The performance of the first three quarters has soared again, and the "great lifting of the ban" of the ninth company is coming

This week (October 25 to October 29) more than 50 listed companies in the A-share market will usher in a wave of lifting, of which the highest amount of lifting is the no. 9 company known as "unicorn" - WD (689009.SH).

Or affected by this news, the company's stock price (hereinafter referred to as the former reinstatement) fell 8.84% on October 25, and as of the close, it closed at 68.99 yuan / share, with a total market value of 48.575 billion yuan.

Since its listing for a year, the company has achieved its first profit, and its stock price has also risen a lot, and the large-scale lifting of the ban has caused many investors to worry.

Domestic "VIE+CDR First Share"

Company 9 was established in December 2014 and landed on the Star Market in October 2020. The company focuses on the field of intelligent short-distance transportation and service robots, and its main business is the design, research and development, production, sales and service of various intelligent short-range mobile devices. At present, the company has formed a rich product line including intelligent electric balance vehicles, intelligent electric scooters, intelligent service robots and so on.

According to the data of 2020, the intelligent electric balance car series and the intelligent electric scooter series together contributed nearly 90% of the revenue and profit, and the remaining products accounted for a slightly higher proportion of the intelligent electric motorcycle and electric bicycle series.

It is worth mentioning that there are many special places in Company Nine.

According to the prospectus, considering the convenience of overseas financing, No. 9 Company set up a VIE structure when it carried out the A round of financing, and its VIE entity dingli united in 2012.

At the same time, the company also has a voting rights difference arrangement, which is commonly known as "same share different rights", and the W in its abbreviation refers to this. As of June 30, 2021, Gao Lufeng and Wang Ye, the actual controllers of Company No. 9, held a total of 25.79% of the company's shares and 63.47% of the voting rights.

As a Mijia ecological chain enterprise, the company's shareholding ratio of xiaomi has reached 19.64%. Sequoia Capital and Huashan Capital are also its shareholders.

In addition, the company is a sci-tech board listed in the form of CDR (Chinese Depositary Receipts), and the D in its abbreviation illustrates this matter.

Therefore, No. 9 Company also won the title of "VIE+CDR First Share" in China.

After the stock price doubled, the ban was lifted

Bearing that title, the company's stock price has risen more than 109 percent over the past year.

After doubling the stock price, No. 9 Company finally ushered in the peak of the ban on floods.

According to the recent announcement, Company Nine will lift the ban on 382 million depositary receipts on October 29 this week, accounting for 54.27% of the total number of depositary receipts of the company on the announcement date, of which 7.0409 million are the first strategic placement depositary receipts and 375 million are the original shareholders' restricted depositary receipts, involving a total of 13 shareholders, as shown in the following figure.

The depositary receipts held by the above holders were all available before the listing, which also means that with the doubling of the stock price, these shareholders now have a rich floating profit, so some investors are worried that after the large-scale lifting of the ban, some shareholders will reduce their holdings and cash out, and the stock price of Company Nine will be under pressure.

There are many shareholders who have lifted the ban, including Sequoia Capital China GF Holdco III-A, Ltd., a fund managed by Sequoia Capital, as well as Xiaomi's People Better Limited and Shunwei TMT III Limited. Some of these shareholders who make financial investments may have the idea of cashing in on the gains.

Combined with the stock price movement on October 25, some investors' concerns that the stock price of Ninth Company may be under pressure in the short term is justified.

Multi-track layout, is the long-term prospect good?

In the long run, what is the future of Company Nine?

Let's take a look at the company's current performance. In 2020, the company achieved revenue of 6.003 billion yuan, an increase of 30.09% year-on-year, a net profit attributable to the mother of 73.4731 million yuan, an increase of 116.15% year-on-year, and a non-net profit of 51.2615 million yuan, down 51.47% year-on-year.

