【New Stock IPO】 Circular Packaging Service Provider Youlesai Shares 2649 End Subscription Margin 117.5 Billion Oversubscribed 4124 Times, Entry Fee 7070 Yuan

Mainland Circular Packaging Service Provider Youlesai Sharing (New Listing Number: 02649)
Subscription closed, expected listing on March 9. According to comprehensive broker statistics, Youlesai Sharing received a margin of HKD 117.5 billion, with a public offering fundraising of HKD 28.48 million, resulting in an oversubscription of 4,124 times.

Youlesai Sharing was listed for subscription from February 27 to March 4, planning to issue 20.336 million shares, with 10% for public sale, raising approximately HKD 285 million. No cornerstone investors were introduced in this IPO.

The offer price per share ranges from HKD 11 to HKD 14, with a lot size of 500 shares, and an entry fee of about HKD 7,070.6; CITIC Construction International is the exclusive sponsor.

Providing circular packaging solutions for the automotive industry, with a 1.5% market share in 2024

Youlesai focuses on providing circular packaging solutions for auto parts manufacturers and OEMs, mainly through shared operations, managing customers’ pallets, crates, containers, and other circular packaging, including warehousing, distribution, returns, cleaning, and maintenance; also offering value-added services such as leasing, warehousing, and proprietary container management.

According to Frost & Sullivan, based on 2024 revenue, the company is the second-largest provider of circular packaging services in China, with a market share of 1.5%, and is the largest provider in China’s automotive sharing operation service market, with an 8.2% market share.

Adjusted net profit in 2024 decreased by 2.3% year-on-year

As of the end of 2024, according to non-IFRS standards, Youlesai Sharing’s adjusted net profit decreased by 2.3% year-on-year to RMB 62.83 million, mainly due to a decrease in other income and gains. In 2024, there were no gains from property, plant, and equipment sales, and in 2023, the company no longer received VAT benefits for productive services.

In terms of equity, founder and chairman Sun Yan'an holds 56.3%, state-owned Suzhou Equity Investment Fund owns 7.81%, and director and Sun Yan'an’s nephew Wang Yue holds 7.03%.

Youlesai Sharing plans to use about 25% of the proceeds from the listing to improve and upgrade digital systems and platforms; about 25% to advance overseas expansion strategies; about 20% to expand the nationwide service network; and about 20% to extend the group’s application scenarios into other downstream industries through acquisitions.

Source: HKEX Announcement

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