By CHEN Xiaotong
Car maintenance platform Tuhu is proceeding with its latest listing attempt on the Hong Kong Stock Exchange.
This is not Tuhu's first attempt at an IPO. As early as January 2022, Tuhu submitted an application, but the prospectus expired. Seven months later, Tuhu submitted another application again, but with no success. On March 30 of this year, Tuhu once again submitted its prospectus to the Hong Kong Stock Exchange, with plans to list on the Hong Kong main board.
In 2011, Tuhu started its business as a tire supplier and launched an e-commerce platform in the same year. Initially, Tuhu was merely an online retail platform providing automotive products. Over time, it gradually established an offline network comprising drive-ins and technicians, providing services such as tires and general maintenance.
Tuhu has 5,000 workshops, with 89.4 percent of franchises making a profit. In terms of user base, Tuhu has over 100 million registered users.
The prospectus reveals that Tuhu's first-half revenue exceeded 6.5 billion yuan, a 19.3 percent YoY growth, with an adjusted net profit of 214 million yuan at a margin of 3.3 percent
However, in the four years prior to this, Tuhu was in a deficit. From 2019 to 2022, Tuhu accumulated losses of over 15 billion yuan. Tuhu holds over 5.1 billion yuan in cash and cash equivalents.
Before pursuing an IPO, Tuhu demonstrated robust fundraising capabilities. From 2013 to 2021, 16 rounds of financing raised over 9 billion yuan from Tencent, Baidu and others. Tencent Holdings and its subsidiaries collectively hold 19.6 percent of shares.
