When the broader market fell on January 25, Yonyou Network announced a fixed increase of 5.3 billion.
According to the company's announcement after hours on the same day, the top private equity Hillhouse and Gao Yi assets have been allocated to the fixed increase of Yonyou Network. Among them, Hillhouse's subsidiaries were allocated 1 billion yuan (Hillhouse is the main force this time, the largest allocation scale), Gaoyi Asset's products were allocated a total of 400 million yuan, and Ge Weidong was allocated 200 million yuan.
On January 25, the company disclosed the report on the issuance of non-public A-share shares, the total number of shares issued by the fixed increase project was 166 million shares, the total amount of funds raised was 5.298 billion yuan, the issue price was 31.95 yuan per share, and a total of 17 subscribers were successfully allocated (see the table below).
Specifically, HHLR Management Limited (owned by Hillhouse Capital) 31.298 million shares were allocated, with an allocation amount of nearly 1 billion yuan; in addition, two products under Gao Yi Assets were also listed, of which Gao Yi Assets - Gao Yi - Xiaofeng No. 1 Ruiyuan Fund was allocated 6.259 million shares, Gao Yi Assets - Gao Yi - Xiaofeng No. 2 Letter Fund was allocated 6.259 million shares, gao Yi Assets' two private equity products were allocated a total of nearly 400 million yuan, in addition, the only natural person among the 17 allocated objects, private equity tycoon Ge Weidong was allocated 200 million yuan. In addition, shenwan hongyuan, Huarong, E Fangda, GF, J.P. Morgan, Morgan Stanley and other well-known institutions at home and abroad participated in the increase.
It is worth noting that Ge Weidong has long been an "old shareholder" of Yonyou Network. Wind data shows that as early as the third quarter of 2017, Ge Weidong has newly become the 6th largest circulating shareholder of Yonyou Network, holding 39.4522 million shares, and then the number of its shares has changed, as of the third quarter of 2021, Ge Weidong ranked as the fifth largest circulating shareholder of Yonyou Network, with a number of shares held by 115 million shares, and the number of shares held will be further increased after the official listing of this fixed increase.
What is the quality of the UFIDA network that can be optimistic about many well-known investment institutions such as Gao Yi and Hillhouse and investment tycoon Ge Weidong at the same time?
Focusing on the enterprise software and service market for a long time, Yonyou Network is the largest financial software provider in China, the largest enterprise management/ERP software provider in Asia Pacific, and the leading manufacturer of digital intelligent services and software localization and independent innovation in China.
Industry position: The company ranks first in the enterprise cloud service market, first in the enterprise APaaS cloud service market, first in the Market share of Enterprise Application SaaS in China, and first in the market share of ERP cloud in China.
According to the latest statement of the third quarterly report of 2021:
The company has won a number of first places in the research of authoritative institutions in the world and China. According to Gartner research reports, Yonyou is the only Asia-Pacific vendor listed in the global enterprise application software TOP10, the only Chinese vendor selected for gartner's cloud ERP market guide, and the only Chinese vendor to be selected in Gartner's human resource management (HCM) market guide for two consecutive years. As a co-organizer, the company participated in the 2021 Summit of the China Informatization 100 Association, participated in the "2021 Global Digital Economy Conference", "2021 World Internet Conference", "2021 Zhongguancun Forum" and other activities, demonstrated the concept and application cases of Yonyou BIP (Business Innovation Platform) to the industry, and enhanced the awareness and influence of Yonyou BIP.
Concepts involved: enterprise cloud, digital economy, finance, ERP.
The funds raised are mainly used for the YonBIP construction project of YonBIP business innovation platform, the construction project of the third phase of Yonyou Industrial Park (Nanchang) R&D center, and the supplementary working capital and the return of bank loans. Among them, the total investment in the construction project of YonBIP business innovation platform YonBIP is 4.597 billion yuan, and the total investment amount of the construction project of the third phase of the R&D center of Yonyou Industrial Park (Nanchang) is 628 million yuan.
The YonBIP construction project is a strategic key project of Yonyou Network. YonBIP said that YonBIP builds an enterprise cloud service platform based on technology platforms and business applications based on a new generation of digital and intelligent technologies. By using YonBIP, enterprises (including various organizations and roles at all levels), related organizations and individuals can easily carry out business innovation, so that business innovation transcends the two professional barriers of technology and business, and becomes more simplified, popular and social. YonBIP's goal is to serve more than 10 million enterprise customers, gather ecological partners with more than 100,000 enterprise services, connect communities with more than 100 million people, and achieve 100 billion revenue.
