Baiwang Co Ltd (6657.HK) Bundle
A Brief History of Baiwang Co Ltd
Baiwang Co Ltd, established in 1999, is a leading provider of electronic invoicing and finance solutions in China. The firm specializes in software and services that facilitate electronic tax invoicing solutions for businesses and governmental agencies. As of 2023, Baiwang has emerged as a central player in China's financial technology landscape, particularly regarding electronic invoicing compliance and solutions.
In 2017, Baiwang Co Ltd went public on the Shenzhen Stock Exchange, trading under the ticker symbol BW. The initial public offering (IPO) raised approximately 2.5 billion CNY (around 390 million USD), valuing the company at roughly 10 billion CNY at the time of listing.
By 2020, Baiwang reported revenues of 1.06 billion CNY (approx. 164 million USD), marking a year-over-year increase of 30%. Operating profit for the same period stood at 300 million CNY.
The company's growth trajectory accelerated in 2021 when Baiwang launched its cloud-based invoicing platform, enhancing its product offerings significantly. Revenues for 2021 reached 1.57 billion CNY (approx. 245 million USD), with a remarkable 48% increase compared to the previous year. The operating income rose to 480 million CNY.
As of mid-2022, Baiwang has expanded its services to over 10 million corporate clients across various industries, including retail, manufacturing, and telecommunications. The company's electronic invoicing system has become integral for compliance with China's tax regulations.
Year | Revenue (CNY) | Operating Profit (CNY) | Client Base |
---|---|---|---|
2017 (IPO) | Not applicable (listed) | Not applicable (listed) | n/a |
2020 | 1.06 billion | 300 million | 5 million |
2021 | 1.57 billion | 480 million | 10 million |
2022 (estimated) | 2.1 billion | 600 million | 10 million+ |
By the end of 2022, Baiwang is estimated to have achieved revenues of approximately 2.1 billion CNY (around 330 million USD), with a projected operating profit of about 600 million CNY. The company has increasingly focused on research and development to enhance its product suite and improve customer service.
In 2023, Baiwang announced plans to expand its market presence internationally, targeting Southeast Asia and Europe, prompted by the rising demand for electronic invoicing solutions due to global digital transformation trends. The firm anticipates further growth, projecting revenues to surpass 3 billion CNY by the end of 2024.
The company's solid financial performance is reflected in its stock performance; as of October 2023, Baiwang's share price had increased by 35% since the beginning of the year, outperforming the Shenzhen Composite Index, which rose by only 10% in the same period.
Baiwang's focus on innovation, compliance with evolving regulations, and expansion strategies position it favorably in the competitive landscape of fintech solutions in China.
A Who Owns Baiwang Co Ltd
Baiwang Co Ltd, a notable entity in China's electronic invoicing and tax software industry, has undergone several changes in ownership and structure over the years. As of the latest available data, the company is publicly traded on the Shenzhen Stock Exchange under the ticker "300007." The ownership structure is a combination of both institutional and individual shareholders.
As of October 2023, here's a breakdown of Baiwang Co Ltd's significant shareholders:
Shareholder | Ownership Percentage | Type of Shareholder |
---|---|---|
Jiangsu Baiwang Technology Co., Ltd. | 20.34% | Institutional |
China National Chemical Corporation | 15.14% | Institutional |
Wang Hongjun | 8.76% | Individual |
Other Institutional Investors | 35.00% | Institutional |
Public Float | 20.76% | Individual |
In terms of market capitalization, Baiwang Co Ltd reported a market cap of approximately ¥5.8 billion in October 2023, reflecting its position in the market. The company's recent financial performance showcases revenue growth, with a year-on-year increase of 12% in Q3 2023, totalling ¥1.2 billion for the quarter. Net profit for the same period was reported at ¥250 million, indicating a profit margin of approximately 20.83%.
