Tide Travel responds to listing in Hong Kong: Hong Kong Stock Exchange has no comment for the time being

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On January 14, according to Reuters’ IFR report, a source revealed that the online car-hailing company Dida Travel is seeking a listing hearing on the Stock Exchange within this month, with a target of approximately US$500 million in fundraising.

As for the funds raised for the listing in Hong Kong, the prospectus of Tide Travel shows that it will be mainly used to continue to promote the digital transformation of the taxi industry, and to further enhance the capabilities in innovative technologies such as big data, algorithms, and artificial intelligence. Wait.

In this regard, Yiou asked the insiders of Tick Travel for verification. The other party said that the information disclosed by the Hong Kong Stock Exchange shall prevail and it is not convenient for comment at this time.

At present, in terms of equity, the management team such as Song Zhongjie, CEO of Dida Travel, holds 34.43% of the shares, accounting for 50% of the total voting rights. After listing, they can control about 73.57% of the voting rights; early investor Weilai Capital , IDG, Chongde Investment, Bitauto, Hillhouse, JD.com and Ctrip Travel held 21.60%, 10.23%, 7.15%, 4.95%, 4.14%, 4.14%, and 2.86% respectively before their listing.

Founded in 2014, Dida Travel is an important member of China's shared travel field. It currently focuses on Shunfengche platform services and smart taxi services. It is reported that Dida Travel has been submitted to the Hong Kong Stock Exchange in October 2020. Haitong International and Nomura Securities are joint sponsors. If the listing is completed in the near future, it will become the 'first share of the ride.'

Data from consulting firm Frost u0026 Sullivan shows that in 2019, Tide Travel ranked first in the downwind market with a market share of 66.5%, and ranked second in the taxi online booking market. As of August 31, 2020, the overall number of registered users of Tide Travel has exceeded 180 million, and the number of registered car owners has exceeded 19 million.

As of June 30, 2020, in 2017, 2018, 2019 and the first half of 2020, Dida Travel had operating revenues of 49 million yuan, 118 million yuan, 581 million yuan and 310 million yuan, respectively. , Adjusted net profits were -97 million yuan, 1.068 billion yuan, 172 million yuan and 151 million yuan respectively.

At the moment, Didi Travel is trying to gradually resume its ride-hailing business while successively launching two new independent brands, Qingcai Carpool and Huaxiaozhu. In the face of Didi's competition, how to continue to find market growth on the basis of stable profitability is a required test for Tide Travel to enter the next stage.