41 domestically listed Chinese companies, 7 overseas listed Chinese companies, and the amount of IPO financing increased month-on-month.

36 Chinese companies are supported by VC/PE institutions, among which domestic listed companies account for 90%

JD Logistics received the highest IPO financing amount this month, and the logistics industry ranked first in financing amount

The number of listed companies in Guangdong Province remains the leading; Beijing and Shanghai have both raised over RMB 10 billion in financing

 The China Securities Regulatory Commission will study and formulate a package of institutional measures to prohibit improper shareholding by resignees from the system to make up for the shortcomings of the system

According to data from Zero2IPO Private Equity, there are 48 Chinese companies in May 2021[1]The number of IPOs completed in various global trading markets increased by 100% year-on-year; the total financing amount was 64.405 billion yuan, and the financing amount increased by 149.5% year-on-year and 17.6% month-on-month. Chinese companies that completed their IPO this month involved 16 primary industries and landed in 7 trading markets. The average IPO financing amount of Chinese companies was 1.342 billion yuan, an increase of 49.4% from the previous month. The highest single financing amount was 20.229 billion yuan. A total of 36 VC/PE-backed companies went public this month, involving 205 institutions, with a VC/PE penetration rate of 75%.

Figure 1 The number of domestic and overseas listings and total financing amount of Chinese companies from May 2020 to May 2021

Source: Private Equity Pass 2021.6 www.pedata.cn

The total financing amount of IPO companies in the top ten in May accounted for 69.1%

The three IPO companies with the largest amount of financing this month are: JD Logistics listed on the main board of the Hong Kong Stock Exchange, raising a total of 20.229 billion yuan; Hehui Optoelectronics listed on the Shanghai Stock Exchange Science and Technology Innovation Board, raising a total of 7.106 billion yuan; The Shanghai Stock Exchange was listed on the Science and Technology Innovation Board and raised a total of 2.901 billion yuan.

Table 1 Top 10 IPO corporate financing in May

Source: Private Equity Pass 2021.6 www.pedata.cn Table 2 Top 10 listed Chinese companies in financing supported by domestic and overseas VC/PE IPOs in May Source: Private Equity Pass 2021.6 www.pedata.cn Registered listed companies accounted for more than 50%, and the amount of overseas listed financing increased month-on-month In May, there were 41 domestic listed Chinese companies, accounting for 85.4% of the number of Chinese companies IPO this month. The initial financing amounted to 39.646 billion yuan, accounting for 61.6% of the total financing for the month. In May 2021, 11 and 14 companies were successfully registered and listed on the Growth Enterprise Market and the Science and Technology Innovation Board, accounting for 52.1% of the total number of listed companies in the month, and initial financing accounted for 31.6%. In May, 4 Chinese concept stocks were listed on the U.S. stocks, with a financing amount of approximately RMB 3.093 billion; 3 companies were listed on the main board of the Hong Kong Stock Exchange, with a financing amount of approximately RMB 21.666 billion. The amount of financing in the U.S. and Hong Kong stock markets both increased from last month. Figure 2 Distribution of domestic and overseas listings of Chinese companies in May 2021 (by listing sector) Source: Private Equity Pass 2021.6 www.pedata.cn Figure 3 The distribution of Chinese companies listing in the domestic market under different IPO systems from May 2020 to May 2021 Source: Private Equity Pass 2021.6 www.pedata.cn Guangdong Province leads the way in the number of IPOs, and Beijing ranks first in terms of financing According to private equity statistics, in May 2021, the number of IPOs in the five provinces and cities of Guangdong, Jiangsu, Shanghai, Zhejiang and Beijing is 5 or more, a total of 32; the initial financing amount plus a total of RMB 50.99 billion, accounting for the country The total amount is nearly 80%. Among them, Guangdong Province leads other provinces in the number of listings of 9 Chinese companies; Beijing and Shanghai have raised financing amounts of more than 10 billion yuan respectively, and Beijing ranked first in the amount of financing raised by Chinese companies listed at 24.988 billion yuan, accounting for about 38.8%. Table 3: Geographical distribution of Chinese companies’ domestic and overseas listings in May 2021 Source: Private Equity Pass 2021.6 www.pedata.cn The May IPO involved 16 industries, with the logistics industry having the highest amount of financing In May 2021, the IPO will involve 16 industries. The number of listed companies in machinery manufacturing, biotechnology/medical health, chemical raw materials and processing industries is 5 or more. In terms of financing, the logistics industry IPO financing was 21.09 billion yuan, accounting for 32.8% of the total financing of Chinese enterprises, ranking first; semiconductor, electronic equipment, and machinery manufacturing industries ranked second and third respectively, with financing amounts exceeding 7 billion. yuan. Figure 45: Industry distribution of the number of IPO companies and financing amount in month 45 Source: Private Equity Pass 2021.6 www.pedata.cn The VC/PE penetration rate of listed companies in May was 75% Among the listed companies this month, 36 Chinese companies were supported by VC/PE institutions, of which 33 were listed domestically, accounting for 91.7%. There are 7 and 13 IPO companies on the ChiNext Board of the Shenzhen Stock Exchange and the Science and Technology Innovation Board of the Shanghai Stock Exchange, respectively, which have received support from VC/PE institutions. The book returns of VC/PE-invested companies listed on domestic listings have dropped. In May 2021, the book return multiples (calculated at issue price) were 1.96 times, a decrease of 27.4% from the previous month and a year-on-year decrease of 35.1%; the book returns of overseas listings in May 2021 increased significantly year-on-year , An increase of 97.21%. Figure 5 Trend of VC/PE-backed IPO penetration from May 2020 to May 2021 Source: Private Equity Pass 2021.6 www.pedata.cn Figure 6 Distribution of book returns of VC/PE supporting IPOs in domestic and overseas markets of Chinese companies from May 2020 to May 2021 (issuance date) Source: Private Equity Pass 2021.6 www.pedata.cn 16 VC/PE institutions have won no less than 2 Chinese IPOs Among the listed companies this month, 36 Chinese companies received support from VC/PE institutions, a decrease of 12.2% from the previous month. Among them, 16 institutions have invested companies with no less than 2 IPOs. The book return of Lieliang Fund in the Waterdrop IPO was as high as 98.26 times. Table 45 Listed in VC/PE Institution Invested Companies (Partial Institutions) Source: Private Equity Pass 2021.6 www.pedata.cn Note: 1. The IPOs listed in the above table refer to companies headquartered in China (excluding Hong Kong, Macao and Taiwan) that are first listed on domestic and foreign stock exchanges within the scope of the statistics in 2021. Companies listed in the second listing and multiple listings are not listed. Included; 2. The investment institution only lists the named shareholders appearing in the prospectus; 3. The book amount is the number of shares held by the institution before the initial issuance of the invested project (excluding the cornerstone wheel/strategic placement) * issue price It is calculated that part of the book value may be biased because the number of shares held before the IPO was not disclosed in the prospectus. The China Securities Regulatory Commission issued the Guidelines for the Supervision of the Shareholding Behavior of Retired Persons from the Securities Regulatory Commission System, clarifying the verification requirements for the participation of the resigned employees The China Securities Regulatory Commission has always attached great importance to the supervision of shareholders of companies to be listed, continuously improved the shareholder supervision system and mechanism, and made great efforts to prevent illegal and illegal “creation of wealth”. In February of this year, the China Securities Regulatory Commission issued the “Guidelines for the Application of Regulatory Rules Regarding Information Disclosure of Shareholders of Listed Companies Applying for Initial Public Offerings”, which strengthened the regulatory constraints on surprise share purchases, abnormal share prices, transfer of interests, and “shadow shareholders”, and compacted the information of companies to be listed. Disclosure responsibility and intermediary agency verification responsibility to guide legal and compliant investment in companies that are to be listed. During the implementation of the system, the China Securities Regulatory Commission insisted on cutting its blade inward, and simultaneously studied and formulated a package of system measures to prohibit improper shareholding by system resignees to make up for the shortcomings of the system. While strengthening anti-corruption supervision and management and improving the independent review system, we have specially formulated and issued the “Guidelines for the Application of Regulatory Rules Issuance No. 2” (hereinafter referred to as the “Guidelines”) to clarify that the retired personnel of the China Securities Regulatory Commission will participate in the public offering and listing or the New Third Board. The verification requirements of selected-tier listed companies highlight the targeted supervision of resigners who fall within the scope of the specification, compact the verification responsibilities of intermediary agencies, and maintain the “three public” order in the market. The “Guidelines” mainly include the following: One is to clarify the circumstances of improper shareholding. The resignation personnel of the CSRC system used the influence of their original position to seek investment opportunities, the process of shareholding has the transfer of interests, the shareholding during the shareholding prohibition period, the shareholding as an unqualified shareholder, the source of the shareholding funds violates laws and regulations, etc., are considered to be improper shareholding. The second is to strengthen the verification responsibilities of intermediary agencies. In the process of verifying shareholder information, intermediary agencies should comprehensively check whether there is a shareholding situation of resigned personnel specified in the Guidelines and determine whether it is an improper shareholding situation. In the case of improper share purchase, it shall be cleared up. When the issuer and the intermediary institution submit the application documents for the issuance and listing (listing), they shall make a special explanation on the relevant verification status of the resigned personnel of the CSRC system. After submitting an application for issuance and listing (listing), if an improper shareholding situation is discovered or a major media question arises, the intermediary institution shall check and report in a timely manner. The third is to strengthen audit supervision and establish an independent review system. Review the issuance and listing (listing) review process involving the participation of departed employees to ensure that the review process is fair, just, and in compliance with laws and regulations. If clues of violations of law and discipline are found, they shall be handed over to relevant departments for handling. Key case analysis of this month: JD Logistics, Hehui Optoelectronics, Electric Wind Power JD Logistics is listed in Hong Kong, and another listed company is added to the JD department On May 28, 2021, JD Logistics officially listed on the Hong Kong Stock Exchange under the stock code of “02618.HK”. It is the second listed company incubated by JD Group. JD Health has been listed on the Hong Kong Stock Exchange before this. The issue price of JD Logistics is HK$40.36 per share per share, and it plans to issue 60,160,800 shares, with a market value of approximately RMB 202.294 billion. On the day of issuance, the closing price was HK$41.7, and the net proceeds from the IPO were approximately HK$24.113 billion. JD Logistics is a technology-driven supply chain solution and logistics service provider under JD. It was born out of JD Group’s self-built logistics. In 2012, it officially registered a logistics company. In 2017, JD Logistics Group was established. On February 16, 2021, JD Logistics submitted a prospectus on the Hong Kong Stock Exchange and officially launched the IPO. Three months later, JD Logistics officially launched a global public offering of shares. JD Logistics’ IPO has attracted attention from many parties. On May 20, JD Logistics’ IPO subscription ended ahead of schedule. JD Logistics was subscribed by more than 1 million people, oversubscribed by more than 700 times, and frozen funds exceeded 550 billion Hong Kong dollars. According to data from the JD Logistics prospectus, in 2018, 2019 and 2020, JD Logistics’ revenues were 37.9 billion yuan, 49.8 billion yuan, and 73.4 billion yuan, respectively. Among them, there was a year-on-year increase of 31.6% in 2019 and a year-on-year increase of 47.2% in 2020, almost compared to 2018. Doubled. In the first quarter of 2021, JD Logistics’ revenue reached 22.4 billion, a year-on-year increase of 64.1%, and continued to maintain rapid growth. At the same time, JD Logistics already has profitability. According to previously disclosed public data, after excluding changes in fair value such as equity incentives that do not affect the company’s value, JD Logistics has a profit of more than 1.7 billion in 2020. Source: Private Equity Pass 2021.6 www.pedata.cn Display panel manufacturer Hehui Optoelectronics goes public, with an issue market value of RMB 35.529 billion On May 28, 2021, Hehui Optoelectronics “688538.SH” was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange with an issue price of 2.65 yuan per share. It plans to issue 2.681 billion shares, with a total financing amount of 7.106 billion yuan and a market value of 35.529 billion yuan. . The closing price on the day of listing was 4.2 yuan, with a turnover of 6.441 billion yuan. The controlling shareholder of Hehui Optoelectronics is Lianhe Investment. Before this issuance, Union Investment held a total of 8.05 billion shares of the company, accounting for 75.12% of the company’s total share capital. The actual controller of the company is the Shanghai State-owned Assets Supervision and Administration Commission, which holds 100% equity of Lianhe Investment. Hehui Optoelectronics is a well-known AMOLED semiconductor display panel manufacturer in China, focusing on the R&D, production and sales of small and medium-sized AMOLED semiconductor display panels. According to the prospectus, Hehui Optoelectronics has focused on small and medium-sized AMOLED since its establishment. It is the first domestic manufacturer to achieve mass production of AMOLED semiconductor display panels in the industry, breaking the foreign monopoly. At present, Hehui Optoelectronics has two production lines of the 4.5th generation and the 6th generation, both of which can produce rigid and flexible AMOLED panels. Among them, the production capacity of the 4.5th generation AMOLED production line is 15K/month, the planned production capacity of the 6th generation AMOLED production line is 30K/month, and the mass production capacity is 15K/month, and the 15K/month production capacity is expected to be mass-produced in the second quarter of this year. However, although Hehui Optoelectronics believes that the future growth rate of flexible AMOLED is better than that of rigid AMOLED, it is also known that the flexible display scene has not yet appeared on a large scale, so it is still mainly based on rigid AMOLED. Hehui Optoelectronics’ rigid AMOLED panel mass production capacity ranks first in China and second in the world, while the revenue of flexible products in 2020 is only 71,500 yuan. Source: Private Equity Pass 2021.6 www.pedata.cn “The first share of state-owned assets split” electric wind power successfully listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange On May 19, 2021, Shanghai Electric Wind Power Group Co., Ltd. “688660.SH” was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange, with an issue price of 29.01 yuan per share, 533 million shares issued, and a market value of 7.253 billion yuan. According to the announcement, about 2.901 billion yuan of raised funds will be invested in “new product and technology development projects”, “Shanghai Electric Wind Power Group Shandong Haiyang Test Base Project”, “post-market capability improvement project” and other projects, and Reasonably arrange capital investment. Electric Wind Power was established in 2006 and is a holding subsidiary of Shanghai Electric Group Co., Ltd. As the first state-owned company to split a listed stock, in June last year, Electric Wind Power submitted a listing application to the China Securities Regulatory Commission. After nearly a year, it successfully listed on the Science and Technology Innovation Board. At present, the company’s products cover a full range of wind turbines from 1.25MW to 8MW, basically achieving full power coverage. In addition, the company firmly grasps the major development trends of industry refinement, customization, and large megawatts, and conducts active product development and layout in the onshore 4.X series, 5.X series and the offshore 5.X series and 8.0MW series. . In addition to the overall design technology of wind turbines, the company also has the core technology research and development capabilities of wind turbines represented by blade technology and control technology, and has formed technical research and development capabilities and advantages in key components and key technologies

Image source: Shanghai Stock Exchange official website

The company develops, produces and sells molecular diagnostic reagents and equipment integrated products based on this, focusing on precise diagnosis, effective prevention and control, and personalized diagnosis and treatment of pathogens in the fields of reproduction, breathing, digestion, blood, food, environmental safety, etc. provide the solution.

Picture source: company prospectus

Financial data shows that the company’s revenue in 2018, 2019, and 2020 were 69,343,400 yuan, 99,168,100 yuan, and 250 million yuan, respectively; during the same period, the corresponding revenues were -32,0512 million, 3,379,200 yuan, and 61,376,500 yuan respectively. After the non-deduction, both 2018 and 2019 lost money.

In 2020, the issuer will realize RMB 249,903,400, net profit of RMB 61,376,500, net profit after deduction of RMB 53,281,600. Based on the company’s latest external situation and the valuation of comparable companies in domestic and overseas markets, the issuer expects the valuation to be no less than RMB 1 billion.

