TUHU Car Inc. ( $TUHU-W 09690.HK$ )is set to conduct a public offering from September 14th to September 19th, 2023. The company anticipates that dealings of its Class A shares will begin on Tuesday, September 26th at 9:00 AM Hong Kong time on the Hong Kong Stock Exchange.

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Offering Details

Offering Details
Number of Shares	40,617,100
Number of Hong Kong Offer Shares	4,061,800 Offer Shares (subject to reallocation and the Offer Size Adjustment Option)
Number of International Offer Shares	36,555,300 Offer Shares (subject to reallocation, the Offer Size Adjustment Option and the Over-allotment Option)
Subscription Fee	HKD 3,131.26 per lot
Offering Price Range	HKD 28-31 per share
Board Lot Size	100 shares
Offering Period	September 14th to September 19th, 2023
Listing Date	September 26th, 2023
IPO Sponsors	Goldman Sachs, CICC, UBS, Bank of America

Company Profile:

TUHU Car Inc. is a leading integrated online and offline automotive service platform in China. With around 100 million registered users and a strong presence in over 4,700 TUHU facilities and 19,000 partner stores, the company has become the largest community of car owners in the country.

By combining technology solutions and a robust digital infrastructure, TUHU Car Inc. has secured a prominent position in the Chinese automotive service market. It ranks first in terms of store count among all automotive service providers and holds the top spot for automotive service revenue among IAM stores in China.

Financial Information:

In 2019-2022, revenues were approximately RMB 7.04 billion, RMB 8.753 billion, RMB 11.724 billion, and RMB 11.547 billion, respectively. Gross profit was RMB 523 million, RMB 1.08 billion, RMB 1.87 billion, and RMB 2.27 billion, respectively. In the first three months of 2023, revenues were approximately RMB 3.265 billion, and gross profit was approximately RMB 790 million. The gross profit margin increased from 7.4% in 2019 to 19.7% in 2022, and further to 24.2% for the three months ended March 31, 2023.

Cornerstone Investors:

Cornerstone investors have agreed to subscribe for a total of USD 100 million (approximately HKD 784.6 million) worth of shares at the offer price.

Cornerstone investors include Leapmotor ( $LEAPMOTOR 09863.HK$ ), Gotion High-Tech Co., Ltd, and Image Frame Investment (HK) Limited. (ultimately controlled by Tencent Holdings (00700. HK)), Castrol Holdings International Limited, and Shanghai Zizhu High-tech Zone (Group) Co., Ltd.

Use of Proceeds

Assuming an offer price of HKD 29.50 per share and the non-exercise of the overallotment option and the additional offer shares, the net proceeds from the global offering are expected to be approximately HKD 1.091 billion.

The allocation of funds is as follows:

Percentage	Use of Proceeds
35%	Enhancing supply chain capabilities over the next three years
20%	Research and development to enhance data analysis technology and improve operational efficiency
15%	Expanding the store network and franchisee base, particularly in second-tier and below cities and counties. Also, expanding operation and support teams and strengthening relationships with franchisees
20%	Funding investments related to services for new energy vehicle owners, as well as investments in tools and equipment related to such services
10%	Working capital and general corporate purposes

Prospectus of TUHU Car Inc.: https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0914/2023091400011.pdf

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