IPO | Yuwa Group will be offering shares now and is expected to go public on June 10

Futu News, May 26, this Thursday$YOHO GROUP (02347.HK)$The announcement was announced that it will issue 55 million shares from May 26 to May 31. The company plans to issue 55 million shares, including a public sale of 5.5 million shares and an international sale of 49.5 million shares, with an issue price of HK$2.1-2.6 per share, and 2,000 shares per lot. It is expected to be listed on June 10.

According to Frost & Sullivan's report, Youhe Group is one of the leading market participants in the B2C e-commerce industry in Hong Kong. It has more than 23,000 SKUs (mainly electronic products and home appliances), and has established a customer base of more than 807,000 registered members by the last practical date.

In fiscal year 20/21, according to website traffic, the company topped the list of e-commerce platforms focusing on electronic products and household appliances in Hong Kong, and recorded the highest online retail sales of electronic products and household appliances among all e-commerce platforms in Hong Kong, with a market share of about 5.6%. Based on website traffic and overall retail online sales in FY20/21, the company also ranked second and third among all e-commerce platforms in Hong Kong (with a market share of about 1.8%).

On the financial side, from fiscal year 18/19 to fiscal year 20/21, Youhe Group's revenue was HK$135 million, $260 million and HK$523 million respectively, with compound growth rates of 96.83%, and net profit of HK$12 million, $18 million and HK$29 million respectively, with a compound growth rate of 55.46%. For the first eight months of fiscal year 21/22, revenue was HK$497 million and net loss was HK$0.14 million.

On the industry side, the total retail sales of electronic products and household appliances reached HK$32.4 billion by FY20/21, which is expected to reach HK$49.6 billion in FY25/26, with a CAGR of 9.4% from FY21/22 to FY25/26, while sales of online electronics and household appliances are expected to grow at a CAGR of 15.8% from FY21/22 to FY25/26.

The company plans to use the net proceeds from global sales for the following purposes: 20.4% to seize higher market share through natural growth, 7.1% to expand the range of e-commerce platform products through the launch of online platform business, 8.6% to expand services to customers in mainland China (especially in the Greater Bay Area), 9.2% to strengthen supply chain capabilities, 11.8% to further invest in brand management and marketing, 19.2% to expand the workforce to support business strategies, and 13.7% to acquire companies in e-commerce related industries, 10.0 % for general working capital.

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