Yonyou Network Technology Co.Ltd(600588) (600588, SH; yesterday’s closing price was 35.40 yuan) the listing of UFIDA Financial Information Technology Co., Ltd. (hereinafter referred to as UFIDA Finance) on the Beijing stock exchange further. On January 5, the official website of the Beijing stock exchange showed that UFIDA finance had entered the second round of inquiry.
UFIDA finance is an IT service provider for the financial industry. The company is positioned as a provider of financial technology and services. Its main customers cover banking, securities, funds, trusts, insurance, futures, pension finance, leasing and other financial segments. At present, Yonyou Network Technology Co.Ltd(600588) directly holds about 74.59% of the equity of the company.
The reporter of the daily economic news found that, in addition to UFIDA finance, at present Yonyou Network Technology Co.Ltd(600588) is splitting the IPO of many of its companies. Yonyou Network Technology Co.Ltd(600588) its UFIDA automobile and Xindao technology have disclosed the prospectus (application draft) and want to sprint the science and innovation board and the Beijing stock exchange respectively (Xindao technology has been suspended). In addition, Yonyou Network Technology Co.Ltd(600588) changjietong (01588, HK; yesterday’s closing price of HK $9.060) also plans to return to a for listing.
spin off listing has passed the first round of inquiry
UFIDA finance was established in 2004 and has developed into an IT service provider for the financial industry. On the company’s official website, UFIDA finance positioned itself as a “provider of financial technology and services”, and said it had served more than 800 financial customers.
In September 2021, UFIDA financial reported to the Beijing stock exchange and was accepted. Prior to this, UFIDA finance has been listed on the new third board. The financial report disclosed by UFIDA financial shows that the company’s performance has been showing a steady growth trend in the past few years.
From 2018 to 2020, UFIDA finance achieved revenue of RMB 344 million, RMB 381 million and RMB 427 million respectively; In the same period, the net profit attributable to the parent company was 48.4652 million yuan, 59.1285 million yuan and 78.3458 million yuan respectively. In the first three quarters of 2021, UFIDA financial achieved a revenue of about 255 million yuan, a year-on-year increase of 22.65%; The net profit attributable to the parent company was about 8.4048 million yuan, a year-on-year increase of 80.26%.
However, while the performance continued to grow, the number of R & D personnel of UFIDA finance continued to decline. In the first round of inquiry reply, the company mentioned that from the end of 2018 to the end of 2020, the number of R & D personnel of the company was 564, 422 and 320 respectively. By the end of June 2021, the number of R & D personnel of UFIDA finance had further decreased to 264. In this regard, in the first round of inquiry letter, Beijing stock exchange also asked the company to explain the reasons and rationality.
“The reduction of the company’s R & D personnel is mainly due to the phased R & D planning, business strategy and other factors formulated by the company.” In this regard, UFIDA financial explained that from 2017 to 2018, the company completed the research and development work related to AI financial management system and formed usable research and development results. After that, the company adjusted its R & D and market development strategies, focusing on market development, and adjusted the auxiliary personnel of some R & D departments to business departments, resulting in the continuous reduction of R & D personnel.
spin off the IPO of several companies
In addition to UFIDA finance, at present Yonyou Network Technology Co.Ltd(600588) is splitting the IPO of many of its companies. Specifically, it includes UFIDA automobile and Xindao technology. In addition, changjietong, a Hong Kong listed company under Yonyou Network Technology Co.Ltd(600588) , is also receiving IPO guidance on the gem.
UFIDA automobile is also a software manufacturer, but it mainly provides digital intelligent solutions in the field of marketing and post market services for customers such as vehicle manufacturers, dealers and service stations in the automotive industry. Currently, UFIDA has a direct stake of 5875%.
In June 2021, UFIDA automobile disclosed its prospectus (application draft) and announced its impact on the science and innovation board. In 2020 and the first half of 2021, UFIDA achieved revenue of 476 million yuan and 265 million yuan respectively; The net profit attributable to the parent company in the same period was 84.8281 million yuan and 66.9041 million yuan respectively.
Like UFIDA finance, Xindao technology also plans to be listed on the Beijing stock exchange. Xindao technology is oriented to the education industry and provides educational software products and comprehensive service solutions for undergraduate, higher vocational and secondary vocational colleges. At present, Yonyou Network Technology Co.Ltd(600588) directly holds 51.32% equity of Xindao technology.
In 2020 and the first three quarters of 2021, Xindao technology achieved revenue of 217 million yuan and 133 million yuan respectively; The net profit attributable to the parent company in the same period was 27.2088 million yuan and 8.3595 million yuan respectively. The official website of the Beijing stock exchange shows that at present, Xindao technology needs to supplement audit matters due to the expiration of its financial report, and its IPO is being suspended.
Why does Yonyou Network Technology Co.Ltd(600588) frequently spin off its subsidiaries for listing? In this regard, Huaxi Securities Co.Ltd(002926) released a research report that Yonyou Network Technology Co.Ltd(600588) is focusing on business, increasing investment in core business and stripping non core business, in order to realize the extension from ERP (Enterprise Resource Planning) software to enterprise SaaS (software as a service). The Yonyou Network Technology Co.Ltd(600588) financing and listing of non core business subsidiaries can also solve the problem of employee incentive of subsidiaries.
(source: Daily Economic News)
