Emma Technology is on the road.
Editor’s note: This article is from the WeChat public account “IPO that thing” (ID :ipopress), author Puffson, data support Pythagorean big data.
As early as more than a year ago, Emma Technology submitted a listing application to the Securities and Futures Commission.
On September 5, the official website of the China Securities Regulatory Commission disclosed the draft of the Emma Technology Prospectus in advance. For Emma Technology, the brand that is more familiar to the outside world is the Emma electric car that Jay Chou has endorsed for more than 10 years. “And the very slogan of the slogan “Love will act now.”
Jay Chou’s “immediate action” shouted for 10 years, but in the matter of landing on the capital market, Emma Technology was “slow in action”. A group of “little brothers” around the market have already listed, and Emma Technology, the former industry boss, has just updated the IPO prospectus.
But the re-submission of the prospectus does not guarantee that Emma Technology will “stable” the IPO. Faced with the current situation of shared economic cooling and the decline of driving business, whether it can find new business growth points will be affected to some extent. The success or failure of Emma Technology’s IPO.
Secondary IPO
In fact, the submission of the prospectus is the second time for Emma Technology IPO. As early as June 22, 2018, Emma Technology submitted the listing application to the CSRC.
However, the cardThe Board of Supervisors subsequently submitted a feedback to Emma Technology, requesting a written response from Emma Technology on a total of 58 questions on the three aspects of normative, information disclosure and financial accounting information. Until August 20 this year, Emma Technology submitted the documents again. According to the IPO plan, Emma Technology will issue 65 million A shares on the Shanghai Stock Exchange, accounting for 16.10% of the total issued share capital, raising funds of approximately 1.681 billion yuan.
The prospectus shows that Emma Technology is mainly engaged in the R&D, production and sales of electric bicycles, electric mopeds and electric motorcycles. Among them, Emma Technology’s operating income in 2016, 2017 and 2018 were 6.444 billion yuan, 7.794 billion yuan and 8.90 billion yuan respectively; at the same time, the net profit was 447 million yuan, 263 million yuan and 430 million yuan respectively; The net profit attributable to shareholders of the parent company after non-recurring gains and losses was 381 million yuan, 313 million yuan and 392 million yuan respectively.
In 2017, Emma Technology’s net profit fell by 41.49%. For the sharp decline in profits in the year, the company explained that it was mainly due to increased competition in the industry, rising raw material prices, increased advertising and shareholding payments.
As of the first six months of 2019, Emma’s latest revenue and net profit were 4.455 billion yuan and 199 million yuan, respectively. The net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was 1.93 billion yuan.
In terms of revenue composition, Emma Technology’s main business comes from electric bicycles, electric two-wheeled motorcycles, electric tricycles, bicycles and accessories sales. Electric bicycles are among the most important sources of income. In 2016, 2017 and 2018, electric bicycles accounted for 96.60%, 87.89% and 88.28% of the main business revenue; in the first six months of 2019, this revenue The proportion dropped to 73.66%, because the company’s new electric two-wheeled motorcycle business accounted for 19.58% of revenue. Emma Technology said that the reason for the addition of this business is due to the implementation of the new national standards for electric bicycles since April 15, 2019. Most of the original luxury electric bicycles were included in the scope of electric two-wheeled motorcycles.
It is also worth noting that the ups and downs of the sharing economy over the past few years have had a direct impact on the performance of Emma Technology. In 2017 and 2018, the bicycle business accounted for 6.44% and 3.06% respectively, and in 2017 it became the second largest source of income after electric bicycles.
Sharing the economy to cool down,Where is the next highlight of Emma?
The rise of the sharing economy has indeed brought a lot of benefits to Emma.
In 2017, Emma Technology and Mobye began to cooperate, and the number of bicycle orders increased significantly, contributing 346 million yuan in sales, accounting for 4.44% of total revenue. However, in 2018, the order volume from Mobai declined. Instead, it was the green orange bicycle of Didi, and Hangzhou Qingqi Technology Co., Ltd., the operator of the green orange bicycle, also surpassed Mobai to become Emma. The top ten customers in the technology reporting period, as well as the largest customers sharing bicycles.
In 2019, the entire shared bicycle industry continued to cool down. Although Green Orange and Mobai were still important customers of the Emma electric bicycle business, they only contributed 18.24 million and 2.66 million yuan in sales in the first half of the year. The company’s bicycle business revenue ratio was only 0.75% in the first half of 2019, and it returned to the level of 2016.
However, with Meituan, Didi and even almost all Internet giants and investors no longer regard shared bicycles as a good business model, Emma Technology naturally cannot rely on this for the past 3 years. A “cake” that brings huge benefits. This also means that whether you can find a new business growth point will affect the success or failure of Emma Technology’s IPO to a certain extent.
The new profit growth point needs to be explored, and the original business of Emma Technology has also gone wrong. Among them, the failure of the quality inspection of Emma electric vehicles continues to occur.
In the electric vehicle sampling information announced by the official website of the Beijing Municipal Market Supervision Administration on August 29, the five batches of electric bicycles produced by Tianjin Emma Motors Technology Co., Ltd. have unqualified problems, including the highest speed and pedaling. Capacity, vehicle quality, reflector and horn device, undervoltage, overcurrent protection and other issues. In 2018, the products produced by Tianjin Emma also appeared in the unqualified list of the Guangdong Provincial Market Supervision Administration.