The issuer’s selection criteria for listing is Article (1) stipulated in Chapter 2.1.2 of the “Shanghai Science and Technology Innovation Board Stock Listing Rules”: the estimated market value is not less than RMB 1 billion, and the net profit in the most recent year is positive and operating The income is not less than RMB 100 million. This fundraising is planned to be used for industrialization R&D projects of precision diagnostic reagents and smart equipment, and marketing network construction projects. Picture source: company prospectus Rendu Biotech is backed by Suzhou Qiming, Yida Talent, Jinxin Venture Capital, etc. Rendu Biotech frankly stated that the company faces the following risks: (1) New product development risks The issuer’s in vitro diagnostic industry is a typical technology-driven industry. The research and development of new products has the characteristics of strong technical integration, large capital investment, and long cycle. Whether the company can continuously develop new products that meet market needs is whether the company can One of the key factors for maintaining a leading position in industry competition. Therefore, in the process of new product development, the issuer may face the risk of R&D failure due to deviations in the R&D direction, slow R&D process, and high R&D investment costs. (2) Risk of falling product prices According to the current relevant national regulations, the highest price standards for non-profit medical institutions that enter the “Clinical Testing Project Catalog” are set and adjusted by the local price authorities. With the deepening of the national medical reform and the further adjustment of relevant policies and regulations, the relevant competent authorities may lower the prices of some test items. With the further deepening of my country’s medical treatment, the company’s product sales prices may be affected by policy factors such as bidding policies and hospital procurement regulations. In addition, with the increase of market participants and the intensified competition, the price of corresponding diagnostic reagent products will also be lowered. If the company cannot continue to increase R&D investment and launch new products in the future, or is affected by factors such as government price adjustments, bidding policies, and market competition, the company will face risks related to product prices. (3) New technology market acceptance risk During the reporting period, the issuer focused on RNA molecular diagnostic technology and products, and its main business was R&D, production and sales of molecular diagnostic reagents and equipment integrated products based on the RNA real-time fluorescent constant temperature amplification technology (SAT) platform. Compared with the DNA molecular diagnostics that appeared in the 1980s and 1990s, RNA molecular diagnostics appeared later, and the current market awareness is low. The proportion of RNA in the field of infectious molecular diagnostics in China is only 6%, and the penetration rate is relatively low. 25% in developed markets in the United States is lower. At the same time, unlike the development path of DNA molecular diagnostics used by comparable listed companies in the same industry, the issuer focuses on RNA molecular diagnostics. If the company’s market development and academic promotion are insufficient in the future, the market structure and needs change, the company cannot successfully achieve market promotion, or the clinical market fails to be more familiar with and accept the company’s RNA molecular diagnostic products, this will result in the company’s market development, which may affect the company. The future and sales growth will have certain adverse effects. (4) The risk of performance fluctuations caused by the new coronavirus epidemic At the beginning of 2020, the new coronavirus epidemic broke out in my country. The issuer successfully developed a new coronavirus 2019-nCoV nucleic acid detection kit with high-throughput automatic detection equipment based on a systematic technology platform and an efficient R&D system. And through the emergency approval of the State Drug Administration, the registration certificate was obtained on March 26, 2020. Combined with the company’s fully automatic nucleic acid detection and analysis system, it can realize the automatic, integrated, and on-the-go detection of new coronavirus detection. It is an enterprise that realized the automatic detection of new coronavirus early in China, and it is rapidly mass-produced for the prevention and control of new coronary pneumonia. make a contribution. The company’s new crown detection kit revenue in 2020 will be 68,507,400 yuan, accounting for 27.41%. With the advent of the new crown vaccine and the effective control of the epidemic by government departments, the company’s new crown detection kit income is at risk of decreasing. Hospitals at all levels across the country actively responded to the call of the state in the early stage of epidemic prevention and control, and invested a large number of medical staff and health resources in the epidemic prevention and control battle, causing their normal diagnosis and treatment business to be suspended. Since the company’s reproductive tract and intestinal products are mainly used in hospital reproductive departments, pediatrics and other departments, during this epidemic, in order to concentrate efforts to fight the epidemic and reduce the risk of cross-infection in the hospital, the above departments were partially or completely closed, resulting in The sales of related products of the company will be affected to a certain extent in the short term. At present, the new coronavirus epidemic has been effectively controlled nationwide, but the impact of foreign epidemic outbreaks, imported cases and virus mutations may lead to greater uncertainty in the epidemic, which will cause fluctuations in the company’s business performance growth. (5) Risks of investment projects with raised funds The funds raised by the company this time are mainly used for industrialization R&D projects of precision diagnostic reagents and intelligent equipment and marketing network construction projects. The construction of the above-mentioned fund-raising investment projects will enhance the company’s in vitro diagnostic reagent product structure, and at the same time, through the update and upgrade of instruments, it will effectively enhance the market competitiveness of the company’s products, increase the company’s sales scale and thereby enhance the company. Although the company has conducted a prudent feasibility demonstration for the raised funds investment projects, due to the large amount of funds raised, if the raised funds are not in place as scheduled, the project implementation organization is poorly managed, or the downstream market demand changes adversely, the raised funds will be affected. The construction progress and investment benefits of capital investment projects have an adverse impact. In addition, the issuer’s raised funds investment project will significantly increase R&D investment and marketing team building expenses in the early stage of construction. There is a risk that the company’s profitability will decline due to increased expenses. At the same time, the company’s net assets will increase significantly. Since it takes a certain amount of time from the beginning of the implementation of the fund-raising investment project to produce the expected benefits, the company has the risk of a decline in the return on net assets

The two founders significantly discounted their holdings in the few months before the company went public, regardless of whether they were cashed out or not, it was unreasonable. This behavior not only caused a lot of speculation from the outside world, but also caused everyone to pay attention to the data disclosed in the prospectus. Chang Gengjun also carefully checked the IPO prospectus of Wanwu Xinsheng (Note: For the sake of understanding, the name Aihuihui will continue to be used below), he concluded that: at least from the public information disclosed in the current prospectus, this company Many data on the first stock of second-hand 3C e-commerce are not so optimistic. The information disclosed in the prospectus shows that from 2018 to 2020, Ai Huihui’s net losses were 210 million yuan, 540 million yuan, and 200 million yuan, respectively, and the net loss in Q1 of 2021 was 94.78 million yuan. Operating cash flow was -358 million yuan, -411 million yuan, -413 million yuan and -303 million yuan. Of course, the loss is not enough to explain the future of a company. For example, even if high-growth companies such as Tesla and Weilai lose money, the capital market will buy it. Everyone is optimistic about the future, not the present. However, the prospectus data also shows that as of the end of 2020, the cash and equivalents recovered by Ai was 140 million US dollars, and by the end of March this year, the cash and equivalents were only 100 million US dollars. In one quarter, Aihuihui’s book cash and equivalents decreased by 40 million US dollars. At this rate, if it does not continue to raise funds, Aihuihui will face the exhaustion of funds before the end of this year. On the one hand, the two founders discounted their holdings of the company’s stock before the IPO. On the other hand, the company’s book cash and equivalents are less than US$100 million. This is the first reason why Chang Gengjun questioned Ai Hui. Even if second-hand 3C e-commerce is a promising industry, it still has to survive to enjoy the dividends. In the past few years, there have been too many cases of pioneers in the Internet field. You must know that there are still idle fish in this industry. Zhuanzhuan waits for competitors to be eyeing. From an income perspective, the growth performance of Aihuihui is fairly good. The company’s revenue in 2020 is close to 4.9 billion yuan, a year-on-year increase of 23.6%, and GMV reached 19.6 billion yuan, a year-on-year increase of 61%. However, the prospectus did not disclose the number of monthly active users and the number of trading users. Some media analysis believes that nearly 88% of the merchandise sales of Aihuishou are sold to second-hand merchants on the B side through B2B mode. The revenue from to B transactions accounted for 83%. GMV in China and overseas to B The total accounted for 58%. These data show that Aihuihui is more like a supply chain service company and B2B platform in the second-hand 3C field, rather than a typical e-commerce trading platform. If these analyses can only represent part of the media’s perspective, the data disclosed by third-party research institutions may allow us to make a more comprehensive judgment on love recycling. There are currently three apps under the umbrella of Ai Recycle: C2B mode of Love Recycling, B2B mode of Paijitang and B2C mode of Paipai. According to data disclosed by data monitoring agency QuestMobile, the average daily active users of these three apps in April 2021 were 17,000, 33,000, and 35,000, respectively. These data can to some extent support the judgment of some media that Aihuihui is still a to B company. Chang Gung Jun also recognized this judgment, and at the same time, this is also the second reason for questioning Ai Huihui. You know, it is also a second-hand business, and the market has completely different recognition of shells with pure to C mode and Uxin, whose main business is to B. Shell’s opening price was 35 US dollars when it went public, and the latest share price is currently 46 US dollars. The high point has risen to around 79 US dollars. After Uxin opened at $10, the current share price is only $4.5, which once fell to $0.76. Aihuihui’s revenue is mainly composed of two business segments: product revenue and service revenue. Product income is mainly to buy second-hand electronic products from consumers and merchants, and then sell these products at higher prices. Simply put, it is the model of “second-hand dealers make the difference”. There is nothing to say about this model. There are not many stories to tell in the capital market. Service income refers to the transaction commission collected by Aihuitang and Paipai APP. In Q1 of 2021, the platform service fee income of Aihuihui was 200 million yuan, a year-on-year increase of 137%. In the prospectus, Aihuihui expects that the proportion of service revenue will continue to increase as the business grows. The growth rate of service revenue is good, but another set of data is more worthy of attention: In Q1 of 2021, Aihuihui’s contract performance fee was 220 million yuan, and marketing expenses were 220 million yuan. Obviously, such a revenue model cannot make people look optimistic about Aihuihui’s platform service business. Its platform transformation is worrying. This is the third reason why Chang Gengjun questioned Aihuihui. At present, JD.com is the largest strategic shareholder of Aihuihui, with a shareholding ratio of 34.7%. Ai Recycling stated in its prospectus that its relationship with JD Group is mutually beneficial. Ai Recycling helps deal with all the transactions of JD’s consumer-side second-hand mobile phones, laptops, tablets, digital cameras, and certain other electronic products. Online and offline businesses also benefited from JD’s consumer traffic. Second-hand 3C e-commerce transactions are itself a low-frequency demand for C-end users. Chang Gengjun believes that, judging from the information disclosed in the prospectus, Aihuishou plays more of a role as a second-hand service provider on the JD platform. On the second-hand trading track, there will be fierce competition between idle fish and Zhuanzhuan in the future. It is still too early to talk about the victory or defeat. This is also the reason why I cannot be very optimistic about Aihuihui. In general, Aihuihui, which has been named a new life for all things, has a listing path and business model that are very similar to Uxin, the first stock of used car e-commerce in the past. Now it is also listed on the US stock market. How is its performance in the secondary market? It remains to be tested by time

Since its establishment, Jizhijia has quickly ranked first in the financing amount of the AGV industry, and it can be called the most intelligent warehousing enterprise favored by capital. According to the company’s information, Jizhijia has received 7 rounds of financing so far, namely Angel round financing on April 26, 2015, A round financing on May 8, 2016, and A+ round financing on March 19, 2017. , July 13, 2017 Series B financing, November 21, 2018 Series B+ financing, July 10, 2019 Series C financing, June 17, 2020 Series C+ financing. Among them, the most recent C+ round financing investment institutions are Xiangfeng Investment, Yunhui Capital, and Hongwei Capital, with a financing amount of more than 200 million US dollars. GIGA’s business model Jizhijia is an intelligent logistics intelligent robot company, focusing on using robots to change warehousing and manufacturing scenarios. Jizhijia proposed the innovative business model of RaaS in 2018, which can effectively help customers reduce initial investment and lower entry barriers. At the same time, it can also improve the efficiency of robot use and reduce overall operating costs. A shared network of thousands of robots has been created through equipment generation operations or intelligent warehousing services. By creating an intelligent logistics service plan consisting of AMR robots, intelligent systems, and professional operating systems, we will unite with express partners to provide integrated warehouse and distribution services for merchants’ B2B and B2C logistics businesses. Smart warehousing services, one of the RaaS models of Gigabyte, provide brand owners with new options for quickly deploying new channels of logistics, realizing multi-channel operations, and flexibly responding to market changes and promotion fluctuations. The IPO process of Jizhijia According to the IPO’s known news on June 15, Beijing Jizhijia Technology Co., Ltd. has signed a listing counseling agreement with CICC a few days ago, and plans to be listed on the Science and Technology Innovation Board. The IPO price range and the number of shares to be issued have not yet been announced. In terms of equity In terms of equity, the largest shareholder of Jizhijia is Marcasite Gem Holdings Limited, holding 20.70% of the shares; Tianjin Jizhichuangxiang Technology Partnership (Limited Partnership) holds 8.25%, and Tianjin Jizhichuangzhi Technology Partnership (Limited Partnership) holds 8.25%. ) Holds 5.56% of the shares. Among them, Zheng Yong holds a total of 8.72%. At the same time, D1 Capital holds 7.1043% of shares and GGV Capital holds 7.1042% of total shares, and they are listed as the largest institutional investors of Giga Plus. Secondly, Yunhui Capital holds a total of 5.42%, Volcanic Rock Capital holds 3.75%, Gaorong Capital holds 3.31%, and CITIC Industry Fund holds 3.14%. Competitors of GeekPlus At present, the main competitor of Jizhijia is Kuaicang. As a domestic warehousing robot, Jizhijia is characterized by software standardization, stability, and easy delivery in the QR code AMR type, and the market is wide, and it has always occupied a larger market share in the early stage; while the fast warehouse is just the opposite. The hardware and control are very strong. The market is not as good as Zhijia. The disadvantage is the software. Up to now, the project delivery rate of fast warehouse is not very high in the industry. The reason for the many unfinished projects is that the software cannot be customized. demand. In the next few years, Jizhijia and Kuaicang may be able to maintain similar AMR dominance in the form of Kiva. If they bypass the track and use other technologies, they can also find their own track in the subdivision field. With plenty of money, Chika may be able to take the lead. GIGA Venture Capital Reminder: l The robotics industry is a high-tech and capital-intensive industry. The cost of R&D equipment is high. At the same time, a large amount of R&D capital investment and continuous innovation are required to maintain the company’s competitive advantage and competitive position. l Manufacturers of key components of robots are relatively concentrated, and most of them are in the hands of foreign companies, with greater pricing power, which may pose market risks. l If the supplier is unable to provide these production factors as required by the contract in a timely manner, the supplier’s credit risk may arise, and the production and operation of the enterprise cannot be carried out normally. l The threat of entry of potential entrants, the threat of competition from existing enterprises, and the threat of substitution of substitutes will all trigger market risks. From the current point of view, the threat of potential entrants and the threat of competition from existing enterprises have the greatest impact on the competitive landscape of the robotics industry, while the threat of substitution of substitutes has less impact on the robotics industry. Article source: IPO catcher, please indicate the source for reprinting

On June 21, according to news from the Sichuan Regulatory Bureau of the China Securities Regulatory Commission, Huatai United Securities recently announced that the domestic semiconductor IP supplier Chengdu Ruichengxin Micro Technology Co., Ltd. (hereinafter referred to as “Ruichengxin Micro”) IPO and Progress report on the guidance of listing on the Science and Technology Innovation Board (Phase 1). On January 29, 2021, Huatai United Securities and Ruichengxin Micro signed the “Chengdu Ruichengxin Micro Technology Co., Ltd. and Huatai United Securities Co., Ltd. Initial Public Offering Counseling Agreement.” The Sichuan Supervision Bureau submitted the application documents of Ruichengxin Micro’s IPO counseling and filing. According to data, Ruichengxin Micro was established in 2011, dedicated to the design and authorization of integrated circuit intellectual property (IP) products, and provides one-stop services, with the goal of becoming a world-class integrated circuit IP provider with innovative capabilities and trustworthiness. Relying on independent semiconductor IP, we provide customers with platform-based semiconductor IP authorization services and one-stop chip design services. The products include ultra-low power analog IP, embedded non-volatile memory IP, and high-performance radio frequency IP. Semiconductor IP has applied for more than 200 patents at home and abroad, serving hundreds of integrated circuit design companies around the world. Products are widely used in 5G, Internet of Things, smart home, automotive electronics, smart power supplies, wearables, medical electronics, industrial control and other fields. As early as 2016, Ruichengxin Micro launched a complete set of ultra-low power analog IP design solutions based on 55nm process, and cooperated with partners to develop the world’s first MCU chip with the lowest power consumption of 7nA; in 2017, Ruichengxin Micro and China’s top 3 integrated circuit design companies jointly developed the world’s lowest power consumption, mass-produced NB-IoT chip; in 2018, based on the domestic Foundry 153nm, CMOS process, successfully verified LogicFlash that meets the requirements of automotive electronics Grade0, and tested more than 200,000 times Erasing, high temperature resistance 175℃, service life up to 11 years. This technology has also been adopted by international automotive electronics companies for many years, and has registered the LogicFlash trademark in the United States and Japan. On April 28, 2020, Ruichengxin Micro announced the completion of the acquisition of Chengdu Shengxin Micro Technology Co., Ltd. (SYDTEK), a wireless communication chip designer. According to the progress report of the sci-tech innovation board listing guidance work, the actual controller of Ruicheng Xinwei is Xiang Jianjun, with a shareholding ratio of 35.59%. The shareholders include Zhuhai Apex Microelectronics Co., Ltd., BYD Co., Ltd., Suzhou Juyuan Oriental Investment Fund Center, Datang Telecom Investment Co., Ltd. and other enterprises and investment institutions. It is worth noting that, recently, the Ministry of Industry and Information Technology announced the list of recommended and supported national-level specialized and new “little giant” enterprises and national (or provincial) public service demonstration platforms for small and medium-sized enterprises (the first batch of the first year), Ruichengxin Micro also successfully made the list. Editor: Xinzhixun-Rurouni Sword

Produced｜Sohu Finance

Author｜Wu Ya

After the market on June 15, Yuexiu Service Group Co., Ltd. (hereinafter referred to as Yuexiu Service) held an online press conference for the global offering. Yuexiu Service Non-executive Director and Chairman of the Board of Directors Lin Feng, Executive Director and Chief Executive Officer Wu Wei, Executive Director and Executive Deputy President Mao Liangmin and CFO Chen Dongpeng attended the press conference.

According to Yuexiu Services, it intends to issue 369.7 million shares in a Hong Kong IPO, with an offer price of between HK$4.88 and HK$6.52 per share; it plans to raise HK$1.804 billion to HK$24.1 billion before the exercise of the over-allotment right, and the exercise of the over-allotment right Later, it plans to raise 2/7.5 billion Hong Kong dollars to 2.772 billion Hong Kong dollars.

Yuexiu Service introduced 10 cornerstone investors, including Xinhua Asset Management (Hong Kong), sensepower held by SenseTime’s founder Tang Xiaoou, Shenghui Holdings, and Sofia Home Furnishing two directors Jiang Ganjun and Ke Jiansheng, Huake Capital and Shanghui Enterprise, etc. It subscribes for approximately 777.2 million yuan worth of shares; it is expected to be priced next Monday (June 21) and will be listed on the 28th with the stock code 6626.

Yuexiu Services stated that about 60% of the proceeds from the IPO will be used for strategic acquisitions and investments, and further strategic alliances will be established to expand the scale of property management; about 15% will be used for further development of value-added services and diversified development of service portfolios to increase profitability Capacity; about 15% is used for the development of information technology systems and smart communities; about 10% is used for working capital and general corporate purposes.

