Originally, Huang Wei was an investment company that recommended Dajiang’s projects to his services. He sought out industry experts and college professors at that time to demonstrate that this was a good project, but the one he worked for was a CBD-styled investment company. In the end, the project did not pass this project. Huang Wei turned out to invest hundreds of thousands of yuan in the fund that the classmates initiated. Following this fund became one of the early investors of DJI.
Today's Dajiang has become a lot of investors who want to vote but can not vote. The company has no listing plan.
Dajiang throws out bid financing plan
Clearly no listing plan
In early April of this year, Dajiang’s new round of USD 1 billion equity financing was exposed. The maverick DJI adopted an unusual financing method, namely bidding financing, requiring investors to subscribe for a certain amount of equity and also to take the initiative to bid A high proportion of bonds, and bonds that have no interest for three years outside the country, means that investors are required to invest in white papers in order to use large amounts of land without interest.
Undoubtedly, Da Jiang is taking the role of 'the strongest financing party in history' and completely dominates the 'financing drama'.
This is the first time that the investment community has faced such a financing approach as tendering by suppliers. However, after shouting inconceivable, there are still many investment institutions rushing.
It is reported that the first round of bids ended. Nearly 100 investment institutions submitted deposits and bidding applications, and the total amount of subscriptions exceeded 30 times. In order to filter out suitable investors, Dajiang opened a second round of bidding.
As of 15:30 on April 15th, the average class D/B share subscription ratio for the second round of bids of up to US$500 million (the maximum investment amount for a single investment institution) was 1.61: 1.
On April 20th, Dajiang’s third round of bidding was opened. Insiders revealed that at this auction, some investors reported a 1:1 ratio, and even higher prices, but they did not enter the game.
In the end, this major financing event lasted for more than a month. The third round of financing was finalized in the afternoon of May 7. There were five or six leading companies, each with a minimum investment of US$100 million, and many small and medium-sized investments. The agency received an outgoing phone call from Dajiang and contacted the original deposit of 100,000 U.S. dollars. It is reported that the total size of the current round reached 1 billion U.S. dollars.
In response to this round of financing, Xie Tao, Director of Public Relations at Dajiang Innovation, responded to media reports that the government of Dajiang had never confirmed the financing and declined to comment on the report.
However, at the China Regional Product Interpretation Conference organized by DJI Innovation Shenzhen, Xie Tao once stated that the recent financing incident was not a round of financing for the company. It has no relation with the current business. It is related to the bank. The cooperation between the parties, and the final result may also produce variables, 'We are more willing to regard it as a financial innovation.' Xie Yu said.
Xie Tao also stated that the company clearly does not have a listing plan. In terms of financing requirements, DJI can use a lot of ways to finance and it does not need to be listed for financing.
As to whether this round of financing was the rumors of the Dajiang Pre-IPO round, an early investor in Dajiang stated to the “Securities Daily” reporter that he “don't know”. However, even if Da Jiang insisted not to go public, he would not Do not worry about the problem of investment withdrawal, because 'there is always someone willing to take a high position.'
The extent to which Dajiang’s stocks are highly sought-after, and the two statements from its official website can also provide a glimpse of one or two.
According to two statements made by Dajiang official website, in 2017, some people deliberately falsified the company's e-mail, under the pretext of investing in the United States Nasdaq (Nasdaq) to invest in Xinjiang’s stock, in order to commit fraud. Then there was a society called “Lai Jin Fa”. The person, claiming to be 'Dargon shareholders, vice president', has been attending social activities in this capacity and raising funds from investors since August 2016.
In fact, being able to get the investment case of the famous “Unicorn” of Dajiang is equivalent to a gold coating for investment institutions. From this point of view, it is easy to understand that the investment institutions are enthusiastic.
Early investment income
Has risen 100 times
However, the most important thing for investment is to make money. How much can an organization involved in this round of financing in Dajiang get?
With regard to the current Dajiang’s financial valuation, there are 24 billion U.S. dollars and 22 billion U.S. dollars in several versions. Which is closer to the true value? The outside world has no basis for research. Compared with the popularity of popular unicorns, the relevant information of Dajiang is not transparent. .
For most of the investors, Dajiang did not disclose its financial data. According to media quoted investors' remarks, Dajiang did not make financial statements to investors on its own initiative, and even previous rounds of leading agencies did not get it. Want to know? The CFO will dictate the data in a financial report.
Due to the lack of financial statements, most of the investors participating in this auction can not price Dajiang according to a fair valuation method, and can only refer to the benchmark company and its past transaction price.
According to DJI’s financing materials, the valuation for the first round of financing was US$15 billion. Currently, Parrot (Parrot, listed in France), Sunny Optical (02382.HK), and Hikvision (002415) have listed three comparable companies. The average P/E (P/E) is 57.7 times, and the current P/E ratio for the current round of valuation is less than 50% of the average, 'subsequent growth is huge'. With Uber, Xiaomi, Didi Travel, headlines Compared with other unlisted unicorn companies, DJI believes that in this financing material, the 'P/E ratio is obviously at a low level'.
