EPWK (EPWK) Registration Filing summary

Company overview and business model

• Operates the second largest online crowdsourcing marketplace in China, connecting buyers (mainly SMEs) and sellers (freelancers, agencies) for services such as design, software development, marketing, and business support.

• Platform enabled $1.67 billion GMV from 2019 to June 2024, with 25.66 million registered users as of June 2024.

• Revenue streams include premium business solutions, online promotion, value-added services, and shared office rental.

• Business model is commission-free for most transactions, with revenue from memberships, service fees for infrequent sellers, and business support services.

Financial performance and metrics

• FY2024 revenue: $20.22 million (up 2.1% YoY); net loss: $1.20 million (vs. $1.08 million loss in FY2023).

• Gross profit margin declined to 18.7% in FY2024 from 25.5% in FY2023 due to higher share of lower-margin premium business solutions.

• Cash as of June 30, 2024: $0.23 million; accumulated deficit: $18.86 million.

• Negative operating cash flow in FY2024: $(1.62) million.

• Going concern risk disclosed due to recurring losses and working capital deficit.

Use of proceeds and capital allocation

• Net proceeds of ~$9.6 million (at $4.00/share IPO price) to be allocated: 30% for business development/marketing, 25% for R&D, 25% for new product/service exploration, 20% for general corporate purposes and working capital.

• Proceeds may be used to repay revolving loans.