Today, Xiaomi became the first company to submit a CDR application and be accepted by the China Securities Regulatory Commission.
'The kind person is not too bad luck.' This is Lei Jun's statement to the investors in the Xiaomi Group Hong Kong stock prospectus. It seems that 'Reebs'' luck is really good.
The Shanghai Daily reporter learned from the official website of the China Securities Regulatory Commission on the 8th that the China Securities Regulatory Commission received and accepted the Xiaomi Group’s “public offering of depository receipts and listing” application on June 7. At this point, Xiaomi became the first single application of the CDR pilot.
Stimulated by this news, Xiaomi's stocks quickly pulled up. As of the close of the 8th, Yuhuan NC daily limit, Tongyi shares rose 5.01%, Jingda shares rose 4.29%, Pulutong rose 4.59%, total up 2.21% , Jiu'an Medical rose 2.89%.
Investment bankers pointed out that after Xiaomi, companies such as Baidu, Ali, Jingdong and Netease are also expected to submit CDR applications one after another.
What makes the difference is that Xiaomi used the Hong Kong IPO and the domestic CDR to carry out the synchronization mode, so that God-level operation is worth 'Double-click 666'.
However, some people may ask, in the 'three sets' of standards for innovative enterprise pilots, which is Xiaomi's application? Below, Xiaobian will take you one by one.
Early adopters share the same rights
Although the China Securities Regulatory Commission has not yet disclosed the full text of the Xiaomi Red Chip pilot application, we can get a lot of useful information from Xiaomi’s listing application in Hong Kong.
Previously, Xiaomi Group had submitted a listing application in Hong Kong on May 3. IPO's joint sponsors include CITIC Lyon Securities, Goldman Sachs, and Morgan Stanley, and will become the early adopters of Hong Kong stocks with different rights.
Market participants predict that once Xiaomi is listed, it will become the largest IPO in Hong Kong's history. It is also expected to become the world's largest new technology stock this year.
From April 30 onwards, companies that implement 'shares with different shares' will be able to apply for listing on the Hong Kong Stock Exchange. This is after nearly 30 years, the Hong Kong Stock Exchange restarted this mechanism. This change happened to be caught up by Xiaomi. .
From the perspective of equity structure, Xiaomi's stock is divided into A shares and B shares. Holders of A shares have 10 votes per share. Holders of B shares have 1 vote per share.
Specifically, Xiaomi Group A shares are all owned by founder Lei Jun (429 million shares) and another co-founder Lin Bin (240 million shares). Lei Jun also holds 228 million B shares.
Based on this calculation, Lei Jun holds a 31.4% stake in Xiaomi Group in total and owns 55.7% of the voting rights.
For CDRs issued by red-chip companies with different rights in the same stock, and the Measures for the Implementation of Pilot-Innovated Enterprises' Domestic Issuance of Shares or Depositary Receipts and Listing Supervision, if there is a difference in voting rights, the relevant arrangements shall comply with the relevant provisions of the stock exchange to be listed. , and shall clearly define the preconditions for the maintenance of special voting rights. Special voting rights shall not be transferred with the transfer of the relevant shares. Except for reasonable provisions in the company’s articles of attrition before the public issuance in the country, the special voting rights shall not be increased in any way after the public issuance in China. The number of shares and their proportion of voting rights.
Over 100 billion revenues have not yet been made profitable
In terms of performance, the Hong Kong Stock Prospectus disclosed that Xiaomi’s income from 2015 to 2017 was 66.811 billion yuan, 68.434 billion yuan and 114.625 billion yuan; operating profit was 1.373 billion yuan, 3.785 billion yuan and 12.215 billion yuan.
In 2017, Xiaomi’s revenue increased by 67.5% year-on-year. However, in terms of net profit, Xiaomi’s 2017 loss was RMB 43889 million; if measured by non-IFRS, Xiaomi’s adjusted net profit was RMB5.362 billion.
The prospectus shows that Xiaomi is an Internet company with mobile phones, smart hardware and IOT platforms as the core.
