange, becoming the first call center and e-commerce back-end outsourcing company listed on the NASDAQ in China. However, on July 6, 2021, Taiying Technology completed the privatization transaction and was officially delisted from the NASDAQ stock exchange in the United States.
After the privatization from the U.S. stock market, Taiying Technology frequently bought real estate.
In 2021, Taiying Technology signed the "Office Building Sales Contract" with Zhigu Construction to purchase 3 office buildings located in Huaihai Digital Zhigu Industrial Park in Zaozhuang City, with an appraised price of 121 million yuan and a final transaction price of 117 million yuan.
It is worth noting that Zhigu Construction was established in April 2020 and is a related party of Taiying Technology. Zhigu Construction is directly held 100% by Tianjin Tianrun Industrial Management Co., Ltd., and Wang Debao's spouse Sun Chunmei indirectly holds 20% of the shares, and serves as an executive director and manager.
Wang Debao is a director, senior vice president, chief financial officer and secretary of the board of directors of Taiying Technology, mainly responsible for corporate governance, investor relations management, capital operation, government relations, finance and other related work, with an annual salary of 4.55 million yuan in 2021.
After buying the building, in February 2023, Taiying Technology used the above three properties as collateral and borrowed 110 million yuan from the Jinan branch of China Merchants Bank.
In addition to buying a house before the IPO, Taiying Technology will continue to buy a house with the funds raised by the IPO. According to the prospectus, Taiying Technology plans to raise 893 million yuan, which will be mainly used for the construction project of the operation center, the headquarters and the R&D center project and the replenishment of working capital. The total purchase and decoration cost was 356 million yuan, accounting for about 40% of the total fundraising amount of 896 million yuan.
Related-party transactions frequently raise regulatory inquiries
In addition to buying real estate from related parties, the company's controlling shareholder subsidiary also appeared in the list of suppliers of Taiying Technology.
According to the list of the top five suppliers disclosed by Taiying Technology, the company's second largest supplier in 2019 is Beijing Shenggu Education Investment Co., Ltd. (hereinafter referred to as "Shenggu Education"), and Taiying Technology purchased 14.6287 million yuan from Shenggu Education, accounting for 4.99% of the total purchase amount. In fact, Soundvalley Education is a wholly-owned subsidiary of Taiying Anrui, the controlling shareholder of Taiying Technology, and Wang Zhili, the actual controller of Taiying Technology, serves as the executive director.
It is understood that Shenggu Education has been engaged in corporate consulting services and venue leasing business. However, as of the end of the reporting period, it was no longer in operation.
In addition, Taiying Technology purchased decoration services from four decoration companies, including Jinan Lixia Chengran Decoration Engineering Department, which is controlled by Ma Chengzhong, the spouse of shareholder Zhang Qingmao's sister. According to the prospectus, the transaction amounts during the reporting period were 7.1145 million yuan, 5.8908 million yuan, 9.4432 million yuan and 4.8359 million yuan respectively.
Therefore, in the first round of inquiries, the Shanghai Stock Exchange inquired about the company's capital lending and a number of related party transactions.
In response to the inquiry, the company stated that in the early part of the reporting period, the issuer failed to perform the necessary decision-making procedures and subsequent supplementary confirmation in accordance with the regulations in some related party transactions, and since the establishment of the joint-stock company, the issuer has gradually rectified and improved the relevant meeting system and internal control measures, established and improved the decision-making system and internal control system for related party transactions, and effectively implemented them.
Editor: Joey
Review: Chen Mo