Yonyou Auto IPO, is it really "bad money" or "busy cashing out"? | IPO Research Institute

Compared with the cash flow of 501 million on the account, does Yonyou Really lack that 560 million?

Text/Daily Earnings Report Li Jia

In recent years, for the capital market, the new energy vehicle industry chain is very sensitive, and a casual car-making ball can trigger a sharp rise in market value. Therefore, it has attracted various enterprises to "imperceptibly" cross-border and try to get a piece of the pie. What is unexpected is that a software company that does marketing information systems also wants to list in the name of new energy vehicles, which inevitably makes people suspect that there is a suspicion of rubbing heat.

Recently, the process of ERP enterprise "Yonyou Network Company" splitting "Yonyou Auto" to land on the Science and Technology Innovation Board has entered the second round of inquiry stage. In terms of operating performance, it is reasonable to say that the new energy vehicle track is in a period of performance explosion, but from the perspective of Yonyou's revenue, the performance is basically not directly related to high growth, and even the revenue of Yonyou Automobile in the past three years has been declining. In this way, it seems to deviate from the reasonable listing track.

Company attributes "silly and unclear"

From the prospectus of Yonyou Automobile, it can be found that it seems that the hot spot of new energy vehicles is not very good. According to the prospectus, from 2018 to 2020 (reporting period), Yonyou Automobile's revenue was 487 million yuan, 487 million yuan and 476 million yuan, respectively, and the net profit attributable to the mother after deducting non-deductions was 84.8449 million yuan, 92.6562 million yuan and 84.8281 million yuan respectively, the revenue growth stagnated, and the net profit in 2020 fell by 10.92% year-on-year.

Specifically, the reason why Yonyou Automobile's revenue is difficult to grow is not due to the software development and services that account for the highest proportion, but due to the continuous decline in system operation and maintenance services and smart device sales revenue during the reporting period. According to the data, Yonyou Automobile's main business is software development and services, including the car company marketing system and the owner service platform, which accounts for 65.96% of the total revenue in 2020, in addition to the sales of system operation and maintenance services and smart devices, but the system operation and maintenance service revenue decreased by nearly 20 million yuan compared with 2018, and last year's smart device sales fell by 83.45% compared with 2018.

For the regression of revenue, Yonyou Automobile explained in the prospectus that the decline in system operation and maintenance revenue in 2020 stems from the impact of the epidemic; for the continuous decline in revenue of smart device business, on the one hand, the sales amount of smart devices for a single project of Yonyou Automobile in 2018 is large, on the other hand, the intelligent device business in 2020 is affected by the number of newly signed dealers corresponding to Yonyou Automobile's existing OEM customers and the number of newly signed OEM customers in their brand dealers, and the cloud transformation reduces the demand for smart devices.

In fact, if you think about it carefully, it is well known that the new energy vehicle industry is developing rapidly within the reporting period, and Yonyou Automobile has a performance trend of either this or that, which does not show the same tone, which also proves in some ways that it may not be counted as a new energy vehicle company, but more focused on software companies.

Weakness in research and development

There has always been a saying in the industry, "Without innovation, there is no market", but Yonyou Auto is lackluster in product innovation. According to the prospectus, the company's main business has been focusing on the marketing and aftermarket services of the automotive industry, providing customers with related software products and services.

The company's main customer groups are automakers, dealers, service stations, etc. for the automotive industry, providing them with digital and intelligent solutions, cloud services, software and professional services in the field of marketing and aftermarket services.

Obviously, Yonyou Automobile is only an automobile sub-industry in the industrial manufacturing industry, the marketing of the automotive industry, and there is no innovation in the real products of the car, of course, if Yonyou is a car production workshop, then the technical content needs to be higher.

In the automotive innovation technology service market, it is necessary to mention the DCS/DMS system launched by Yonyou Automobile to automakers and dealers more than a decade ago. DCS is a distributed computer control system, almost all walks of life to use the manufacturing industry, the highest proportion of the market structure is the chemical, electric power and petrochemical industries, other industries accounted for only 14%.

Yonyou Auto intends to cover multiple scenarios in the chemical, automotive and other industries through DCS/DMS systems. However, it did not use this system to increase investment in research and development, resulting in a low market share of the industry. The highest market share in the industry is Zhejiang Zhongkong, and by 2020, it will surpass Honeywell to become the first manufacturer in China's DCS market share.

In fact, Yonyou Automobile has not invested too much in research and development, and the research and development expenses in the past four years have not exceeded 80 million yuan. Compared with some enterprises specializing in the direction of new energy vehicles and investing billions in R&D, it is a far cry.

In addition, some insiders said that although Yonyou Automobile's customers are mainly well-known automakers and dealer groups, if the automotive industry boom continues to decline or the macro economy continues to weaken in the future, the risk of bad debts will also increase, which will also adversely affect the operating performance of Yonyou Automobile.

"Subject content" is not high

Compared with less generous research and development, the performance of patents is more weak. According to the prospectus, Yonyou Auto currently has only 3 patents and 80 copyrights. Among them, 80 copyrights mainly layout automobile sales and aftermarket; only 2 of the 3 patents are invention patents, involving the field of data transmission and document management, and 1 design patent is involved in the field of station controller.

In terms of time span, the only three patents of Yonyou Automobile were applied for in 2011, 2012 and 2015, and there have been no new invention patents in the past eight years, and no patents have been obtained in the past five years.

Back to today's automotive industry, in fact, there have been changes long ago, and the technical threshold is getting higher and higher. In the face of more and more companies in the patent you catch up with me, and if Yonyou Automobile stagnates, and then does not increase the research and development of patents, this fierce track, it is certainly easy to be thrown away, more difficult to talk about the future.

As for the purpose of the real listing of Yonyou Automobile, according to the prospectus, the company raised 560 million yuan of funds this time mainly for the upgrading of the marketing system of car companies, the upgrading of the service platform for car owners and the construction of data analysis platforms. Objectively speaking, the amount raised is indeed not much, but the key problem is that the Daily Financial Report found that the cash flow of Yonyou Automobile was 501 million yuan. The amount of difference between the two is not very large, which inevitably makes people doubt the essential significance of their special spin-off listing.

Compared with other listed companies, most of them are companies with relatively high "scientific content", there is a silicon wafer Shanghai silicon industry that urgently needs technological breakthroughs, and there are also fabs with billions of billions of investments, SMIC, and the development of these companies is of great significance to domestic independent substitution. On the other hand, it is difficult to link it with the real new energy automobile industry, but it is very interesting to list and cash out.

As we all know, the capital market always looks to the "money", Yonyou Auto is facing so many problems, whether it can get the favor of the capital market, presumably need to put a question mark.