Based on the above information, DJI currently has a P/E less than 30 times. And when the current IPO is only close to the door, if Xiaomi is listed at a valuation of 100 billion US dollars, P/E is about 60 times.
From the perspective of securities firms, the valuation of Chinese high-tech companies will be further enhanced in this special era. It is worth noting that there will be more resources in the future for high-tech companies such as DJI.
However, most organizations participating in the DaJing bid think that this investment will not basically lose money, but the return rate is probably not high.
As an early investor in Dajiang, Yuanyang Capital Partners Li Hao is more optimistic. In an interview with the media, he said that Dajiang maintained 100% business growth in recent years. This round of financing has a five-year return on investment. There will be 3-5 times.
However, this is indeed not a big deal compared to the early investors in DJI. Some early investors in Dajiang told the “Securities Daily” reporter that his return on investment in the Dajiang project has increased by a factor of 100.
Shocked by Internet giants
Not used in the largest application area
No doubt, now Dajiang is already the king of drones, but where the future of DJI will fly, it is full of variables.
It is worth noting that in the response of Xie Tao before this, it also revealed a purpose of DJI financing, 'We are willing to open a window of cooperation with capital, in the future we can support some of Dajiang's downstream manufacturers, or some very good start-ups. Youth, thus creating an ecological. '
In this one billion US dollar financing document, it shows that Dajiang will exert its force in three major directions including: Medical imaging AI market Annual market size is more than 5 billion US dollars; In education, 3-year-old + technology curriculum market size is more than US$10 billion. Emerging industries include artificial intelligence and advanced manufacturing around vision, algorithms, image processing, integrated chip technology, robotics and other related markets.
Behind this movement, it may be that Dajiang has faintly felt the crisis.
Aside from the hidden dangers of privacy and security, the cold weather of the consumer-grade drone industry and the impact from the Internet giants are the top priorities facing the country.
As we all know, drones have a wide range of application scenarios. However, if we talk about market capacity, express delivery and take-away are definitely the biggest application scenarios.
However, this huge market does not seem to have anything to do with Dajiang. Because the drones needed for express delivery and takeaways are all independently developed by SF and JD, rather than purchased from the outside world. This is the largest application area for express delivery and takeout. , Dajiang has been rejected.
Consumer drone market is cold
Industry drones are full of challenges
On the other hand, Dajiang has become known as the world's consumer-grade drones, and the market is becoming saturated.
In December 2017, the General Aviation Branch of the China Air Transport Association issued the "2017-2018 China Civilian UAV Development Report" and pointed out that after a rapid development in the first three years, domestic consumer-grade aerial drones have developed due to technology, usage scenarios, and markets. Fixed factors and other factors have entered a period of slow development.
In addition, iResearch also predicts that more than half of the 75 billion yuan market size of domestic drones in 2025 will come from the professional-level application market.
Grand View Research is most pessimistic about consumer-grade drones. The agency believes that by 2024, the annual sales of global consumer drones will drop to 4.19 billion US dollars.
As the global consumer-class drone companies have encountered cold in the past two years, as the old U.S. unmanned aerial vehicle manufacturer 3D Robotics announced the complete termination of the production of drones, it has already turned to software development; domestic soaring, billionaire, zero-degree and other companies The company was exposed to layoffs; Parrot, France, also experienced layoffs and transitions to commercial drones.
At present, with weak competitors in the world, DJI’s 2017 performance has grown in a contrarian direction, and its market share has increased to more than 80%. This has further strengthened DJI’s leadership in the consumer-grade drone market. status.
However, the cold weather in the consumer-grade drone market is the status quo of the industry. In this context, the growth of Dajiang’s performance has also had to slow down.
Although almost monopolized the market, the market size of US$4.19 billion has virtually limited the development of Dajiang.
It can be seen that Dajiang has begun to force the industry to use the drone market.
Some analysts pointed out that at the end of 2015, Dajiang released the first agricultural plant protection machine MG-1. At the same time, it continued to introduce new products in the past three years, trying to win the new market of agro-plant protection. However, it was completely suppressed by Dajiang. Feifei Technology, which has almost reached the forefront, has already had a first-mover advantage in this vertical field. In 2017, sales reached 300 million yuan, and DJI is left far behind.
At the same time, Dajiang faced even greater challenges in the application market of more segments. For example, zero-degree intelligence control recently announced that it will shift its business operations to the reconnaissance planes used by security and inspection industries, while Airline will focus on unmanned personnel. With regard to aircraft and UAV logistics, DJI lacks the power to cope with it and has shown a certain amount of fatigue.
Judging from the media’s recent exposure in 2017, DJIA’s performance in 2017 is quite dazzling: In 2017, operating income was 17.57 billion yuan, an increase of 80% year-on-year; net profit was 4.3 billion yuan, a year-on-year increase of 123%.
According to IDC, the global market for consumer and business UAVs is US$9 billion, and the average annual growth rate is estimated to be about 30% over the next five years. Based on this, the total UAV market size is estimated to be about 2023. 33.41 billion US dollars.
This lackluster figures made Dajiang gradually reach the ceiling of the market.
How to maintain high growth? The future of Dajiang is full of challenges and challenges.