“The key to realizing a dream is to focus not on success but on significance — and then even the small steps and little victories along your path will take on greater meaning.” –Oprah Winfrey
Dear Investors and Partners,
We are sincerely pleased to present to you the Trucpal Third-Quarter 2023 Report. Over the last quarter, we faced several significant challenges, but we also achieved numerous successes. This quarter was particularly noteworthy as we not only fulfilled new regulatory obligations but also completed substantial system upgrades to better cater to market needs and user expectations.
In this report, we will examine our performance data for the third quarter 2023, which includes transaction milestones, changes in trading volume, and the number of Trucbook. We will also talk about our stability strategies and plans for expanding into new markets, as well as recent business developments. Furthermore, we will present our research and development plans and operational strategies to showcase our dedication and future vision.
System Upgrade and Market Adjustment
Over the past three months, we have dedicated ourselves to completing a significant system upgrade to meet new regulatory requirements and better cater to market demands. This system upgrade includes improvements in several critical aspects to ensure our platform reaches the highest levels of functionality, performance, and user experience.
First, we adjusted our product pricing strategy to better align with regulatory guidance and fit more closely with the actual market conditions. This move is intended to provide truck drivers with more flexible and competitive pricing options, meeting their ever-changing needs.
Second, we focused on enhancing the operational efficiency of the Trucpal system. The results of this work not only significantly improved platform performance but also helped to reduce operating costs, enabling us to provide high-quality services to our users better.
Third, we optimized the user interface and operations to better cater to the usage habits and needs of transportation professionals. These improvements, based on in-depth user research and feedback, ensure that our platform is more in line with actual workflows, increasing user satisfaction.
Finally, in October, we successfully completed the system upgrade, meaning users can now enjoy a more stable and efficient platform experience. The continuous increase in registered users on the platform indicates a growing market demand for digital solutions.
This system upgrade and market adjustment are part of our ongoing efforts to ensure that our platform can adapt to the ever-changing industry environment and provide exceptional service to our users. We firmly believe that these improvements will better meet market demands and lay a solid foundation for the company’s sustainable growth.
Trucpal’s Third Quarter Performance Data:
Cumulative Trading Volume: As of October 31, 2023, the total transaction volume on the Trucpal platform has successfully exceeded RMB1.8 billion, approximately USD250 million. This achievement not only reflects our continuous development but also highlights the firm trust users have in our platform. The stickiness of our users remains at a stable level, which proves their reliance on and satisfaction with our services.
Quarterly Trading Volume: In the third quarter, our total transaction amount reached RMB327 million, about USD44.8 million, with a quarter-on-quarter growth of 3.23%. Additionally, the new system we introduced has received unanimous praise from existing users, providing clear guidance for our future development direction.
Trucbook User Number: Currently, we have 22,369 registered users, with a quarter-on-quarter increase of 2.8%. This indicates that our user base is still growing steadily, and we are confident in rapid growth in the fourth quarter. We will continue to commit to improving user experience and offering more valuable features to attract more users to join our platform.
Business Expansion:
We believe that the industry’s future is full of opportunities, and we are at the forefront of this industry, having achieved remarkable business expansion accomplishments. Below are some detailed information about our recent meaningful partnerships and business expansion dynamics:
Guangzhou Changyun Cold Chain Service Co., Ltd. 广州长运冷链服务有限公司(Changyun Cold Chain长运冷链): As a wholly state-owned enterprise of the Guangzhou Public Transport Group, Changyun Cold Chain is a leader in the field of cold chain transportation. They have chosen to collaborate with Trucpal to access our advanced truck transportation management solutions. Changyun Cold Chain plans to initially introduce 110 new vehicles through ETC service, covering models from Cargo 1 to Cargo 5 in cold chain types. We will provide them various services, including comprehensive vehicle fiscal and tax management. This cooperation signifies our determination to further expand into the cold chain logistics field, and we look forward to achieving more success in this area.
