Recently, Eda Cloud Technology Holdings Limited ("Eda Cloud" for short), based in Shenzhen, Guangdong, has submitted a prospectus to the Hong Kong Stock Exchange (HKEX) for a proposed initial public offering (IPO) on the Hong Kong Main Board. This is its second application after its first submission lapsed on June 26, 2023. Eda Cloud obtained the overseas offering and listing filing notice from the China Securities Regulatory Commission (CSRC) on December 21, 2023. https://www1.hkexnews.hk/app/sehk/2024/106268/documents/sehk24022701020_c.pdf Founded in March 2014, Eda Cloud is a B2C export e-commerce supply chain solution provider that offers one-stop end-to-end supply chain solutions for e-commerce sellers. Adopting the overseas warehouse model, the company provides cross-border logistics, overseas warehousing and delivery services, which are seamlessly integrated with its independently developed Eda Cloud Platform. The platform is equipped with comprehensive digital supply management tools. According to data from Frost & Sullivan, in 2022, Eda Cloud ranked seventh among all major Chinese B2C export e-commerce supply chain solution providers that mainly adopt the overseas warehouse model in terms of revenue. Eda Cloud’s global logistics network is the core of its service offerings. Leveraging third-party logistics service providers, its logistics network covers major trade routes from China to popular global B2C e-commerce destinations, including North America, Europe and Australia. Its third-party logistics service partners include over 60 third-party warehousing providers, 300 international freight forwarders, ocean and air carriers, and 80 local "last-mile" fulfillment service providers. As of February 20, 2024, Eda Cloud manages/has contracted 53 warehouses (including 44 affiliated warehouses) across 20+ cities in three continents globally, namely the United States, Canada, the United Kingdom, Germany and Australia. In addition to its overseas warehousing network, as of the latest practicable date, Eda Cloud has contracted five temporary storage facilities in Guangzhou, Shenzhen, Shanghai, Qingdao and Zhaoqing in China as "first-mile" international freight storage points. The company also provides other value-added services including domestic pickup, customs declaration and clearance, international ocean or air freight, direct shipping and quality inspection, and digital services. In the 2023 fiscal year, the company’s ocean freight volume for first-mile international freight services reached 4,589 twenty-foot equivalent units (TEUs). After receiving orders from end consumers on e-commerce platforms, the company delivers pre-sold inventory from its overseas warehouses to end consumers via local "last-mile" fulfillment logistics service providers. It also charges fees for value-added services such as assisting with product returns and repackaging. In the 2023 fiscal year, the number of orders delivered to end consumers reached 6 million. According to the prospectus, prior to the IPO, Eda Cloud’s shareholding structure is as follows: - Mr. Liu Yong holds 44.5% of the shares through EDA Shine International; - Mr. Zhang Yunqing holds 3.6% of the shares; - Members of the Lesso Group consortium acting in concert hold approximately 51.9% of the shares in total. - China Lesso (02128.HK) holds 30.8% of the shares through Samanea China Holdings; - China Lesso (02128.HK) holds 8.1% of the shares through Lingshang Didi Network Technology, in which it holds a 70% indirect interest; (The remaining equity of Lingshang Didi Network Technology: Ms. Tang Jiajia holds approximately 23.1% indirectly, and Mr. Qian Yucheng holds approximately 6.8% indirectly.) - Ms. Tang Jiajia holds 2.0% of the shares through QCJJ Group Limited; - Mr. Qian Yucheng holds 2.0% of the shares through QCBM Group Limited; - Mr. Zuo Manlun holds 3.0% of the shares through Zhan Hua Limited; - Mr. Luo Jianfeng holds 3.0% through Dawnhill Group Limited; - Mr. Zhang Wenyu holds 3.0% through LittleBear Investment Limited. According to the prospectus, in the three fiscal years of 2021, 2022 and 2023, Eda Cloud’s operating revenues were RMB 632 million, RMB 709 million and RMB 1,209 million respectively, with corresponding net profits of RMB 46.411 million, RMB 36.292 million and RMB 69.403 million respectively. The intermediary team for Eda Cloud’s current IPO mainly includes: China Merchants Securities International as the sole sponsor; Ernst & Young as the auditor; Han Kun Law Offices and Delton International as the company’s Chinese and Hong Kong legal counsel respectively; King & Wood Mallesons and Deacons as the sponsor’s Chinese and Hong Kong legal counsel respectively; and Frost & Sullivan as the industry advisor. © 2021 Meishun (Hong Kong) Management Consulting Co., Ltd. and Meishun (Hangzhou) Management Consulting Co., Ltd. All rights reserved. Meishun Meiyin (Hangzhou) Consulting Management Co., Ltd. is the domestic subsidiary of Hong Kong Meishun Management Consulting Company under the same actual controller. Both companies share the same actual controller, are under the same Chinese management, and comply with the laws of Hong Kong and mainland China.