Egg Technology recently filed a prospectus with the US Securities and Exchange Commission, the company intends to issue 3.5 million common shares at $4 to $6 per share, or raise up to $21 million. According to the prospectus, the revenue and net profit of Egg technology have maintained growth in recent years, and the gross profit margin is about 70%. Recently, the China Securities Regulatory Commission issued a document to the company requiring additional clarification of compliance issues such as loan assistance business.
Data show that parting Egg technology is a high-tech enterprise based on mobile Internet thinking, with big data and artificial intelligence as the core technology, focusing on the research and development and promotion of scientific and technological products and operation technology, and committed to providing scientific and technological empowerment and marketing empowerment for marriage, education, beauty and other consumption scenarios.
According to the prospectus, egg technology service merchants are mainly located in large and medium-sized cities across the country. As of the end of the third quarter of last year, the platform registered more than 3,850 merchants, covering 36 major cities in China, including but not limited to Beijing, Shanghai, Hangzhou, Nanjing, Guangzhou, Shenzhen, etc.
In recent years, both revenue and net profit have maintained growth. According to the prospectus, from 2020 to the first half of 2022, the income of egg technology was $7,485,700, $9,558,400 and $2,868,900, respectively; Net income was $1,827,600, $3,768,700 and $437,500, respectively.
Specifically, the revenue composition of Diegg Technology mainly includes three segments: intermediary service transaction facilitation fees collected from merchants and financial institutions, technical service fees generated by providing technical services, and marketing service fees generated by providing marketing services. As of the end of the first half of last year, the three accounted for 50.0%, 36.1% and 13.9% of total revenue, respectively.
Egg Technology has maintained a high gross profit margin in recent years. Data show that from 2020 to the first half of 2022, the gross profit margin of egg technology is 68.28%, 71.64% and 74.48%, respectively.
Regarding the standard operation of the main business, the CSRC requires the company to explain that the main business includes providing loan assistance business for operators in specific industries and financial institution customers, indicating whether the company has invested self-raised funds as the source of loan funds during the loan assistance process, whether the business is financial or quasi-financial activities, whether it involves personal credit investigation business, and whether it has obtained the necessary business qualification license; Whether the business of the company complies with the provisions of the Interim Measures for the Business Activities of Online Lending Intermediaries.
In addition, the CSRC also requires companies to explain whether their business operations involve post-loan collection services, and whether there are cases of collection in an irregular manner; Whether the loan assistance business and post-loan collection business (if any) are subject to regulatory measures or penalties by the competent authorities during the reporting period; if so, the rectification of relevant violations and whether they constitute substantive obstacles to the overseas offering and listing; Whether the company has related party relationships with major customers and suppliers; During the reporting period, whether the major financial or quasi-financial institutions cooperated with the company have major debt repayment risks and other operational anomalies, and whether they have caused significant adverse effects on the company's business operations.