The hot meta universe may have its first IPO!
Recently, Feitian cloud submitted a prospectus to the Hong Kong stock exchange to be listed on the main board of Hong Kong. Among them, “yuanuniverse” is the main “selling point” of its prospectus.
The company, formerly known as palm Feitian technology, focuses on AR / VR business, and was officially renamed “Feitian Yundong” in December 2021. According to the prospectus, the company is currently a leading supplier of meta universe scene application layer (or Ar / VR content and service market), and has begun to establish its own meta universe platform. Feitian Yundong ranks first in the AR / VR content and service market in China, accounting for 2.3% of the market share in 2020. If Feitian Yundong passes the listing audit this time, it is expected to become the first share of China’s “Yuan universe”.
It is understood that Feitian Yundong has previously completed round a, round a +, round B and round C financing, among which Tongchuang Weiye, Saifu dynamics and Xi’an Zhiyao participated in round a + round, Ningbo Midu participated in round B, and Zhongtong Xinyuan participated in round C.
create “meta universe” products based on AR / VR
Feitian Yundong, formerly known as palm Feitian technology, was jointly funded and established by Yang Xuekai, Guo Xiaofeng and song pengpeng in 2008 to engage in game related business. In 2009, Wang Lei officially resigned from Ourpalm Co.Ltd(300315) and joined Feitian technology as the general manager. In the same year, as the main shareholder of the company, Wang Lei and several other main shareholders, Li Yanhao, signed a share transfer agreement with the above three people to acquire all their shares.
According to the prospectus, Wang Lei is now the largest shareholder of Feitian Yundong. Wang Lei has rich experience in games. After graduating from the automation major of Northern University of technology in 2005, he devoted himself to the game industry and successively engaged in information technology and game development in palm world wide, Ourpalm Co.Ltd(300315) . At the helm of Wang Lei, Feitian technology has independently developed a variety of stand-alone mobile games, including the God of drag racing, Xiaole in Alice in Wonderland, gun god in the field and so on.
Wang Lei previously summarized in an interview with the media that the whole development process of the company can be divided into two stages: the first is the 1.0 stage from 2008 to 2015, and the company’s business is dominated by games; Second, after 2015, the company has started the 2.0 era of interactive content marketing. In 2015, when VR rose in China, Wang Lei also began to focus on AR / VR content services.
In 2017, palm flying technology began to develop ar direction tools and content, and set up a professional AR / VR team. Subsequently, the first AR / VR SaaS platform was launched. In 2017, palm flying technology applied for listing on the new third board. On July 14 of the same year, the company successfully landed in the capital market. Public data show that in 2018, the company achieved an operating revenue of 170 million yuan, an increase of 114.43% over the same period; The net profit attributable to the shareholders of the listed company was 43.5412 million yuan, an increase of 129.18% over the same period.
In 2019, palm flying technology was delisted from the new third board. In the following years, the company’s SaaS platform further iterated, the VR panoramic store project was launched, the SaaS platform service was upgraded, covering multiple industries, reached strategic cooperation with Baidu VR, and became the core supplier of JD VR.
On November 30, 2021, palm flying was officially renamed as flying cloud technology. Its main goal is to become a leading supplier of China’s meta universe scene application layer. Its core business includes SaaS, culture and tourism and education. In Wang Lei’s view, the company’s main business related to games highly coincides with the concept of metauniverse, and the company has accumulated experience in Ar / VR solutions and small and medium-sized enterprise projects. The company has a “metauniverse” product Feitian metauniverse. The ultimate purpose of this product is to enable customers to carry out business cooperation with customers in virtual business space. Wang Lei believes that the explosion of the concept of meta universe will accelerate the development of the industry.
the annual revenue is 300 million, and four rounds of financing have been completed
In terms of finance, although Feitian Yundong takes “meta universe” as the selling point in its prospectus, the company’s main revenue still comes from AR / VR services, AR / VR content and its past game business. According to the prospectus, AR / VR service is its main source of revenue and provides customers with solutions, including AR / VR interactive content advertising, with a total of more than 40 advertisers. In addition, its AR / VR content business has 40 customers and develops middle school geography VR courses for the education business subsidiary of one of China’s largest search engines. As of June 30, its AR / VR SaaS service had more than 800 paid subscribers. In the first half of 2021, AR / VR service revenue accounted for 62.1%.
According to the prospectus, from 2018 to 2020, Feitian cloud recorded revenue of 164 million yuan, 251 million yuan and 339 million yuan respectively, with corresponding net profits of 47.097 million yuan, 41.879 million yuan and 61.609 million yuan respectively. In the first half of 2021, thanks to the “Yuan universe” boom, the company’s revenue reached a new high, reaching 278 million yuan, a year-on-year increase of about 129.8%, and the main business revenue was 260 million yuan, accounting for more than 93%.