At the press conference, Wu Wei said that in the next three to five years, Yuexiu Service hopes that it will be among the first echelon of the industry. The specific implementation path includes: support from Yuexiu Real Estate, which can stably contribute 20 million square meters in the next three years. Management area; through strong external expansion, the company currently has a professional external expansion team and has professional external expansion capabilities; accelerate mergers and acquisitions, give full play to its own advantages, and take a market-oriented approach to actively participate in outstanding targets in the market Mergers and acquisitions of enterprises.

In response to the development and planning of the TOD model of Yuexiu Service, Lin Feng said, “Yuexiu Service is not limited to the Guangzhou Metro service category. There are certain professional barriers in this field. Yuexiu Service already has rich experience in this field. In the future, the company will conduct negotiations in more provincial capital cities and other regions. The growth in this field is expected.”

“In the depot service, Yuexiu Service undertakes the internal and external cleaning of subway trains, establishes technical barriers for cleaning of special equipment, and becomes the core competitiveness of the same type of business. Yuexiu Service will continue to explore the formation of TOD and cover residential management and construction. The unique management mode of the next site management, this special mode will become the growth point of future scale expansion and new profit points.” Lin Feng said.

In response to this problem, Wu Wei added that relying on Yuexiu Real Estate and Guangzhou Metro, Yuexiu Services has obvious advantages in this field; at the same time, Yuexiu Services has been deeply involved in diversified portfolio services and has core advantages for many years. And competitiveness.

On February 10 this year, Yuexiu Property (00123.HK) issued an announcement regarding Yuexiu Services’ submission of a listing application to the Hong Kong Stock Exchange; on the evening of the same day, the Hong Kong Stock Exchange disclosed the Yuexiu Services prospectus; on May 24, the Hong Kong Stock Exchange disclosed that Yuexiu The service passed the hearing.

The data collection after the hearing shows that from 2018 to 2020, Yuexiu’s service revenue increased from 763 million yuan to 1.168 billion yuan, and its net profit increased from 45.458 million yuan to 199 million yuan; gross profit margins were 25.9%, 27.2%, and 34.5%, respectively. ,Continued growth.

In terms of business structure, Yuexiu’s service revenue mainly comes from two major directions: non-commercial property management and value-added services, commercial property management and operational services. The former accounted for a relatively large income, and the revenue contribution ratio in the past three years exceeded 64%.

As of the end of 2020, the total area under management of Yuexiu Services was 32.6 million square meters, a year-on-year increase of 48%; the number of properties under management was 215, and 96.1% of the properties under management were located in first-tier, new first-tier and second-tier cities. According to the statistics of the Zhongzhi Research Institute, in terms of the market share of the area under management in 2020, Yuexiu Service ranks seventh among the top 100 property service companies.

Different from ordinary property companies, Yuexiu Service relies on the TOD property management model of “Metro + Property”, and is the only one of the top 100 property companies in the country that provides metro property services in the Greater Bay Area.

Prior to this, in November 2020, Yuexiu Services acquired the Guangzhou Metro Environmental Engineering and Guangzhou Metro Property Management from strategic investors, Guangzhou Metro, and became a composite property management company with “metro environmental engineering maintenance + metro property management and operation”. The acquisition has added over 5 million square meters of management area, which will provide Yuexiu Services with new businesses such as subway station lines under management and subway superstructures in depots.

In addition, the direct controlling shareholder of Yuexiu Services is Yuexiu Property, and Guangzhou Metro is the second largest shareholder of Yuexiu Property. In recent years, Yuexiu Services has continuously expanded its TOD scale relying on Yuexiu Property and Guangzhou Metro. As of the end of 2020, Yuexiu Real Estate has 5 TOD residential projects with a total construction area of ​​nearly 4 million square meters. In 2020, the contracted sales of 5 TOD residential projects will be approximately 17 billion yuan.

“Investor Net” Wu Wei

On June 4, ten days before the Dragon Boat Festival in 2021, Zhejiang Wufangzhai Industrial Co., Ltd. (hereinafter referred to as “Wufangzhai”), which changed its sponsoring brokers three times in just two years, finally submitted a prospectus to the China Securities Regulatory Commission. The company officially applied for listing on the main board of the Shanghai Stock Exchange.

As a well-known zongzi product brand, Wufangzhai began accepting listing counseling as early as April 2019. The sponsoring broker at that time was GF Securities Co., Ltd. (hereinafter referred to as “GF Securities”, 000776.SZ); in January 2020, Wufangzhai replaced the sponsoring brokerage with China International Capital Corporation (hereinafter referred to as “CICC”, 601995.SH); however, the cooperation between the company and CICC has not exceeded one year. In December 2020, Wufang Zhai also replaced the securities firm with Zheshang Securities Co., Ltd. (hereinafter referred to as “Zheshang Securities”, 601878.SH).

Beginning in 1921, Wufangzhai became the first batch of “Chinese time-honored” enterprises to become famous for making zongzi. After restructuring and privatization of collective enterprises, the company is no longer just a zongzi production enterprise. After years of development, Wufangzhai also has business lines or product lines such as catering stores, moon cakes, glutinous rice balls, cakes, egg products, and other rice products.

However, like many old brands, in addition to products such as rice dumplings and finished dishes and semi-finished products, the moon cakes, glutinous rice balls, pastries, egg products, and other rice products sold in Wufangzhai are all processed and produced by OEMs. Even for the famous zongzi products, Wufangzhai is increasingly dependent on OEM production.

As a company that produces seasonal foods, in order to ensure the stability of the company’s income, Wufangzhai has established direct-operated or franchised stores in high-speed service areas, high-speed rail stations, shopping malls and other places with large numbers of people, but these stores have different profits and losses. From 2018 to 2020, the total number of the company’s directly-operated stores has declined. By entrusting processing to expand product lines and raising funds to build an e-commerce center, can “Wufangzhai” be transformed into an Internet food brand as it wishes?

The historical evolution of collective enterprise restructuring is complicated

The predecessor of Wufangzhai was the overall reorganization of the Wufangzhai Zongzi subsidiary in Jiaxing City, and was jointly established by Jiaxing Department Store, Jiaxing Meat Center, Jiaxing Brewing, Jiaxing Academy of Agricultural Sciences and 582 natural persons. From the perspective of property rights structure, Wufangzhai is a collective enterprise. At the beginning of its establishment in 1998, Wufangzhai still left 520,000 shares that were not clearly vested, and the remaining shares accounted for 4.29% of the company’s total share capital.

From 2001 to 2004, the shareholders of Wufangzhai carried out multiple equity transfers. The predecessor of the company’s controlling shareholder, Wufangzhai Group, Sino-Ocean Industrial, became the controlling party of the company through multiple transfers of the equity of Wufangzhai collective or individual shareholders. By March 2004, Sino-Ocean Industrial held 59.16% of Wufangzhai. Shares. Since then, Wufangzhai’s equity has been transferred many times. In 2010, Wufangzhai also transferred 4.29% of the remaining shares held by shareholder Zhu Zhijie, and the company paid the registered capital to incorporate the residual income into the capital reserve. The form solves the problem of remaining shares.

In 2011, Wufangzhai Group also incorporated 9 companies under the group including catering, e-commerce and rice industry into the company system of Wufangzhai through capital increase, in order to increase Wufangzhai’s business line and avoid competition in the same industry. Related questions. The following year, in 2012, Wufangzhai accepted the capital increase from 6 institutional shareholders, including Shanghai-Nanjing Expressway, Everbright Financial Holdings Venture Capital Co., Ltd. (hereinafter referred to as “Everbright Financial Holdings”), and 2 individual shareholders. The valuation is 1.3 billion yuan. In the same year, Wufangzhai Group also transferred 139 million yuan worth of equity at a valuation of 1.3 billion yuan.

Five institutional shareholders, including Everbright Financial Holdings and Ivy Investment, who invested in Wufangzhai in 2012, transferred their equity in Wufangzhai to the company’s actual controller’s related parties at an overall valuation of 1.7 billion yuan in 2016. Ocean decoration. Judging from the supplementary agreement signed between Wufangzhai Group and Ningbo Fuju, which became a shareholder in 2012, Wufangzhai introduced new shareholders in 2012 to promote the listing of the company. The trigger condition for the supplementary agreement signed by Wufangzhai Group and Ningbo Fuju is the enterprise. To be listed at the end of 2015.

Also in 2016, Wufangzhai Group acquired 1.25 million state-owned shares of Wufangzhai held by Jiaxing Meat Center at an overall valuation of 1.367 billion yuan, accounting for 2.48% of the company’s total shares. In the long history of Wufangzhai, the company’s major shareholder Wufangzhai Group has also reduced the number of natural-person shareholders of the company through the transfer of shares held by natural persons. However, as of the 2021 prospectus release date, Wufangzhai still has 165 natural person shareholders.

In the historical evolution of Wufangzhai, issues such as the transfer of state-owned shares and the handling of remaining shares may become the focus of the company’s listing review. The actual controller of the company, Li Jianping, was also involved in the case of Feng Shuixiang, the former chairman of Jiaxing Industrial Assets Investment Group Co., Ltd. and party secretary, taking bribes and illegally operating similar businesses. This has aroused further market concern about the listing of Wufangzhai.

Regarding Wufangzhai’s above question, “Investor Net” also contacted Wufangzhai’s secretary of the board for verification, but failed to get a reply from the other party.

Limited market space, unfavorable expansion of self-operated channels

Zongzi is one of the traditional Chinese delicacies with a long history, but like moon cakes, it is a typical seasonal food. After the Dragon Boat Festival, the market demand will be greatly reduced. At the same time, in the long process of development, combined with local specialties and taste preferences, Zongzi has also developed many “factions” and taste preferences. Representatives include the Jiaxing fresh meat dumplings preferred by Wufangzhai in Jiangsu and Zhejiang, and the Beijing glutinous rice dumplings eaten with sugar in the north; in addition, there are also Shanxi yellow rice dumplings, Shaanxi honey cool dumplings, and Nanning cool dumplings. Zongzi’s “sweet party” and “salty party” are also incompatible on the Internet, and they have been a hot topic of discussion during the Dragon Boat Festival for many years.

In addition to the large regional differences in taste, the price of zongzi is generally not high, so the overall scale of this market is not large. According to statistics, the scale of my country’s zongzi market was 4.916 billion yuan in 2015, and it will grow to 7.337 billion yuan in 2019, with a compound annual growth rate of 10.53%. The report cited by Wufangzhai in the prospectus estimates that by 2024, the domestic zongzi market The scale is only 10.291 billion yuan.

Unlike moon cakes, which require a mold and an oven, the rice dumplings can be made at home after simple processing of the materials, and they can be eaten after they are cooked. Also because of the convenience of making zongzi and the different tastes in different places, shopping malls and vegetable markets in many places will provide materials for making zongzi or homemade finished zongzi before the Dragon Boat Festival. Because the production of zongzi is convenient, and consumers prefer to make zongzi now, this makes the originally small zongzi market present a very fragmented status quo.

Competition is also fierce in terms of fine packaging and zongzi gift boxes. At present, there are more than a dozen brands such as Wufangzhai, Beijing Daoxiangcun, Zhenzhen Lao Lao, and Zhiweiguan. In addition to traditional rice dumplings, beverage brands such as Starbucks, Heytea, and Naixue will also make their own creative rice dumplings to further carve up this otherwise small market.

During the period from 2018 to 2020, Wufangzhai actively deployed catering or sales outlets in crowded areas such as shopping malls, high-speed service areas, and high-speed rail stations to cope with the current seasonal changes in the company’s income and further expand the scope of the company’s product radiation .

However, the expansion of Wufangzhai’s stores has not been smooth. From 2018 to 2020, the number of directly-operated stores opened by the company is lower than the number of closed direct-operated stores. Therefore, the number of directly-operated stores in Wufangzhai has increased from 203 in 2018. This has dropped to 169 in 2020. Even in 2019 without the impact of the epidemic, the number of directly-operated stores of the company is still 20 fewer than in 2018. After the Wufangzhai cooperative store opened and closed, the number of stores in 2020 has also returned to 43 in 2018. Different from the unfavorable expansion of directly-operated stores, from 2018 to 2020, Wufangzhai’s franchise stores increased from 38 to 40; dealer stores increased from 185 to 222, an increase of 20%.

It is worth mentioning that as of the end of 2020, of the 169 directly-operated stores that Wufangzhai is still operating, more than 100 have suffered losses in 2020, and a large part of the loss-making stores also have losses in 2019. Among the 42 cooperatively operated stores, more than half of the stores also suffered losses.

Zongzi sales decline, the proportion of e-commerce is low

Due to the unfavorable expansion of self-operated stores and restrictions on local tastes, as of the end of 2020, 55.82% of Wufangzhai’s income depends on the contribution of Eastern China. In the division of Wufangzhai’s sales revenue, only 18.53% comes from e-commerce retail, and this part is directly sold to end consumers. Wufangzhai did not disclose the sales target. Therefore, consumers in East China may contribute more than 55.82% of the income to Wufangzhai online and offline. In addition, compared with the 411 million zongzi sold in 2018, the total number of zongzi sold by the company in 2019 decreased by 3.131 million; affected by the epidemic, in 2020, Wufangzhai only sold 366 million zongzi.

Although the overall sales volume of Wufangzhai Zongzi has declined, and the company’s production capacity has increased, Wufangzhai’s self-produced rice dumplings accounted for a lower and lower proportion of the total number of Zongzi produced by the company during the current period. The more they rely on foundries to produce products for the company, the controllers of some foundries are still shareholders of Wufangzhai. From 2018 to 2020, the foundry produced 11.66%, 13.40% and 25.01% of zongzi for Wufangzhai.

In addition to using OEMs to produce rice dumplings, Wufangzhai has also expanded the company’s product line by producing moon cakes, glutinous rice balls, pastries, egg products and other rice products. As of the end of 2020, only Wufangzhai contributed 70.77% of the revenue, of which 17.82% of the revenue was provided by the moon cake series, egg products, pastries and other products produced by the foundry.

Among the five projects that Wufangzhai plans to raise 1.056 billion yuan to build, only less than 50% of the funds will be used for the construction and upgrading of production lines, and the other 465 million yuan will be used for the construction of digital industrial smart parks (ie, storage and e-commerce centers). ) And R&D center. The digital industry smart park construction project, Wufangzhai aims to enhance the company’s warehousing and logistics capabilities, and at the same time, through the construction of an e-commerce center, further strengthen the company’s e-commerce business development and increase e-commerce business sales revenue.

It is worth mentioning that of Wufangzhai’s 1.056 billion yuan fundraising, 90 million yuan is intended to be used to supplement working capital. However, from June 2018 to March 2021, Wufangzhai has paid dividends 4 times, with a total dividend amount of up to 253 million yuan. This also makes the outside world have certain doubts about the necessity of fundraising.

In response to the above questions, “Investor Net” also tried to ask Wufangzhai’s Secretary of the Board for verification, but failed to get a reply. (Produced by Thinking Finance)■

Recently, Didi Chuxing (hereinafter referred to as “Didi”) formally submitted an IPO application to the US Securities and Exchange Commission, and plans to list on the Nasdaq or New York Stock Exchange under the code “DIDI”. Goldman Sachs, Morgan Stanley, Morgan Stanley Chase and China Renaissance Capital acted as underwriters. It is reported that Didi’s valuation may reach 70 billion U.S. dollars.

In fact, as early as March this year, there was news that Didi was going to be listed on the Hong Kong stock market. In response to this IPO application, an insider close to Didi Chuxing told Qingcheng Auto, “It has not yet been determined which exchange is listed, even if it is The IPO in the United States this time does not rule out a secondary listing of Hong Kong stocks.” With the publication of Didi’s prospectus, its financial status and core business have also been disclosed.

According to the IPO documents issued by Didi, Didi’s revenue in 2020 will be 141.7 billion yuan, and its three major businesses – China’s travel business, international business and other business revenues will be 133.6 billion yuan, 2.3 billion yuan and 5.8 billion yuan respectively. Among them, the platform revenue of China’s travel business and international business will be 18.7 billion yuan, 24.2 billion yuan, and 34.7 billion yuan from 2018 to 2020, respectively, with an average annual compound growth rate of 36%. Of the platform revenue in 2020 and the first quarter of 2021, 93.4% came from China and 6.6% came from international sources.

In terms of profit performance, China’s travel business achieved an adjusted pre-interest and tax profit of 3.84 billion yuan in 2019, 3.96 billion yuan in 2020, and 3.62 billion yuan in the first quarter of 2021. In addition, the pre-interest, tax and amortization profit rate of China’s online car-hailing business in 2020 is 3.1%.

In terms of users, as of March 31, 2021, Didi has 493 million global annual active users and 15 million global annual active drivers. It is worth noting that among the 493 million active users in the world, 377 million are distributed in the Chinese market, and among the 15 million active drivers worldwide, nearly 87% of the annual active drivers are in the Chinese market. This data may mean that the huge demographic dividend in the Chinese market has contributed to the rapid rise of Didi.

Public information shows that Didi’s subsidiary “Beijing Xiaoju Technology Co., Ltd.” was established in July 2012, and its main business is to provide passengers with APP-based transportation services. Since its establishment, Didi has experienced many competitors, and it is known as Kuai, Uber, but in fact, Didi’s first opponent is “shook the car.” At the beginning of Didi’s establishment, Shaking Zhaoche had a certain scale. Not only was its user volume larger than Didi, it also had a hundred times as much capital as Didi.

