September 11 local time, Millet eco-chain company Cloud Rice to the U.S. Securities and Exchange Commission to submit an updated prospectus, will be on the Nasdaq market on September 25, the stock code of ' Viot ', the price range of $9-$ 11, the highest raise capital of $144 million.
Morgan Stanley, CICC is a joint underwriter of the cloud meter IPO. Cloud Meter was established only 4 years, the main manufacturing water purifier, reverse osmosis filter, refrigerator, dishwasher, lampblack machine and other intelligent networked home appliances products, headquartered in Foshan, Guangdong, both ' Xiaomi ' OEM products, there are ' cloud meters ' own brand products.
As of June 30, 2018, the number of cloud meters home users reached 1.2223 million households. Although Xiaomi invests in cloud meter, but Yunmi is not counted as Xiaomi subsidiary, belong to the cooperation relationship. Prospectus shows that, from the capital level, before the cloud meter IPO, Xiaomi through Shun for the capital and its fund red Better Limited holding 33.3% shares of Cloud Rice, the company's second largest shareholder; from the perspective of the company's operation, millet for the product design of cloud meters, price, Also holds a certain right of resolution.
Cloud Meter is able to access Xiaomi eco-chain users, market and data resources, and related support. Founder of Cloud Rice, chairman and chief executive officer of Chen Xiaoping is the company's largest shareholder. After the IPO, his stake will be further expanded to 42.5%, with 66.5% voting rights. Xiaomi's voting power is 29.5%.
Sequoia Capital has a 5.2% per cent stake, with 0.9% per cent voting power.
It is worth mentioning that Yunmi in the prospectus ' risk alert ' mentions that any deterioration in the relationship between cloud Rice and Xiaomi could have a significant adverse impact on our business performance. With regard to user data, both parties jointly own the user data of all products sold by the cloud meter to Xiaomi. ' We will only be able to share and perhaps user data with third parties only after we have obtained the prior written consent of Xiaomi. Xiaomi also needs our consent to be used by any third party after the user data of Xiaomi branded products reaches a certain threshold value.
' said cloud meter in the prospectus. Most of the products of cloud rice are sold through the channels of millet. In 2016, 2017, and in the first half of 2018, the company's sales of products to Xiaomi were 299.8 million yuan, 739.5 million yuan and 651.5 million yuan, with total revenue accounted for 95.9%, 84.7% and 62.6% in the same period respectively.
When Yunmi sells products to Xiaomi, it reclaims all production costs, and when Xiaomi finally sells the product to the user, the cloud meter is able to get a portion of the gross profit. The sales agreement between Xiaomi and Yun Mi will be automatically renewed at the expiry of the August 2019 period, unless a party raises objections at least 30 days before the expiry date. In addition, cloud meter also through the Xiaomi e-commerce platform ' Xiaomi products ' directly to consumers to sell cloud meter free brand products, the agreement will expire on December 31, 2018, will not automatically renew.
Yunmi said it would seek to renew the agreement.
Revenue, cloud meters 2016 years, 2017 revenue of 312 million yuan, 873 million yuan, cloud rice 2018 years in the first half of the revenue of 1.04 billion yuan, yoy (compared to the same period) 284.4% increase.
Net profit, Cloud meter 2016 years, 2017 net profit of 16.26 million yuan, 93.24 million yuan, cloud meter 2018 year first half net profit of 70.29 million yuan, an increase of 271.5%. In terms of spending, the company has increased its marketing spending to boost brand awareness.
For the six months ended June 30, 2018, cloud meter sales and marketing expenses were 146 million yuan, accounting for 14.1% of revenue, a significant increase from a year earlier. Before cloud meters, Xiaomi Eco-chain company was listed in the United States in February 2018.
Hua Mi technology products mainly include the Xiaomi brand smart bracelet and Smart scale, independent brand Amazfit series of smart watches and smart bracelet, etc., through the IPO financing of $126.5 million, lei June and Xiaomi holding 30%. Xiaomi wants to play the creation Networking (IoT) ecosystem.
In recent years, the Internet of Things smart home product market as a new field, experienced rapid growth, but due to the internet of things technology and product acceptance, technology development speed and other factors of uncertainty, the internet of things market growth rate is still unstable.