YesAsia to raise up to HK$131.7 million by offering 39,540,000 Shares at HK$3.00-HK$3.33 each

Strives to be the “go-to” E-commerce gateway for Asian products with customers worldwide

HONG
KONG SAR – Media
OutReach – 28 June 2021 – YesAsia Holdings
Limited (“YesAsia” or the “Company“; together with subsidiaries, the “Group“; SEHK stock code: 2209), a Hong Kong-headquartered E-commerce platform operator engaging in
the procurement and sale of Asian fashion and lifestyle, beauty and
entertainment products to customers around the world, has announced its proposed global offering
(“Global Offering“) of shares (“Shares“) in Hong Kong and proposed
listing on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK“) today.

 

YesAsia intends to offer 39,540,000 new
shares (“Offer Shares“) at an
indicative offer price range of HK$3.00 to HK$3.33 per Share (“Indicative
Price Range“). About 35,586,000 Shares or 90% of the Offer Shares will be
available for placing with institutional and professional investors (“International
Offering“) while about 3,954,000 Shares or 10% of the Offer Shares will be
available for subscription by the public in Hong Kong (“Hong Kong Public
Offering“).

 

UOB Kay Hian (Hong Kong) Limited is the Sole Sponsor and the Sole Global Coordinator of the Global Offering.

 

CS Logistics Holdings Ltd., and
Triple Surge Holdings Limited have agreed to subscribe for HK$30 million and
HK$15 million worth of Shares, respectively, as cornerstone investors.

 

The aggregate net proceeds to the
Company from the Global Offering, after deducting related underwriting
commissions and incentive fees in connection with the Global Offering and assuming
an Offer Price of HK$3.165, being the mid-point of the Indicative Price Range, will be
approximately HK$93.5 million, which are intended to be applied as follows:

• approximately HK$50.5 million or 54.0% for
  increasing marketing efforts for customer acquisition and retention;
• approximately HK$18.8 million, or 20.1% for
  enhancing platform content, IT capabilities and creating satisfactory user
  experience to promote benefits and uniqueness of Korean beauty and fashion
  products;
• approximately HK$15.0 million, or 16.1% for
  expanding logistics fulfilment capacity and enhancing warehouse efficiency; and
• approximately HK$9.2 million, or 9.8% as general
  working capital.

YesAsia is engaged in the
procurement and sale of Asian fashion & lifestyle, beauty and entertainment
products to global customers. The Group primarily sells products through its online
platforms, complemented by a portion of sales of entertainment products through
its offline B2B sales channel. Its principal business activities can be divided
into two business segments: (i) sales of fashion & lifestyle and beauty
products on its YesStyle and AsianBeautyWholesale platforms; and
(ii) sales of entertainment products on its YesAsia platform and through
its offline B2B sales channel.

 

YesAsia launched its key opinion
leader initiative in January 2018, and subsequently its award-winning YesStyle
Influencer Program in February 2019, which assisted YesStyle to
reach a broader worldwide audience. As of June 2021, more than 150,000 KOLs and
influencers from around the world have joined the Group’s influencer marketing
initiatives, providing it with a broad base of millions of followers. Revenues
generated from its influencer marketing initiatives accounted for 1.2%, 7.9%
and 17.4% of the total revenue of YesStyle for the three years ended 31
December 2020, respectively. The Group’s YesStyle Influencer Program received
the ”Technology Excellence Award” in September 2020, granted by Hong Kong Business
magazine. Their social media coverage includes social media platforms,
including Instagram, YouTube, Facebook, Tiktok, Pinterest
and Twitter.

 

Looking forward, the Group
aspires to become the “go-to” E-commerce gateway that bridges Asian products
with customers worldwide by reinforcing marketing strategies to boost customer
base and enhancing customer loyalty; increasing global penetration to build
stronger brand awareness; deepening its positioning as a Korean beauty product
gateway; enhancing customer experience through further investment in IT systems
and in-house-produced original content; and optimizing as well as expanding its
logistics network and infrastructure.

 

Commenting on
YesAsia’s business strategy, Mr. Lau Kwok Chu, Founder, Executive Director and
CEO, said: “We had been able to achieve above-industry revenue growth during
the Track Record Period even in the midst of the COVID-19 pandemic, mainly due
to our continuous effort in strengthening our marketing strategy to support
customer retention and acquisition as well as long-term ecosystem development
such as engaging influencers and KOLs, our efforts in establishing and building
the reputation of our platforms and customer services; and wider varieties and
selections of fashion and beauty products offered by our Group than some of our
competitors.”

 

“Our strengths rest
with our established E-commerce platform with a global reach, our loyal and
engaged customer base driving a virtuous cycle in our business ecosystem, our
proven global E-commerce sales channel for Asian product suppliers, our
innovative and effective marketing strategy to support customer retention and long-term
ecosystem development, and our seasoned management team and diverse corporate
culture. We believe these strengthens will continue leading our success in this
industry,” Mr. Lau added.

 

The Hong Kong Public
Offering is expected to open at 9:00 a.m. on Monday, 28 June 2021 and is
expected to close at 12:00 noon on Friday, 2 July 2021. Allotment results and
the Offer Price are expected to be announced or made available on Thursday, 8
July 2021. Dealings in the shares on the Main Board of the SEHK are expected to
commence under stock code 2209 at 9:00 a.m. on Friday, 9 July 2021.

WHITE Application Forms and Prospectus can be obtained
from UOB Kay Hian (Hong Kong) Limited or any of the designated branches of Bank
of China (Hong Kong) Limited; or on-line via the designated HK eIPO White Form Service Provider at
www.eipo.com.hk. Applicants can also instruct the Hong Kong Securities Clearing
Company Limited to effect their applications by using the YELLOW Application Forms or via electronic instructions. 

YesAsia
Holdings Limited

Offering Statistics at-a-Glance

Share Offer	:	39,540,000 Shares
Offering Structure Hong Kong Public Offering    International Offering	:   :	3,954,000 Shares (subject to reallocation) 35,586,000 Shares (subject to reallocation and over-allotment option)
Proposed Offer Price Range	:	HK$3.00 – HK$3.33 per Offer Share
		Based on an Offer Price of HK$3.00	Based on an Offer Price of HK$3.33
Market Capitalisation(1)	:	HK$1,186,172,370	HK$1,316,651,330
Stock Code	:	2209
No. of Shares per board lot		1,000
Expected Listing Date	:	Friday, 9 July 2021

 

Note:

(1)    The calculation of market capitalisation is
based on the 395,390,790 Shares expected to be in issue immediately upon
completion of the Global Offering

Track Record

The following is a summary of the combined results
of the Group for the three years ended 31 December 2018, 2019 and 2020

 

	Year ended 31 December
	2018	2019	2020
(US$ ‘000)
Revenue	85,364	117,589	173,319
Gross Profit	29,067	37,648	61,871
Profit before tax	4,825	4,270	13,438
Profit for the year	3,992	3,369	11,220
Adjusted net profit for the year* (*adjusted for listing expenses)	3,992	3,369	13,329