上市捷报丨沙利文助力北京友宝在线科技股份有限公司成功赴港上市(2429.HK)

Beijing Youbao Online Technology Co., Ltd. (Stock Code:2429.HK) on2023year11month3The company successfully listed on the main board of the Hong Kong capital market. It is the largest unmanned retail distributor in the Chinese mainland, combining cloud platform management with offline intelligent operations to drive the intelligent development of retailing. The business mainly includes unmanned retailing, advertising and system support services, commodity wholesale, vending machine sales and leasing, and other businesses. Frost & SullivanFrost & Sullivan,Frost & Sullivan, referred to below as 'Frost & Sullivan', provides exclusive industry advisory services for the listing of Beijing Youbao Online Technology Co., Ltd. We hereby extend our warmest congratulations on its successful listing.

Beijing Youbao Online Technology Co., Ltd. (hereinafter referred to as 'Youbao') was established on2023year11month3The company plans to go public on the 1st of July2,257.6510,000 shares. Among them,225.8Ten thousand shares are offered for public sale in Hong Kong,2,031.85Ten thousand shares are being offered for international sale at a price of10.35HK$, net proceeds from fundraising are1.55HK$10 billion.

During the Hong Kong listing process, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, sponsor, and other professional intermediary institutions in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and providing feedback on industry-related issues to the Hong Kong Stock Exchange.

Investment highlights

The company is in a favorable position, capturing the huge market opportunity in the unmanned retail industry on the Chinese mainland with great growth potential and extremely low penetration rate;

The company has strong digital capabilities to drive excellent operations and empower customers and business partners;

The company's strong operational capabilities support business growth;

The company has adopted flexible site management and development strategies tailored to local conditions, stimulating the rapid expansion of the site network;

The vast point network in the Chinese mainland brings scale economies and competitive advantages;

The company possesses strong R&D capabilities based on profound industry insights;

The company has a management team with rich industry experience;

The company has received support from well-known strategic investors.

According to a report by Frost & Sullivan:

Based on the total transaction volume and network scale, the company's2019year,2020year,2021year2022In 2021, it ranked first in the unmanned retail industry in Mainland China (mainly including vending machines, unmanned stores, and unmanned shelves);

Built the first vending machine on the Chinese mainland that achieves a biological nuclear body;

Automated vending machines can effectively solve pain points in traditional business models such as high market startup costs and rising operating costs, providing an important channel for offline fast-moving consumer goods retail;

In terms of retail sales value driven by vending machines, the scale of the unmanned retail market in Mainland China is2017About RMB131RMB 100 million increased to2022About RMB289yuan, with a compound annual growth rate of about17.1%.

Overview of the Consumer Goods Market in Mainland China

Fast-moving consumer goods are products that are sold quickly and have relatively low costs. Typical fast-moving consumer goods include packaged foods and beverages, household care products, and personal care products.2022Year-end2027In [year], the total offline fast-moving consumer goods market sales in Mainland China are expected to grow from RMB34,130RMB 100 million, an increase of40,520yuan, with a compound annual growth rate of4.0%Currently, most products sold by vending machines are food and beverages. With the stable growth of China's economy, the traditional offline fast-moving consumer goods market is expected to continue expanding. At the same time, vending machines effectively address pain points in the traditional offline fast-moving consumer goods market, including(1)The substantial costs associated with opening new stores;(2)High operating costs and(3)The complex requirements of the business premises for space and infrastructure. Therefore, the vending machine retail market is expected to continue growing in the future.2022Year-end2027In [year], based on the total offline fast-moving consumer goods sales of vending machines, the share of vending machines in the total offline fast-moving consumer goods market sales is expected to decline from0.9%Rise to1.8%.

Overview of the unmanned retail market in Mainland China

One of the main business models of traditional offline fast-moving consumer goods is unmanned retail. Unmanned retail is a retail concept without service staff or cashiers, mainly including vending machines, unmanned stores, and self-service kiosks. The total sales volume of the unmanned retail market is from2017Renminbi in [year]13,586.0Rise from one million to2022Renminbi in [year]29,916.5One million yuan, with a compound annual growth rate of17.1%expected2027The total sales volume of the unmanned retail market will reach RMB75,578.1One million yuan,2022Year-end2027The compound annual growth rate for the year is20.4%As shown in the table below, vending machine sales accounted for a market share of unmanned retail markets of2017Year-end2022Maintained at a level above93.5%level.

Overview of the Retail Market for Automated Vending Machines in Mainland China

In the business model of unmanned retail, vending machines play an important role in the overall market.2022In [year], the number of vending machines in Mainland China has reached1,116,600table2017Year to2022The annual compound annual growth rate is about26.1%.

Looking ahead, the total vending machine retail market is estimated to be2027Will reach in2,535,600table2021Year-end2026Annual Compound Annual Growth Rate17.8%The market is mainly driven by the growth of disposable income among Chinese residents and consumption upgrading. With the increase in per capita disposable income, the per capita annual expenditure on the Chinese mainland has maintained stable growth, from2017Renminbi in [year]18,322Yuan growth to2022Renminbi in [year]24,538Yuan, compound annual growth rate6.0%Beverage vending machines, as well as those selling beverages and snacks, dominate the retail market for vending machines.2022The market share based on the number of machines in operation is about77.7%In recent years, self-service kiosks and other vending machines have seen rapid growth.

