Zhou Hao
Three decades into the mainland Foxconn Technology Group in the eve of the Spring Festival in 2018 finally decided to go public in the country.
On February 1, Foxconn Industrial Internet Co., Ltd. (hereinafter referred to as 'Foxconn Shares') officially submitted the draft prospectus to the CSRC and started the process of landing A shares.
"China Business" reporter noted that as the world's largest electronics foundry, Foxconn brand in many times in recent years to seek the transformation of the road, but with the exception of Sharp acquisition, the remaining number of initiatives are not satisfactory. The success of Foxconn shares, such as IPO, will also help break through the long-standing transformation dilemma with its domestic capital markets.
IPO take the express train
Since the Foxconn shares reported to the prospectus, its 'all the way' IPO speed has been subject to market attention.
February 1, Foxconn shares submitted to the prospectus draft; February 9, the Commission announced the draft prospectus and feedback, the data show that it is listed on the Shanghai Stock Exchange, the sponsor for the CICC; February 11, Foxconn Shares submitted for the second draft; February 22, prospectus into the 'pre-disclosure update' status.
Under normal circumstances, the domestic A-share listing process to go through the declaration, admissibility, prior disclosure, feedback, feedback and update the pre-disclosure, preliminary review, the issuance examination committee, approved the issuance of a series of processes, IPO queuing time is also the main Consumption was disclosed in advance to feedback and update the disclosure in advance of the previous. In general, the line of time in the basic six months to a year or so, but the Foxconn shares just took half a month to finish the process. Personage analysis, the next move is the Foxconn shares on the haircut, and then routinely received the SFC approval, the fastest in March.
This seems to confirm the rumor of regulators on the new economic enterprises IPO to open fast track rumors February 28, there is news that the Commission will issue the Commission, including biotechnology, cloud computing, artificial intelligence, high-end manufacturing these four new economic areas Listed companies to be listed, the market value reached a certain scale 'Unicorn' enterprises, to relax approval time and profitability standards.
Founded on March 6, 2015 Foxconn shares not only meet this standard, the threshold of its establishment less than three years also received special approval from the relevant departments.
According to "the initial public offering of shares and the Listing Management Measures", 'the issuer since the establishment of limited liability company, the continued operation of time should be more than 3 years, subject to the approval of the State Council.' Foxconn shares submitted to the prospectus for 2018 February 1, from the establishment of its full three years to one month, but in advance of the application of Foxconn shares still enter the IPO audit fast track.Its prospectus also shows: 'As of this prospectus issued, the company continued to operate In less than three years, the Company has applied for a waiver from the competent authorities for the aforesaid circumstances.
Relevant information shows that there were also precedents of non-compliance but special listing approval. However, such special approval enterprises were crowned with "prefix", such as China State Construction, China State Construction and other large central enterprises, and Foxconn shares have also become the Special approval of the first private-owned enterprises
Low net profit and dilemma
Foxconn, the world's electronics industry foundry leader, has a huge revenue performance in 2016. Foxconn achieved revenue of 932.769 billion yuan in 2016. Even the split-listed Foxconn shares exceeded its revenue Most A-share listed companies.
According to the information published in the prospectus, revenue of Foxconn shares were as high as RMB272.8 billion, RMB272.712 billion and RMB354.544 billion, respectively, with a CAGR of 14% from 2015 to 2017. Comparing with revenue in 2017, Only 13 of A-share listed companies in 2016 surpassed this volume, so to speak, Foxconn's shares after the successful IPO will become another big share of A-shares.
