We are an operator of online marketplaces in China. Our consumer E-commerce platform, Yangxiaomie (羊 小咩), carries a wide spectrum of retail goods ranging from consumer electronics, food and beverages, home appliances, cosmetics, jewelry to clothing and personal daily care provided by third-party marketplace suppliers, and matches such consumer goods with our Yangxiaomie Users through online purchases since November 2020. We also operate an retail online-to-offline (O2O) platform, Consumption Guide (消費地圖) since April 2022, which currently predominantly collaborates with automobile retailers by attracting online traffic to purchase automobiles offline at the brick-and-mortar stores of the automobile retailers and, to a lesser extent, Consumption Guide also allows online purchase of automobiles by consumers since 2024. We regard (i) the marketplace suppliers on Yangxiaomie, comprising merchandise suppliers and POP store operators, and (ii) the marketplace suppliers on Consumption Guide, comprising automobile retailers and, during the Track Record Period, both automobile retailers and merchants of local lifestyle goods and services, as our business partners. To a very small extent, we provide advertisement placement for our business partners. We position Yangxiaomie as our principal online marketplace by directing and allocating relatively greater resources toward its continued expansion, given its relatively higher profitability and growth potential. For the year ended 31 December 2024 and the five months ended 31 May 2025, revenue generated from Yangxiaomie accounted for approximately 93.2% and 98.1% of our total revenue, respectively.
Online marketplaces for consumption refer to online platforms that provide matching services between goods and end consumers in consumption-related industries, including consumer E-commerce platforms and consumer retail O2O platforms. Consumer E-commerce platforms refer to online marketplaces that provide consumers with goods transactions, with core functionalities including product display, online payment, order processing, and logistics delivery, and in Yangxiaomie’s case, where our marketplace suppliers can display the products online and sell them directly to the Yangxiaomie Users. Consumer retail O2O platforms refer to online marketplaces that integrate online channels with offline store visits, converting online traffic into offline merchandise purchase, and in Consumption Guide’s case, where automobile retailers could display the automobiles online for traffic conversion to offline visits and purchases.
During the Track Record Period and up to the Latest Practicable Date, payment installmant provided by Yingtan Guangda and other independent financial institutions were available to Yanxiaomie Users at checkout. The ownership of the items purchased on Yangxiaomie vested entirely in the purchasers upon completion of the transaction, and such items did not serve as collateral in any manner or form in connection with the payment installment services. For the years ended December 31, 2022, 2023 and 2024, and the five months ended May 31, 2025, approximately 66%, 26%, 85%, and 79% of our transaction value on Yangxiaomie were contributed by orders that opted for payment installments, respectively. Of the transaction value on Yangxiaomie involving payment installments, 25%, 51%, 36% and 32% were funded by Yingtan Guangda, while 75%, 49%, 64% and 68% were funded by other independent financial institutions for the years ended December 31, 2022, 2023 and 2024, and for the five months ended May 31, 2025, respectively. Yingtan Guangda was our connected person before January 1, 2025. Yingtan Guangda is an indirect subsidiary of Liangkebang, which was a 30%-controlled company of Dr. Zhou, our executive Director and one of our Controlling Shareholders. On January 1, 2025, Dr. Zhou entrusted his voting rights associated to all of his direct and indirect shareholding interests in Liangkebang to an independent third party and thereby Yingtan Guangda ceased to be our connected person. In April 2025, Dr. Zhou has disposed of his entire direct and indirect shareholding interests in Liangkebang pursuant to his personal investment decision and in order to better focus on the development of our Group.
During the Track Record Period and up to the Latest Practicable Date, Bianli Wallet (便荔卡包), financial platform providing installment payment services on Yangxiaomie and an Independent Third Party, exclusively directed its user traffic to Yangxiaomie. According to our PRC Legal Advisor, such direction of user traffic complied with all applicable PRC laws and regulations in all material respects, during the Track Record Period and up to the Latest Practicable Date, and our undertaking made to the relevant financial regulatory authority in Mainland China since the provision of such undertaking to the Latest Practicable Date. During the Track Record Period, we also provided matching services for financial institutions, where we matched financial institutions with end borrowers that meet the financial institutions’ target customer criteria for their financing services. As of September 12, 2024, we have ceased all then existing agreements with the financial institutions in connection with matching service and since then no longer generate any revenue thereunder. As a transitional arrangement, from September 12, 2024 to January 15, 2025 following the foregoing cessation, we allowed the Yangxiaomie Users to continue accessing financial institutions through H5 redirections embedded on Yangxiaomie to check and manage their existing loans. On January 16, 2025, we discontinued H5 redirections embedded on Yangxiaomie such that potential end customers cannot initiate or manage transactions with financial institutions through Yangxiaomie. As confirmed by our PRC Legal Advisor, during the Track Record Period and prior to January 16, 2025, the business model of the H5 redirections previously embedded on Yangxiaomie complied with all applicable PRC laws and regulations in all material respects. As of such date, we have ceased the provision of matching services to financial institutions (or loan facilitation and traffic diversion services from Yangxiaomie to financial institutions), and have undertaken to the relevant financial regulatory authority in Mainland China that we will not conduct such business in the future. Since the provision of such undertaking and up to the Latest Practicable Date, we have been strictly observing such undertaking and neither of our business operation since January 16, 2025 nor the direction by Bianli Wallet (便荔卡包) of its user traffic to Yangxiaomie violates such undertaking.