China's unmanned retail market and

Competitive landscape of the vending machine retail market

The unmanned retail industry in Mainland China is fragmented, with thousands of market participants, most of whom are local small individual operators.2022In [year], in terms of total merchandise volume, the market share of the top five participants in the unmanned retail industry on the Chinese mainland was16.4%Youbao Yu2022The total merchandise volume recorded in the year was approximately RMB22100 million yuan, accounting for about7.4%.

Overview of the vending machine advertising market in Mainland China

2022The market scale of vending machine advertisements on the Chinese mainland in 2019 was approximately RMB5yuan,2017Year-end2022The compound annual growth rate for the year is about-3.6%It is expected that as of2023Starting from the beginning of this year, as the economy grows, the market will begin to recover. It is expected2027RMB will reach22yuan,2022Year-end2027The compound annual growth rate for the year is34.5%With the Chinese mainland on2022The zero-clearing policy will be revised starting from the fourth quarter of 2024, and the economy is expected to2023There was a rebound in the year.

In addition, vending machines are becoming increasingly popular in various places such as shopping malls, office spaces, airports, and educational institutions. More and more vending machines provide a broader platform for advertising business opportunities. According to government statistical data, in2023During the seven-day Spring Festival holiday at the beginning of the year, Chinese mainland railways, highways, waterways and civil aviation transported a total of passengers2.261000 million person-times, compared with2022Year-on-year growth for the same period exceeded70%With frequent travel and the recovery of economic activities, the demand for consumer goods and their consumption volume are also expected to2023Year-on-year recovery.

On the other hand, vending machines integrate advanced technologies such as digital displays, interactive touchscreens, and data analysis, enhancing their advertising capabilities. Digital displays can present dynamic and eye-catching advertisements, while touchscreens allow for interaction with consumers. In addition, data analysis can provide valuable insights into consumer behavior and preferences, enabling advertisers to optimize their marketing campaigns. Therefore, the development of advanced technologies may promote rapid growth in the vending machine advertising market and increase market demand for vending machine advertisements.

Mainland China vending machine retail market

Key market drivers

· Technological innovation

Technological innovation drives the development of the vending machine retail industry in Mainland China by enhancing consumer experience and saving operators' costs. On the other hand, cashless payment options and better storage conditions are two key hardware innovations that improve the interactive shopping experience of vending machines. In addition, new technologies such as big data analysis, visual recognition, the Internet of Things, and artificial intelligence also improve operational efficiency, allowing operators to directly obtain consumer data. Technological development and innovation are likely to further promote the industry's development.

· Wide range of products and complete logistics infrastructure

Cold chain logistics is developing rapidly and will account for a significant portion of the overall logistics network in Mainland China. The refrigerated storage capacity in Mainland China is2015approximately35One million tons increased to2020approximately70One million tons, nearly doubling in the past five years. With the development of infrastructure such as cold chain and warehousing, a wider range of goods (including fresh food) are expected to be sold through vending machines. In addition, although the shape and volume of goods are limited by traditional vending machines, there are no restrictions on self-service kiosks. The increasing variety of goods and infrastructure developments can be displayed in self-service kiosks, attracting more consumers and thus driving the vending machine market in Mainland China.

· Contactless retail and increasing demand for convenient consumption

The average monthly salary of employed people in the Chinese mainland is2017About RMB7,300Increase by Yuan2022Renminbi in [year]9,300Yuan. People enjoy the fast pace of life in modern cities and require convenient consumption. The continuous rise in labor costs has made contactless retail (especially vending machines) increasingly popular. Compared to traditional retailers, vending machines are not limited by business hours and thus can improve operational efficiency. The growing popularity of contactless retail has great potential to drive the vending machine retail market in Mainland China.

· Increased investment

An increasing number of market participants (including beverage companies and vending machine operators) are expected to increase their investment in the vending machine retail market in the near future. The increased market investment is likely to further drive the market.

View the prospectus

Frost & Sullivan has extensive research experience in the consumer retail industry and has assisted many well-known enterprises in successfully listing on capital markets. Successful listings include: Extraordinary (0933.HK), Shanghai Shangmei2145.HK), JuZi Biology2367.HK), China COSCO (1880.HK), Mingchuang Premium Products9896.HK), Jiǔjiǔ Wáng Food (1927.HK),Vesync（2148.HK), Blue Moon6993.HK), Popomart9992.HK), Mingchuang Premium Products(NYSE:MNSO)Nongfu Spring9633.HK), Fengxiang Food9977.HK), China Feihai6186.HK), Taobao Sports6110.HK), China Tobacco International6055.HK), Premium360（2360.HK), Wugu Millhouse1837.HK), Baby Tree1761.HK), Deying Holdings2250.HK), Bingshi International1705.HK), Golden Cat Silver Cat1815.HK), Miming Life Department Store8473.HK), Nissin Foods1475.HK), Debao Group8436.HK), Siku ChinaNASDAQ:SECO), Barbie Beige8297.HK), Asian groceries8413.HK), Zhouhei Duck1458.HK), COFCO Meat1610.HK), Dali Foods3799.HK), Wanzhou International0288.HK), Chow Tai Fook1929.HK), JumeiyoupinNYSE: JMEI) etc.