GOGOX lands Hong Kong stock market with great potential for growth
The Group operates in more than 340 cities across five countries and regions in Asia, namely mainland China, Hong Kong, Singapore, Korea and India. According to Frost & Sullivan, the Group is the third largest online intra-city logistics platform in mainland China and the market leader in Hong Kong with a market share of 50.9%, each in terms of GTV in 2021. The Group owns and operates two highly-recognized, well-trusted brands: Kuaigou Dache in mainland China and GOGOX in other countries and regions in Asia. Its service offerings consist of platform services, enterprise services, and value-added services.
Despite the impact of the COVID-19 pandemic, its overseas business saw robust growth during the Track Record Period and its revenue contribution was increasing steadily. The revenue generated from the Group’s overseas business accounts for 26.5%, 35.4%, 47.1% and 48.0% of the Group’s total revenue in 2018, 2019, 2020 and 2021.
Highly scalable business model
Armed with highly-recognized brands – Kuaigou Dache in mainland China and GOGOX in overseas markets, the Group has established competitive edges in user base, operational efficiency and technologies. Operating on a technology-driven, asset-light business model, the Group has established its business and expanded market presence cost effectively with a proven track record to show. In mainland China, when the Group enters a new city, it will deploy on-the-ground sales personnel to quickly build the local user network. In overseas markets, the Group has collaborated with 48 local partners by the end of 2021, which are traditional logistics companies with established customer network, domain knowledge, and technical know-how, complementary to the Group’s flexible logistics capacity.
Owns advanced technological capabilities and proven track record in serving enterprise customers
The Group uses advanced technology and AI-driven algorithms to create elastic logistics solutions that can quickly and efficiently respond to dynamic user needs. Its advanced matching system and routing technologies help the Group optimizes its service fees, shipping fares paid by shippers, driver’s earnings and ultimately its financial performance.
GOGOX has extensive experience in providing services to enterprise customers, which differentiates it from its competitors. The Group expands its user base by providing tailored logistics solutions to meet the ever-changing demands of logistic support from enterprises in various industries. Thus, it has been able to continuously increase in its user base, enhanced the stickiness of enterprise customers and improve their satisfaction. Over four years, between 31 December 2018 and 31 December 2021, its enterprise customers had more than doubled from 16,000 to 39,000, covering SMEs and large enterprises.
Expands service network with asset-light model and broadens enterprise customer and driver base
The Group plans to further increase its share in existing markets, and to explore other potential markets in the Asia-Pacific region through strategic cooperation, investments and acquisitions. The Group also plans to continue to focus on cultivating its enterprise customer base and to increase revenue contribution from enterprise services. It will also further explore the logistics needs of enterprise customers in emerging industries, such as social e-commerce, and community group purchasing services, and provide more diversified services, including cold chain transportation, special transportation requirements and reverse logistics.
Explores different monetization opportunities and strives to become a one-stop logistics platform
The Group aims to become a one-stop logistics platform and intends to expand scope of value-added services provided to shippers, drivers and other participants in its ecosystem to accelerate flywheel effects. The Group also intends to supplement its service offerings and further grow its business ecosystem by introducing additional third-party service providers, such as automobile manufacturers and dealers and fuel station operators, allowing it to improve user retention and increase monetization channels.
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