Gelonghui, May 7, Maifu (02556)Crash4steamHK) announced that the company intends to sell 5.9497 million shares globally, 595000 shares in Hong Kong, China and 5.3547 million shares in the international offering.Crash4steamThe offering price will be HK $42.00-45.00 per offer share with China International Capital Corporation and Jianyin International as co-sponsors and the shares are expected to be listed on the main board of the Stock Exchange on May 16, 2024.

Through Software as a Service (SaaS), the company provides marketing and sales software solutions to Chinese corporate customers, as well as accurate marketing services to help advertisers place advertisements on the head media platform and effectively reach the target audience. In 2021, 2022 and 2023, 50.0%, 46.4% and 57.0% of the company's revenue came from the SaaS business, and 50.0%, 53.6% and 43.0% of the revenue came from precision marketing services.

Software as a Service (SaaS) is a kind of network application software that users can access from various devices at any time. It eliminates the need for local software installation and maintenance and is usually available on a subscription or pay-as-you-go basis. The company provides cloud-based marketing SaaS products to B2B enterprises and sales SaaS products to B2B and B2C enterprises to achieve effective and efficient marketing and sales management. On the other hand, the company mainly provides accurate marketing services to B2C companies, including account management, traffic procurement, advertising production and distribution, as well as marketing strategy formulation and optimization. In the case of the company's SaaS products, the company mainly helps users use free or low-cost Internet traffic in the public and private sectors, and charges subscribers a subscription fee. At the same time, in terms of precision marketing services, the company buys public domain advertising traffic for customers from leading media platforms and charges customers based on the traffic received.

The company designs and builds SaaS products in a modular manner, providing flexibility for development, iteration and customization. As of December 31, 2023, the company has 237 functional modules available for the company's SaaS products. The company chooses and combines a series of functional modules to become T Cloud (the company's iconic marketing SaaS products) and Zhenke (the company's iconic sales SaaS products) to solve the pain points faced by enterprises in marketing and sales activities respectively.

The Company has entered into a cornerstone investment agreement under which cornerstone investors have agreed to subscribe for a total of US $5.04 million (or approximately HK $39.42 million) at the offering price subject to certain conditions. Assuming that the offer price is HK $43.50 (i.e. the median of the indicative offering price range referred to in this prospectus), the total number of offer shares to be subscribed by cornerstone investors will be 906200 offer shares. Cornerstone investors include Victoria Harbour Nanchang East Lake Industry Co., Ltd. ("Victoria Harbour Nanchang East Lake") and Gangxin Trading Co., Ltd. ("Gangxin").

Assuming an offer price of HK $43.50 per offer share (i.e. the median of the offer price range), the company estimates that the net proceeds from the global offering will be approximately HK $180.5 million. If the net proceeds are insufficient, the company plans to use its own funds or bank credits to meet its financial needs or extend the implementation time limit. According to the company's strategy, the company plans to use about 20.0% of the proceeds from the global sale to upgrade the company's Marketingforce platform and cloud-based product portfolio and services over the next three years; about 30.0% will be allocated to improve the company's related technologies in the next three years, including artificial intelligence, big data analytics and cloud computing. About 30.0% will be allocated to expand the company's sales network, enhance customer success system and enhance brand influence in the next three years. Approximately 15.0% will be allocated for strategic investments and acquisitions over the next three years, thereby enhancing the company's Marketingforce platform, enriching the company's product portfolio and enhancing existing product capabilities, aimed at increasing target customer penetration and optimizing the company's customer structure in vertical industries with rapid digital transformation; and approximately 5.0% will be allocated to working capital and general corporate uses.