The Trucpal team is honored to share the significant progress made in 2023. We sincerely thank our global investors for their unwavering confidence and patience, which have been fundamental to our momentum and progress.
The past year has witnessed profound and transformative changes in the domestic market environment and industry policies. In the face of these challenges, HGC (the company behind Trucpal) has stood the test. We successfully completed a comprehensive system overhaul in compliance with national regulatory requirements. We currently stand as the nation’s first ETC issuance system, where user funds are under an audited and regulated account oversight system. Adherence to regulatory standards is not just a compliance measure; it is the foundation of our sustainable business operations. Our commitment to regulatory compliance and systems improvement positions us well for future growth and resilience in an evolving marketplace.
As we reflect on Trucpal’s journey of 2023, it is with great pride that we share the accomplishments and milestones achieved during this time.
- Sustained Growth in User Data:
In June 2023, we significantly redesigned our core system architecture and transitioned all users to a new financial monitoring framework. This significant systems engineering feat required close collaboration with nearly 500 corporate clients and more than 15,000 individual users. The successful, seamless transition over six months, underpinned by the unwavering trust and support of our user base, is a testament to our robust and scalable platform infrastructure. Notably, even as we temporarily paused new user promotions and halted all marketing activities to facilitate this transition, we observed an unwavering commitment from both new and existing users. Their continued engagement during these changes not only served as a significant morale booster for our team but also validated the strategic direction of our platform upgrade.
The operational efficiency of our revamped system has increased tenfold over the previous iteration. We’ve achieved a qualitative leap in invoice processing efficiency, improving the user experience and data accuracy. In addition, the upgraded system features more intuitive user interactions, and the accuracy and security of funds have been recognized and endorsed not only by our users but also by the upstream national-level ETC operators.
Despite various objective constraints, we recorded a total trading volume of RMB 1,219,516,624.52, equivalent to about 170 million USD in 2023, representing a year-on-year increase of 76.52%. However, there was an inevitable decline in the acquisition of new users, with 4,709 new vehicles added during the year, representing a year-on-year decrease of 55.58%. However, with the stabilization of the new system and the resumption of our market marketing initiatives, we are confident of regaining our growth momentum.
As we move forward, Trucpal remains committed to innovating and enhancing our platform to meet the evolving needs of our users and maintain our position as a leader in the industry.
2. Future System Fee Structure and Ecosystem Integration:
In a significant milestone for Trucpal in 2023, we not only achieved our revenue targets ahead of schedule but also successfully paid dividends twice within the year. These dividends were paid in USDC, underscoring our commitment to creating tangible value for our token holders. Despite generating revenue through our system, we recognize that our current pricing model has not fully capitalized on the value among our domestic users. With this understanding, we are planning a major restructuring of our system’s pricing framework in 2024. We strongly believe that this restructuring will leverage the potential of blockchain incentives to create a flywheel effect for our domestic users. This will be an ongoing process, with continuous tweaks to better align with market dynamics and improve user experience. Our goal is to transform our users into integral stakeholders of the platform. The new pricing model is designed to catalyze a shift in user identity, fostering collaborative and shared ecosystem prosperity. We expect to complete this transformation by the second quarter of 2024. At the same time, Trucpoint’s mining will be redefined, presenting an entirely new aspect to our users. Looking ahead, the restructuring of the system’s fee model is not just a procedural change but a strategic move toward deeper market integration and user engagement.
3. New Markets, New Opportunity to Grow Profits!
We are delighted to announce a significant milestone in our expansion strategy. The operational testing phase in the Jiangsu region is well underway, with a planned launch in January 2024. Our early adaptation to new regulations has positioned us as the first ETC (Electronic Toll Collection) system in the country to integrate with regulatory accounts, a testament to our proactive and compliance-focused approach. We believe that staying closely aligned with regulatory trends will allow us to gain a competitive advantage, embodying the principle of “latecomers taking the lead.”
In addition to our issuance operations in the Guangdong and Jiangsu regions, we are actively seeking cooperation with ETC operators in other areas of China. Our strategy is to take a multi-pronged approach, especially since we already have deep collaborations with two of the top three national ETC operators regarding business volume. We are confident that we can rapidly expand our ETC business in the remaining provinces.
Beyond conventional ETC issuance, integrating our vehicle aftermarket e-commerce platform and online freight platform is about to enter the pilot phase. We are confident that 2024 will mark a year of increased prosperity and robustness in our ecosystem, as these new ventures are expected to enrich our service offerings significantly.
4. Transformation and Reorganization for Future Challenges
In anticipation of future challenges, Trucpal has embarked on a strategic transformation, starting with a comprehensive reorganization of our management structure. The revamped organizational framework is designed to be more efficient, professional, and effective in execution. This change is not limited to our corporate governance but extends to our operational systems throughout China.
To meet the evolving needs of our ecosystem, we are actively pursuing a compliant financial license in China. Possessing this license will allow us to expand beyond ETC services into freight factoring, truck leasing, insurance installment, and other related financial services. Furthermore, tokenizing financial gains will strengthen Trucpal’s blockchain capabilities, opening up possibilities not limited to our platform or industry alone. This strategic move is expected to expand our development potential and market reach significantly.
5. Redefining Trucpal
Trucpal can be conceptualized as a pioneering DePIN (Decentralized Participation Incentive Network) project intricately intertwined with the transportation sector. As a dynamic catalyst, Trucpal is designed to integrate with the inherent systems of the transportation industry seamlessly. This integration is poised to revolutionize traditional development models within the sector, thanks to its innovative tokenized incentives. Such a paradigm shift will disrupt the conventional model of purely transactional service purchases between users and platforms, pushing domestic transportation Internet platforms towards a Web 3.0 evolution.
Trucpal’s application goes beyond mere incentives. The platform also plans to use network freight to experiment with transportation capacity trading mining. Besides the freight industry, online car-hailing is another area where HGC (the company behind Trucpal) is actively venturing. With DePIN already successful in the international ride-hailing market, HGC has a strategic advantage in adapting and implementing these models locally. In the future, HGC aims to extend blockchain empowerment to a broader range of industries, further establishing its footprint as a pioneer in this revolutionary convergence of transportation and blockchain technology.
And finally, We extend our deepest gratitude to the entire Trucpal community. Our commitment is to continuously evolve and innovate to create more excellent value and substantial returns for all who support and believe in Trucpal.
As we embark on a new year, we are ready to redefine our strategies and operations, leveraging our achievements and lessons from the past to shape a more promising and prosperous future for all our stakeholders.
I wish you a happy and prosperous 2024!
Sincerely,
The Trucpal Management Team
January 31, 2024
Guangzhou