In 2012, when smartphones were just emerging and 4G networks were not yet popular, Shake Zhaoche promoted his taxi-hailing software on radio stations. Didi founder Cheng Wei added an article to Shake’s ad: Now pick up the phone and call × ×× can be downloaded and installed, but downloading and installing through advertisements are all Didi software. In addition, Didi has also added a function to detect the user’s mobile phone in the software. If the user’s mobile phone has installed the remote car software, after downloading Didi, a dialog box will pop up: whether to uninstall Shaosha, it is based on this that Didi is being competed. The opponents yelled “hooligans”. It is undeniable that with this fierce competitive method, Didi defeated Shaker, Bumblebee, and the merger with Kuaidi, and quickly became the leading player in the online car-hailing market.

When the market and users believed that the car-hailing war was about to end, at the Yabuli summer summit in 2015, Uber President Travis Kalanick came to China to negotiate with Didi. Didi either accepted that 40% of Uber’s investment was acquired, or it had to Defeated by Uber. Because Cheng Wei rejected Uber’s proposal at the time, Uber came to China with proven successful operating experience in many countries and huge amounts of cash, and launched a “one dollar to fight the whole process” war against Didi.

At that time, Cheng Wei asked Liu Chuanzhi, the chairman of Lenovo, for advice. Liu Chuanzhi advised him to fight guerrilla warfare and give play to his local advantages. After a brief period of panic, Didi urgently launched an operation method that is more suitable for China’s mainland. The order-grabbing mode has been changed to dispatching orders, and services such as ride-hailing and driving on behalf of the company have also been launched. In the end, under the cooperation of Didi and Uber’s co-investor SoftBank Sun Zhengyi, Uber gave up the idea of ​​annexing the Chinese market. Uber and Didi share each other’s shares and are each other’s directors. All Uber China’s brands, businesses, data, channels, personnel, and equipment are all merged into Didi. So far, Didi has a 90% market share in the domestic online car-hailing market.

Didi’s application for IPO this time, the prospectus shows that Uber holds 12.8% of shares and 12.8% of voting rights. Cheng maintains 7% of Didi’s shares and 15.4% of voting rights. Didi co-founder and president Liu Qing holds 1.7% of shares. , The voting rights are 6.7%, Tencent holds 6.8%, and the voting rights are 6.8%; the SoftBank Vision Fund is the largest shareholder, holding 21.5% of the shares and 21.5% of the voting rights.

Regarding the purpose of this fundraising, Didi disclosed in the prospectus that it plans to use about 30% of the fundraising to expand its business in international markets outside of China; about 30% of the fundraising is used to enhance the use of shared travel and electric vehicles. And autonomous driving; about 20% is used to launch new products and expand existing product categories to continuously improve user experience; the remaining part may be used for working capital requirements and potential strategic investments.

It is worth noting that in this prospectus, Didi emphasized autonomous driving, which means that Didi will take autonomous driving as its main development direction for some time to come. At the same time, the prospectus data shows that after the end of the A round of financing, the valuation of Didi’s autonomous driving has reached 3.4 billion U.S. dollars.

In addition, Didi Autonomous Driving has recently completed a new round of financing including IDG and GAC. The current valuation of Didi Autopilot is reported to have exceeded US$5 billion. If calculated according to the size of startups, Didi Autonomous Driving is currently one of the most highly valued companies in China.

Recalling that in April this year, Didi announced its plans to build a car. Zhang Xiang, an automotive analyst, said that “Didi announced that it will build a car before, and does not rule out the possibility of raising its valuation for its IPO application.” In fact, since the financing round in August last year, Didi’s valuation reached 62 billion U.S. dollars and was supported by major companies such as SoftBank, Alibaba, and Tencent. According to Bloomberg, Didi’s valuation at the time of its IPO may reach 100 billion U.S. dollars. According to this valuation, the listing of Didi Chuxing will be the largest listing of Chinese stocks in the United States since Alibaba’s IPO raised $25 billion in 2014.

Jia Xinguang, an analyst in the automotive industry, said, “Electric vehicles are a trend, and companies from all walks of life are entering the market. Once they are successfully deployed in the electric vehicle industry chain, Didi will achieve a high return on investment. The online car-hailing business is regulated. Given the constraints, Didi relies on its own business resources to lay out the electric vehicle industry chain is a feasible way.”

It is undeniable that through the car-building plan, it can increase the valuation of its listing, but “interlaced as a mountain”, it is foreseeable that Didi’s “barbaric growth” path in the online car-hailing market may not be feasible in the new energy vehicle market. What is facing is the siege of many industry players and the challenge of new car forces.

Text/Song Gui

On June 11, Beijing time, Didi Chuxing formally submitted an IPO prospectus with the stock code “DIDI” to the U.S. Securities and Exchange Commission (SEC). The number of shares to be issued and the price range have not yet been determined, but according to industry insiders’ speculation, Didi’s US stock market value will reach 100 billion U.S. dollars.

Previously, “LatePost” reported that Didi might be listed on Hong Kong stocks in 2021. Later, Tencent reported that Didi had suspended its Hong Kong IPO plan and reconsidered listing on US stocks. The main reason was that the Hong Kong market gave a valuation cap of only 80 billion. US dollars, while the US market can give a valuation of 100 billion US dollars.

In the “2020 China’s Top 200 New Economic Unicorns” released by the analysis agency iiMedia Consulting, Didi ranked third, but its valuation is only 400 billion yuan, about 65 billion US dollars.

Since its establishment in 2012, Didi has raised approximately US$30 billion in financing. As can be seen from the Didi IPO prospectus, executives from SoftBank, Boyu Capital, Alibaba, Tencent, and Apple are all on the board of directors. Multiple rounds of financing make Didi’s valuation inevitably a drumbeat. Only a US$100 billion valuation can bring excitement to the capital.

But can Didi’s existing business support a market value of US$100 billion?

The annual revenue of the three major businesses is 141.7 billion yuan, and travel is the absolute main force

According to the prospectus, Didi currently divides its revenue into three major businesses, namely, China’s travel business, international business and other businesses. The revenue of the three major businesses in 2020 will be 133.6 billion yuan, 2.3 billion yuan and 5.8 billion yuan respectively.

Everyone is already familiar with China’s travel business, which is to provide shared travel services, drawing a commission from the driver. As of March 31, 2021, Didi has 377 million annual active users and 13 million annual active drivers in China. In the first three months of 2021, the average daily order volume of the Didi platform is about 25 million.

On a global scale, Didi Travel’s operating network covers nearly 4,000 cities, counties and towns in 15 countries/regions. In the past 12 months ending March 31, 2021, the total transaction volume of the platform reached RMB 244.2 billion.

From the data point of view, Didi is undoubtedly the hegemon in the shared travel field. How does Didi defend its dominance? On the capacity side, Didi currently has the largest car rental network in China. The prospectus shows that as of March 31, 2021, Didi has approximately 3,000 car rental partners and more than 600,000 rental cars. According to data from China Investment Corporation, drivers who use Didi’s car rental program can save about 20% of the average rental price of the top 10 popular models compared to drivers who rent directly from the rental company.

In addition to the cost of vehicle rental, Didi also cooperates with gas stations and maintenance shops to allow drivers to enjoy discounts on refueling and vehicle maintenance. As of March 31, 2021, Didi has more than 8,000 cooperative gas stations. At the same time, to supplement the energy of electric vehicles, Didi has built the largest charging network in China. According to the data for the first quarter of 2021, Xiaoju Charging (including cooperation) accounted for more than 30% of the total public charging piles nationwide, and Didi drivers can use preferential discounts.

Transport capacity is one of the foundations of shared travel services. Didi obtains transport capacity guarantee by providing convenient services and preferential resources to car owners. Other travel companies will not be able to catch up with the investment in this area in the short term.

The second is the platform’s scheduling algorithm. According to Didi’s prospectus, its core assets are supply and demand forecasting and driver and passenger matching algorithms, which can accurately predict supply and demand fluctuations through AI, and dynamically adjust driver-side incentives in response to fluctuations to achieve inter-regional driver and passenger supply and demand. Balance, increase the driver’s income per unit time, and reduce the average time for passengers to call a taxi.

At the level of user activity, Didi faces great risks. With the addition of ride-hailing applications such as Baidu Maps, AutoNavi Maps, Air Travel, etc., travel companies with abundant transportation resources, such as Shouqi Car-hailing, Xiangdao Travel, and 3T Travel, get rid of Didi’s traffic advantage. , Relying on a larger flow entrance to seize part of Didi’s market. Personally, I have stopped using the Didi app for a long time, but instead use the more convenient AutoNavi map to take a taxi. AutoNavi covers far more functions than Didi, which means AutoNavi users The opening frequency is much higher than that of Didi, and AutoNavi can use WeChat location sharing, and the ease of use is much higher than that of Didi, which only has a single function for taxis.

For express consumers, the attractiveness of subsidies and discounts is higher than waiting time. Moreover, as Didi’s subsidies for drivers decline, Didi’s capacity has also begun to decline, and the waiting time for taxis during peak hours is lower than other times. The advantages of travel companies are not obvious. Although all travel companies are not fighting subsidy wars anymore, in the future, once currency liquidity improves, new players enter the market, and the subsidy war ignites, Didi can only passively fight.

As Yuanchuan Technology Review put forward in the article “The “Deflation Squeeze Dividends” of Meituan’s Lying Win”, the giants that existed during deflation can use the advantages of scale to squeeze small players and take advantage of the gap to improve their operating conditions. It is only temporary. Once the currency trend changes, everyone will come back to fight for subsidies if they have enough ammunition again. It’s not that there are no more people who challenge the overlord, but they all choose to be the “Voldemort” waiting for the spring in this cold winter.

Therefore, I think that Didi’s core revenue source, that is, shared travel business, has its own core advantages, but these advantages cannot play a decisive role in the battle. In terms of long-term growth, Didi’s road ahead is not a smooth one.

Lack of imagination in other business markets

In addition to travel, Didi’s three major businesses have “other businesses”, namely shared bicycles and motorcycles, community group buying, intra-city freight, financial services, etc.

Since the establishment of Didi’s two-wheeler business unit in June 2019, it has two brands, Qingju Bicycle and Street Rabbit Motorcycle. In March 2020, the two-wheeler business unit was upgraded to an independent business unit. At present, the two-wheeler market is dominated by Haro (Ant Financial), Qingju Bicycles, and Meituan Bicycles. According to the prospectus, as of March 31, 2021, Didi has deployed 5.2 million bicycles and 2 million electric bicycles in 220 cities in China. The revenue of shared bicycles and motorcycles increased from 200 million yuan in 2018 to 1.5 billion yuan in 2019, and revenue in 2020 reached 3.2 billion yuan, a very rapid increase.

Community group buying and intra-city freight can only be regarded as derivatives of Didi Chuxing. Didi launched an intra-city freight service in June 2020. With the help of Didi’s shared travel platform algorithm, it can match transportation demand and shared travel demand, and increase the utilization rate of shared travel vehicles. According to the prospectus, from July 2020 to December 2020, within six months of the launch of intra-city freight business, Didi completed 11 million orders in eight cities.

Community group buying also uses the algorithm of the Didi shared travel platform to help residential areas deliver some fresh produce, household necessities and other necessities. This demand was generated during the outbreak of the new crown virus. At present, there are many domestic companies including Meituan and Pinduoduo. All companies have entered the game. However, this business is often criticized. The People’s Daily has also criticized by name, “Don’t just worry about the flow of a few bundles of cabbage and a few kilograms of fruit, the technology giants, the stars and the sea of ​​technological innovation, and the infinite possibilities of the future are actually even more exciting Emotionally”.

The financial business of Didi is hardly mentioned in the prospectus. The addition of financial lending services in the APP has basically become the consensus of domestic Internet giants, but currently only Ant Financial, JD Finance, and WeBank have large markets. Didi Chuxing Compared with other service apps, the frequency of users opening is not high, and the ride-hailing scene does not fit well with financial lending. Therefore, it is conceivable that the financial road is not suitable for Didi.

Other businesses basically carry Didi’s business exploration beyond its main business, but from the perspective of market size, these projects are difficult to support a greater imagination in the capital market.

Electric car Didi just taste it

It has to be said that electric vehicles are the most popular territory in the capital market at this stage. Weilai Automobile closed at $45.68 per share on June 11, with a total market value of $74.848 billion. And in the long run, it may only be a matter of time before Weilai Automobile becomes a car company with a market value of 100 billion U.S. dollars.

It is a pity that Didi wants to prop up its market value of hundreds of billions of dollars without taking advantage of electric vehicles. In fact, in addition to its three major businesses, Didi has four core strategic areas, namely shared travel, car service, electric vehicles, and autonomous driving. Even for electric vehicles, it has also given a clear time chart, including hydrogen fuel cell vehicles. All considered.

However, Didi’s participation in new energy vehicles at this stage can only be side-by-side. In 2020, Didi and BYD jointly launched the first car D1 for travel scenarios. So far, 1,000 D1s have been put into operation. In the D1 project, Didi mainly entered design requirements, and specifically customized and developed battery BMS systems and car-machine systems for shared travel scenarios.

In May of this year, Didi once again announced the cooperation with GAC Aian to jointly develop a pre-installed and mass-produced electric Robotaxi for shared travel scenarios. This will be the second time that Didi has cooperated with OEMs to build new energy vehicles. However, it is clear that the two vehicles were built with the focus on Didi’s shared travel business and did not take the opportunity to make more in-depth actions in the new energy vehicle market.

According to an insider of an auto parts supplier, people from Didi, Baidu, Huawei, and Xiaomi have been in contact with procurement matters before. The impression of Didi’s team is very professional, at least much more professional than the people at Huawei and Xiaomi. As the most recent Internet technology giant in the automotive field, Didi should have had the opportunity and ability to participate more deeply in the new energy vehicle chain, such as the research and development of three electric technologies, the supply of overcharging and point-switching technologies, etc., but it is subject to Didi missed the new energy vehicle track due to the operating and financial pressure of its main business.

Autonomous driving business: the ideal is full, the reality is skinny

Autonomous driving is an opportunity to match the shared travel business direction and face the wind. In 2016, Didi first recognized the deployment of autonomous driving. In 2019, Didi registered “Shanghai Woya Technology Co., Ltd.” in Shanghai and began independent financing. In the same year, it obtained Shanghai’s first batch of demonstration application licenses for intelligent networked vehicles. Currently, Didi Auto The driving team has a size of 500 people.

In June 2020, Didi began its Robotaxi trial operation in the Shanghai Jiading Intelligent Networking Test Area. Currently, there are about 36 Robotaxi modified by Volvo XC60 in operation in Jiading.

In terms of common indicators for measuring autonomous driving companies, fleet operation scale and total test mileage, Didi’s autonomous driving is not the first echelon, but Didi’s advantage lies in relying on a large number of shared travel vehicles to obtain a wide range of real road traffic data . As Didi’s irreplaceable core advantages repeatedly mentioned in the prospectus: “Our advantages are built on our experience in operating a shared mobility platform at tremendous scale as well as our massive repository of real-world traffic data, which is not easily replicable.”

Wei Junqing, CTO of Didi Autonomous Driving, previously stated that Didi is the only autonomous driving company in the world with data on hundreds of billions of kilometers. 50% of Didi’s online ride-hailing devices are equipped with orange vision recorders to collect real road conditions during driving, which can collect nearly 100 billion kilometers each year. This information will be used for the training of autonomous driving models.

In theory, Didi does have a unique advantage, with the ability to collect information beyond Tesla’s shadow mode, and data will be the food that feeds the evolution of the autonomous driving system. But this set of logic requires strong data sorting capabilities, data training models, virtual simulations, large computing power supercomputing platforms, and visual algorithm optimization and development capabilities as support.

The video collected by the sensor can only be called material, and only the information that can be used to train the automatic driving algorithm after effective processing can be called data. Faced with a large amount of material, it is very difficult for Didi to be logically self-consistent. It needs to find typical scenarios that are valuable for autonomous driving training from the huge daily information, and conduct targeted training on autonomous driving algorithms through virtual simulations. Such technologies need to be verified, which requires strong computing power. In order to process the massive data returned by vehicles, Tesla has developed a supercomputer Dojo that can support video-level unsupervised neural network training.

Therefore, although Didi has unique advantages, it does not mean that Didi has a shortcut to self-driving. In terms of fleet size, test mileage, coverage of cities, and even the number of patents, Didi’s current performance of autonomous driving cannot effectively help Didi to hold up a good-looking valuation.

With shared travel, new energy vehicles, and autonomous driving, Didi seems to have set foot on every tuyere, but it seems that it is unable to establish an absolute defensive barrier in every tuyere.

Do you think Didi can hold up a $100 billion valuation?

In the early morning of June 15th, Beijing time, LinkDoc Technology Limited, a Chinese medical big data company, submitted its first F-1 prospectus to the U.S. Securities and Exchange Commission (SEC). The company plans to be listed on the Nasdaq Global Select Market. Listed under the trading code “LDOC” and raised US$100 million. The underwriters of ZeroKr Technology’s IPO are Morgan Stanley, Bank of America Securities and CICC. Since it is the first F-1 prospectus, LingKr Technology has not yet disclosed the number of American Depositary Shares (ADS) to be issued and the expected issuance price range.

The prospectus shows that Zerokrypton Technology intends to use IPO funds raised: about 45% will be used to strengthen R&D capabilities and technical infrastructure, and to attract more oncologists, data scientists and other experienced professionals to join; about 15% will be used for expansion The company’s patient care center network and services, and other capital expenditures; about 25% of the funds will be used for potential strategic investments and acquisitions; about 15% will be used for general corporate purposes.

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Obtained strategic investment from Alibaba Health

According to the prospectus, Zerokrypton Technology was established in 2014, headquartered in Beijing, China, and its corporate address is No. 8 Haidian Street, Haidian District, Beijing. The company is a tumor big data solution provider. In March this year, it received a strategic investment from Ali Health. Other investors include China Investment Corporation and CICC Capital.

