Delivery service companies like GOGOX have witnessed a turbulent year as factors such as COVID-19, reduced demand and increased competition continues to impact their business.
Delivery service provider GOGOX (Chinese: 快狗打车) has finished its hearing on June 7, a step closer towards listing on the Hong Kong Stock Exchange. CICC, UBS, BOCOM International and ABC International are the joint sponsors for the company’s IPO.
The firm is committed to providing users with short-distance goods delivery and trading services platform for pulling, moving and transporting things anytime and anywhere. Its current coverage includes more than 340 cities in five Asian countries and regions and millions of quality drivers. It is currently the market leader in Hong Kong, with a market share of 50.9%.
In terms of GOGOX’s revenue, it has increased significantly from CNY 453 million in 2018 to CNY 660 million in 2021, as shown in the company’s prospectus.
Besides, the company also witnessed a surge in gross profit in the same period. It reached CNY 241.7 million in 2021, which is higher than CNY 104.4 back in 2018. At the same time, the firm's gross profit margin also improved. It has increased by 13.6% from 23% in 2018 to 36.6% in 2021.
Despite the improvement in revenue and gross profit, the company is still experiencing a loss. It reported a net loss of CNY 1,070 million, CNY 183 million, CNY 658.2 million and CNY 872.9 million for the years from 2018 to 2021, respectively.
GOGOX faces intense competition from domestic rivals that operate in the same industry. They include SF Express (002352:SZ), FlashEX (Chinese: 闪送) and Meituan Logistics.