The rumors of scorn (MEGVII) listing in Hong Kong finally settled.
On the evening of August 25th, Beijing time, contempt for officially submitting a prospectus to the Hong Kong Stock Exchange, launching a listing plan on the Hong Kong Stock Exchange, the financing amount may be as high as 1 billion US dollars. This means that if the review is passed, contempt is also expected to become the first AI in China.
First, the secret behind the “loss” of $5.2 billion
How low revenues support high valuations has been a key issue for the market to question domestic AI startups. As the first company to disclose financial data, the contemptuous prospectus is also considered to be one of the best reference answers.
According to the contempt for the prospectus, in 2016-2018, the devaluation was 343 million yuan, 759 million yuan and 3.352 billion yuan respectively. As of the first half of this year (June 30, 2018 to the same period of 2019), the loss amount reached an astonishing 5.12 billion yuan, which seems to be a “lossy big”.
Is the AI Unicorn Company despising really a “lossy”? But in fact, it’s not.
According to the information of the company’s prospectus, the revenues in 2016, 2017, 2018, and 2019 were respectively 67 million, 313 million, 1.43 billion, and 949 million yuan; contempt for 2018 The adjusted net profit was 32.2 million yuan. As of 2018 and 20 June 2019, the adjusted net profit of contempt was 32.67 million yuan. During the performance period, the operating profit was neglected.
Why does a financial report have two different interpretations? This is actually due to the change in the fair value of the preferred stocks and the continuous R&D investment. It is only the statement profit and loss brought by the financial standards, which is the adjustment of non-cash accounts, not the real business situation.
In fact, this is also a problem that many well-known technology companies and Internet companies have faced when they listed on Hong Kong stocks. This situation has also occurred in the listing process of Xiaomi and Meituan, which is “the change in the fair value of financial liabilities at fair value through profit or loss”, which is only the statement profit and loss brought by financial standards.
For example, in May 2018, Xiaomi Group disclosed that the prospectus sprinted Hong Kong stocks. In 2017, the fair value change of convertible redeemable preferred stocks of up to -54 billion yuan made Xiaomi’s current net profit loss of RMB 43.9 billion, excluding This non-operating data has adjusted non-IFRS margins of $5.36 billion.
In general, “convertible redeemable preferred stock” isAfter the issuance, the holder is allowed to convert it into other kinds of stock under certain conditions. In most cases, a stock company’s conversion stock is converted from a preferred stock to a common stock, or from a preferred stock to another preferred stock. Preferred stocks may be classified as either liabilities or equity in accounting, involving complex financial judgments. Domestic banks issue preferred stocks for capital adequacy considerations, which are generally classified as equity through design; but companies such as Xiaomi, Meituan, and contempt have no such claims, so they are generally classified as Liabilities are measured at fair value, which is generally recognized by audit firms and auditors.
In the case of contempt, according to the relevant content on page 229 of the prospectus, in 2018, 13,550,257 shares of the C-3 series of preferred shares were issued to a shareholder, and 6,503,012 shares of Series A preferred shares and 2,515,061 shares were repurchased. The B-1 series of preferred stocks caused some losses. At the same time, the fair value measurement and changes are included in the profit and loss, resulting in a loss of 5.12 billion yuan in the first half of 2019.
It is worth mentioning that it is defying the listing of different shares in the same stock. If you despise the listing, it will become the third company to land in Hong Kong stocks under the same rights and shares after Xiaomi and Meituan. According to the prospectus, as of the last practicable date, the founders team Yinqi, Tang Wenbin and Yang Mu collectively held 16.83% of Class A shares, equivalent to 66.92% of voting rights, which means that the founding team still maintains independent control over the company after the listing. right.
Second, where is the annual growth rate of 358.8% revenue from?
As the most well-known artificial intelligence company in China, defying the submission of the prospectus, its revenue data is one of the most concerned.
The contempt of the prospectus shows that the revenues in 2016, 2017 and 2018 were 67.78 million yuan, 313 million yuan and 1.427 billion yuan respectively. The compound annual growth rate from 2016 to 2018 was 358.8%. For a company established in 2011, in less than eight years, the annual revenue has exceeded 1.4 billion yuan, and its growth is not unpleasant.
Where does the contempt for revenue come from?
From the information revealed by the contempt of the prospectus, the current main business is divided into three major business segments: personal Internet of Things, urban Internet of Things and supply chain IoT.
Among them, the personal Internet of Things is divided into personal device solutions and SaaS solutions. The former is mainly aimed at smart terminal manufacturers such as smart phones, providing technical solutions for identity authentication and optimization of photography. The SAAS solution mainly refers to providing identity authentication solutions based on face features and face comparison for third-party enterprises; the urban Internet of Things is mainly a solution for smart cities and smart communities, including customers in cities and communities, and campuses. End users and system integrators in other fields. Supply chain IoT solution, mainly for warehousing and logistics scenarios, using robotics technology to achieve automated sorting, transportation, etc., which also utilizes computer vision technology; in addition, this part of the business also includes the more popular wisdom. retail.
Based on contempt for prospectus information, the city’s Internet of Things business is currently the company’s most important source of business. In 2017, this part of the revenue was about 168 million yuan, and in 2018 it grew rapidly to 1.057 billion yuan. In the first half of 2019, this part of the revenue reached 690 million yuan, compared with 186 million yuan in the same period last year.
The personal Internet of Things solution SaaS service revenue is the second largest source of revenue. In 2017, this part of the business revenue was about 140 million yuan, and in 2018 it increased to 170 million yuan, an increase of about 25%. In the first half of 2019, this part of the revenue exceeded 124 million yuan, compared with 70 million yuan in the same period last year.
The supply chain IoT is a new business in the later period. This part of the revenue was 31.1 million yuan on June 30, 2018, and 47 million yuan in the first half of 2019.
The highest proportion of revenue in the city’s IoT business is not surprising. The most well-known part of this business is the application of AI in public security scenarios. This is also the main source of revenue for today’s well-known computer vision companies.