The prospectus quoted Frost&Sullivan’s data as saying that in terms of cultivating high-quality medical data assets, ZeroKrypton Technology is a leading data-driven and artificial intelligence medical technology company. The company has established China’s largest data-driven digital infrastructure for precision medicine. These include LinkCare, a digital continuous care platform for critically ill patients, LinkData, a longitudinal medical data management system that supports artificial intelligence, and LinkSolutions, a data-driven precision life science solution platform that helps life science companies accelerate clinical research and real evidence adoption.

According to the prospectus, in terms of the nursing platform LinkCare, Lingkrypton Technology generates revenue by selling innovative drugs, auxiliary drugs and nutritional drugs, as well as providing patients with infusion or injection services and other auxiliary businesses; LinkData is the core technology of Lingkrypton Technology. Platforms and R&D engines, not profit channels; LinkSolutions is a platform driven by real-world data, providing accurate life science solutions for life science companies in their clinical and commercialization stages. In the first quarter of 2021, the number of life science company customers of ZeroKr Technology was 169. As of March 31, 2021, LinkSolutions Service of LinkSolutions has supported more than 310 major researchers, covering approximately of the total number of new oncology indications approved for clinical trials in China from 2017 to March 31, 2021. 57%. Specifically, Zerokrypton Technology realizes the monetization of LinkSolutions by charging service fees for comprehensive clinical research services.

The prospectus shows that the vast majority of Zerokrypton Technology’s revenue comes from the sales of medicines and health products. The sales revenue of medicines and health products accounted for 75% and 85.5% of the company’s total revenue in 2019 and 2020, respectively, and accounted for 80.2% of the total revenue in the first quarter of 2021.

The prospectus shows that since April 2015, LingKr Technology has provided care for more than 3.5 million patients and provided longitudinal care for more than 2.5 million patients. According to Frost & Sullivan, Zero Krypton Technology has become China’s largest patient-centered continuous tumor care platform. As of March 31, 2021, ZeroKr Technology has established 34 patient care centers nationwide, covering 28 provinces across the country.

The prospectus shows that in 2019 and 2020, Zerokrypton Technology’s revenue will be 499 million yuan and 942 million yuan, net losses will be 434 million yuan and 489 million yuan, and basic and diluted losses per share will be 5.32 yuan and 6.59 yuan respectively. In the first quarter of 2021, the company’s revenue increased by 41% year-on-year to 223 million yuan, a net loss of 138 million yuan, and a basic and diluted loss per share of 1.76 yuan.

Completed six rounds of financing since its establishment

Zerokrypton Technology stated in its prospectus that, based on 2019 data, China is the world’s second largest medical market, with national medical expenditures of US$944 billion, an increase of 9.7% over 2015. With the improvement of people’s health awareness and personal disposable income, China’s total healthcare expenditure is expected to increase to US$2.529 billion at a compound annual growth rate of 9.4% in 2030. The total scale of China’s medical big data solutions market is rapidly growing at a compound annual growth rate of 43.9% from US$1 billion in 2015 to US$4.1 billion in 2019. It is expected to reach US$215.4 billion in 2030. The compound annual growth rate is 43.3%.

The prospectus also stated that among all the treatment fields in China, oncology has the highest growth rate in medical expenditures, mainly because China has the largest number of cancer patients in the world. The scale of China’s oncology big data market has grown from US$500 million in 2015 to US$2.1 billion, with a compound annual growth rate of 46.1%. It is expected to grow to US$119.6 billion by 2030. The compound annual growth rate from 2019 to 2030 is 44.4%.

The prospectus shows that as of March 31, 2021, ZeroKr Technology has 1,250 full-time employees, of which 199 are responsible for technology and R&D, 573 are responsible for operation and quality assurance, 352 are responsible for sales and marketing, and 126 are responsible for general administrative work. .

According to the prospectus, before the IPO, Zhang Tianze, CEO and director of LingKr Technology, held 61.3 million shares of the company, accounting for 19.7%; LingKr Technology co-founder, COO and CTO Luo Ligang held 9 million shares, accounting for 2.9%; Technology co-founder and executive vice president Li Liping holds 11 million shares, accounting for 3.5%.

According to the information of Qixinbao, since its establishment, Lingkrypton Technology has completed a total of six rounds of financing. After obtaining 1 billion yuan in Series D financing from China Investment Corporation on July 4, 2018, it received CICC Capital and Excellent on September 7, 2020. Hill Capital and Broadband Capital CBC 700 million US dollars in financing. On March 4 this year, Zerokrypton Technology also received a strategic investment from Alibaba Health, but the amount of financing was not disclosed.

The “Daily Business News” reporter noted that Qixinbao’s risk information on ZeroKr Technology showed that the company had been accused of labor disputes and infringement of the right to disseminate information on the Internet on May 15, 2019 and November 23, 2020, respectively. Prosecute. Secondly, on September 1 and December 1, 2020, there were two civil case judgment documents against the intellectual property rights infringement disputes of Zerokrypton Technology. The documents show that in the two dispute cases, Zerokrypton Technology is both defendant. In addition, Zhang Tianze, Li Liping and Luo Ligang all have a small amount of shares currently in a state of pledge.

Daily economic news

Kayleigh Haywood, a 15-year-old girl from Measham, Leicestershire, met her killer via Facebook. When the girl’s body was discovered, police used a special phone to unlock her device – which was locked and severely damaged – to extract information. The evidence obtained helps the police find the culprit, which is the neighbor Stepen Beardman. It also exonerated a suspect. Previously, this technology helped the FBI unlock the iPhone of the San Bernardino shooter after Apple refused to cooperate, as well as collect evidence after the shooting at a gay nightclub in Orlando. Florida (USA). Of course, there will be objections to a company that helps the government hack their phones. That makes Cellebrite, the Israeli company behind the jailbreak device, a target of attacks by human rights groups around the globe, who fear it could be used for wrongdoing. Yossi Carmil, one of the founders and CEOs of Cellebrite, says Cellebrite’s “moral compass” remains intact. He describes himself as “good people who support heroes in their work”, which is saving lives, maintaining peace in the community. Cellebrite was originally a company that provides backup, transfer and restore smartphone data, partnering with carriers such as Orange, T-Mobile, Carphone Warehouse. About 10% of their business comes from private companies that need to extract data from employees’ phones for HR reasons, intellectual property theft or fraud investigations. Mr. Carmil, 54, has close ties to the military and police. He spent four years in the army, where he was a combat soldier and special forces officer. He called it a “proud” period. He used to work for the Israeli Defense Ministry before moving to Europe to live for 10 years, working at Bosch and Siemens. He spent most of this time in Germany, where he earned an MBA from Ludwig Maximilian University. He returned to his hometown of Israel after the death of his sister, later married and had three children. His 19-year-old eldest son Carmil is also serving in the army, currently stationed at the border between Israel and Gaza. Breaking encryption applications, violating user privacy, making Carmil’s image worse in the eyes of technology leaders. Moxie Marlinspike, CEO of the secure messaging app Signal, once published an article detailing a vulnerability that could change the content of messages when Cellebrite extracts them, damaging important evidence. However, Mr. Carmil said that exploitation of that vulnerability never happened in practice. For Mr. Carmil, the UK is an important market with about 50 law enforcement agencies using their technology. In addition to 17 sales and marketing staff in Europe, Cellebrite will hire more researchers and developers. In total, the company has about 300 employees, some of which have been brought in from other intelligence organizations and technology firms. When asked how to ensure their technology is not used against innocent people or human rights, Mr Carmil said “it is my responsibility not to let the tools of power fall into the wrong hands”. Cellebrite has a legal department that writes policy and a compliance officer who reports directly to the CEO. Prior to the initial public offering, Cellebrite also established an independent ethics committee to prosecute Cellebrite for violations. Mr. Carmil said the company controls every license it sells remotely and can disable and blacklist any license, even when there is little doubt. Cellebrite is banned from selling technology to Iraq, Lebanon, and Palestine. Recently, they decided to stop selling to Russia, Belarus and China. Often known as a shady company, silenced by secret contracts, Mr. Carmil wants more transparency ahead of the IPO. Du Lam (According to Telegraph)

April 22,gemThe Listing Committee (hereinafter referred to as the Listing Committee) held the 24th review meeting in 2021. Guangzhou Jinzhong Auto Parts Co., Ltd. (hereinafter referred to as Jinzhong Co., Ltd.), Nantong Chaoda Equipment Co., Ltd.,Guangdong Tianyima Information Industry Co., Ltd.(Hereinafter referred to as Tianyima) 3 companies successfully passed the meeting. The reporter of “Daily Economic News” noticed that Jinzhong shares were questioned at the meeting for over-reliance on the largest customer. In addition, the Listing Committee once again asked the company to state that it meets the requirements of “three innovations and four innovations” at the meeting. , This time the object is Tianyima. Admiralty: Increasing revenue but not profit in the past two years, relying on major customers to attract inquiries from the Listing Committee Recently, the 2021 Shanghai Auto Show has attracted attention from all walks of life, and some of the car logos and other decorative parts of the show cars may be made by this company. From 2018 to 2020, Jinzhong shares achieved operating income of 338 million yuan, 374 million yuan, and 394 million yuan respectively; net profits attributable to parent companies were 63.04 million yuan, 56.1351 million yuan and 48.699 million yuan respectively. Even after deducting the impact of non-recurring gains and losses, in the past two years, Admiralty shares still show a situation of “increasing revenue but not profit”. Jinzhong shares explained that the main reason for the decline in the company’s net profit was the combined effects of tariffs imposed by Sino-US trade frictions, the new crown epidemic, exchange rate fluctuations, and the large fixed costs of its wholly-owned subsidiary Qingyuan Jinzhong’s operation in 2020. For example, the company’s tariff expenses were RMB 4,976,200, RMB 15,979,500, and RMB 12,876,700, respectively. In 2019 and 2020, the expenses increased significantly compared with 2018. However, Jinzhong shares also said that up to now, the impact of Sino-US trade frictions on the company’s performance decline has been basically eliminated, and the impact of the new crown epidemic, exchange rate fluctuations and the operation of Qingyuan Jinzhong in 2020 on the company’s performance decline is gradually eliminated. Image source: Screenshot of Jinzhong Stock Prospectus (draft) Admiralty shares through the largest customer DAG LTD, LLC (hereinafter referred to as DAG) to achieveGeneral Motors,FordChrysler,TeslaWait for the export sales of North American automakers, and DAG has the exclusive right to sell Admiralty’s products in North America and South America. The reporter noticed that in 202 years, Admiralty shares accounted for 41.84% of DAG sales. Therefore, the Listing Committee is concerned that this situation will have a significant adverse impact on its ability to continue operations, and requires the company to further explain whether it has a significant dependence on DAG, and further disclose the impact of this situation on the issuer’s ability to continue operations in the prospectus after the meeting. Tianyima: The overall gross profit margin and the proportion of R&D expenses are declining year by year The relevant regulations of the Shenzhen Stock Exchange pointed out that “The Growth Enterprise Market is positioned to thoroughly implement the innovation-driven development strategy, adapt to the development of the general trend of relying more on innovation, creation, and creativity, and mainly serve growth-oriented innovative and entrepreneurial enterprises, and support traditional industries, new technologies, and new industries. , Deep integration of new business formats and new models”, that is, “three innovations and four new innovations”. And Tianyi Ma, who attended the meeting on April 22, was asked by the Shenzhen Stock Exchange to explain the company’s competitive advantages and disadvantages and the specific manifestation of meeting the requirements of “three innovations and four new”. The reporter noticed that although Tianyima’s revenue and net profit increased year by year from 2018 to 2020, the company’s comprehensive gross profit margin (39.55%, 37.78%, 30.28%), and the proportion of R&D expenses to operating income (7.87%, 5.63%) , 4.39%) has shown a downward trend year by year. It is no wonder that the Listing Committee issued the above question to Tianyima. During the reporting period, Tianyima signed multiple contracts for information system integration, software development and technology, and information equipment sales for the same project. The Listing Committee requires the company to combine the above-mentioned business characteristics to explain the timing and basis of the above-mentioned business income recognition, and whether it meets the requirements of the Accounting Standards for Business Enterprises. In addition, Tianyima’s operating income in the second half of 2019 and the second half of 2020 accounted for about 80% of the entire year, which was significantly higher than that of previous years. The Listing Committee required the company to clarify the reasons and reasonableness. Daily economic news

Shenrancaijing original

Author | Li Qiuhan

Editor | Wei Jia

“I actually heard the team say more than once, why this competition is endless and when will it end?” Founder and CEO Zhang Yiming said at the 9th Anniversary Meeting of Bytedance, and expressed his views on the competition through a speech. The attitude of “competition must be regarded as the norm.”

Zhang Yiming did indeed do this.

Backed by Douyin and Toutiao, the two “money printing machines”, Bytedance expanded without borders, launched “full” search ads against Baidu, opened Douyin e-commerce to challenge Ali, and attacked Tencent in the entertainment field. , Lay out education, health, and challenge the industry leader… As far as we can imagine big and small giants, ByteDance is grabbing jobs with them.

In 2021, ByteDance’s expansion rate is still accelerating.

One obvious change is that Douyin has begun to carry the ambition of Byte Beat. In addition to developing e-commerce, it also vigorously enters the local life field and invades the hinterland of Meituan. In addition, its existing games, education, finance and other businesses are becoming more and more important. In the hard-core technology fields such as automobiles and chips that have never been involved before, they have also begun to make their own arrangements.

In addition, the pace of its foreign investment has also accelerated significantly. According to reports, before the end of the first quarter of 2021, Bytedance has made 16 investments, which is half of the total investment in 2020. Among them, the proportion of entertainment and entertainment has been significantly reduced, artificial intelligence has maintained a high proportion, and the proportion of e-commerce, new consumption, and remote office has increased significantly.

Source / Enterprise Check

After gathering users through the advantages of algorithm distribution, Bytedance is exhausting the three major Internet traffic monetization models of “advertising, gaming, and e-commerce”. In addition, the threshold for education, medical care, automobile, finance, etc. is high, but the future The sectors with large profit margins also have the ambition to break them one by one.

It is reported that ByteDance will submit a prospectus on the Hong Kong Stock Exchange in the second quarter. These intensive actions may be preparations for the sprint before going public. Through sorting out the inventory, let’s take a look at where in 2021, where did the byte beat jump?

Local life, the banknote printing machine Douyin is getting “crazy”

In March 2021, Douyin (including volcano and speed version) was exposed by the media with a daily average of over 600 million, with a peak of about 700 million.

This is not much different from the previously disclosed data: In September 2020, Zhang Nan, CEO of ByteDance China, disclosed at the event that including Douyin Volcano and Extreme Edition, Douyin’s daily active users have exceeded 600 million. . In the “2020 Douyin Data Report” released on January 5, 2021, this number is still used when it is disclosed that Douyin is active. Between the two data disclosures, Douyin also conducted a series of new activities such as “titled the Spring Festival Gala.”

Many people in the industry believe that this means Douyin has faced a growth bottleneck.

In the first three months of 2021, Douyin will mainly do three things. One is to expand social scenes and increase tool-based functions, the other is to vigorously engage in e-commerce, and the third is to enter local life. The purpose is to extend the time of user stay, and Expand commercialization scenarios and accelerate earning money.

In terms of expanding social scenes and increasing tool-based functions, the Douyin APP was revealed to be testing a variety of new features, such as friend K song, multi-person voice chat, “watch video together” function, etc., which enriches the site’s gameplay and increases user stays. The role of duration. At the beginning of the year, Douyin announced for the first time that its number of active search users has exceeded 550 million, and the results are beginning to show.

Compared with keeping users in Douyin, Douyin has more actions for the expansion of the commercial scene.

On April 8, 2021, Douyin held the first E-commerce Ecological Conference and launched a new concept of “interested e-commerce”, which is based on user preferences, using big data and recommendation mechanisms to stimulate consumers’ potential purchase desires. At the event site, in response to whether he would build an independent e-commerce app, Kang Zeyu, president of Douyin e-commerce, said that various forms would not rule out trying. The reply is ambiguous, but we can also see the ambition of Bytedance in the field of e-commerce.

Tik Tok e-commerce is not limited to live e-commerce, but has turned the traditional graphic “people looking for goods” to short video “goods looking for people”. This is based on the existing algorithm and content advantages of Douyin. It is also clearer than before. However, how much consumer interest can be stimulated by interest e-commerce, and whether the conversion rate can balance the input-output ratio of the business remains to be investigated.

Regardless of whether “interest e-commerce” is a real demand or a false concept, in the view of Wang Chao, the founder of Wenyuan Think Tank, the problem facing Douyin e-commerce is that “all kinds of infrastructure are not in their own hands, such as express delivery” Da’ (Zhongtong, YTO, Shentong, Best Huitong, Yunda) has cooperation with Ali, and the relationship between Jitu Express and Pinduoduo is subtle.” He reminded that in addition to express delivery, return and exchange systems, customer service systems, and quality control systems, Douyin e-commerce companies still have a lot to improve.

In the field of local life, Douyin has similar advantages and difficulties to overcome.

Now open Douyin, the first column of the interface is related to “dining, drinking, and having fun”. Click “Discount Group Purchase” to get information about nearby food, restaurants, hotels and homestays, including store selling points, business contact information, distance, etc., and click ” Popular list”, you can get the ranking list of nearby scenic spots, playgrounds, park squares, just like an implanted version of Meituan + Dianping.

Source/ Screenshot of Douyin

“The amount of information brought by the video stream is the most. It is more intuitive and more stimulating than the graphic stream of Meituan and Dianping, which is equivalent to a dimensionality reduction attack.” Wang Chao said that Douyin has the use of algorithms to complete the The closed-loop advantage of planting grass to consumption. When users use Douyin, they can see nearby restaurant recommendations, and they can use Douyin to scan codes to order meals in the store and get group purchase coupons. For merchants, they can use Douyin to place them and get exposure opportunities based on content positioning.

