Beisen, China’s Leading Cloud HCM Provider, Passes HKEX Hearing, Preparing for Main Board Listing

March 20, 2023 – Beisen Holding Limited (“Beisen”), a Beijing-based company, announced that it has successfully passed its listing hearing on the Hong Kong Stock Exchange (HKEX). Following the hearing, the company unveiled its prospectus and is expected to be listed on the Main Board soon. Beisen submitted applications to the HKEX on January 10, 2022, July 11, 2022, and February 20, 2023.

Founded in 2005, Beisen is China’s largest cloud-based Human Capital Management (HCM) solution provider. Its iTalentX platform delivers native SaaS products and cloud-based HCM solutions to help businesses efficiently recruit, assess, manage, develop, and retain talent. According to Zhisin Consulting, Beisen had an 11.6% market share in the cloud HCM market and ranked third in China’s digital HCM market with a 3.4% share in 2021.

Beisen is the first and only company in the industry to offer a full suite of cloud-based applications covering the entire HCM needs throughout the employee lifecycle. The company is also the only cloud HCM solution provider in China with a unified, open Platform as a Service (PaaS). Beisen’s solutions are fully “cloud-native,” allowing seamless access through the cloud.

As of September 30, 2022, Beisen’s clientele included approximately 4,900 enterprises from various fast-growing, large-scale industries such as technology, real estate, financial services, and automotive and manufacturing sectors. The majority of the top ten companies in these industries are Beisen’s clients. Furthermore, over 70% of the Fortune China 500 companies are among Beisen’s customers.

Beisen’s revenue primarily comes from subscription fees for its HCM solutions and a range of paid professional services, including implementation services and value-added services.

The prospectus reveals the pre-IPO shareholder structure of Beisen:

• Wang Zhaohui, through Zhaosen, holds 11.86%.
• Ji Weiguo, through Weisen, holds 11.80%.
• Senyan International, controlled by Mr. Wang, holds 4.49%.

Together, these shareholders form a single largest shareholder group, holding approximately 28.15% of the shares.

Other notable shareholders include:

• Matrix China Entities (15.54%) and Matrix Cayman Entities (5.31%)
• Max Woods (9.37%) and Sequoia Entities (2.84%)
• Genesis Capital (8.27%) and Beis Investment (3.57%)
• Shenzhen Capital Group (SCGC) (7.99%)
• SoftBank Vision Fund (SVF) Bandicoot (6.00%)
• Xinyin Holdings, controlled by Du Yao (3.66%)
• Goldman Sachs Entities (1.80%)
• Bargate, controlled by Chunhua Capital (1.80%)
• Fidelity Entities (1.80%)
• Space Trek L.P. (1.20%)
• Oakridge Beisen Limited, controlled by Jennifer Yang (1.03%)
• Zhide One, controlled by CICC (0.42%)
• Healthy GHY Limited, controlled by Guo Fei (0.26%)
• Lotusleaf Limited, controlled by Li Lan (0.21%)
• GC HCM BVI (0.48%)
• GC HCM Holdings (0.30%)

Morgan Stanley and CICC act as joint sponsors for Beisen’s IPO, while PwC serves as the auditor，Han Kun and Davis Polk serve as the company’s Chinese and Hong Kong legal counsels, respectively, while King & Wood Mallesons and Puheng Law Firm serve as the underwriters’ Chinese and Hong Kong legal counsels, respectively. Zhisin Consulting acts as the industry consultant.

During the fiscal years of 2019, 2020, 2021, and 2022, as well as the six months leading up to September 30, 2022, Beisen reported revenues of RMB 382 million, RMB 459 million, RMB 556 million, RMB 680 million, and RMB 351 million, respectively. The company reported net losses of RMB 690 million, RMB 1.267 billion, RMB 940 million, RMB 1.909 billion, and RMB 163 million, respectively, and adjusted net losses of RMB 167 million, RMB 252 million, RMB 121 million, RMB 164 million, and RMB 152 million, respectively.

The successful passing of the HKEX hearing marks a significant milestone for Beisen, as it prepares to list on the Main Board, further solidifying its position as a leading cloud HCM solution provider in China. The listing will provide Beisen with additional capital to invest in its innovative cloud-based solutions and expand its market share in the rapidly growing HCM market in China.

In summary, Beisen Holding Limited, China’s leading cloud HCM provider, has passed its HKEX hearing on March 20, 2023, and is preparing for its Main Board listing. The company offers a full suite of cloud-based HCM solutions and has a strong presence in various industries, with over 70% of Fortune China 500 companies as clients. Beisen’s upcoming IPO is expected to provide the company with additional resources to further expand its market share and strengthen its position in the HCM market.