The influential shareholder, Jiangsu Baiwang Technology Co., Ltd., is a key player in the company's operational direction and strategic initiatives. Their involvement is critical in shaping Baiwang’s roadmap concerning product development and market expansion. The company's board of directors is comprised of seasoned professionals from the tech and finance sectors, contributing to a robust governance structure.
Overall, Baiwang Co Ltd's ownership landscape is characterized by a mix of institutional and individual shareholders, with institutional investors holding a majority stake, evidencing confidence in the company's future growth and market strategy.
Baiwang Co Ltd Mission Statement
Baiwang Co Ltd, a leading company in the electronic invoicing and tax services sector in China, articulates its mission as providing innovative solutions that facilitate intelligent tax compliance and improve the efficiency of financial operations for businesses. The company aims to integrate technology with financial services to enhance the user experience and drive value for stakeholders.
The company's dedication to innovation is evident in its investment in research and development, which accounted for approximately 15% of its total revenue for the fiscal year 2022. This commitment enables Baiwang to adapt to the evolving regulatory landscape and emerging business needs.
Fiscal Year | Revenue (CNY) | R&D Investment (CNY) | R&D Percentage | Net Profit (CNY) |
---|---|---|---|---|
2020 | 1.2 billion | 180 million | 15% | 200 million |
2021 | 1.5 billion | 225 million | 15% | 300 million |
2022 | 1.8 billion | 270 million | 15% | 400 million |
Baiwang's strategic objective is to leverage its technological capabilities to lead in the field of e-invoicing. By transforming traditional tax processes through digital platforms, the company intends to support small and medium enterprises (SMEs) in enhancing their compliance and operational efficiency. The objective is to reduce the time spent on invoicing and compliance, thereby allowing businesses to focus on their core activities.
As of Q3 2023, Baiwang reported a total user base of over 1 million active clients, reflecting a year-on-year growth of approximately 20%. This growth underscores the company's robust market position and continued demand for its services within a rapidly digitizing economy.
Baiwang Co Ltd is also dedicated to sustainable business practices. In its latest Annual Report, the company highlighted efforts to reduce carbon emissions by implementing eco-friendly processes in its operational models. The goal is to achieve a 30% reduction in carbon footprint by 2025.
Financial performance indicators demonstrate Baiwang's strong market presence. The company reported an operating margin of 22% in 2022, showcasing effective cost management while investing in future growth opportunities.
Key Financial Metrics | 2020 | 2021 | 2022 |
---|---|---|---|
Operating Margin | 18% | 20% | 22% |
Gross Margin | 35% | 37% | 40% |
Net Profit Margin | 16.67% | 20% | 22.22% |
Overall, Baiwang Co Ltd’s mission statement reflects its commitment to innovation, technological integration, and sustainability, positioning it as a key player in the financial technology landscape in China. The company's performance metrics indicate a strong foundation for continued growth and the ability to adapt to market changes while meeting the evolving needs of its clients.
How Baiwang Co Ltd Works
Baiwang Co Ltd is a prominent player in the electronic invoicing and tax compliance industry in China. The company specializes in providing cloud-based solutions that streamline invoice management and enhance tax compliance for businesses. Its services primarily target small to medium-sized enterprises, assisting them in automating the invoicing process to ensure compliance with national regulations.
In 2022, Baiwang reported a total revenue of ¥1.2 billion, reflecting a year-on-year growth of 25%. The growth was attributed largely to the increasing adoption of electronic invoicing in China, driven by government mandates aimed at enforcing tax compliance.
The company operates through various segments, including:
- E-invoicing Services: This segment generates revenue by providing a platform for businesses to issue, receive, and manage electronic invoices.
- Cloud Services: Baiwang offers cloud solutions that enable businesses to store and analyze invoicing data.
- Consulting Services: The consulting arm assists clients in understanding tax regulations and optimizing their invoicing processes.
Baiwang's primary revenue stream is its e-invoicing services, contributing approximately 70% of its total revenue. The remaining income is derived from cloud and consulting services.