It is worth mentioning that the gross profit margin of Feitian cloud is not low. Among them, the gross profit margin of AR / VR SaaS business is the highest, reaching more than 50%, followed by Ar / VR content, and the gross profit margin is maintained at 47%. In contrast, the performance of AR / VR services is slightly weak, only about 20%.
According to iResearch, the market scale of AR / VR content and services in China by revenue in 2020 is RMB 11.5 billion, and it is expected to increase from RMB 21.1 billion in 2021 to 102.8 billion in 2025, with a CAGR of 48.6%. At present, in terms of revenue, Feitian cloud ranked first in China’s AR / VR content and service market in 2020, reaching 2.3%; In the AR / VR service market, the market share also ranks first, accounting for 12.6%.
In terms of risk, Feitian Yundong said that although its business revenue has increased, it can not guarantee that its performance can maintain the past growth rate due to the uncertainty of launching new products and the intensification of competition in China’s AR / VR content and service industry.
It is understood that Feitian Yundong has previously completed round a, round a +, round B and round C financing, among which Tongchuang Weiye, Saifu dynamics and Xi’an Zhiyao participated in round a + round, Ningbo Midu participated in round B, and Zhongtong Xinyuan participated in round C. So far, in the shareholder structure before the listing of Feitian Yundong, the controlling shareholders Wang Lei and Li Yanhao hold 49.66% of the shares through brainstorming caf é; Natural person shareholders hold 12.28% and other institutional shareholders hold 38.06%, including Tongchuang Weiye 6.08%, Xi’an Zhiyao 4.09%, Saifu dynamic 4.05%.
chicken feather
The popularity of yuancosmos starts with the listing of game company roblox.
In March 2021, roblox, who has been trying to build a game platform similar to metauniverse, wrote the concept of metauniverse into the prospectus for the first time and successfully landed on the New York Stock Exchange. Shortly after listing, roblox’s market value exceeded 300 billion. This has set off a heat wave in China’s meta universe.
Chinese game companies took the lead in responding. From the perspective of investment opportunities, the game, as the primary application scenario, is considered to be the initial entrance of the meta universe, and the opportunity for valuation improvement is also very obvious. On September 6, 2021, Shenzhen Zqgame Co.Ltd(300052) issued a document saying that it would launch a “meta universe game” wine maker, a virtual reality linkage simulation business class. With this tweet, Shenzhen Zqgame Co.Ltd(300052) quickly came out of the circle, and the share price also rose sharply. The peak value of this round of rising share price appeared on November 11 last year, once rose to 42.63 yuan / share, and the market value soared to 10.42 billion yuan.
Although the stock price is against the sky, its performance has been unstable for many years. Its annual revenue is basically maintained at about 100 million and its profit is about 10 million. It is a small cap stock worthy of the name.
In the same month, Inmyshow Digital Technology (Group) Co.Ltd(600556) (600556) told the outside world that it was developing the social meta universe product “Rainbow universe”. Rainbow universe is a 3D virtual social product. The product is based on the 3D virtual planet (P-L anet) in Z era. The virtual houses and props in its products can be made into exclusive IP for limited edition distribution. On the evening of October 28, 2021, the rainbow universe was officially launched; On November 1 of the same year, the rainbow universe app was launched and opened to the first batch of users. Since October 28 last year, Inmyshow Digital Technology (Group) Co.Ltd(600556) share price has closed for five consecutive trading limits.
There are also Hubei Century Network Technology Inc(300494) (300494), Zhejiang Jinke Tom Culture Industry Co.Ltd(300459) (300459), Shenzhen Esun Display Co.Ltd(002751) (002751), Avit.Ltd(300264) (300264), Hangzhou Arcvideo Technology Co.Ltd(688039) (688039), Goertek Inc(002241) and other meta universe concept stocks. The stock price has been singing all the way since September last year. However, after the noise, many concept stocks have shown a downward trend. According to choice data, the share prices of 22 yuan universe concept stocks fell in 2021. Among them, Arcsoft Corporation Limited(688088) (688088. SH) decreased the most, reaching 36.6%.
On December 23, 2021, the website of the Central Commission for Discipline Inspection and the State Supervision Commission issued a document saying that at present, some companies hype the concept of meta universe, which is quite different from the real meta universe, so it needs to eliminate the false and preserve the true and make careful judgment. “There are still many uncertainties in the meta universe in the embryonic stage of capital manipulation. Industries and markets urgently need to return to rationality. We should be vigilant against capital’s profit seeking inertial operations such as creating new concepts, hyping new outlets and attracting new investment.”
Despite many problems and challenges, the great potential of the metauniverse to change the existing way of life is the most anticipated. The research report points out that metauniverse is the next generation Internet in the next 20 years and the future digital survival of mankind. The connotation of yuancosmos is not limited to the Internet. It is a series of high-tech “connecting points into lines”, which may bring new species beyond people’s imagination.
(source: venture capital exchange)