Foxconn shares gross margin, net profit margin is not out of color, despite the 100 billion-level revenue scale, subject to the current situation of the low margin of the electronics manufacturing industry, prospectus data show that from 2015 to 2017, Foxconn shares attributable to the parent net profit To 14.35 billion yuan, 14.366 billion yuan and 15.868 billion yuan, with an average annual compound growth rate of 5.16% and net interest rate hovering around 5%. In 2017, the consolidated gross profit margin of the Company was approximately 10.14%, of which communication network equipment business, cloud service The equipment business accounted for 60.5% and 33.96% of the Company's revenue respectively, but the gross profit margin of the two businesses was only 13.65% and 4.65% respectively. Although the gross profit margin of precision tools and industrial robots was as high as 49.23% Income accounted for only 0.27%, so the gross margin of Foxconn shares pull is not obvious.
In addition, Foxconn shares there is also an objective there is no actual control, related party transactions, peer competition and other issues of technical level, despite the rapid access to the IPO channel, but the market for the smooth IPO Foxconn shares are still in the wait and see. In this regard, Foxconn stake stakeholders told the "China Business" reporter, the company is currently in the silent period of listing, in addition to the prospectus, there is no additional information to be disclosed.
Difficult road to transition
Foxconn had previously had many branded layout, but this time IPO of Foxconn shares pass, but will focus on the goal of intelligent manufacturing in this area.
Foundry computer started Foxconn had tried to build 'Foxconn' brand in the early years, the product involves the computer chassis, power supply, motherboards, but the brand is not optimistic about the market response.Fujian Kang Foxconn also acquired the computer city intends to enter the line Of the computer city market, and in 2010 set up Jiaxing, Zhejiang Pentium Pen Trading Company, I hope to open 10,000 under the digital franchise stores.
With the popularity of online e-commerce, Foxconn eventually sold its shares in 2013. The laying of 10,000 digital stores was also aborted, and instead Foxconn set up 3C digital online shopping platform, Business has basically been divided up by several big oligarchs, since the founding of the rich network is still difficult to do the same year, Foxconn even launched the phone brand of InFocus brand.At present, in addition to the 2016 acquisition of Sharp more successful, the rest of Foxconn Brand transformation basically declared a failure.
Insiders told reporters that the brand transformation of foundries are often very difficult to the upstream industry chain integration and the need to have a certain scale advantage; compared to the downstream promotion, Foxconn layout in the upstream to build a series of panels, molds, Connectors and other components manufacturers have saved Foxconn a lot of cost, but the current upstream industry chain is still very large, Foxconn integration is also very difficult.
This is one of the reasons why Foxconn will lock in the IPOs of this IPO in the field of industrial Internet and smart manufacturing, and intelligent manufacturing is one of the focuses.As early as 2011, Gou shouted that the deployment of millions of robots However, according to media reports, Foxconn only installed 40,000 robots at major production bases in China, a figure far below the target set by Gou.
Prospectus shows that the Foxconn shares to be raised 27.3 billion to build eight platforms for smart manufacturing, raising funds involved in the field of intelligent manufacturing alone reached 17.3 billion yuan, accounting for 63% of the total funds raised; the rest of the industrial Internet platform to build , Cloud computing, Internet of Things and other projects will also help Foxconn shares a full-fledged intelligent factory network, cloud-based, platform.A series of project implementation will not only improve the company's technical level, research and development strength and production efficiency, but also help ease the Foxconn shares The labor costs faced by the difficult and rising labor costs and other issues.In fact, Foxconn shares in 2017 alone, the direct labor costs had reached 16.562 billion yuan, the amount of more than that year's net profit.
The industry insiders told reporters that the market generally agreed that the application of high-volume industrial robots will lead to an increase in employee unemployment, for this layer to consider, so Foxconn industrial robots in recent years to promote slow, in fact, this is not the main reason; The key is that due to the current rapid technological upgrading of electronic products, standardized production is more difficult because there is no mature solution to respond to the rapidly changing technology updates. However, the investment in industrial robots is very huge, so the enterprises are facing the cost of not yet recovering the automation equipment Need to update the dilemma, so the current industrial robot just to do a very simple standardization, not as flexible as manual operation, which is why Foxconn still maintains millions of employees.