Zhihuishu Plans to Go Public.
On May 3, Shanghai Able Digital & Tech Co., Ltd.(the parent company of the Zhihuishu brand, hereinafter referred to as "Zhihuishu") officially submitted a prospectus to the Hong Kong Stock Exchange, planning to list on the main board with Agricultural Bank International as the sole sponsor.
Established in 2008, Zhihuishu is a provider of digital solutions for higher education. It is dedicated to the development, delivery, and operation of digital education content, digital teaching services, and products for higher education, covering aspects such as teaching, learning, practice, examination, evaluation, and management.
According to Frost & Sullivan, in 2023, Zhihuishu ranked second in revenue among all companies in China's higher education digital teaching market, with a market share of 3.4%. In the market for digital teaching content production in China's higher education, it ranked first in revenue, holding a market share of 6.2%.
In terms of customer strategy, Zhihuishu has consistently focused on top-tier universities with first-class research capabilities, discipline development, and faculty strength as its key clients under the "Double First-Class Plan" and "Double High Plan". From 2021 to 2023, Zhihuishu had 188, 210, and 231 key clients respectively, cumulatively accounting for 75.9% of the nominated universities under the "Double First-Class Plan" and the nominated vocational colleges under the "Double High Plan." During the same period, 271, 291, and 346 clients respectively purchased multiple services and products from Zhihuishu and made payments. The average revenue per overlapping client increased continuously, reaching CNY 762,047.2, CNY 711,504.1, and CNY 1,018,652.0, respectively.
In terms of financial data, from 2021 to 2023, Zhihuishu's revenue was CNY 417 million, CNY 400 million, and CNY 653 million, with a compound annual growth rate of 25.2%. The gross profit was CNY 213 million, CNY 177 million, and CNY 396 million, with a compound annual growth rate of 36.4%. The gross profit margins during the same period were 51.1%, 44.1%, and 60.7%, respectively. In 2023, Zhihuishu's net profit was CNY 81 million, with a net profit margin of 12.5%.
Since its establishment, Zhihuishu has received investments from institutions such as Sina, Baidu, DT Capital, and Linear Capital. Prior to the IPO, Sina and Baidu both held over 10% of Zhihuishu's shares.
In its prospectus, Zhihuishu stated that the net proceeds from the IPO will primarily be used for research and development, enhancing customer service and support capabilities, establishing one or two knowledge graph development centers in selected cities to enhance knowledge graph development, production, and delivery capabilities and efficiency, as well as for working capital and general corporate purposes.