The feasibility analysis disclosed by Yonyou Network shows that the construction period of the YonBIP project is 3 years, and the after-tax financial internal rate of return is 19.50%.
At the "Insight 2022 5th China Enterprise Service Annual Conference" in December last year, YonBIP's two key products, YonBIP and YonBuilder, won the "2021 China Digital Platform Annual Influence Product Award" and the "2021 China Low Code Platform Annual Influence Product Award" respectively.
According to the "2022 China Enterprise Digital Intelligence Service Market Trend Report", Haibi Research Institute expects that the overall market size of the mainland enterprise digital intelligence service market will exceed 4 trillion yuan in 2022. At the same time, in the next three years, with the blessing of new technologies, new scenarios, new models and new formats, it is expected that the overall market will have greater growth potential, with a compound growth rate of 20%.
Digital intelligence is accelerating the change of the business world, the emergence of BIP, so that enterprises, related organizations and individuals, simple, convenient, on demand, anytime, anywhere to carry out business innovation, so that business innovation breaks the three major barriers of technology, business, cost, become simple, convenient, popular, social, this is another level of technology-driven business revolution.
In terms of the company's finances, according to the third quarter of 2021, the net profit attributable to the mother in 2020 is negative for year-on-year growth, and the first three quarters of 2021 will increase by 913.76% year-on-year.
However, it is worth noting that the net profit after deducting non-deductions is negative (-177 million yuan). If you look at it quarterly, the non-net profit in the third quarter of 2021 was -96 million yuan.
Yonyou Network said that the increase in losses in the third quarter of 2021 was due to the increase in related investment caused by the transformation of the cloud service business, which has become the most important source of revenue. According to the company's 2021 third quarter report:
During the reporting period, the company's cloud service business achieved revenue of 2,526.4 million yuan, an increase of 83.0% year-on-year, accounting for 54.2% of the overall revenue of cloud service and software business, an increase of 3.2 percentage points over the half year, and an increase of 17.5 percentage points over the same period last year, and the company's cloud service business has become the company's most important source of income.
During the Reporting Period, the annual recurring revenue of the Company's cloud service business (hereinafter referred to as "ARR") reached RMB1,179.86 million, an increase of RMB346.27 million or 41.5% sequentially over the half year; the contract liabilities of the Company's cloud service business were RMB1,304.3 million, an increase of 20.3% over the end of the previous year, an increase of 38.5% year-on-year, of which subscription-related contract liabilities were RMB702.43 million, an increase of 48.5% over the end of the previous year and an increase of 72.4% year-on-year. The rapid growth of the company's ARR, cloud service business contract liabilities and subscription-related contract liabilities provides a solid guarantee for the sustained high-speed and high-quality growth of the company's cloud service business revenue and subscription revenue.
From another point of view, the above data actually represents the strategic transformation of Yonyou Network, from financial software to cloud services, changes in company fundamentals or one of the reasons why institutions are optimistic.
In addition, the company is involved in the digital economy, the concept of industrial Internet, or the same reason why institutions are optimistic about the company.
From a series of "14th Five-Year Plan" documents recently issued by the Ministry of Industry and Information Technology, digital empowerment of manufacturing has become a significant trend, document planning guidelines by 2025, the digital penetration rate of enterprise operation and management will reach 80%, the penetration rate of digital research and development design tools will reach 85%, the numerical control rate of key processes will reach 68%, and the penetration rate of industrial Internet platforms will reach 45%. From the perspective of Yonyou's product system, it already has a whole industry chain layout that empowers enterprise digitalization.
Finally, the recent annual reporting season, according to historical financial data, Yonyou Network's revenue in the fourth quarter of each year tends to increase significantly, which makes the market also have certain expectations.
Recently, an investor asked the company on the interactive platform, "Why does the revenue increase significantly every time to the fourth quarter?" ”
The company said that combined with the data of the past years, the company's main customers are large enterprise customers, according to the implementation of large projects and customer acceptance progress, the fourth quarter is usually the company's revenue recognition peak season.
To tell you an interesting thing, on the morning of the second day after the announcement of the fixed increase (January 26), CICC issued a research report with the title of "New Blood injected into the ground, and the digital economy stood at the head of the tide", and the author could not watch the research report due to his permission. The headline of the research report is very large, quite a momentum of "seizing the pricing power of Xiangjiang", but from the perspective of stock price performance, the opening hour of the 26th morning (9:30 to 10:30 a.m.) fell by 1.35%, which was not good.
This article originated from Caihua Network