Our Technology
We help our business partners attract users, and accurately tag and differentiate various users, through search and recommendation algorithms. Our technology platform, QuantPlanet, is a unified platform that encompasses, interconnects and enhances a variety of operational functions ranging from customer acquisition to target customer analysis. QuantPlanet comprises, among other things, our proprietary AI algorithms that analyze end customers’ preference from their consumption pattern and rank the results of their searches according to such preferences. Individualized banner and recommendations of goods and services that match end customers’ interests the most will be presented on homepages browsed by them. By presenting optimal search results and recommendations to end customers, QuantPlanet enhances our business partners’ ability to attract more end customers.
Through the online marketplaces that we operate, our business partners in consumption-related businesses can conduct matching as well as customer engagement and retention activities to activate their existing end customer pools. QuantPlanet, built in a modular structure, caters, and can effectively adapt, to the diverse needs and processes of our business partners which allows our business partners to focus on innovation and development rather than operational management. Using QuantPlanet, we can customize our services offerings to assist a diverse group of business partners from different industry verticals to manage their goods and services through our online marketplaces.
Since our inception, we have been developing our online marketplaces for consumption that we operate. In doing so, we have created a value chain in the consumption industry, connecting our business partners, offering both goods and services, with target end customers. Benefiting from our technological expertise, we have achieved growth in our business scale during the Track Record Period. For the years ended December 31, 2022, 2023 and 2024 and for the five months ended May 31, 2025, through our online marketplaces, we had facilitated transactions with a transaction value of RMB2.4 billion, RMB2.3 billion, RMB11.3 billion and RMB5.7 billion, respectively. Supported by our AI-powered digital technology platform, we have been developing and upgrading our online marketplaces to adapt to the ever-changing needs of our business partners and the end customers. Utilizing our established digital technology platform, in the second quarter of 2022, we introduced Consumption Guide (消費地圖), which covered 14 geographic districts in Beijing and five geographic regions outside of Beijing, namely, (i) Ningbo, Zhejiang Province, (ii) Jiaxing, Zhejiang Province, (iii) Chengdu, Sichuan Province, (iv) Sanya, Hainan Province and (v) Xining, Qinghai Province during the Track Record Period.
Our total revenue was RMB475.3 million, RMB529.7 million, RMB993.0 million, RMB299.9 million and RMB414.1 million for the years ended December 31, 2022, 2023 and 2024 and for the five months ended May 31, 2024 and 2025, respectively. We recorded a loss of RMB0.3 million for the year ended December 31, 2022 (primarily attributable to the changes in the carrying amount of financial instruments with preferred rights), a profit of RMB3.6 million, RMB147.1 million, RMB34.7 million and RMB125.6 million for the years ended December 31, 2023 and 2024 and for the five months ended May 31, 2024 and 2025, respectively. Our adjusted EBITDA (non-IFRS measure) and adjusted profit for the year (non-IFRS measure) were RMB137.4 million and RMB126.3 million for the year ended December 31, 2022, respectively. Our adjusted EBITDA (non-IFRS measure) and adjusted profit for the year (non-IFRS measure) were RMB155.3 million and RMB147.6 million for the year ended December 31, 2023, respectively. Our adjusted EBITDA (non-IFRS measure) and adjusted profit for the year (non-IFRS measure) were RMB417.9 million and RMB363.3 million for the year ended December 31, 2024, respectively. Our adjusted EBITDA (non-IFRS measure) and adjusted profit for the period (non-IFRS measure) were RMB139.1 million and RMB123.8 million for the five months ended May 31, 2024. Our adjusted EBITDA (non-IFRS measure) and adjusted profit for the period (non-IFRS measure) were RMB249.7 million and RMB211.6 million for the five months ended May 31, 2025, respectively.
Source: Quantgroup (02685) Prospectus (IPO Date : 2025/11/19) |