JST Group, China’s e-commerce SaaS ERP provider, is seeking an HK IPO. The company’s clients include China beauty brand OSM.
On June 19, JST Group Corporation Limited (hereinafter referred to as “JST Group”) officially submitted its prospectus to the Hong Kong Stock Exchange, intending to list on the main board.
According to CIC, JST Group held a market share of 20.7% in terms of revenue, making it the largest e-commerce SaaS ERP provider in China in 2022. Additionally, JST Group also ranked first in terms of total SaaS revenue in China’s e-commerce operation SaaS market in the same year.
JST Group said the company has developed a comprehensive suite of cloud-based e-commerce SaaS products that enable us to connect merchants with over 350 e-commerce platforms globally, including China. Our suite of offerings provides a unified and intuitive way for customers of different sizes and types to monitor, operate, and manage their businesses. This helps them make data-driven intelligent decisions that keep them ahead in the ever-evolving e-commerce industry. In 2022, JST Group served 45.7 thousand SaaS customers across various categories. Additionally, our net dollar retention rate in 2021 and 2022 was 122% and 105%, respectively.
JST Group was founded in 2014 and initially entered the market with e-commerce SaaS ERP. It has now developed into a SaaS collaborative platform that integrates various merchant services centered around SaaS ERP.
According to the prospectus, JST Group’s primary SaaS product is ERP, which fulfills the essential requirements of merchant customers in processing e-commerce orders on different e-commerce platforms. Through JST Group’s ERP, merchants can integrate, synchronize, and coordinate all their stores, orders, products, and inventory, manage operational and financial data across platforms, and enjoy a seamless cross-platform business experience. The key functions of JST Group’s ERP currently include order management systems, warehouse management systems, procurement management systems, and distribution management systems.
From 2020 to 2022, JST Group’s revenue was 294 million yuan ($40.88 million), 433 million yuan ($60.21 million), and 523 million yuan ($72.73 million), respectively, with a compound annual growth rate of 33.4%. SaaS ERP product-generated revenues were 255 million yuan ($35.46 million), 374 million yuan ($52.01 million), and 457 million yuan ($63.55 million), accounting for 86.7%, 86.2%, and 87.4% of total revenue, respectively.
From 2020 to 2022, JST Group’s gross profit margin showed an increasing trend, reaching 46.2%, 50.5%, and 52.3%, with gross profits of 136 million yuan ($18.91 million), 219 million yuan ($30.45 million), and 274 million yuan ($38.10 million), respectively.
From 2020 to 2022, the company’s corresponding net losses (excluding pre-tax losses) were 364 million yuan ($50.62 million), 254 million yuan ($35.32 million), and 507 million yuan ($70.50 million), with adjusted net losses of 108 million yuan ($15.02 million), 137 million yuan ($19.05 million), and 379 million yuan ($52.70 million), respectively.
According to the prospectus, JST Group’s SaaS products focus on the e-commerce industry and have become the preferred solution provider for e-commerce SaaS ERP on major Chinese e-commerce platforms (including Alibaba, JD.com, Pinduoduo, Douyin, and Kuaishou).
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