China's Largest Cloud-based HCM Solution Provider Beisen Passed HKEx Hearing

Financials, Consumer Discretionary Author: Yunfeng Zhang Mar 21, 2023 04:00 PM (GMT+8)

On 20 March 2023, Beisen Holdings Limited(Chinese:北森控股) passed the HKSE hearing with Morgan Stanley and CICC as joint sponsors.

Beisen

According to China Insights Consultancy (Chinese:灼识咨询), the company's platform is the first and only in the industry to offer a full suite of cloud-based applications that cover the entire lifecycle of an organisation's HCM needs for its employees. The company is also the only cloud-based HCM solution provider in China to have built a unified and open PaaS infrastructure, which greatly improves the company's development efficiency, supports rapid application expansion and meets the evolving needs of its customers.

As at 30 September 2022, the Company's customer base included more than 4,900 enterprises in a variety of large and fast-growing industries, covering the vast majority of the top 10 enterprises in the technology, real estate, financial services, automotive and manufacturing industries. In addition, more than 70% of the Fortune 500 companies in China were customers of the company as of 30 September 2022.

For the trailing twelve months ended 30 September 2022, the Company has achieved a subscription revenue retention rate of 113%. The Company's revenue is primarily derived from subscription fees charged to customers for HCM solutions. The subscription model, which generates recurring revenue, not only allows the Company to facilitate and benefit from the success and long-term growth of its customers, but also allows the Company to better anticipate its future operating results.

In recent years, the Company has achieved significant business and financial growth.

For the financial years ended 31 March 2019, 2020, 2021 and 2022 and the last twelve months ended 30 September 2022, the Company's total bookings were RMB437.4 million, RMB570.0 million, RMB729.3 million, RMB887.7 million and RMB907.9 million, respectively.

The Company's total revenue increased from RMB382.3 million for the fiscal year ending 31 March 2019 to RMB458.5 million for the fiscal year ending 2020 and RMB556.3 million for the fiscal year ending 2021, and further increased to RMB679.6 million for the fiscal year ending 2022.

For the fiscal years ending 31 March 2019, 2020, 2021 and 2022 and the six months ended 30 September 2022, revenue from subscriptions to the Company's cloud-based HCM solutions amounted to RMB209.0 million, RMB259.4 million, RMB349.1 million, RMB463.5 million and RMB253.3 million, respectively, representing approximately 54.7%, 56.6%, 62.7%, 68.2% and 72.2% of total revenue for each period.

For the financial years ended 31 March 2019, 2020, 2021 and 2022 and the six months ended 30 September 2022, the Company's gross profit margin was 60.6%, 59.8%, 66.4%, 58.9% and 54.0%, respectively.