However, there are many problems facing Douyin. The local life business first needs a strong enough offline “ground push” army. At present, Douyin is still under construction, and this is the strength of Meituan. Secondly, it will take some time to accumulate the number of merchants and the mental cultivation of users’ consumption habits. Lastly, more importantly, like Douyin e-commerce, the conversion rate from planting grass to consumption is still a question mark.

At a conference in early 2021, Zhang Nan, CEO of ByteDance, explained the development direction of Douyin over the past four years: “Douyin has changed from an initial entertainment method to a social method, and then to a lifestyle. “Douyin is being realized step by step. In the future, it will be involved in more business fields than we thought.

Pan-entertainment relies on buying, buying and buying to bite Tencent

The pan-entertainment sector has always been the basic disk of Bytedance. If this field is divided into upstream content IP, midstream film and television production, and downstream game realization, you can see that the layout of Bytedance in the upstream and downstream is significantly accelerated. The competition with Tencent has entered a fierce stage.

Let’s first look at the downstream that has changed the most. The latest news is that Bytedance has bought a game company again. On April 13, less than half a month after the acquisition of Mutong Technology, ByteDance’s Chaoxi Guangnian, which is responsible for the medium-to-heavy game business, wholly acquired “Youai Mutual Entertainment”. The company’s product types are concentrated in RPG (role playing) two-dimensional and strategy (referring to players using strategies to compete with computers or other players) two categories, which have outstanding performance in the Japanese and Korean markets.

Source / Enterprise Search and Public Information Mapping / Shen Ran

The two newly bought companies both focus on medium and heavy games, and both are good at going overseas. They have also had disputes with Tencent. They once again released the signal that ByteDance wants to strengthen Tencent, but avoid its territory and expand overseas. .

Previously, the media concluded that Bytedance currently has 29 game companies, more than 10 game studios, 4 major publishing platforms, and more than 2,000 employees. It starts with casual games and gradually increases the number of medium and heavy games, and the development speed exceeds Outside imagination. However, a senior investor in the game field told Shenran that in terms of revenue, Bytedance’s games are actually incomparable with Tencent or even NetEase.

Let’s look at the upstream again. For Internet companies, buying a web-text company is a cost-effective business. Grasping the lifeblood of the source of IP has great room for development in pan-entertainment. In the second half of 2020, ByteDance has already relied on “spending money” and swept through all the online literature companies that can invest: it has invested 1.1 billion yuan in investment and reading, and invested in five mid-waist online literature companies.

Its competition with Tencent in the field of online literature has become a competition between “Palm Reading + Tomato Novel + 5 Mid-waist Web Literature Companies” and “Reading”, and it is worth noting that Tomato Novels were only launched in November 2019. Net, the number of monthly active users has ranked first in the industry, and Bytedance has gained a firm foothold in the field of free reading.

However, it is easy to obtain traffic for free reading, but it is faced with the problems of “no money” and “IP incubation”. In terms of IP development, ByteDance has not yet proven its strength.

This is also the embarrassment of ByteDance in the pan-entertainment field. From the perspective of territorial expansion, the speed of Bytedance’s firm foothold in the upstream and downstream is staggering, but from the perspective of profitability, most of the investment is still in the layout stage, lacking the ability to realize immediate cash, and whether some investments can be made in the future. Realization remains to be investigated.

This is also related to the small number of byte jumps in the midstream segment. What affects the speed of midstream deployment is closely related to the difficulty of realizing the field and the high threshold.

Vertical business education, finance, and corporate services are becoming more and more “heavy”

In addition to the pan-culture and entertainment fields, ByteDance has entered into vertical long-term businesses with large prospects and large investments, which can be roughly divided into financial, corporate services, education, and medical services, and these fields are showing increasing importance. “the trend of.

The launch of Douyin Pay on January 19 caused heated discussions. In fact, the financial business of Bytedance has quietly formed a complete territory.

At present, ByteDance has obtained an insurance brokerage license (June 2018), a securities investment advisory financial license (August 2019), a small online loan license (July 2020), and a payment license (September 2020). Four financial licenses gathered. It also applied for the registration of a series of English trademarks such as BYTECREDIT (byte credit).

In terms of payment, ByteDance has launched Douyin Payment and Hezhong Payment, and has taken a big step in expanding online and offline payment scenarios. In the field of online small loans, referring to Ali’s play in the financial field, ByteDance tested “Relaxed Flower” on Douyin, launched “Dou Installment”, and established “Word Jump Commercial Factoring” (guaranteed payment agent). ), march towards TO B.

In securities, there are also a lot of byte beating actions. In 2021, according to media reports, ByteDance plans to launch a brand prefixed with “Stellar” to develop brokerage business in China. Prior to this, its first financial product “Na Magnesium Stocks” has been renamed “Dolphin Stocks” to provide securities companies with technical services for information release and jump links, with the intention of developing towards branding. As early as the end of 2019, ByteDance applied for the trademark “Squirrel Securities” specifically for the Hong Kong market.

There are indications that Bytedance is still increasing the financial layout and has ambitions to benchmark Ant Group and JD Digital. According to Wang Chao’s guess, “it is necessary to obtain a license, but referring to the situation of Ant Group, in the case of uncertain Internet financial policies, in the second half of this year, Bytedance’s financial business will remain under secret observation and will not enter it aggressively.

In 2021, the sector that ByteDance will bet on is still education. In February, ByteDance once again announced the recruitment of 10,000 people, covering teaching and research teaching, products, design, community class teachers, tutors and other positions, continuing its vigorous story.

In February of this year, ByteDance released “Why ByteDance Education?” “This is our answer” article focused on 4 products: Guagualong Enlightenment for preschool children, Qingbei Online School for K12 students, Oral English for adult students, and hardware for preschool + K12 Products vigorously smart lights. Previously, GoGoKid, which was the main one-on-one, did not have the following text. The paid-for-knowledge app that was benchmarked to “get” was shut down by the official.

“These four business models have been proven successful in the market,” Wang Qiang, vice president of Bita Capital Investment, who is concerned about education, told Shenran. Much more mature, what remains to be done is to continuously improve efficiency and give full play to its operational and traffic advantages.”

Source/ Dali Smart Official Website

This is the biggest difference between it and other educational institutions, and it is also the difficulty it faces. “Whether it is for enlightenment or adult education, this is a business with low human efficiency and heavy service, and the hardware part is assessed by DAU. , Dali smart lamp is a good product, but it is easy to be controversial in the educational concept, which is the reason why smart lamps will be questioned by the industry before.” He said.

Although corporate services are not as high as the education sector, they are still a major focus of Bytedance’s layout. In March 2021 alone, ByteDance has invested in two video conferencing service providers, Blue Cat Micro Club and Renxiao Online, to pave the way for the upgrade of Feishu.

Currently, ByteDance has two brands, Feishu and Volcano Engine. The former was initially just a corporate communication and collaboration tool used internally by ByteDance, and it took off during the 2020 epidemic. The latter assists enterprise customers to realize organizational intelligence in the process of digital transformation, which is still in its infancy.

However, the byte beating towards TO B still needs some data to prove itself. Feishu’s competitors are already occupying the top of the mountain. The enterprise WeChat relies on WeChat and has user stickiness that is unmatched by other similar products. Dingding has accumulated many years to achieve office multi-scenario collaboration. It is not easy to catch up or even overtake.

The current market presence of Volcano Engine is not strong enough. From its “Tinder Plan” invested 2 billion yuan to subsidize small and medium-sized enterprises, it can be seen that this business is still in the stage of “earning out”. Enterprise customers value the comprehensive strength of project implementation, delivery and stability. The newly developed Volcano Engine still needs some accumulation and achievements.

Education, finance, and corporate services are all time to test the patience of ByteDance.

Betting on the future “car-making” and “core-making” to enter hard technology

In 2021, ByteDance releases a signal to enter hard technology. However, compared with the expansion of vertical fields such as education and finance, the intention to enter hard technology and ByteDance is more obvious in advance to pay for the future layout.

The first is the automotive field. At the beginning of 2021, Bytedance was exposed to two investment information related to cars. In March 2021, ByteDance reported that it had invested in the autonomous driving company “Qingzhou Zhihang”. Later, the media confirmed by people familiar with the matter that ByteDance was a joint lead investment with more than 25 million U.S. dollars in funding. On April 19, ByteDance’s affiliated company invested in the establishment of Chongqing Vientiane Ucar Technology Co., Ltd., whose business scope includes used car brokerage.

Prior to this, ByteDance had three other important actions in the automotive field: In 2017, ByteDance established the automotive content platform Underworld, and invested 30 million US dollars in the ideal car in 2019. In May 2020, the car networking team was formally formed.

“This is a natural business expansion,” Zhang Xiang, an automotive analyst, told Shenran. “In the future, cars will develop into autonomous driving. Owners can free up time for information and entertainment without driving. ByteDance is Internet content. Providers, the current terminal exports are computers, mobile phones, and tablets, and in the future they may be screens for cars.” In his view, the barriers to building cars are high and the investment is large. ByteDance’s current intention is not to build cars, but to fancy The interface for future content output.

Also in March 2021, Bytedance was also exposed in the self-developed cloud AI chip and Arm server chip. The latter news was confirmed by the relevant person in charge of Bytedance. This is not a “sudden whim”. As early as April 2018, Bytedance Vice President Yang Zhenyuan once told the media that Bytedance has the world’s largest number of users uploading videos that require analysis, understanding and processing, and the platform recommendation engine also needs to be powerful Has a large number of chip purchases and applications, and is actively seeking breakthroughs in chip related fields.

Previously in the field of technology intelligence, ByteDance invested in AI company “Bailian Intelligence”, and also invested in hard-core technology companies such as Yunjing Intelligence, Songzhi Intelligence, Lingxi Technology, and Nut Cloud. According to the company’s data, since 2019, BYTE has made 15 public investments in artificial intelligence projects, including 4 in 2019, 6 in 2020, and a new high in 2021. As of April 22, there have been 5 cases.

Source / Enterprise Check

Zhang Yiming once said that the core technology is the hard competitiveness behind the company. For this company that has emerged with algorithms, the importance of technology is self-evident. For example, AI technology can help it provide key data from a large amount of text, pictures, videos, games and other information on the content supply side, and outline user portraits on the user side, so as to complete the matching of supply and demand, and have a lot of room for development.

For ByteDance, whether it is building a car or a core, it is currently at an early stage, but it is a good “weapon” to tell a new story for the market. In the final analysis, both are areas where the time period is long, the investment is particularly large, and the revenue effect is not visible in the short term, and the patience of byte beating is also required.

In 2020, a research report related to Bytedance circulated, which showed that the annual revenue of Bytedance in 2020 will be close to 240 billion yuan, advertising revenue will reach 175 billion yuan, and live streaming will be 45-50 billion yuan. , The e-commerce business will reach 6 billion yuan, the game sector will create a turnover of 4-50 billion yuan, and the education track will have 2-3 billion yuan in revenue. Although ByteDance later officially responded to “the report information is inaccurate”, the general revenue of its various business segments can also be glimpsed from it.

People are amazed at the company’s speed of making money and organizational capabilities, and capital is also using rising valuations to express their optimism about this emerging giant. According to a recent report, ByteDance initiated the listing process in Hong Kong, with a valuation of approximately US$400 billion. If the news is true, the size of this huge ship is enough to challenge Tencent and Ali. At the end of March, Zhou Shengzi, a former Xiaomi executive, was invited to serve as the CFO of ByteDance, which was also regarded as ByteDance preparing for the IPO.

In his ninth anniversary speech, Zhang Yiming said that he likes to watch videos of sailing in the sea on Douyin, and he wants “outside ups and downs, and inner peace as usual.” The bytebeat he created, people who like it, think it is the Internet. The fearless young people in the world, relying on efficient organizational skills and technical advantages to expand their boundaries, people who do not like it, think that this is just an ambitious but not emotional money-making machine.

But it is undeniable that the aggressive ship he is driving has become a rival that Internet giants cannot ignore. Its enemies can’t keep their minds in peace anymore.

*The title picture comes from Visual China.

Shenrancaijing original

Author | Li Qiuhan

Editor | Wei Jia

“I actually heard the team say more than once, why this competition is endless and when will it end?” Founder and CEO Zhang Yiming said at the 9th Anniversary Meeting of Bytedance, and expressed his views on the competition through a speech. The attitude of “competition must be regarded as the norm.”

Zhang Yiming did indeed do this.

Backed by Douyin and Toutiao, the two “money printing machines”, Bytedance expanded without borders, launched “full” search ads against Baidu, opened Douyin e-commerce to challenge Ali, and attacked Tencent in the entertainment field. , Lay out education, health, and challenge the industry leader… As far as we can imagine big and small giants, ByteDance is grabbing jobs with them.

In 2021, ByteDance’s expansion rate is still accelerating.

One obvious change is that Douyin has begun to bear the ambition of Byte Beat. In addition to developing e-commerce, it also vigorously enters the local life field and invades the hinterland of Meituan. In addition, its existing games, education, finance and other businesses are becoming more and more important. In the hard-core technology fields such as automobiles and chips that have never been involved before, they have also begun to make their own arrangements.

In addition, the pace of its foreign investment has also accelerated significantly. According to reports, before the end of the first quarter of 2021, Bytedance has made 16 investments, which is half of the total investment in 2020. Among them, the proportion of entertainment and entertainment has been significantly reduced, artificial intelligence has maintained a high proportion, and the proportion of e-commerce, new consumption, and remote office has increased significantly.

Source / Enterprise Check

After gathering users through the advantages of algorithm distribution, Bytedance is exhausting the three major Internet traffic monetization models of “advertising, gaming, and e-commerce”. In addition, the threshold for education, medical care, automobile, finance, etc. is high, but the future The sectors with large profit margins also have the ambition to break them one by one.

It is reported that ByteDance will submit a prospectus on the Hong Kong Stock Exchange in the second quarter. These intensive actions may be preparations for the sprint before going public. Through sorting out the inventory, let’s take a look at where in 2021, where did the byte beat jump?

Local life, the banknote printing machine Douyin is getting “crazy”

In March 2021, Douyin (including volcano and speed version) was exposed by the media with a daily average of over 600 million, with a peak of about 700 million.

This is not much different from the previously disclosed data: In September 2020, Zhang Nan, CEO of ByteDance China, disclosed at the event that, including Douyin Volcano and Extreme Edition, Douyin’s daily active users have exceeded 600 million. . In the “2020 Douyin Data Report” released on January 5, 2021, this number is still used when it is disclosed that Douyin is active. Between the two data disclosures, Douyin also conducted a series of new activities such as “titled the Spring Festival Gala”.

Many people in the industry believe that this means Douyin has faced a growth bottleneck.

In the first three months of 2021, Douyin will mainly do three things. One is to expand social scenes and increase tool-based functions, the other is to vigorously engage in e-commerce, and the third is to enter local life. The purpose is to extend the time of user stay, and Expand commercialization scenarios and accelerate earning money.

In terms of expanding social scenes and increasing tool-based functions, the Douyin APP was revealed to be testing a variety of new features, such as friend K song, multi-person voice chat, “watch video together” function, etc., which enriches the site’s gameplay and increases user stays. The role of duration. At the beginning of the year, Douyin announced for the first time that its number of active search users has exceeded 550 million, and the results are beginning to show.

Compared with keeping users in Douyin, Douyin has more actions for the expansion of the commercial scene.

On April 8, 2021, Douyin held the first E-commerce Ecological Conference and launched a new concept of “interested e-commerce”, which is based on user preferences, using big data and recommendation mechanisms to stimulate consumers’ potential purchase desires. At the event site, in response to whether he would build an independent e-commerce app, Kang Zeyu, president of Douyin e-commerce, said that various forms would not rule out trying. The reply is ambiguous, but we can also see the ambition of Bytedance in the field of e-commerce.

Tik Tok e-commerce is not limited to live e-commerce, but has turned the traditional graphic “people looking for goods” to short video “goods looking for people”. This is based on the existing algorithm and content advantages of Douyin. It is also clearer than before. However, how much consumer interest can be stimulated by interest e-commerce, and whether the conversion rate can balance the input-output ratio of the business remains to be investigated.

Regardless of whether “interest e-commerce” is a real demand or a false concept, in the view of Wang Chao, the founder of Wenyuan Think Tank, the problem facing Douyin e-commerce is that “all kinds of infrastructure are not in their own hands, such as express delivery” Da’ (Zhongtong, Yuantong, Shentong, Best Huitong, Yunda) has cooperation with Ali, and the relationship between Jitu Express and Pinduoduo is subtle.” He reminded that in addition to express delivery, return and exchange systems, customer service systems, and quality control systems, Douyin e-commerce companies still have a lot to improve.

In the field of local life, Douyin has similar advantages and difficulties to overcome.

Now open Douyin, the first column of the interface is related to “dining, drinking, and having fun”. Click “Discount Group Purchase” to get information about nearby food, restaurants, hotels and homestays, including store selling points, business contact information, distance, etc., and click ” Popular list”, you can get the ranking list of nearby scenic spots, playgrounds, and park squares, just like an implanted version of Meituan + Dianping.

Source/ Screenshot of Douyin

“The amount of information brought by the video stream is the most. It is more intuitive and more stimulating than the graphic stream of Meituan and Dianping, which is equivalent to a dimensionality reduction attack.” Wang Chao said that Douyin has the use of algorithms to complete the The closed-loop advantage of planting grass to consumption. When users use Douyin, they can see nearby restaurant recommendations, and they can use Douyin to scan codes to order meals in the store and get group purchase coupons. For merchants, they can use Douyin to place them and get exposure opportunities based on content positioning.

