Chinese supply-chain software company e-Future Information Technology (proposed ticker: EFUT) filed an F-1 with the SEC on June 21st in preparation for an IPO on the Nasdaq. The underwriters are Anderson & Strudwick. Details:
- Sole underwriter: Anderson & Strudwick.
- Selling 1.0 - 1.5 million shares.
- Offering price: $6.00 per share.
- Post-offering: 2.5 - 3.0 million shares outstanding.
- Gross proceeds from the offering: $6.0 - $9.0 million.
- Proceeds to the company before expenses: $5.52 - $8.28 million.
- Use of proceeds: Salesforce development, marketing, research and development, and software product upgrades.
- Based in Beijing, China.
- Develops and sells enterprise resource planning software and provides one-stop solutions for distribution, retail and logistics businesses.
- Also provides related system integration and technical training services.
- Generates revenue from the sale of software, related hardware, maintenance and support contracts, and professional consulting, training and contract development services.
- Customers located throughout China.
- Customers: 30 out of the top 100 retailers and nine of the top 30 largest retailers in China.
- Manufacturing customers: Procter & Gamble China, Haier Group.
- Retailing customers include Suning Appliance, China’s second largest electronics chain.
- Competition: According to the company, while there is intense competition, the number of significant competitors for business in China is relatively limited.
- Competitive advantage: Company believes its solutions are collectively the broadest, most
functional set of end-to-end software
solutions available in the Chinese
supply chain market.
- 185 employees (as of June 21, 2005) - 5 in management, 72 in technical support, 66 in r&d, 31 in sales and marketing, and 11 in finance and admin.
- Ownership: Management - 61%; C Tech Fund and e-millenium limited - 38.5%.
- Lock-up: ordinary shares locked-up for 90 days from the date of the prospectus (while the prospectus was filed on June 21, 2005, it is not yet dated for lock-up purposes.)
- Q1 2005 financial results were not provided.
FY 2004 Results (Company and subsidiary)
(all percentage changes and comparisons are year on year, unless stated otherwise, assumes conversion rate of RMB 8.2765 : US $1)
- Total revenue rose 22.0% to $4.2 million.
- Software revenue rose 92.1% to $3.2 million.
- Hardware revenue fell 54.3% to $621,161.
- Service fee income fell 5.2% to $412,390.
- Costs of sales fell 10.9% to $2.1 million.
- Gross margin rose from 32.2% to 50.5%.
Total expenses rose 23.5% to $1.5 million.
- R&D expenses rose 171.8% to $171,562.
Sales and distribution expenses rose 31.1% to $578,301.
Operating income rose from a loss of $79,931 to a gain of $649,979.
- Operating margin of 15.5%.
Net income rose from a loss of $82,254 to a gain of $610,533.
- Net margin of 14.6%.
- Basic EPS rose from a loss of $0.09 to a gain of $0.66.
- Diluted EPS rose from a loss of $0.09 to a gain of $0.41.
- Cash and equivalents of $536,930 as of December 31, 2004.
Comment: Anderson Strudwick taking the company public???? Who????