Comparing the company's performance data in recent years, it is not difficult to find that 2020 is the year in which the net profit attributable to the mother of the ninth company has turned into a profit. However, the company's non-net profit decreased compared with 2019 and 2018.

The latest three quarterly report results released on October 25 show that in the first three quarters of this year, No. 9 Company achieved revenue of 7.202 billion yuan, an increase of 66.81% year-on-year, achieved a net profit attributable to the mother of 388 million yuan, an increase of 356.77% year-on-year, and achieved a non-net profit of 350 million yuan, an increase of 387.17% year-on-year, and several major indicators recorded substantial growth.

The growth in performance has also provided support for the doubling of the company's stock price.

At present, the business of the ninth company is highly dependent on intelligent electric balance bikes and intelligent electric skateboards. In the segments where both products are located, the company already has some advantages.

Segway was founded in 1999 by inventor Dean Kamen. In 2002, Segway launched the first balance car in history, Segway PT, and the company subsequently gained a lot of popularity and became an overseas brand with high visibility.

In 2015, No. 9 Company acquired Segway, which has the bottom patent of the balance car at home and abroad, and has become the representative brand of the balance car category.

Because the balance car has higher requirements for safety and technical difficulties, after the formulation of industry standards, the industry has a high threshold. After the acquisition of Segway by No. 9 Company, it has a strong competitive advantage in the balance car industry.

The revenue scale of the No. 9 balance car in 2019 is 1 billion yuan, and the terminal retail scale is about 2 billion yuan, and Anxin Securities said in the research report that according to the market size of 10 billion yuan in the balance car industry, the company's market share is about 20%.

According to GFK statistics, from January 2019 to February 2020, the No. 9 electric scooter products (including Xiaomi brand and No. 9 private brand) are the first in major European countries such as Germany, Italy, and Spain, and the industry status is high.

In 2020, the global market size of electric scooters is about 17 billion yuan, and Essence Securities expects the future space of the European and American markets to be nearly 40 billion yuan.

Overall, No. 9 Company has a good prospect in the field of intelligent electric balance vehicles and intelligent electric skateboards.

In addition to these two products, the company is also focusing on the layout of electric two-wheelers.

However, in the field of electric two-wheelers, the competition is very fierce. In detail, No. 9 Company may have to compete with the following types of companies: one is Yadi, Emma and other large traditional electric vehicle companies that are mainly based on the mass market; the second is a new electric vehicle enterprise such as Xiaoniu, which is mainly based on high-end routes; and the third is a large number of small and medium-sized electric two-wheeler companies.

As a new entrant, in the face of different market segments, Company Nine has adopted different competitive strategies. For example, for the sinking market, No. 9 Company has explored the price band on the basis of retaining intelligent functions in order to gain more market share.

It is reported that the company's B series and the A series that have been launched (priced at 2399 yuan, the activity price is 1999 yuan) are sinking the price band, and competing with competitors in the field of traditional electric two-wheelers through intelligent advantages.

The E series and C series (partial) are medium and high-end series, and the main target is the calf.

In overseas markets, Segway's electric bicycles and C80 electric bicycles have been opened for sale on Segway's official website. In the short term, the focus of No. 9's electric two-wheelers may still be in the domestic market, but the company's overseas development potential is also worth paying attention to.

On the whole, the competition in the field of electric two-wheelers is very fierce, no. 9 company belongs to the new entry, the industry status is not so high, but no. 9 company in the field of electric two-wheelers also has its own advantages, and now has also made some achievements, this part of the business has also contributed a lot of revenue and profits for the company, second only to the above-mentioned intelligent electric balance car and intelligent electric skateboard business sector.

From the current situation, the prospects of No. 9 Company in the field of core business are good, the company also has a high industry status, and in the newly laid out electric vehicle track is facing fierce competition, and has also made some achievements, and finally whether it can further gain more market share remains to be verified.

Author: Yun Zhi Fengqi

This article originated from Caihua Network