However, there are many problems facing Douyin. The local life business first needs a strong enough offline “ground push” army. At present, Douyin is still under construction, and this is the strength of Meituan. Secondly, it will take some time to accumulate the number of merchants and the mental cultivation of users’ consumption habits. Lastly, more importantly, like Douyin e-commerce, the conversion rate from planting grass to consumption is still a question mark.

At a conference in early 2021, Zhang Nan, CEO of ByteDance, explained the development direction of Douyin over the past four years: “Douyin has changed from an initial entertainment method to a social method, and then to a lifestyle. “Douyin is being realized step by step. In the future, it will be involved in more business fields than we thought.

Pan-entertainment relies on buying, buying and buying to bite Tencent

The pan-entertainment sector has always been the basic disk of Bytedance. If this field is divided into upstream content IP, midstream film and television production, and downstream game realization, you can see that the layout of Bytedance in the upstream and downstream is significantly accelerated. The competition with Tencent has entered a fierce stage.

Let’s first look at the downstream that has changed the most. The latest news is that Bytedance has bought a game company again. On April 13, less than half a month after the acquisition of Mutong Technology, ByteDance’s Chaoxi Guangnian, which is responsible for the medium-to-heavy game business, wholly acquired “Youai Mutual Entertainment”. The company’s product types are concentrated in RPG (role playing) two-dimensional and strategy (referring to players using strategies to compete with computers or other players) two categories, which have outstanding performance in the Japanese and Korean markets.

Source / Enterprise Search and Public Information Mapping / Shen Ran

The two newly purchased companies both focus on medium and heavy games, and both are good at going overseas, and both have disputes with Tencent. They once again released the signal that ByteDance wants to be strong on Tencent, but avoids its territory and expands overseas. .

Previously, the media concluded that Bytedance currently has 29 game companies, more than 10 game studios, 4 major publishing platforms, and more than 2,000 employees. It starts with casual games and gradually increases the number of medium and heavy games, and the development speed exceeds Outside imagination. However, a senior investor in the game field told Shenran that in terms of revenue, Bytedance’s games are actually incomparable with Tencent or even NetEase.

Let’s look at the upstream again. For Internet companies, buying a web-text company is a cost-effective business. Grasping the lifeblood of the source of IP has great room for development in pan-entertainment. In the second half of 2020, ByteDance has already relied on “spending money” and swept through all the online literature companies that can invest: it has invested 1.1 billion yuan in investment and reading, and invested in five mid-waist online literature companies.

Its competition with Tencent in the field of online literature has become a competition between “Palm Reading + Tomato Novel + 5 Mid-waist Web Literature Companies” and “Reading”, and it is worth noting that Tomato Novels was only launched in November 2019. Net, the number of monthly active users has ranked first in the industry, and Bytedance has gained a firm foothold in the field of free reading.

However, it is easy to obtain traffic for free reading, but it is faced with the problems of “no money” and “IP incubation”. In terms of IP development, ByteDance has not yet proven its strength.

This is also the embarrassment of ByteDance in the pan-entertainment field. From the perspective of territorial expansion, the speed of Bytedance’s firm foothold in the upstream and downstream is staggering, but from the perspective of profitability, most of the investment is still in the layout stage, lacking the ability to realize immediate cash, and whether some investments can be made in the future. Realization remains to be investigated.

This is also related to the small number of byte jumps in the midstream segment. What affects the speed of midstream deployment is closely related to the difficulty of realizing the field and the high threshold.

Vertical business education, finance, and corporate services are becoming more and more “heavy”

In addition to the pan-culture and entertainment fields, ByteDance has entered into vertical long-term businesses with large prospects and large investments, which can be roughly divided into financial, corporate services, education, and medical services, and these fields are showing increasing importance. “the trend of.

The launch of Douyin Pay on January 19 caused heated discussions. In fact, the financial business of Bytedance has quietly formed a complete territory.

At present, ByteDance has obtained an insurance brokerage license (June 2018), a securities investment advisory financial license (August 2019), a small online loan license (July 2020), and a payment license (September 2020). Four financial licenses gathered. It also applied for the registration of a series of English trademarks such as BYTECREDIT (byte credit).

In terms of payment, ByteDance has launched Douyin Pay and Hezhong Pay, and has taken a big step in expanding online and offline payment scenarios. In the field of online microfinance, referring to Ali’s play in the financial field, ByteDance tested “Relaxed Flower” on Douyin, launched “Dou Installment”, and established “Word Jump Commercial Factoring” (guarantee payment agent). ), march towards TO B.

In securities, there are also a lot of byte beating actions. In 2021, according to media reports, ByteDance plans to launch a brand prefixed with “Stellar” to develop brokerage business in China. Previously, its first financial product “Na Magnesium Stocks” has been renamed “Dolphin Stocks”, which specifically provides technical services for information release and jump links for securities companies, with the intention of developing towards branding. As early as the end of 2019, ByteDance applied for the trademark “Squirrel Securities” specifically for the Hong Kong market.

There are various signs that Bytedance is still increasing the financial layout and has ambitions to benchmark Ant Group and JD Digital. According to Wang Chao’s guess, “it is necessary to obtain a license, but referring to the situation of the Ant Group, in the case of uncertain Internet financial policies, in the second half of this year, Bytedance’s financial business will remain under secret observation and will not enter it in a big way.”

In 2021, the sector that ByteDance will bet on is still education. In February, ByteDance once again announced the recruitment of 10,000 people, covering teaching and research teaching, products, design, community class teachers, tutors and other positions, continuing its vigorous story.

In February of this year, ByteDance released “Why ByteDance Education?” “This is our answer” article focuses on 4 products: Guagualong Enlightenment for preschool children, Qingbei Online School for K12 students, Open Speaking English for adult students, and hardware for preschool + K12 Products vigorously smart lights. Previously, GoGoKid, which was the main one-on-one, did not have the following text. The paid-for-knowledge app, which was benchmarked with “Get”, was shut down by the official.

“These four business models have all been proven successful in the market,” Wang Qiang, vice president of Bita Capital Investment, who is concerned about education, told Shenran. “Bytedance’s play in the education sector is already better than when it first entered the market. Much more mature, what remains to be done is to continuously improve efficiency and give full play to its operational and traffic advantages.”

Source/ Dali Smart Official Website

This is the biggest difference between it and other educational institutions, and it is also the difficulty it faces. “Whether it is for enlightenment or adult education, this is a business with low human efficiency and heavy service, and the hardware part is assessed by DAU. , Dali smart light is a good product, but it is easy to be controversial in the educational concept, which is the reason why smart light will be questioned by the industry before.” He said.

Although corporate services are not as high as the education sector, they are still a major focus of Bytedance’s layout. In March 2021 alone, ByteDance has invested in two video conferencing service providers, Blue Cat Micro Club and Renxiao Online, to pave the way for the upgrade of Feishu.

Currently, ByteDance has two brands, Feishu and Volcano Engine. The former was initially just a corporate communication and collaboration tool used internally by ByteDance, and it took off during the 2020 epidemic. The latter assists enterprise customers to realize organizational intelligence in the process of digital transformation, which is still in its infancy.

However, the byte beating towards TO B still needs some data to prove itself. Feishu’s competitors are already on the top of each other. Relying on WeChat, corporate WeChat has user stickiness that is unmatched by other similar products. Dingding has accumulated years of experience to achieve multi-scenario collaboration in the office. It is not easy to catch up or even overtake.

The current market presence of Volcano Engine is not strong enough. It can be seen from its “Tinder Plan” that it invested 2 billion yuan to subsidize small and medium-sized enterprises, that the business is still in the stage of “earning praise”. Enterprise customers value the comprehensive strength of project implementation, delivery and stability. The newly developed Volcano Engine still needs some accumulation and achievements.

Education, finance, and corporate services are all time to test the patience of ByteDance.

Betting on the future “car-making” and “core-making” to enter hard technology

In 2021, ByteDance releases a signal to enter hard technology. However, compared with the expansion of vertical fields such as education and finance, the intention to enter hard technology and ByteDance is more obvious in advance to pay for the future layout.

The first is the automotive field. At the beginning of 2021, Bytedance was exposed to two investment information related to cars. In March 2021, ByteDance reported that it had invested in the autonomous driving company “Qingzhou Zhihang”. Later, the media confirmed by people familiar with the matter that ByteDance was a joint lead investment with more than 25 million U.S. dollars in funding. On April 19, ByteDance’s affiliated company invested in the establishment of Chongqing Wanxiang UCAR Technology Co., Ltd., whose business scope includes second-hand car brokerage.

Prior to this, ByteDance had three other important actions in the automotive field: In 2017, ByteDance established the automotive content platform Under Auto, and in 2019, it invested 30 million US dollars in the ideal car. In May 2020, the car networking team was formally formed.

“This is a natural business expansion,” Zhang Xiang, an automotive analyst, told Shenran. “In the future, cars will develop into autonomous driving. Owners don’t have to drive and can free up time for information and entertainment. ByteDance is Internet content. Providers, the terminal outlets now are computers, mobile phones, and tablets, and they may be screens for cars in the future.” In his view, the barriers to building cars are high and the investment is large. ByteDance’s current intention is not to build cars, but to take a fancy. The interface for future content output.

Also in March 2021, Bytedance was also exposed in the self-developed cloud AI chip and Arm server chip. The latter news was confirmed by the relevant person in charge of Bytedance. This is not a “sudden whim”. As early as April 2018, Bytedance Vice President Yang Zhenyuan once told the media that Bytedance has the world’s largest number of users uploading videos that require analysis, understanding and processing, and the platform recommendation engine also needs to be powerful. Has a large number of chip purchases and applications, and is actively seeking breakthroughs in chip-related fields.

Previously in the field of technological intelligence, ByteDance invested in the AI ​​company “Bailian Intelligence”, and also invested in hard-core technology companies such as Yunjing Intelligence, Songzhi Intelligence, Lingxi Technology, and Nut Cloud. According to the company’s data, since 2019, BYTE has made 15 public investments in artificial intelligence projects, including 4 in 2019, 6 in 2020, and a new high in 2021. As of April 22, there have been 5 cases.

Source / Enterprise Check

Zhang Yiming once said that the core technology is the hard competitiveness behind the company. For this company that has emerged with algorithms, the importance of technology is self-evident. For example, AI technology can help it provide key data from a large amount of text, pictures, videos, games and other information on the content supply side, and outline user portraits on the user side, so as to complete the matching of supply and demand, which has a great space for development.

For ByteDance, whether it is building a car or a core, it is currently at an early stage, but it is a good “weapon” to tell a new story for the market. In the final analysis, both are areas where the time period is long, the investment is particularly large, and the revenue effect is not visible in the short term, and the patience of byte beating is also required.

In 2020, a research report related to ByteDance circulated, which showed that the annual revenue of ByteDance in 2020 will be close to 240 billion yuan, advertising revenue will reach 175 billion yuan, and live streaming will be 45-50 billion yuan. , The e-commerce business will reach 6 billion yuan, the game sector will create a turnover of 4-50 billion yuan, and the education track will have 2-3 billion yuan in revenue. Although ByteDance later officially responded to “the report information is inaccurate”, the general revenue of its various business segments can also be peeked from it.

People are amazed at the company’s speed of making money and organizational capabilities, and capital is also using rising valuations to express their optimism about this emerging giant. According to a recent report, ByteDance initiated the listing process in Hong Kong, with a valuation of approximately US$400 billion. If the news is true, the size of this huge ship is enough to challenge Tencent and Ali. At the end of March, Zhou Shengzi, a former Xiaomi executive, was invited to serve as the CFO of ByteDance, which was also regarded as ByteDance preparing for the IPO.

In the 9th anniversary speech, Zhang Yiming said that he likes to watch videos of sailing in the sea on Douyin, and he wants “the external waves are ups and downs, and the heart is calm as usual.” The bytebeat he created, people who like it, think it is the Internet The fearless young people in the world, relying on efficient organizational skills and technical advantages to expand their boundaries, people who do not like it, think that this is just an ambitious but not emotional money-making machine.

But it is undeniable that the aggressive ship he is driving has become a rival that Internet giants cannot ignore. Its enemies can’t keep their minds in peace anymore.

*The title picture comes from Visual China.

Global IPO transaction volume increased by 85% year-on-year, and fundraising increased by 271%

IPO activities of special purpose acquisition companies are more active than in 2020

The first quarter of 2021 is the best-performing first quarter in two decades

The market sentiment has been active so far in 2021. Calculated by the number of transactions and the amount of funds raised, it has been the best first quarter for the same period in the past two decades. Although the market conditions in the first quarter were traditionally quiet, the first quarter of this year broke the tradition and transactions were very active. Not only the traditional IPO market is active, but also the IPOs of special purpose acquisition companies (SPACs) have also reached new highs. Both the number of transactions and the amount of funds raised in the first quarter were higher than those of the whole of 2020. There were a total of 430 transactions in the global IPO market in the first quarter, raising US$105.6 billion, an increase of 85% and 271% year-on-year respectively.

The “new normal” under the new crown epidemic has stimulated market liquidity and brought new opportunities, and promoted the continuous rise of IPO market sentiment. At the same time, speculative transactions and non-institutional investment platforms that are open to the general public (including the younger generation) have become more popular, making investment more convenient than ever. Looking ahead, due to concerns about the imminent adjustment of the market, investor sentiment remains cautious and will continue to use existing liquidity to obtain investment returns.

The Americas market remained resilient in the first quarter, with 121 transactions and a total of US$45.2 billion in funding. On the whole, the trading volume and funding of the Americas Exchange are the highest in more than two decades. The Asia-Pacific region has the highest IPO funding in two decades, with 200 IPOs totaling US$34.3 billion. The Europe, Middle East, India and Africa (EMEIA) region recovered from the quiet market sentiment of 2020 in the first quarter of 2021, and recorded 109 IPOs with a total amount of US$26.1 billion.

From an industry perspective, the technology industry remains strong in the first quarter of 2021, ranking first with 111 IPOs and US$46.1 billion in funding. The healthcare industry ranked second, with 78 IPOs and a total of 14 billion U.S. dollars raised. Calculated by the number of transactions, the industrial products industry ranked third with 57 transactions and a total of 6.3 billion U.S. dollars in funding.

Ernst & Young Global Listing Services Director Wu Jilong Means:

“Market liquidity has flooded the market, making the number of global IPO transactions and the amount of funds raised have reached new highs in two decades. However, many uncertain factors still exist, which may cause market fluctuations and affect the IPO market.

These factors include: the vaccination plan is slower than expected, and the ongoing epidemic hinders any real economic recovery; the tightening of the regulatory process has slowed down IPO applications and the withdrawal of listing applications by companies; the reduction of leverage by banks has led to increased risks in the capital market, etc. Companies need to prepare for listing while the opportunities in the IPO market are still open. ”

In the first quarter of 2021, the number of IPO market transactions and funds raised in the Americas reached a record high

In the first quarter of 2021, the number of IPO transactions in the Americas increased sharply by 218% (total of 121 IPOs), more than three times that of the first quarter of last year. Funding also recorded a stronger than expected trend, reaching US$45.2 billion, a 446% increase from the same period last year and a record high. The healthcare industry still dominates the region’s IPO transaction volume, with 44 transactions, raising US$8.7 billion. The technology industry ranked first in terms of funding, raising US$21.4 billion, with 33 transactions in total.

Similar to the global market, the US IPO market usually slows down in the first quarter. However, in the first quarter of 2021, benefiting from the continued transactions from 2020 and the high valuation led by issuers using technology companies, there were a total of 99 IPOs in the United States during the quarter, raising US$41.1 billion. The outbreak of SPAC IPO activities will continue into 2021, and the number of transactions in the first quarter of this year has broken the record for the entire year of 2020. Although the number of traditional IPO transactions on US exchanges has also risen sharply in the first quarter of this year, the number of SPAC IPOs is still three times that of traditional IPOs. In the first quarter of 2021, there were a total of 300 SPAC IPOs in the United States, raising a total of 93.4 billion U.S. dollars.

The Asia-Pacific IPO market beats expectations, and the momentum remains positive

In the first quarter of this year, IPO activities in the Asia-Pacific region accounted for nearly half (47%) of the global total. There were a total of 200 transactions in the district during the quarter, raising US$34.3 billion, the highest amount raised in the first quarter in two decades, breaking the record in the first quarter of 2010. As far as the industry is concerned, the technology industry surpasses other industries in terms of the number of transactions and the amount of funds raised. There are 51 transactions and US$17.7 billion in funding.

Cai Weirong, Head of Listing Services, EY Asia Pacific Means:

“This is the first quarter of the new year, and it is also the first year of the new president of the United States. The new team will handle Sino-US relations. In addition, entering the second year of the new crown epidemic, the market is both optimistic and full of optimism. Uncertainty, this may cause volatility in the Asia-Pacific IPO market in 2021. Companies in the Asia-Pacific region need to maintain resilience in this challenging environment in order to successfully go public.”

The strong IPO momentum in Greater China reflects its positive economic growth. Despite the implementation of the new IPO review process by Chinese regulators, the number of transactions and the amount of funds raised in Greater China have increased by 51% (total of 133 transactions) and 121% (US$28.9 billion) respectively year-on-year.

In Greater China, it is expected that the full implementation of the IPO registration system in Mainland China will have a positive impact on the capital market. The registration system is one of the most significant reforms in China’s capital market. The measures will help the market continue to develop in the long term. Together with the delisting mechanism and the newly released IPO approval process, it is expected that the quality of listed companies in Mainland China will gradually be optimized.

In Hong Kong, as economies around the world gradually get back on track and China’s concept stocks continue to be listed on the Hong Kong Stock Exchange, Hong Kong’s IPO activities are expected to remain active.