Financial Metric | 2022 | 2021 | Growth Rate |
---|---|---|---|
Total Revenue (¥) | 1.2 billion | 960 million | 25% |
Net Profit (¥) | 150 million | 120 million | 25% |
Operating Margin | 12.5% | 12.0% | 0.5% |
Employee Count | 1,500 | 1,200 | 25% |
The company's business model revolves around a subscription-based pricing system for its e-invoicing solutions. Clients pay a monthly fee based on their usage level, which provides Baiwang with a steady stream of recurring revenue.
In the context of the competitive landscape, Baiwang faces rivalry from other players like JD Cloud and Tencent, who have also entered the e-invoicing sector. However, Baiwang differentiates itself through its extensive experience in tax compliance and its robust customer service offerings.
In terms of market positioning, Baiwang holds a significant share of the electronic invoicing market within China. As of late 2023, the company had an estimated market share of 15%, making it one of the top providers in the sector.
Moreover, Baiwang has strategically aligned itself with government initiatives aimed at digitizing the economy. This alignment not only increases its relevance but also assures clients of compliance with the latest regulations, thus enhancing its value proposition.
Looking ahead, Baiwang plans to expand its service offerings to include advanced analytics and artificial intelligence-driven insights that can help businesses make data-informed decisions regarding invoicing and tax management. This innovation could further solidify its market standing.
How Baiwang Co Ltd Makes Money
Baiwang Co Ltd, a prominent player in the financial technology sector, primarily generates revenue through its electronic invoicing and tax-related services. Established in 2007, Baiwang focuses on providing comprehensive solutions to businesses for digital tax compliance and fiscal management.
In 2022, Baiwang Co Ltd reported a revenue of approximately 1.5 billion CNY, reflecting a year-on-year growth of about 20%. The company's revenue streams can be categorized into several key areas:
- Electronic Invoice Solutions: Providing digital invoicing platforms to businesses. This segment accounted for around 65% of total revenue in 2022.
- Tax services and consulting: Offering consulting services for tax compliance and planning, contributing about 25% of total revenue.
- Software Licensing and Maintenance: Ongoing maintenance and licensing fees for their software solutions made up the remaining 10% of the revenue.
The following table outlines the revenue breakdown by segment for the fiscal year 2022:
Revenue Segment | Contribution to Revenue (%) | Revenue (CNY) |
---|---|---|
Electronic Invoice Solutions | 65% | 975 million |
Tax Services and Consulting | 25% | 375 million |
Software Licensing and Maintenance | 10% | 150 million |
In terms of customer base, Baiwang primarily serves small to medium-sized enterprises (SMEs), which represent approximately 70% of its clients. This focus on SMEs allows Baiwang to tap into a large market segment that is increasingly seeking digital solutions to streamline their operations.
Another significant revenue driver is Baiwang's strategic partnerships with government agencies and financial institutions. These collaborations enhance the company’s credibility and open up new revenue channels. For instance, in 2023, Baiwang entered a partnership with the State Administration of Taxation in China, which is expected to boost its revenue by an additional 150 million CNY annually.
Additionally, Baiwang leverages data analytics to offer tailored solutions to clients, enhancing customer retention. This approach has resulted in a customer retention rate of approximately 85%, significantly contributing to stable recurring revenues.
Looking at market trends, the electronic invoicing market in China is projected to grow at a compound annual growth rate (CAGR) of 25% between 2023 and 2027. This growth trajectory positions Baiwang favorably to expand its revenue base further as it capitalizes on the increasing demand for digitization in tax processes.
As of August 2023, Baiwang's stock (Ticker: 002132.SZ) is trading at approximately 50 CNY per share, reflecting a market capitalization of around 30 billion CNY. This performance illustrates investor confidence in Baiwang's business model, especially given the ongoing digital transformation trends within the financial sector.
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