Due to the return of Alibaba, many Chinese stocks are also waiting for the listing opportunities in the two places.
Editor’s note: This article comes from the WeChat public account “I knew it early” (ID: ipozaozhidao), author Shi Yuanjing.
According to the IPO, Baidu has recently conducted an internal evaluation of its secondary listing in Hong Kong.
Following Alibaba (9988.HK) formally listed in Hong Kong in November last year, Ctrip (TCOM.US) and Netease (NTES.US) recently came out to discuss the secondary listing with the Hong Kong Stock Exchange. After the matter, Baidu also recently conducted an internal evaluation of its secondary listing in Hong Kong.
Since 2018, the Hong Kong Stock Exchange revised its listing regulations to allow mainland companies to list in Hong Kong in the form of a secondary listing, and to allow listed companies with different rights and unprofitable biotech companies to list in Hong Kong. The Hong Kong IPO market is gradually moving towards more Yuanhua, a more dynamic road.
According to data from PricewaterhouseCoopers, Hong Kong ranked first in global IPOs with a total raised of HK $ 315.5 billion in 2019, and the amount of financing increased by 10% compared to 2018. A total of 184 companies were listed on the market for the first year. The total amount of funds raised in the Hong Kong IPO market for the year can reach 230 billion to 260 billion Hong Kong dollars.
Because of the return of Alibaba, many Chinese stocks are also waiting for the listing opportunities in the two places. The listing regulations of the Hong Kong Stock Exchange provide that Mainland enterprises are allowed to list in Hong Kong in the form of a secondary listing, but they must first be listed on the high-end market (NYSE, NASDAQ or London Stock Exchange) and have a market value of not less than HK $ 40 billion, or at least HK $ 10 billion and revenue of at least HK $ 1 billion in the most recent year.
At present, there are nearly 200 mainland companies listed on the US stock market. There are about 30 US stocks that meet the criteria, and another 4 have market value close to the number. Among them, Jingdong (JD.US), Baidu (BIDU.US), Momo (MOMO.US), Bilibili (BILI.US), 51job (JOBS.US) all meet the requirements.
In August 2005, Baidu officially listed on the Nasdaq Stock Exchange with an issue price of US $ 27. The opening price was US $ 66, and the first day of the IPO closed at US $ 122.54, an increase of 354%. It was a five-year high of the US stock market at that time, with a market value of US $ 3.958 billion, which was one of the most brilliant records of China’s stocks.
In 2010, Google (GOOG.US) announced its withdrawal from China. Baidu ’s revenue increased significantly and its profits increased by 137% year-on-year, further solidifying its number one position in China ’s search field.
However, in the past 14 years, Baidu ’s business model and values have been questioned, and the “Wei Zexi Incident” has triggered a further wave of word of mouth crisis. The “bidding ranking” law has brought profits to Baidu. Growth, but also triggered public criticism.
With the advent of the mobile Internet, Baidu is facing many competitors in the Internet advertising market. App such as Toutiao, Kuaishou, Douyin, which rely on algorithm distribution, have gradually risen, forming a new pattern of Internet advertising.
In recent years, Baidu has finally started a “counterattack” and has begun to vigorously develop the mobile ecosystem. The core of its business has shifted from large search to information flow business in exchange for growth and innovation. With Baijiahao and smart applets as the main support, to break down the barriers of information, knowledge and services, and have invested in head-hanging content such as Zhihu, Seven Cat Novels, and Nutshell, and access Baidu App to further expand Content dimension to meet users’ diverse needs and increase stickiness. In the field of short videos, Baidu has also begun to make efforts to launch good-looking videos and small videos for the whole people, and has launched a series of upgrade support programs to encourage high-quality content creators.
In 2019, Baidu experienced its first loss since listing. Its revenue in the first quarter of 2019 was 24.1 billion yuan, an increase of 15% year-on-year, but the current net loss was 327 million yuan. The main reasons are the increase in traffic acquisition costs, the increase in sales management and marketing expenses, and the decrease in advertising revenue caused by the macroeconomic slowdown.
In the third quarter of the same year, thanks to the significant increase in Baidu ’s in-app search and information flow profit margins, which helped improve the overall profit margin, Baidu achieved revenues of 28.1 billion yuan. Under non-GAAP, net The profit was turned into a profit of 4.4 billion yuan.
BaiduBecause artificial intelligence is driving the digital economy to evolve into a smart economy, it will further leverage its technological advantages in the field of artificial intelligence to become the builder of the era of the smart economy.
As of the close of US stocks on January 3, Baidu ’s market value reached 46.4 billion U.S. dollars, but it was far less than BAT ’s other two giants Alibaba ’s market value of US $ 582.2 billion and Tencent ’s market value of HK $ 3.66 trillion.