At 9:30 pm on September 25th, Beijing time, Xiaomi Ecological Chain Company Yunmi Technology was successfully listed on NASDAQ in the United States, stock code 'VIOT'. This is the first half of the millet eco-chain after the listing of Huami Technology. Two listed companies in the US. Yunmi Technology opened at $9.50 on the first day, up 5.56% from the issue price of $9. As of the close of the day, the stock price rose 0.89% to close at $9.08, with a market capitalization of about $630 million. Today is also On the second day of listing, it fell 8.59%. The stock price broke at $8.30 and the market value was about 580 million.
Revenue net profit increased continuously
As an important part of Xiaomi's ecological chain, Yunmi Technology, which started with water purifier, was established in May 2014. It is headquartered in Shunde District, Foshan City, Guangdong Province. It has only been in existence for 4 years, and its main direction is to connect the Internet with labor. Intelligent technology is applied to household appliances. The main products include millet water purifier, Yunmi super water purifier, Yunmi super energy filter kettle, Xiaomi TDS test pen and other products.
Since 2016, Yunmi Technology has turned its attention from small household appliances to whole-home appliances, and has rapidly expanded its layout. It has successively introduced a series of products such as dishwashers, range hoods, gas stoves, refrigerators, washing machines, water heaters, etc. Whole house Internet appliances. According to the prospectus of the previous Xiaomi HKEx, as of Q1 2018, the number of eco-chain enterprises (including smart hardware and consumer products) of Xiaomi has reached more than 90.
According to public information, in July 2014, Yunmi Technology acquired the angel round investment of Xiaomi and became the Xiaomi ecological chain enterprise; in January 2015, Yunmi Technology completed the A round of financing, including Shun Capital, Sequoia Capital and Chen Xing Capital, and GIC Singapore Government Investment Company, amounting to tens of millions of RMB. Yunmi Technology's prospectus shows that in 2017, Yunmi Technology's net revenue was 873 million yuan, an increase of 179.4% from 2016's 312 million yuan. In the half year ended June 30, 2018, Yunmi Technology's net revenue was 1.04 billion yuan, an increase of 284.4% compared with the 270.7 million yuan in the same period of 2017; meanwhile, the 2016, 2017 and 2018 first half reporting period Within, Yunmi Technology's net profit was 16.259 million yuan, 93.24 million yuan and 70.291 million yuan, achieving continuous profitability, and profit growth is rapid.
R&D ratio is declining
In terms of shareholding structure, according to the prospectus, Yunmi founder and CEO Chen Xiaoping holds 71.364 million shares, accounting for 41.3%, being the largest shareholder. The second largest shareholder is Shunwei Capital, which is jointly owned by Xiaomi founder Lei Jun and Xu Dalai. Owned, the shareholding ratio is 20.5%. The third largest shareholder is Red Better Limited, a wholly-owned subsidiary of Xiaomi. The number of shares held is 33,818,200 shares, and the shareholding ratio is 19.5%. In general, Lei Jun holds a total of 40% of the company's equity, the company expects that after the completion of the IPO, Chen Xiaoping will increase its shareholding to 42.5%, while the Lei Jun holdings will fall to around 33%.
In fact, most of Yunmi's revenue has always come from Xiaomi. In 2016, 2017 and the first half of 2018, Yunmi Technology's sales of products to Xiaomi Company were 299.8 million yuan, 739.5 million yuan and 6.515 respectively. 100 million yuan, accounting for 95.9%, 84.7% and 62.6% of the total revenue in the same period, respectively, the proportion has decreased year by year. Yunmi Technology also said in the prospectus, 'brand, a large part of our history's income comes from Xiaomi Brand products, especially the intelligent water purification system of Xiaomi brand. We sell Xiaomi brand products directly to Xiaomi, and Xiaomi sells these products to consumers through retail channels. In recent years, we have adopted new product development and new product categories. Introduced, vigorously promote the sales of Yunmi brand products. '
When it comes to new product development, it is naturally inseparable from the strong investment in research and development, but it is interesting that the proportion of research and development expenses of Yunmi Technology has been decreasing. Its prospectus reveals that in 2016-2017 and the first half of 2018, Yunmi Technology The research and development expenses are 29.926 million yuan, 60.749 million yuan, 49.047 million yuan, accounting for 9.6%, 7%, 4.7% of operating income.
In stark contrast to the decline in research and development costs: its sales expenses have risen in a straight line. The prospectus shows that the company's sales and marketing expenses are 20.929 million yuan, 95.296 million yuan, 146.589 million yuan, accounting for operating income respectively. 6.7%, 10.9%, 14.1%. Such Yunmi Technology will inevitably make people doubt that it is only telling consumers the story, playing the so-called 'marketing card'. This and Yunmi Technology declared 'focus on smart home appliances R & D, manufacturing The positioning of the whole-house Internet home appliance company that sells seems to be different.
Insufficient innovation, Yunmi’s home appliance road is worrying
From the water purifier in the industry, until now, the large-scale involvement in the field of household appliances, research and development can not keep up, Yunmi Technology has been trying to promote the promotion of its many smart home appliances in the market with cost performance, this is also millet The department's consistent routine mode, but the effect does not seem obvious. Lack of brand influence and channel advantage, no user trust to do the basics and no innovative outstanding differentiated products, only by low-cost open, Yunmi Technology is obviously difficult in home appliances, especially The big appliance market opened up.
What's more, since the launch of Yunmi Technology's products, the industry has been constantly questioning the sound of its product imitation and plagiarism: Yunmi refrigerator and Haier and other home appliance giants have higher similarity, Yunmi range hood, gas cooker and other products. It is similar to the products of Fang Tai and other kitchen electric giants. What is even more embarrassing is that in March this year, Yunmi Dishwasher was exposed to a number of patents including design and utility model patents, which were suspected of infringing on the United States. The IPO on-site law enforcement dismantled the machine.
On the other hand, the prospectus shows that Yunmi Technology's operating cash flow in 2016 was 15.49 million yuan, which was basically the same as the net profit of 16.25 million yuan; in 2017, Yunmi Technology's operating cash flow was 123.9 million yuan, higher than 93.24 million yuan. Net profit is a relatively ideal situation. However, in the first half of 2018, when the net profit was 70.29 million yuan, its operating cash flow was a net outflow, and the net profit cash flow fell from 133% to -25%. According to the source, Yunmi Technology has experienced a sharp decline in the net profit and cash content in the absence of major adjustments in its business scope, which means that Yunmi Technology may turn from a profitable company into a money-burning company, and its own hematopoietic capacity is seriously degraded. If it is not listed, its company will encounter great challenges. For this reason, it is also said that Yunmi Technology’s IPO to the United States is a helpless move, and it is fundamentally free of dependence on Xiaomi for financing through listing.
Chen Xiaoping said, 'Listing is an important milestone for Yunmi, and hopes to enhance the Yunmi brand and become the pioneer of Internet-based home appliances. Secondly, it will develop more products, more home Internet solutions, and redefine smart life. Nowadays, the home appliance industry is already a red sea. The high-growth industry has passed and the imagination space is limited. This year, it is affected by the big environment and it is entering a new round of winter. In the fierce market competition, no matter whether it is household appliances or kitchen appliances, small household appliances. The oligarchic leadership has also taken shape. After the listing, Yunmi Technology can continue to break through the fierce fighting of many eco-chain enterprises in Xiaomi, and it is still unclear to live out its own wonderful, but in the home appliance industry in the 'Red Sea' market, Yunmi Technology still has a long way to go.