On October 8, tick travel submitted the prospectus to the Hong Kong stock exchange. No surprise, the first share of domestic shared travel is about to be born. Compared with the network platform with background of car enterprises, Didi, the industry giant, has a low reputation, and its business is concentrated on windmills and online taxi. But in the state that the industry generally does not make money, tick on these two businesses to realize successfully. According to the disclosure of the

< p > Dida prospectus, the adjusted net profit of Dida in 2019 and the first half of 2020 is RMB 172 million and RMB 151million respectively, with profit margin of 29.7% and 48.6%, with the profit increasing in the whole. In 2019, the total transaction volume of Dida platform was RMB 11billion, of which, Shunfeng accounted for nearly 80%, which was 8.5 billion yuan. According to data released before tick, it has achieved 15 consecutive months of profit by September 2020. As a cash cow business, the contribution of windmill can be imagined. The high liquidity rate of Dida is based on the light asset model. On the one hand, it can make the platform run at a lower operating cost, but on the other hand, it will reduce its control over core resources and be in a disadvantage in the subsequent scale expansion and competition. The raised funds for the listing in Hong Kong will be mainly used to expand the user base and strengthen marketing and advertising promotion. It can be understood that, in the face of the competition environment around the current giants, tick tries to expand its business through raising funds. Therefore, the feedback from the secondary market after listing will directly affect the follow-up development rhythm of tick. The business of

< p > ticking is relatively simple, and the core business is windmill, and the online taxi is in the initial stage, and there are also some advertising and other service revenue. In essence, it is the business of information matching. At present, it mainly charges service fees to private owners who promote the Shunfeng car transaction. Another business network deals with taxis. Since August 2019, the cash out measures of collecting service fees from taxi drivers are adopted in pilot cities. The service rates of tick are 3.7%, 4.1%, 6.3% and 8.3% respectively for the six months ended June 30, 2017, 2018, 2019 and 2020. The service fee of tick has been improving. The financial report said that the service fee will be charged in other cities covered by business and the service fee may continue to be increased in the future. The focus of the prospectus is the windmill business data. Dida is one of the first travel service providers to do the business of windmill in China. By the first half of 2020, the Duda windmill has covered 366 cities in China, with about 192million registered owners and 9.8 million certified owners. The cumulative number of passengers in the car is 36.7 million. In 2017, 2018 and 2019, the total volume of windmills transactions was RMB 700million, 1.9 billion and 8.5 billion yuan respectively, with a year-on-year growth of 171.4% and 347.4% respectively. In the same period, the number of orders for the DTV is 23.6 million, 48.2 million and 179million times, respectively, with a year-on-year growth of 104.2% and 270.5% in 2018 and 2019 respectively. In particular, the monthly average orders of 2017, 2018 and 2019 are 197000, 4.2 million and 14.92 million respectively, and the daily average orders are 65000, 13000 and 49000 respectively. The rapid growth of the tit windmill started in 2018, reaching the peak of order growth in 2019, with orders more than double, crossing the 100million pass and approaching 200million. The reason for this growth is explained in the financial report. In 2018, tick invested RMB 1.094 billion in marketing to expand the user base. After the effect, the marketing investment was reduced by 80% in 2019. According to this time node, the reason for the increase of tick is that after the drop down of the windmill event, some users are transferred and diverted to the platform of the windmill such as Dida and hello. The main way to realize the problem is to charge information service fee, which is the core of its light assets. That is, tick does not own the vehicle itself, but only obtains intermediary fees by matching the demand information of both parties. The advantage of light asset model is that there is no depreciation and loss cost of vehicles, and no need to pay their own money to stimulate drivers’ enthusiasm, so the fixed cost and risk of change are small. In 2019, the subsidies and incentives provided to windmill owners and taxi drivers accounted for only 4.6 per cent of total revenue, and in the first half of 2020, the proportion fell to 0.03 per cent. That is, as long as the operating cost can be controlled in a suitable proportion range, tick can achieve profit. But strict control of expenditure also means that the business expansion of tick will be more passive, especially in the current market environment, the business model is basically stereotyped, and all companies can only consolidate and develop the market in terms of subsidies and service cost performance. In 2017, 2018 and 2019, the operating income of Dida is 49 million yuan, 118million yuan and 581 million yuan respectively. At the same time, the revenue of Dida has increased from RMB 24million and RMB 69million to 462million yuan in 2019. It is worth noting that at the same time, the sales and marketing expenses of Dida have the same trend: RMB 99million in 2017, RMB 1.094 billion in 2018 and 219million yuan in 2019, accounting for 203.0%, 930.7% and 37.7% of the total revenue in the same period. It can be concluded that Dida’s revenue data is better and marketing cost reduction plays a very important role. According to the financial report, in the early stage of business development, tick provides various forms of subsidies and incentives to obtain users and enhance the user’s stickiness to the platform. Under the continuous improvement of the acceptance of the platform and the strategic adjustment of marketing measures, it gradually relies on oral communication to promote the platform’s communication. In the first half of 2019, Dida’s sales and marketing expenses were RMB 109million, accounting for 58.2% of the total revenue in the same period; in the first half of 2020, this figure was RMB 800million, accounting for 25.8% of the total revenue. At present, it carries out marketing activities through the existing user introduction, discount coupons, social media, application store, search engine and other ways. But as the financial report said, “marketing initiatives can become more and more expensive, and they can be more difficult to generate significant returns.”