Red Star capital Bureau noted that Geling Shentong (688207. SH) disclosed the issuance announcement on March 3. The price of this issuance is 39.49 yuan / share, the number of shares issued is no more than 46.24 million, and the total share capital after issuance is about 185 million shares, which will be listed on the science and innovation board, with Haitong Securities Company Limited(600837) as the main underwriter. The online subscription of the stock will be launched on March 7, with the subscription code of "787207", and the market value at the time of this listing is 7.305 billion yuan.
According to the prospectus, from 2018 to 2020 and the first half of 2021, the net profit attributable to the parent of Geling Shentong was - 70 million yuan, - 414 million yuan, - 78 million yuan and - 57 million yuan respectively, and the revenue was 51.96 million yuan, 71.21 million yuan, 243 million yuan and 72.188 million yuan respectively.
It is worth noting that at the beginning of its establishment, Geling Shentong was highly expected by investment banks. At that time, its popularity was no less than Shangtang (00020. HK), Kuangshi, Yitu and Yuncong, which are now known as the "Four Dragons of CV (computer vision industry)". However, according to the peer comparison data disclosed in the prospectus of Geling Shentong, now both revenue and net profit have fallen out of the first tier.
Geling Shentong was founded in 2013. At the time of its establishment, the technical strength and working experience of team members were brilliant. Its co-founder Zhao Yong once worked in the Research Institute of Google headquarters as a senior researcher and one of the seven designers of Google glass, while the former CEO he Bofei served as an executive of many foreign listed companies. For the newly founded Geling Shentong, Xu Xiaoping, a well-known investor, once commented: "he Bofei and Zhao Yong can create a successful company respectively, but if they work together, they can create a great company." For the valuation of Geling Shentong, a "good story" of that year was reported by many media. Xu Xiaoping and Shen NANPENG, the heads of Zhenge fund and Sequoia Capital, had a debate on whether the future market value of Geling Shentong should be US $100 billion or US $500 billion, and finally compromised to US $300 billion (about 1.9 trillion yuan).
From 2013 to 2014, Geling Shentong received an angel round investment of RMB 1 million from Zhenge fund and a round investment of Sequoia of US $10 million from ceyuan fund. In 2014, Geling Shentong published a recruitment article called "sorry, we only love cattle people", which attracted the attention of many media. The recruitment article said that "the MBA of Harvard Business School can only be an intern. It is more difficult to join us than to enter Harvard, and the admission rate is unimaginable", "we were the first start-up company Bill Gates met during his private visit to China in June this year."
However, it is sad that compared with the industry leader, Geling deep pupil has long lost its aura. According to the issuance announcement, its market value was 7.305 billion yuan when it was listed.
According to the prospectus, the main business income of Geling Shentong mainly comes from urban management, smart finance and commercial retail, and provides customers with AI products and solutions with computer vision technology and big data analysis technology as the core competence.
From 2018 to 2020 and the first half of 2021, the operating revenue of Geling Shentong was 52 million yuan, 71 million yuan, 243 million yuan and 72 million yuan respectively, and the net profit attributable to the parent company was - 70 million yuan, - 414 million yuan, - 78 million yuan and - 57 million yuan respectively. During the reporting period, the total operating income of Geling Shentong was 438 million yuan, while the total loss of net profit attributable to the parent was 619 million yuan.
Geling Shentong said in the prospectus that as of the end of the reporting period, the company's cumulative outstanding loss was -1005188 million yuan. The company has not made a profit and has accumulated unrecovered losses, which is mainly due to the large R & D investment in the early stage but the small income scale and the large share based payment expenses arising from the implementation of equity incentive. At the same time, it is suggested that there will be continuous R & D investment and share based payment expenses in the next few years, the unprofitable state may continue to exist after listing, and the accumulated uncollected losses may continue to expand.
