With nearly 5 million active buyers, Dunhuang.com plans to go public in Hong Kong

On June 24, 2021, China DHgate Group Limited (hereinafter referred to as "DHgate") from Beijing submitted a prospectus to the Hong Kong Stock Exchange, intending to be listed on the main board of Hong Kong.

Founded in Beijing in August 2004, DHgate.com is one of the earliest Chinese platforms involved in cross-border e-commerce and based on B2B. The platform is committed to building an online Silk Road for Chinese SMEs, helping them realize their dream of "buying and selling globally" through simpler, safer and more efficient online transactions .

The listing plan is clear

As early as March this year, there was news that Dunhuang.com was going to be listed, which aroused high expectations at the time. Now, three months have passed, and everyone still has confidence in the platform.

In 2008, DHgate.com was selected as one of the "Deloitte High-Tech Fast 50" in the Asia-Pacific region and ranked 7th. As of June 30, 2020, the number of registered sellers worldwide has reached 31 million. In September 2020, the company's founder and CEO Wang Shutong also made clear the company's plan to go public in the next 1-3 years.

Business capability is the key

DHgate.com is the first website in China to provide B2B online transactions for small and medium-sized enterprises. It adopts a commission system. Starting from February 20, 2019, new sellers will start to be charged for registration, and fees will only be charged after the transaction between the buyer and the seller is successful. According to the data of the Paypal transaction platform, DHgate.com is the first e-commerce website in Asia Pacific and the sixth in the world in terms of online foreign trade transaction volume. Its transaction volume in 2011 reached 10 billion.

Commission revenue accounts for nearly half . In 2020, Dunhuang.com achieved commission income of US$114 million, with a gross profit margin of 68%, accounting for 49.3% of total revenue.

Value-added services develop simultaneously. Excluding rent, DHLink's logistics services and marketing services account for a relatively high proportion, with revenues of US$83.553 million and US$21.756 million in 2020 , accounting for 36.2% and 9.4% of total revenue respectively . Among them, the number of DHLink customers for logistics services reached 17,000.  

Embrace independent sites . In August 2020, Dunhuang.com launched a new service SaaS solution, MyyShop, which had 15,600 registered users by the end of December of the same year.

According to the financial report, Dunhuang.com currently has 4.961 million active buyers worldwide , mainly in the US market, accounting for about 48%.

In summary, Dunhuang.com has its own content layout, and its number of users is also growing steadily. Now that it is planning to go public, I believe there is more room for imagination in its future development.

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