. In 2017, 2018 and 2019, the income from advertising and other services accounted for 43.4%, 33.7% and 7.1% of the total revenue respectively. In the first half of 2019 and the first half of 2020, the proportion of this income in total income remains at a lower level in the past years, 12.0% and 7.2% respectively. It is to consolidate the market leading position of Shunfeng in the industry; secondly, to continue to promote the digital transformation of taxi industry; third, to improve the liquidity and enrich the realization channel; fourth, to improve technical capability; fifth, to seek strategic alliance, investment and acquisition. The fact that it is necessary to face directly is that the strategy of marketing promotion and subsidy means that its growth can only rely on pure natural flow. But in the face of Didi, hello and other high-profile, rich and quick-moving rivals, it is difficult to say that Dida has a competitive advantage. “< p > < p > a number of our competitors have more financial, technical, marketing, R & D, manufacturing and other resources, higher visibility, longer history or larger user groups, who have more resources for R & D and commercialization of new technologies, which may make them gain higher benefits from existing user groups, expand the user base at lower cost and new ones Technology development will respond more quickly, and it may also establish cooperation with third parties to further strengthen the capacity of resource supply “. This is also mentioned in the prospectus, which is also mentioned in the prospectus. The travel market is competitive, the technology changes rapidly, the user preferences are changing constantly, the competition frequently launches new services and products, and the existing competition with more resources in the market has more advantages to the new entrants. This resource advantage can make competitive pair get higher return with lower cost, get more users, and actively get more resources supply, thus forming a good supply and demand cycle. According to the F & s report, the total transaction volume of China’s four round travel market (taxi recruitment, taxi network, online car and windmill) will increase from 71.19 billion yuan in 2019 to 1100500 million yuan in 2025, with a composite annual growth rate of 7.5%. Among them, the windmill market will become the fastest growing segment market. According to the data of the Ministry of public security, the number of private cars in China is about 207million by the end of 2019. The road traffic infrastructure in China is approaching the limit of use, especially in the first tier cities, the daily commute congestion is increasing. With the increasing tension of road and parking resources, the combination of passengers is accepted, and the windmill will gradually become the mainstream way of travel. The policy of windmills will be the most potential high cost-effective travel mode in the future. And under the current market environment, taxi is underestimated. In 2019, taxi will occupy 68.6% of the four round travel market in China, and it is expected to still hold about 53.9% in 2025. That is, taxis will be the largest segment of the four round travel market in China in the future. In 2019, the total amount of taxi promotion in China accounted for 96.3% of the total taxi transactions. This means that the market potential of taxi recruitment is huge, and will exist with online taxi for a long time. This is why I click on the Internet to ask taxi as another key business. In the second half of 2019, Dida launched a new business of “smart taxi”, and has reached cooperation with Xi’an, Shenyang, Xuzhou and Nanjing. It is different from the operation of connecting taxis to the line. Smart taxis can pay, complain and feedback the service quality of drivers by introducing “taxi taxi taxi assistant” and “smart code”. Taxi companies and management departments can audit, operate and manage the data left by passengers, which can break through passengers, drivers, meters, taxi companies Data barriers between management departments. By June 2020, the smart taxi system in Xi’an has produced about 9.4 million service records, accounting for 64.0% of the total taxi trips in Xi’an. These data will become the basis of digital management of taxis, and provide unlimited development possibilities for tick. The market of windmills in China is still in its infancy, it is not known whether it can be accepted by the public or how many people can accept it. Most importantly, the relevant regulatory rules are not comprehensive, and relatively clear rules of online car contract cannot be applied to the business model of windmills and online taxi. In 2016, the State Council issued guidance only distinguishes the windmill from the network contract car, and there is no relevant laws and regulations and subsequent regulatory trends. At present, the regulations on the operation of windmills promulgated by the regulatory agencies in different regions are different in specific rules, different rules of implementation and different compliance conditions. The platform is faced with different compliance risks in various places, which means that the cost of compliance is high. For example, due to the lack of relevant licenses for online car service, the company has been fined 77 administrative fines, ranging from 5000 to 30000 yuan for each, and a total of 2.07 million yuan has been paid.