He Zhaofeng, Head of Listing Services, Ernst & Young Greater China Point out:

“Driven by the economic recovery and abundant market liquidity, IPO activities in the first quarter of 2021 will remain strong. The tightening of the IPO approval process may have a certain degree of impact on A-share listing activities, but the country’s 14th Five-Year Plan It is also good for the listing of companies in related key industries. In Hong Kong, the return of Chinese concept stocks will boost the number of IPOs. Although the volatility of the capital market is expected to increase this year, we believe that 2021 will still be the largest IPO in Greater China. year. ”

EMEIA’s IPO market in the first quarter was more active, optimistic and more unicorns appeared

In the first quarter of 2021, the EMEIA area will take on the momentum of the fourth quarter of 2020 and have a good start. The continued growth of IPO activity in the region stems from high valuations, low volatility and confidence in the gradual restart of the economy. Overall, there were 109 IPOs in the district, a year-on-year increase of 179%. The amount of funds raised was US$26.1 billion, an increase of 646% year-on-year.

Despite the restrictions imposed by the new crown epidemic, the European market remains resilient, and investor sentiment has improved. IPO activity in Europe resumed its trajectory in the first quarter of 2021. The number of transactions rose by 315% (83 cases in total), and the amount of funds raised increased by 1,814% (US$23.1 billion). In the UK, investors are still interested in investing, and companies are taking full advantage of the accelerated growth due to the epidemic and the high liquidity of the market. There were 17 IPO transactions in the UK in the first quarter, raising a total of US$7.5 billion, an increase of 467% and 1,031% respectively.

Outlook for the second quarter of 2021: uncertainty may increase market volatility, triggering a “perfect storm”

Although market sentiment tends to be positive, uncertainties will increase, causing market volatility. The new crown epidemic in various countries around the world may still rebound. In addition, different countries’ vaccination schedules, geopolitical risks, inflation, interest rates and the ability of global financial markets to withstand shocks may all be the trigger points of the perfect storm. Regardless of whether the company decides to conduct a traditional IPO, SPAC or direct listing, companies that are well prepared, are in a hot industry, and have an appropriate investment story should act now and seize the trading opportunities that are still open.

This article is written for the purpose of providing general information and is not intended to be relied upon accounting, taxation, legal or other professional advice. Please ask your consultant for specific advice.

Jiwei Net News On April 14, the Guangdong Supervision Bureau disclosed an announcement on the acceptance of counseling and registration of Guangdong Hetong Jianye Technology Co., Ltd. (hereinafter referred to as Hetong Technology). It has completed the registration of counseling with the Guangdong Securities Regulatory Bureau on April 14. The counseling agency is Dongguan Securities.

According to the official website, Hetong Technology was founded in 2002 and is a national high-tech enterprise specializing in the production of PCB printed circuit boards and one of the top 100 enterprises in China’s printed circuit industry. It has the production technology capability to produce high-precision, high-density single-sided, double-sided, multi-layer circuit boards and LED light strip boards, carbon oil boards, aluminum substrates and new energy automobile boards.

It is understood that Hetong Technology is a NEEQ delisted company. Its operating income in 2020 was 321 million yuan, a year-on-year increase of 15.85%; the net profit attributable to shareholders of listed companies was 41.497 million yuan, a year-on-year increase of 38.28%; the deducted non-net profit attributable to shareholders of listed companies was 140.83 million yuan, a year-on-year decrease of 37.71% .

From the perspective of the three main businesses of Tonghe Technology, the new energy vehicle industry achieved revenue of 85.671 million yuan, an increase of 18.02% year-on-year, and a gross profit margin of 19.71%; the power industry achieved revenue of 99,587,400 yuan, an increase of 19.42% year-on-year, gross The interest rate was 38.91%; the military industry and other industries achieved revenue of 113 million yuan, an increase of 3.11% year-on-year, and the gross profit rate was 61.83%.

Tonghe Technology stated that despite the adverse effects of the new crown epidemic in 2020, the company’s management team mobilized all positive factors to give full play to its own marketing promotion and technology research and development advantages to realize the three strategic areas of smart grid, new energy vehicles and military equipment The overall growth of operating income. Specifically include: overall planning, clear goals, focus on business, focus on the market and products, increase investment in key links, and enhance core competitiveness; mergers and acquisitions and integration, play a synergistic effect, and enhance the company’s product competitiveness and market share in the field of military equipment ; Initiate refinancing to provide new growth momentum for the company’s long-term development. (Proofreading/Lee)

At the same time, Baby-Friendly Room began to adjust the strategy of rights and interests members. In that year, the consumption of all paid members in the Baby-Friendly Room accounted for 37% of the total consumption of members. In the future, the Baby-Friendly Room will attract more consumer members to become the company’s rights and interests paying members.

Although the baby-friendly room is active in action, this cannot change the result of the double decline in earnings in 2020: revenue fell 8.29% year-on-year to 2.256 billion yuan, and net profit attributable to mothers fell 24.43% year-on-year to 117 million yuan.

From a competitive point of view, this result may be inevitable. Due to the structural advantage, the baby room cannot obtain the proportion of accounts payable and bills payable like Kidswant. Therefore, from the result, Kidswant won in 2020. Both profit growth: revenue increased by 1.37% year-on-year to 8.355 billion yuan, and net profit attributable to the parent increased by 3.71% year-on-year to 391 million yuan.

If the ipo advances smoothly, Kidswant is expected to expand its competitive advantage over its competitors through the advancement of fund-raising projects. This advantage will further compress the growth space of small companies such as baby-friendly rooms.

The above is the investment background of Kidswant who is going to be listed on the GEM.

Kid king

Kidswant is a retailer of maternal, infant and child products and related value-added service providers. As of the end of 2020, Kidswant has 434 large-scale digital entities directly operated stores in 20 provinces (cities) and 131 cities across the country, serving more than 42 million Member families, the number of service members in 2017 was only 11.54 million.

Maternal, infant and child products are the core source of income for Kidswant. Kidswant sells food (milk powder, snack food supplements, nutrition and health care), clothing items (underwear, home textiles, children’s shoes for outer wear), consumables (diapers, toiletries), to target user groups through offline stores and online channels. Durable goods (toys, cultural and educational intelligence, lathes and chairs) and other categories, with more than 10,000 products.

In the product revenue structure, milk powder is the first and absolutely dominant source of income: from 2018 to 2020, milk powder revenue accounted for 50.32%, 53.99%, and 57.86% respectively, which is not much different from the performance of its peers. In the same period, baby-friendly rooms Milk powder revenue accounted for 46.04%, 46.99%, and 49.6%, respectively.

Obviously, in this level of competition, Kidswant will obtain lower milk powder procurement costs with a larger procurement scale due to the advantages of the scale of revenue. Among the fund-raising projects, the “omni-channel retail terminal construction project” is expected to build 300 digital direct-sale stores and the corresponding “omni-channel logistics center construction project” in the next three years, which will further consolidate this advantage.

In the construction of 300 directly-operated stores, it is expected to open 100 stores every year. On the one hand, Kidswant will continue to strengthen its expansion in key areas such as Jiangsu, Anhui, Zhejiang, Sichuan, and Chongqing, and sink to third- and fourth-tier cities, increase the density of outlets, and strengthen its dominant position in East China and Southwest China; on the other hand, Kids Wang will significantly increase the number of stores in economically developed regions such as Guangdong, Shanghai, Henan, or populated provinces to build brand awareness; In addition, Kid Wang will further expand to Yunnan, Shanxi, and Beijing based on the existing regions. Market coverage, consolidate and enhance the company’s competitive advantage.

The logistics project will solve the problem that Kidswant’s current warehousing layout is relatively scattered and the short-distance storage capacity is limited. The commodity allocation needs of most stores are still met by cross-regional warehousing, and long-distance transportation makes the allocation time longer, which directly affects consumers The problem of consumer experience in the store.

The gradual resolution of this problem will further reduce the proportion of Kidswant’s operating costs. As Pat Dorsey said, “Although the establishment and operation of a distribution network is a huge expense for the basic service industry, trucks The incremental profit for each additional shipment is also considerable. Once the fixed costs are recovered, the profit margin of sending additional goods along the regular route will be very amazing, because the variable cost of sending additional goods is almost equal to zero. ‘

In addition to maternal and child products, Kidswant also provides value-added services such as membership development for suppliers (brands), naming of interactive activities, product online and offline promotion, advertising, etc., as well as amusement services for maternal and child customers And childcare services, although this income does not account for a high proportion, it subtly enhances the value of the intangible assets of Kidswant.

For children’s amusement services, customers can purchase single-time amusement cards or stored-value amusement cards for consumption through online or offline channels; parent-child interaction activities mainly refer to KidW’s offline physical stores, including New Mother Academy, climbing competitions, etc. All kinds of interactive activities, enhance customer stickiness, and income event entrance fees.

As of the signing date of the prospectus, Kidswant has nearly 4,700 childcare consultants who hold the national nursery professional qualifications. They can simultaneously assume multiple roles such as nutritionists, mothers and infants nurses, and child growth trainers. Such staff can be equipped Provides a variety of value-added services for mothers, infants and children, such as lactation, baby touching, baby haircut, and pediatric massage. Customers can purchase a single service according to their needs, or purchase multiple services through prepayment. After the purchase is completed, the customer can directly make an appointment through the phone, the Kidswant app, etc., for in-store service or to apply for professional technician on-site service.

Compared with its peers, Kidswant has a certain scale advantage, but still faces the impact of the decline in the number of newborns: From 2010 to 2016, the number of newborns in my country has shown an overall upward trend, especially in 2016 under the “comprehensive two-child” policy. After the formal implementation, the birth rate reached 12.95‰, and the number of births reached 17.86 million, the highest peak since 2000. However, with the full release of the policy dividend, the birth rate of my country’s newborns has been declining continuously from 2017 to 10.48‰ in 2019, and the demographic dividend has gradually declined. In the future, for example, the birth rate of our country will continue to decline.

Although Kidswant still has a lot of room for growth in terms of industry concentration, the downward trend in the number of newborns will suppress market valuation for a long time.

to sum up

Generally speaking, based on the characteristics of the market, Kidswant will record a higher initial valuation after the GEM ipo in the future, and as the sentiment declines and the value begins to appear, it is a good choice to invest against the trend at that time.

By Zhou Zhiwei

Author|Zhou Zhiwei

Edit | lala

From Till Bücker, tagesschau.de On Wednesday, the largest US trading platform for cryptocurrencies will venture onto the trading floor. Proponents of Bitcoin and Co. see this as a further step towards broader acceptance of digital currencies as an asset class. According to the company’s own information, 114.9 million shares are to be listed under the symbol “COIN” on the New York technology exchange Nasdaq via a direct placement without the support of investment banks and pricing procedures. This makes Coinbase the first crypto company to be listed on a major American stock exchange. Experts also describe the stock market debut as a groundbreaking event for the regulation of digital currencies.

43 million users

The company from San Francisco was recently valued by investors at almost 68 billion dollars. According to the business magazine “Forbes”, Coinbase could achieve an overall valuation of more than 100 billion dollars in the transaction – making it one of the largest IPOs in recent years. In October 2018, the company was valued at just eight billion dollars in a financing round. In 2012, Coinbase boss Brian Armstrong and Fred Ersham, who is no longer operational as a director, founded the platform to enable easy and fair trading in cryptocurrencies – apparently with success. According to the company, around 43 million investors in over 100 countries use Coinbase to invest. 2.8 million at least once a month.

Brian Armstrong is the boss and founder of Coinbase. At least Coinbase is benefiting from the transactions: for 2020, the company reported revenues of around $ 1.3 billion, which was more than double the previous year. The bottom line was a profit of $ 322 million. In 2019, Coinbase had earned a minus of 30 million. The soaring is closely related to the Hype about cryptocurrencies. Bitcoin and Ether in particular have only known one direction since autumn, with minor exceptions: up. Both currencies recently reached a new record high. At the end of September, a Bitcoin had cost $ 10,000. Today, investors have to pay more than $ 60,000 for the oldest and largest cyber currency.

How does trading on crypto exchanges work?

Anyone who wants to trade cryptocurrencies – for example, shares in Bitcoin – has several options. Usually there is different from the stock market no middleman like a bank or broker. Investors can therefore buy and sell mainly via crypto exchanges. In addition to Coinbase, this also includes, for example, the Stuttgart Stock Exchange with its BISON app and the BSDEX (Stuttgart Stock Exchange Digital Exchange) as well as FTX, Binance, Bitstamp, Bitso or Kraken, which are also planning an IPO in the coming year. Investors set up an account at the crypto exchanges and can trade with relatively low transaction costs, store their coins and exchange them for traditional currencies. With traditional exchanges, on the other hand, brokers are always interposed to process the transactions. What is an advantage in terms of transparency is, on the other hand, also a risk. “It can happen that stock exchanges are exposed to hacker attacks and the money disappears,” said Leon Berghoff from the crypto trading company Sixtant. According to a report by the server service provider “Atlas VPN”, there were more than 120 hacker attacks on cryptocurrencies in 2020 alone. A lack of government regulation could also become a problem.

Investors should look carefully

“There are now over 200 crypto exchanges worldwide. Some of them are well done, but others are not”, says Philipp Sandner, head of the Blockchain Center at the Frankfurt School of Finance & Management, in an interview tagesschau.de. Regulation in this country offers the best protection against a total loss of the investment. For example, Coinbase, the Stuttgart Stock Exchange, bitcoin.de or the Berlin crypto bank Bitwala have applied for approval from the Federal Financial Supervisory Authority (BaFin).

Expert Sandner advises paying attention to licenses. “These four companies should get the licenses pretty sure. With all the others, investors should stay away from it if they are not entirely sure,” said Sandner. Many foreign exchanges have not applied for a BaFin license and deliberately circumvented regulation due to high costs.

Security through a good reputation

In addition, a certain reputation is also helpful. “Once a company has built up a good reputation like the Stuttgart Stock Exchange, it will do everything possible not to damage it,” says Sandner. That is an additional protective mechanism. The reputation also contributes to success at Coinbase. The group has always complied with the rules and is therefore even allowed to advertise. In addition, hackers have never got through. “You can compare it a little with airlines. As soon as an airplane had problems, the whole country suddenly no longer wants to fly with it – and vice versa,” said the crypto expert. Investors should first be careful with unknown and non-established crypto exchanges. The IT measures on many platforms have meanwhile become more professional. In general, however, cybercrime can never be ruled out.

CEO Brian Armstrong has made $ 12.4 billion on the list of the world’s billionaires

On April 14, the largest crypto exchange in the US officially went public on the Nasdaq with a value of up to $ 86 billion. This helped the fortune of co-founder and CEO Brian Armstrong rise to 12.4 billion USD, becoming the 175th person on Bloomberg’s list of world billionaires.

After earning a master’s degree in computer science from Rice University, CEO Armstrong founded UniversityTutor, a website that offers online tutoring services and has been running for almost a decade but with little success. He then moved on to work as a software engineer at Airbnb for about a year.

By 2012, founders Brian Armstrong and Fred Ehrsam officially partnered to create Coinbase, a cryptocurrency exchange that allows users to buy and sell more than 40 different digital assets, including cryptocurrencies. like Bitcoin, Ethereum and Litecoin.

It is known that the 38-year-old billionaire currently owns about 40 million Coinbase shares. “I think some digital currencies will eventually be the world’s reserve currencies. I see their future,” said CEO Armstrong.

This Coinbase IPO is considered a turning point in the market because this is the first time that a company associated with a cryptocurrency has been listed on the public.

In the last two years, the value of Bitcoin has increased dramatically, making the names of CEO Brian Armstrong and Coinbase become famous in the tech world with about 56 million users worldwide, managing more than $ 320 billion in total volume. deal.

The bullish momentum of digital currencies such as Bitcoin, Ethereum currently reaching the milestone of $ 63,000 and $ 2,500 respectively are considered leverage to help Coinbase achieve impressive revenue and profit.

In 2020, this crypto exchange had a turnover of $ 1.3 billion. In its preliminary report for the first quarter of this year, Coinbase showed that revenue for the same period increased 9-fold to $ 1.8 billion and net income increased from $ 730 million to $ 800 million.

After the IPO, Coinbase is receiving a lot of expectations from experts as well as those who believe in cryptocurrencies for a solid future in the market.

VinFast expects a higher price than Ford

On April 12, Bloomberg reported that Vingroup was considering bringing VinFast on the US stock exchange to raise $ 2 billion. According to this source, the car company is currently working with consulting units to IPO (initial public offering) right in the second quarter of 2021.

The source of Bloomberg confirmed that if successful, the IPO could push VinFast’s valuation up to $ 50 billion. At that time, VinFast will immediately close to the top 10 largest car manufacturers in the world, on par with famous manufacturers such as Hyundai (51.38 billion USD), Honda (50.86 billion USD) and surpass Ford (49, 47 billion USD).

With a scale of $ 2 billion, VinFast’s IPO will be the largest ever IPO of a Vietnamese company, after Vinhomes’ first share sale worth $ 1.4 billion in 2018. This could also become the first Vietnamese company to list in the US.

Although VinFast is a fledgling company, the valuation may outstrip traditional Asian carmakers like Suzuki ($ 21.29 billion) and Japan’s Nissan ($ 20.63 billion).

VinFast IPO details including the size and timing may change as discussions with the consultant are in progress. Bloomberg also said that Vingroup representatives declined to comment on this information.

The top 10 car manufacturers with the highest market capitalization are currently Tesla of the US, Toyota of Japan, Volkswagen of Germany, Daimler of Germany, General Motors (GM) of the US, BMW of Germany, BYD and Nio of China. , Stellantis and Ferrari.