Yoho Group Holdings Limited

友和集團控股有限公司

 (Incorporated in the Cayman Islands with limited liability)

(Stock code: 2347.HK)

 

Propose to List on the Main Board of the Stock Exchange of Hong Kong

 

Offer Price sets between HK$2.10 and HK$2.60 per share

Gross Proceeds Estimated to be approximately HK$129.3 million

 

[Hong Kong－25 May 2022] Yoho Group Holdings Limited (“Yoho Group” or the “Company”, together with its subsidiaries, the “Group”, stock code: 2347.HK), a first mover and one of the leading market players in the business-to-consumer (B2C) e-commerce industry in Hong Kong, announced its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (the “SEHK”) today. According to the F&S Report, the Group ranked first as an e-commerce platform with a primary focus on Consumer Electronics and Home Appliances in Hong Kong in terms of website traffic, and recorded the highest online retail sales of Consumer Electronics and Home Appliances among all Hong Kong e-commerce platforms with a market share of approximately 5.6%, for FY20/21. The Group also ranked second and third (with a market share of approximately 1.8%) among all Hong Kong e-commerce platforms in terms of website traffic and overall online retail sales respectively for FY20/21.

 

The Group plans to offer an aggregate of 55,000,000 shares (subject to reallocation and over-allotment option) (the “Offer Shares”), of which 5,500,000 shares are for Hong Kong public offering (subject to reallocation), and the remaining 49,500,000 shares are for international placing (subject to reallocation and the over-allotment option), at an offer price between HK$2.10 to HK$2.60 per shares (the “Offer Price”). The public offering will commence at 9:00am on 26 May 2022 (Thursday) and close at 12:00 noon on 31 May 2022 (Tuesday). The trading of its shares on the Main Board of the SEHK is expected to commence on 10 June 2021 (Friday). The share will be traded under the stock code 2347.HK in board lots of 2,000 shares each.

 

CMBC International Capital Limited is the Sole Sponsor; Wings Securities Limited is the Financial Adviser; CMBC Securities Company Limited is the Sole Global Coordinator, Joint Bookrunner and Joint Lead Manager; Eddid Securities and Futures Limited, Haitong International Securities Company Limited, Zhongtai International Securities Limited, China Everbright Securities (HK) Limited, SBI China Capital Financial Services Limited, China Tonghai Securities Limited, Futu Securities International (Hong Kong) Limited, Valuable Capital Limited and Cinda International Capital Limited are the other Joint Bookrunners and other Joint Lead Managers; Ever-Long Securities Company Limited, China Sky Securities Limited, Yue Xiu Securities Company Limited, FUTEC Financial Limited and Livermore Holdings Limited are the other Joint Lead Managers.

 

Yoho Group’s retail business adopts the online-merge-offline (OMO) model and comprises the following retail sales channels under the B2C model: (i) online B2C sales through the Yoho E-commerce Platform (both desktop version and mobile version); (ii) online B2B2C sales to end customers via Reward Scheme Platforms and third-party online marketplaces; and (iii) offline B2C sales made at the two retail stores, i.e. the Kwun Tong Store and the Cheung Sha Wan Flagship Store. As at the latest practicable date prior to the release of this press release (the “Latest Practicable Date”), the Group has a diverse and extensive product portfolio covering over 23,000 SKUs, which can be divided into the following five categories: consumer electronics, beauty and health electronic products, home appliances, computers and peripherals and lifestyle products.

 

The Group’s suppliers mainly include brand owners, authorised distributors and trading companies in Asia. Capitalising on the rapid growth of the Yoho OMO Business over the years, the Group had established sound business relationships with a network of over 590 suppliers during the three financial years ended 31 March 2021 and the eight months ended 30 November 2021 (the “Track Record Period”), with direct access to certain top-tier brands and distribution rights in Hong Kong in respect of certain products. As a result, the Group is able to source a diversified range of products with assured authenticity and quality at favourable prices. the five largest suppliers accounted for approximately 37.6%, 30.1%, 25.1% and 24.9% of the total purchases for FY18/19, FY19/20, FY20/21 and 8M21/22, respectively, while the largest supplier accounted for approximately 12.8%, 9.7%, 6.5% and 6.6% of the total purchases for the respective periods.

 

For FY18/19, FY19/20, FY20/21 and 8M21/22, the Group’s total revenue amounted to approximately HK$135.4 million, HK$260.0 million, HK$523.0 million and HK$496.7 million, and the Group recorded an adjusted net profit of approximately HK$13.0 million, HK$17.6 million, HK$28.7 million and HK$13.6 million respectively.

 

The Group has attained substantial growths in scale of operation, financial performance and market share during the Track Record Period and it believes the following competitive strengths contribute to the Group’s success:

• Being one of the leading market players in the Hong Kong B2C e-commerce industry and has well-developed reputation, brand awareness and customer base
• Operating the well-established Yoho E-commerce Platform
• Being an avid pursuer of innovation taking full advantage of the power of technologies
• Adopting a multifaceted marketing and promotion strategy based on the Group’s insights into the local market
• Having a dedicated, insightful and enterprising management team 

 

Assuming an Offer Price of HK$2.35 per Offer Share (being the mid-point of the Offer Price range stated in the prospectus of the Company), gross proceeds is estimated to be approximately HK$129.3 million. The Group intends to use the net proceeds of the Global Offering, which amounted to approximately HK$87.9 million after deducting related underwriting fees and commissions and estimated expenses payable in connection with the Global Offering, for the following purposes:

• 20.4%, or HK$17.9 million is expected to be used to fund the capture of a larger market share through organic growth；
• 7.1%, or HK$6.2 million is expected to be used to fund the expansion of the product offerings on the Company’s e-commerce platform(s) through the launch of an online marketplace；
• 8.6%, or HK$7.6 million is expected to be used to fund the expansion of the services to customers in the PRC and, in particular, the Greater Bay Area；
• 9.2%, or HK$8.1 million is expected to be used to fund the strengthening of the supply chain capabilities；
• 11.8%, or HK$10.4 million is expected to be used to fund the further investment in brand management and marketing to increase mass awareness of the Group and the effectiveness of marketing activities；
• 19.2%, or HK$16.9 million is expected to be used to fund the expansion of our teams of staff in support of business strategies；
• 13.7%, or HK$12.0 million is expected to be used to fund the acquisition of companies in e-commerce-related industries；and
• 10.0%, or HK$8.8 million is expected to be used for general working capital

 

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About Yoho Group Holdings Limited

Yoho Group Holdings Limited is a first mover and one of the leading market players in the business-to-consumer (B2C) e-commerce industry in Hong Kong, which adopts an online-merge-offline (OMO) business model. According to the F&S Report, the Group ranked first as an e-commerce platform with a primary focus on Consumer Electronics and Home Appliances in Hong Kong in terms of website traffic, and recorded the highest online retail sales of Consumer Electronics and Home Appliances among all Hong Kong e-commerce platforms with a market share of approximately 5.6%, for FY20/21.

 

This press release is issued by DLK Advisory Limited on behalf of Yoho Group Holdings Limited.

 

For enquiries, please contact:

DLK Advisory 金通策略

Tel: +852 2857 7101

Fax: +852 2857 7103