Shengli Group （Qingyuan） Steelwork Limited Company (圣力集团（清远）钢制品有限公司) — Hongtai Fleet 鸿泰车队: Hongtai Fleet (established in 2004 with a registered capital of USD5 million, a foreign-owned enterprise) is a subsidiary of Shengli Group （Qingyuan） Steelwork Limited Company., specializing in transporting steel materials. Their fleet consists of about 60 of the most active heavy-duty semi-trailer tractors. We provide the Hongtai Fleet with Trucpal transportation solutions. This cooperation not only strengthens our foothold in the logistics field but also serves as a model for other steel and heavy industry transportations.
National Market Expansion Plan: Following our success in the Pearl River Delta region, we aim to establish subsidiaries nationwide to replicate our successful experience rapidly. We have already started market research and preparation work in other provinces to ensure we provide exceptional service nationwide. This plan will help us further expand our market share and better serve a broader range of customers.
Our platform is attracting more and more users, including large transportation groups and individual truck drivers. This diverse user base proves the widespread appeal of our platform. The growth in users not only increases our market share but also provides more business opportunities for our partners. We will continue to invest resources to meet the needs of our users and ensure they have the best experience on our platform.
Research and Development Plan:
Our main target has always been to lead the digital transformation in the transportation industry. Our system is divided into four major modules, including bulk purchasing, accounting and tax, finance, and network freight transportation. These modules together form our complete industry chain solution, providing a one-stop service for users. The core module is the purchase of energy, ETC payment.
In the third quarter, we focused on launching the new system and addressing various issues that users may encounter during the transition. Currently, we have made significant progress in the bulk purchasing module and have received positive feedback from users. Our next steps include:
- Relaunching the accounting and tax module to optimize users’ financial management experience further.
- Improving the finance module to provide more financial service options to meet the needs of different users.
- Starting the network freight transportation module. We have already begun preparing for the network freight transportation license, and once the license is approved, we will provide more comprehensive transportation chain business support for platform users.
Launching and improving these modules will support the digital needs of the entire transportation industry and bring more traffic and revenue to the platform. We will continue to work hard to keep our system at the forefront of the industry.
Operations Plan:
We recently launched a new official website, https://xtrucpal.com which shows our commitment to improving user experience and enhancing our brand image.
We also made significant changes to our management structure. The issuer of Trucpal Token, HGC’s board of directors, discussed and voted on the following vital appointments: the following significant appointments were decided:
Appointment of Mr. Stanley Wang as CEO: Stanley Wang is an experienced investor and entrepreneur, having served as a partner at Softbank Asia Infrastructure Fund. He is a significant investor and partner in Trucpal. He also has profound experience in cryptocurrency and STO investments, having managed and invested in portfolios such as Bitcoin mining, digital finance, and blockchain technology successfully. With his leadership, the company’s strategic development will see new life and innovation.
Appointment of Mr. Liu Zhanhua as COO: Liu Zhanhua will be responsible for market development and business cooperation of the Trucpal system. He is an experienced entrepreneur who played a crucial role in designing the Trucpal STO and led the early customer onboarding and growth. He led the design of a significant system upgrade and has broad knowledge and understanding of the freight logistics and truck transportation market. He will be instrumental in driving the company’s growth and business partnerships.
Appointment of Mr. Xu Yonghong as CTO: Xu Yonghong is a member of the Trucpal technology team from its inception to launch and possesses extensive expertise in system architecture design and development management. He will keep heading our technical team, making sure our platform stays at the forefront and keeps providing innovative digital solutions.
These significant management appointments will bring new energy and leadership to Trucpal. We trust this proficient management team will lead the company to even more outstanding achievements. We appreciate our investors’ continuous support. The fresh management team will cooperate to accomplish more.
In summary, Trucpal faced many challenges and opportunities in the third quarter. We accomplished a significant system upgrade to meet new regulation requirements, improving the quality and market adaptability of our product. There was unanimous praise from our existing users for the new system’s launch, which points the way forward for our future developments.
Our business is growing as more users and partners join the Trucpal platform. This strong foundation supports our growth and development. We are confident about the future and will continue to work hard to transform the transportation industry digitally, meet customer needs, and provide better services for users.
Lastly, we thank our investors for their ongoing support. The new Trucpal team will collaborate to guide the company towards more tremendous success. We aim to expand the market and increase revenue in Q4 and 2024, adding value for our investors and users.
We appreciate your support and attention. Together, we step into a promising future.
Trucpal Team.
November 27, 2023