At present, Xiaomi is the world's fourth-largest smartphone manufacturer and has created a number of smart hardware products, among which multiple varieties rank first. Xiaomi also built the world's largest consumer IOT platform, connecting more than 100 million smart devices.
At the same time, Xiaomi also has 190 million MIUI monthly active users and provides them with some innovative Internet services. Xiaomi said that it has an original 'triathlon' business model: hardware + new retail + Internet services. Venture for 7 years Time, the company's annual revenue exceeded 100 billion yuan.
The company also promised in the Hong Kong stock prospectus that from 2018 onwards, Xiaomi's overall net profit rate for the entire hardware business (including smartphones, IOT and consumer products) will not exceed 5% per year.
It is worth noting that the millet supply chain contains several A-share companies:
Wentai Technology is Xiaomi’s largest ODM manufacturer; Ouffy Technology is the main supplier of Xiaomi’s camera module;
Deep Pegasus, BOE supplies panel for millet mobile phones;
Tricyclic Group supplies ceramic back cover for Xiaomi’s flagship model;
The number of lithium batteries supplied to Xiaomi by Xinwangda is close to 30% of Xiaomi's mobile phone shipments. Millet models are equipped with Huiding’s fingerprint chips.
Last round of financing valuation of 45 billion US dollars
In terms of valuation, previous reports said that Xiaomi hopes the IPO valuation will reach US$900-1100 billion. The most exciting thing about Xiaomi's IPO is that according to estimates, Xiaomi is expected to become the new richest man after Xiaomi’s listing. A thousand employees of the company are expected to achieve financial freedom.
According to media reports on the 7th, according to an intermediary who is close to Xiaomi’s IPO project, investors, especially cornerstone investors, are 'participating in' the fierce competition. The valuations given are generally between 75 billion and 80 billion US dollars. There are also a number of them. The agency gave a valuation of more than 80 billion U.S. dollars, but no cornerstone investors have yet been finalized.
Looking back at the financing history of Xiaomi, the prospectus shows that before the IPO, Xiaomi completed a total of nine rounds of financing, with a total financing scale of US$1.502 billion. The last round of financing was at the end of 2014 in the F round with a financing amount of approximately US$1 billion. About 45 billion U.S. dollars.
See here, you may already have an answer.
The Implementation Measures for Pilot Innovative Enterprises' Domestic Issuance of Stocks or Depositary Receipts and Supervision of Listed Companies Implemented on the 6th (hereinafter referred to as the “Implementation Measures”) sets three sets of criteria for the pilot enterprises. The first set of pilots for overseas listing has been implemented. For enterprises, the market value should not be less than 200 billion yuan. Obviously, Xiaomi not yet listed in Hong Kong does not apply this set.
At present, it seems that Xiaomi should apply the second set of standards: For pilot enterprises that have not yet been listed overseas, the audited main business income for the most recent year is not less than 3 billion yuan, and the company’s valuation is not less than 20 billion yuan. The valuation of a company should refer to the valuation of the last three rounds of financing and the corresponding investors, the amount of investment, the proportion of investment shares in the total equity, and combined with valuation methods such as income method, cost method, market multiplier method, etc. Round, refer to all financing valuation decisions.
What is Xiaomi's situation?
As mentioned earlier, Xiaomi’s audited operating income exceeded RMB 100 billion in the most recent year (2017), far exceeding the standard of RMB 3 billion.
In terms of valuation, reference should be made to the latest three rounds of financing valuations. Public information shows that Xiaomi’s latest F round of financing was valued at US$45 billion, and the penultimate valuation amount was not disclosed, and the third to last count was 20166. The month's round of financing was valued at US$4 billion, converted to more than RMB25 billion according to the latest exchange rate, and was also above the valuation threshold of RMB20 billion. Then, the second set of standards is applicable.
According to the reporter's understanding, Xiaomi's CDR pilot application documents will be disclosed in the near future. At that time, detailed arrangements on CDR issuance and fundraising are worthy of sustained attention.