According to the Hong Kong Stock Exchange, on the evening of April 13th, Dida submitted its IPO prospectus to the Hong Kong Stock Exchange again. Dida Travel had previously submitted its IPO prospectus to the Hong Kong Stock Exchange on October 8th, 2020, but its IPO application expired last week.

1、 Company Overview

Dida Travel was founded in 2014, formerly known as "Dida Carpooling" that focuses on private small car sharing, where car owners and passengers ride along the way. In 2018, the brand was upgraded to Dida Travel. It is a leading technology driven mobile travel platform in China, aimed at creating more transportation capacity while reducing environmental impact. With the mission of "making the travel ecosystem more efficient and environmentally friendly, making every trip warm and enjoyable", it adopts a two wheel drive strategy and focuses on the development of ride hailing and taxi services.

2、 Industry situation and company business

According to the Frost&Sullivan report, the four wheel travel market in China includes taxi hailing, taxi ride hailing, ride hailing, and carpooling. In 2019, the total number of orders was approximately 19.4 billion, 700 million, 9.8 billion, and 300 million, respectively. The total transaction volume of China's four-wheel travel market is expected to increase from RMB 711.9 billion in 2019 to RMB 1100.5 billion in 2025, with a compound annual growth rate of 7.5%. Specifically, the ride hailing market will become the fastest-growing segment, with its total transaction volume increasing from RMB 14 billion in 2019 to RMB 113.9 billion in 2025, with a compound annual growth rate of 41.8%. Meanwhile, according to the Frost&Sullivan report, as the largest segmented market in China's four-wheel travel market, the taxi market accounted for 68.6% of the market share in 2019 based on total transaction volume, and is expected to continue to dominate the market with 53.9% market share by 2025.

Ride hailing platform: According to the number of ride hailing trips in 2019, Dida Travel operates the largest ride hailing platform in China, occupying 66.5% of the market share. As of December 31, 2020, the company provides ride hailing platform services in 366 cities across the country, with approximately 20.7 million registered private car owners, including approximately 10.8 million certified private car owners. Since its establishment and until December 31, 2020, it has provided services to approximately 42.0 million ride hailing passengers.

Smart taxi services: China's taxi industry is very large, and in terms of total transaction volume, taxi hailing services still dominated in 2019, accounting for 96.3% of the market share. Launched smart taxi services in 2017 to empower the traditional taxi industry in China, with a focus on developing online taxi hailing services and optimizing taxi recruitment services. According to the Frost Sullivan report, in 2019, Didi Chuxing ranked second among Chinese travel platforms in terms of taxi rides. According to the same source of information, Dida Travel is also a pioneer and leading travel platform in China's digital recruitment business. As of December 31, 2020, the company has provided taxi ride hailing services in 86 cities in China and established strategic partnerships with taxi associations at the city or district level in 17 cities.

3、 Financial situation

In terms of financial data, in 2020, the total transaction volume (GTV) of Dida Travel was RMB 9 billion, with operating revenue of RMB 791 million, a year-on-year increase of 36.3%, and adjusted net profit of RMB 343 million.

4、 Competitive advantage

1) China's leading technology driven travel platform;

2) A light asset business model with excellent financial performance;

3) The huge network effect drives highly engaged user groups;

4) Taking regulatory measures as the long-term goal and consolidating stable growth prospects;

5) Innovative technologies promote efficient and sustainable travel solutions;

6) Experienced and visionary management team.

5、 Purpose of Fundraising

1) To expand our user base and strengthen our marketing and promotion initiatives, including expanding our user base and enhancing the network effect of our platform, conducting online and offline marketing and promotional activities to increase the public awareness of our brand and products, and recruiting approximately 35 sales and marketing personnel in the next three years to support the company's marketing strategy;

2) To enhance our technical capabilities and upgrade our security mechanisms, including attracting, cultivating, and retaining talents in the fields of market technology, path technology, big data analysis, and artificial intelligence technology with competitive salaries, as well as upgrading the security mechanisms of ride hailing services and smart taxi services;

3) To enhance monetization capabilities and enrich monetization channels, including expanding the geographical coverage of the company's smart taxi services through cooperation with more municipal transportation departments and taxi associations, thereby increasing the possibility of monetization, and exploring opportunities to seek monetization from the company's large user base;

4) Used to selectively seek strategic alliances and investment acquisition opportunities in the value chain of the Chinese travel market. As of the final feasible date, the company has not identified any potential investment or acquisition targets;

5) Used for working capital and other general company purposes.