“With digitization, it’s worth starting over in all industries.” — Lu Qi, the previous CEO of Baidu and Microsoft.
This stirring message serves as a compelling reminder of the revolutionary potential that the digital age holds for us.
Ten million small and medium-sized firms (SMEs) and independent drivers make up China’s logistics and trucking industry. It is a fact that 95% of them are not now computerized, and many people find the concept of AI to be far-fetched.
As we accept this fact, we see the vast opportunities that are available to us. We remain steadfast in our commitment to the digital transformation because we are convinced that doing so will enable us to take advantage of new opportunities and foster exponential growth in a variety of industries.
Data on Trucpal operations
Trucpal’s Performance Metrics for July reflect a resilient growth trajectory, marked by strategic market positioning and sustained user engagement. Here’s a closer look at our key accomplishments:
The performance metrics for July released by Trucpal show a steadfast growth trajectory characterized by deliberate market positioning and ongoing user engagement. Here’s a closer look at some of our notable successes:
1. Cumulative Transaction Milestone: As of July 31, 2023, the total amount of transactions on the Trucpal platform has successfully surpassed RMB 1.5 billion, or about $210 million. This outstanding achievement highlights the resilience of our digital ecosystem and the unwavering faith that our users have in us.
2. Transaction Volume: RMB 109 million ($15 million) worth of transactions were made on our platform in July. This represents a significant 3.8% increase over June. The active entry of the logistics and transportation business into its yearly peak season, generating increased transaction activities, is a notable component contributing to this expansion.
3. Trucbook User Base: With a current count of 21,872 registered users, Trucbook has achieved a significant milestone. While our market expansion strategy has been adjusted in light of ongoing legislative considerations, Trucpal’s unwavering commitment to delivering exceptional services remains steadfast.
4. Strategic Stability and Modest Growth: Despite this month’s careful market expansion strategy, we have wisely managed to maintain a steady amount of online transactions. This tactical approach has not only guaranteed the platform’s stability but also made it possible for a slow but steady growth trajectory.
Trucpal continues to show resiliency and adaptation as we navigate the volatile market environment. We are still committed to giving our users high-quality services and maintaining their trust.
New cooperation intention
On July 20, 2023, a delegation of four members from Shandong Yuantong Automobile Trade Group(Yuantong Group), including the Chief Operating Officer, Deputy General Manager of Finance, General Manager of Information Department, and Director of Network Freight, visited Xiamen to meet with the HGC team. Yuantong Group is a comprehensive automotive service enterprise with extensive experience and a large business scale.
In response to declining sales in the traditional trucking market, the group is enthusiastic about initiating a transformation and exploring new directions for development. The Yuantong team expressed interest in HGC’s Network Freight 2.0 model, believing it can facilitate the group’s digital transformation. HGC shared the Trucpal system solution and can assist Yuantong Group in establishing a new model that connects each truck driver, including transportation services, financial management, and financial services. The Chief Operating Officer of Yuantong Group looks forward to further collaboration.
Market Research
The HGC team performed on-site investigations at Zhejiang Jiaxing Fruit Wholesale Market on July 10 and Hangzhou Fruit and Vegetable Wholesale Market on July 23, which is China’s largest fruit wholesale market. The transportation of fruits and vegetables in a cold chain is expanding as the Chinese population’s demand for quality of life rises.China’s cold chain transportation industry is anticipated to generate more than RMB 700 billion in revenue in 2023 and more than RMB 1 trillion by 2025.
Through conversations with fruit and vegetable dealers, it became clear that cold chain transportation uses a lot of energy, therefore cutting prices has become a crucial part of cold chain development. The HGC team started the “New Energy Vehicle Cold Chain Delivery System” expansion project in connection with the meetings held with new energy vehicle manufacturers in June. With the aid of new energy vehicles, this project hopes to assist cooperatives and individual car owners. For fruit and vegetable providers, it offers full cold chain storage, transportation, and distribution services from growing sites to towns. Vehicle management, process oversight, and cost accounting are all supported by the Trucpal system.
It’s significant to emphasize that actual collaboration activities have not yet been started, and these attempts constitute preliminary market research.
Plan for August dividends
A notable accomplishment was made on July 8, 2023, when the revenue estimation for the first half of the year was successfully finished. This accomplishment is a significant step in the direction of assuring accurate and transparent dividend distribution to our respected investors.
It has been decided how much dividend would be distributed. The HGC board is currently reviewing the revenue report in great detail. The final revenue distribution agreements will be delivered to INX, our dependable partner, for timely processing and smooth execution after this evaluation and subsequent board approval.
We continue to have unwavering faith in the potential for development of the Trucpal System as we move forward. It is anticipated that the current digital revolution in China’s trucking sector would result in strong user engagement, an increase in transaction volume, and ultimately, more revenue creation.
We are constantly inspired to innovate and improve the Trucpal ecosystem by your unwavering support and confidence. We are convinced that our cooperative efforts will produce positive outcomes for both parties and contribute to the long-term success of all concerned parties.
Plan for Publication of Operations Report:
We are happy to provide our new reporting cycle, which has been improved to give you more timely information about Trucpal’s operations and financial performance. Beginning this year, we will supply two different kinds of reports:
1. Quarterly Reports: We will publish our thorough quarterly reports every May and November. These reports will provide you with a thorough review of our three-month period’s accomplishments, difficulties, and strategic initiatives. We want to make sure that you are more aware of our near-term advancements by adhering to this schedule.
2. Semi-Annual Dividend Reports: You can get a comprehensive picture from our semi-annual dividend reports, which are released twice a year in February and August. These reports will provide information on the results and dividend distribution for the previous quarter. You can get a thorough update on both operational and financial matters with this strategy.
With you, our esteemed investors, the Trucpal team aims to promote open communication and establish a strong cooperation. We are motivated by the joint objective of expanding the worth and potential of the Trucpal ecosystem because we recognize the importance of your investments.
From the digitalization needs of Yuantong Group to the specialized vertical services of cold chain logistics, we firmly believe in the words of Lu Qi: Every industry can be reshaped through digitalization. As he foresaw, as China’s industries enter a new cycle of competition, companies that swiftly achieve digital transformation gain a competitive edge in this arena. We recognize the power of digitalization, and Trucpal is emerging at this pivotal moment, poised to support an increasing number of users in their digital upgrades.
For the second half of 2023 and the entirety of 2024, our tasks will center on market expansion and company growth.
Trucpal, pioneers in China’s freight and logistics industry, consistently pushes the envelope, creates new business models, and drives industry revolution. Beyond our operations, we are really proud of our business strategy, token economy structure, and the accomplishments we have made. However, we also really appreciate our customers, partners, and investors. Trucpal’s growth path has been observed by your steadfast support and company.
We move forward with unflinching confidence as we look ahead. We will continuously work to inject new vigor into the industry’s digital transformation, encouraging greater efficiency and broader perspectives, whether in the form of technological advancements or commercial innovations.
We really appreciate your ongoing support, and we are looking forward to the successes that lie ahead.
Best wishes
Trucpal Team 08–08–2023
