Logory Logistics Technology (02482.HK) Announces its Global Offering

HONG KONG, Feb 27, 2023 – (ACN Newswire) – The operator of one of the largest digital freight platforms in China – Logory Logistics Technology Co., Ltd. (“Logory” or the “Company”; 02482.HK), announces details of its Global Offering and listing of H Shares on the Main Board of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”).

Highlights of the Global Offering:
— Number of Offer Shares under the Global Offering: 43,211,000 H Shares (subject to the Over-allotment Option);
— Number of Hong Kong Offer Shares: 4,322,000 H Shares (subject to adjustment);
— Number of International Offer Shares: 38,889,000 H Shares (subject to adjustment and the Over-allotment Option);
— Offer Price Range: HK$2.9 to HK$3.5 per H Share;
— The Hong Kong Public Offering is expected to close at 12:00 noon (at 11:30 a.m. for completing electronic applications under the White Form eIPO service) on Thursday, 2 March 2023;
— Dealings in the H Shares on the Main Board of the Hong Kong Stock Exchange are expected to commence on Thursday, 9 March 2023;
— Haitong International Capital Limited is the Sole Sponsor.

In 2002, the predecessor of Logory was established in Beijing. The Company has successfully built a digitalized ecosystem for road freight transportation in China. According to China Insights Industry Consultancy Limited (“CIC”), the Company operates one of the largest digital freight platforms in China in terms of Online GTV during the three years ended 31 December 2019, 2020 and 2021 and the nine months ended 30 September 2022. The Company provides digital freight services and solutions to shippers, such as logistics companies and cargo owners, as well as truckers. In recent years, the Company’s business scale has recorded a general trend of growth. From 2019 to 2021, the Online GTV of shipping orders completed on the Company’s digital freight platform was RMB23.4 billion, RMB27.9 billion and RMB38.0 billion respectively. The Company had served over 11,600 shippers and 2.7 million truckers who had completed an aggregate of over 36.2 million shipping orders on the Company’s digital freight platform as of 30 September 2022.

In addition, the Company also operates Trucker Community, an “online + offline” community for truckers, and Truck Plus, a comprehensive portfolio of truck sales and aftermarket solutions. According to CIC, Trucker Community is the largest community for truckers in China and the largest community in the logistics industry in China, in terms of the number of registered users as of 31 December 2021. Trucker Community and Truck Plus business provide strategic value complement to the Company’s digital freight business and generate strong synergies.

Logory plans to offer an aggregate of 43,211,000 H Shares (subject to the Over-allotment Option), of which 4,322,000 H Shares (subject to adjustment) will be offered in the Hong Kong Public Offering, and 38,889,000 H Shares (subject to adjustment and the Over-allotment Option) will be offered by way of International Offering. The Offer Price will not be more than HK$3.5 per H Share and is currently expected to be not less than HK$2.9 per H Share.

The Hong Kong Public Offering commenced on Monday, 27 February 2023 and is expected to close at 12:00 noon (at 11:30 a.m. for completing electronic applications under the White Form eIPO service) on Thursday, 2 March 2023. Dealings in the H Shares on the Main Board of the Hong Kong Stock Exchange are expected to commence on Thursday, 9 March 2023. The H Shares will be traded in board lots of 1,000 H Shares each.

Assuming an Offer Price of HK$3.2 per H Share (the mid-point of the indicative Offer Price range) and assuming no exercise of the Over-allotment Option, the Company estimates that it will receive net proceeds from the Global Offering of approximately HK$75.9 million after deducting underwriting commissions, fees and estimated expenses payable in connection with the Global Offering. The Company currently intends to use these net proceeds from the Global Offering to 1) further upgrade and enhance its digital freight business, with a goal to address more in-depth demands from customers under more diversified business scenarios and to relentlessly improve the user experience for digital freight business; 2) further expand Trucker Community and Truck Plus solutions; 3) enhance research and development efforts and to strengthen technological capabilities; 4) recruit additional sales, marketing and operational personnel so that its reserve of talents is commensurate with the growth of business; 5) use as working capital and other general corporate purposes.

Cornerstone investors of the Company, Hefei Gaoxin Development & Investment Group Co., Ltd. and XINGTAI HOLDING COMPANY (HONG KONG) LIMITED have agreed to subscribe for such number of Offer Shares, which may be purchased with an aggregate amount of approximately HK$68.16 million.

Haitong International Capital Limited is the Sole Sponsor. Haitong International Securities Company Limited is the Overall Coordinator, Sole Global Coordinator, Joint Bookrunner and Joint Lead Manager. CLSA Limited is the Joint Bookrunner and Joint Lead Manager. Valuable Capital Limited, SDHG International Securities Limited and Sinomax Securities Limited are the Joint Lead Managers.

About Logory

In 2002, the predecessor of Logory was established in Beijing. The Company has successfully built a digitalized ecosystem for road freight transportation in China. According to China Insights Industry Consultancy Limited, the Company operates one of the largest digital freight platforms in China in terms of Online GTV during the three years ended 31 December 2019, 2020 and 2021 and the nine months ended 30 September 2022. The Company provides digital freight services and solutions to shippers, such as logistics companies and cargo owners, as well as truckers. In recent years, the Company’s business scale has recorded a general trend of growth. From 2019 to 2021, the Online GTV of shipping orders completed on the Company’s digital freight platform was RMB23.4 billion, RMB27.9 billion and RMB38.0 billion respectively. The Company had served over 11,600 shippers and 2.7 million truckers who had completed an aggregate of over 36.2 million shipping orders on the Company’s digital freight platform as of 30 September 2022. In addition, the Company also operate Trucker Community, an “online + offline” community for truckers, and Truck Plus, a comprehensive portfolio of truck sales and aftermarket solutions. The Company seeks to benefit and empower the participants in the ecosystem of road freight transportation industry, to enhance transparency and synergy in such collaboration through its digitalized services, and to help such participants establish more balanced and reciprocal relationships through repeated transactions, so as to contribute to the standardization and sustainable development of China’s road freight transportation industry.

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