Full Truck Alliance, a Chinese digital freight platform, has reportedly shelved plans for a dual primary listing in Hong Kong because domestic cybersecurity regulators have not announced the results of an investigation into the firm, according to two inside sources cited by Reuters on Thursday.
In June 2021, Full Truck Alliance was listed on the New York Stock Exchange. It was then reported in February this year that the company was planning a second listing in Hong Kong, and would submit its application before the end of February at the earliest, with an estimated fundraising amount of $1 billion. Sources familiar with the matter also said at the time that the company had appointed Morgan Stanley, Goldman Sachs, UBS and Huatai International to take charge of the IPO.
Full Truck Alliance was established with the merger of two Chinese firms: highway logistics internet information platform Huochebang and freight dispatching platform Yunmanman. These enterprises match drivers and consignors through mobile apps.
Investors of Full Truck Alliance include SoftBank, Tencent
Freight matching services represent the most important revenue source for Full Truck Alliance. Last year, revenue from this segment totaled 3.95 billion yuan ($597 million), up 102.7% year-on-year. Within this, revenue from the firm’s car-free carrier services was about 2.5 billion yuan and revenue from freight information publishing services was about 750 million. The transaction commission was about 700 million yuan.
In 2021, total net revenue of Full Truck Alliance was 4.657 billion yuan, a year-on-year increase of 80.4%. 2021 net losses amounted to 3.6545 billion yuan, compared to net losses of 3.4705 billion yuan in 2020. The adjusted net profit in 2021 was 450.5 million yuan, while the adjusted net profit in 2020 was 281.1 million yuan.
On July 5, 2021, the Chinese government issued an announcement on launching a network security review for Yunmanman, Huochebang and BOSS Zhipin in order to prevent national data security risks in accordance with national security laws. During the review, users are unable to register for these services.