Midai Group’s Subsidiary Huailian to Submit Application for Listing on Nasdaq
On Sunday, China Securities Journal reported that freight logistics company Huailian Supply Chain Management Co., Ltd., a subsidiary of Midai Group, completed the audit of asset M&A, and scheduled to formally submit an application for listing on the Nasdaq in May. This means that Huailian may be the next Chinese freight logistics company that goes public in the US after Manbang and ZTO Express.
Midai Group was established in November 2014. Relying on Internet technology, it is committed to building a diversified financial and financial intelligence platform with the automobile industry chain as the core. Earlier, the company was funded by the China Investment Corporation Offshore Fund with 160 million yuan ($24.6 million). The funds were mainly used in the logistics sector.
Huailian was established in December 2019 during the big boom period of Internet freight platforms. The company also benefited from an increasingly fierce homogenious competition of computing power. According to the Ministry of Transport, as of December 31, 2021, there were 1968 network freight enterprises (including branches) in China. Facing pressure, Huailian built a smart Internet connected platform online and is actively expanding its capacity pool offline.
Huailian realizes professional management through its self-developed TMS integrated logistics management system and many of its intelligent systems, including visual monitoring and vehicle safety guarantee, as well as a mobile App and background call service center. By integrating the scattered vehicle service chain within the whole of society, Huailian has established a transportation capacity system all over China and is in the process of setting up a symbiotic and win-win logistics ecosystem.
In addition, Huailian is integrating local transportation resources to form a logistics link based on direct operations. Its director is suggesting that Huailian plans to integrate over 2000 direct sales outlets by the end of 2022 and aims to develop into China’s largest direct sales logistics company.
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In 2021, its total transaction volume of Gross Transaction Value (GTV) registered 7.1 billion yuan and its revenues in 2020 and 2021 were 6 billion and 7.1 billion yuan. By the end of 2021, Huailian expanded its business to 202 Chinese cities, with 526 self-owned outlets and 5,200 self-owned vehicles. In 2021, it completed more than 21 million transportation orders with a growth rate of 22% year on year.