Source: Rongzhong Finance (ID: thecapital), author: hyacinth, editor: Wuren
Hikvision spun off a subsidiary to go public.
Hikvision harvest season is here.
Recently, Hikvision's spin-off subsidiary Hikvision Co-D subsidiary Hikvision submitted an IPO application to the Growth Enterprise Market (GEM), which has been accepted by the Shenzhen Stock Exchange, which is the second company to sprint IPO after Fluorite Network successfully landed on the Science and Technology Innovation Board at the end of last year, and if it can be successfully listed, it will become the third listed company of Hikvision.
According to the prospectus, Hikvision Machine is a global provider of machine vision and mobile robot products and solutions, focusing on industrial Internet of Things, smart logistics and intelligent manufacturing, mainly relying on the company's technology accumulation in related fields, engaged in the design, research and development, production, sales and value-added services of hardware products and software platforms for machine vision and mobile robots.
This time, Hikang Machinery intends to publicly issue no more than 240 million shares and no less than 80 million shares, and is expected to raise 6 billion yuan, which will be invested in five major projects, including Hikrobot Intelligent Manufacturing (Tonglu) Base Project, Hikrobot Product Industrialization Base Construction Project, New Generation Mobile Robot Platform Technology and Product Research and Development Project, New Generation Machine Vision Perception Technology and Product Development Project, Artificial Intelligence Technology and Industrial Software Platform Research and Development Project, and supplementary working capital.
After the IPO, Hikvision held 45% of the shares and Qinghe Investment held 30%.
As the "security Mao" of A-shares, Hikvision's market value once exceeded 600 billion yuan, but in July 2021, after the stock price reached a peak of 69.54 yuan, next, Hikvision's stock price ushered in a downward trend of more than 1 year, the lowest stock price reached 26.8 yuan, the market value was only 250 billion yuan, as of the close of March 22, Hikvision's share price reached 41 yuan, with a total market value of more than 380 billion yuan.
The decline in stock prices is an early reaction to Hikvision's performance change, and Hikvision recorded its worst performance since listing in 2022. According to the 2022 performance express report released by Hikvision on February 18, Hikvision's net profit fell 23.65% year-on-year to 12.83 billion yuan, which is the first decline in Hikvision's 12-year listing, even if it encountered the epidemic "black swan" in 2020; The annual revenue was 83.174 billion yuan, a slight increase of 2.15% year-on-year, and the growth rate hit a record low.
The performance of these financial data tells investors the fact that Hikvision can not run, and the landlord's family has no surplus food, and Hikvision, which is well aware of this fact, has been keen on spinning off and listing in recent years, allowing children to go out independently to support themselves, and the first successful spin-off is Fluorite Network.
Fluorite Network mainly focuses on smart home products, including cat's eye, children's phone watches, doorbells, sweeping robots, fingerprint locks, smart cameras, etc.
This time, Hikvision Machinery plans to raise 6 billion yuan, accounting for nearly half of Hikvision's net profit in 2022, and Hikvision cannot afford to raise such a money-burning child. On the other hand, spin-off and listing is regarded as an important way for enterprises to increase their valuation, which not only helps the parent company focus on its main business and increase its own valuation, but also helps the spin-off company to be recognized by the market.
So who will be the biggest beneficiary after this spin-off and listing?
01 The man behind Haikang greets his 9th IPO
China Electronics Technology through Hikvision actual control of Hikvision Hikvision is undoubtedly the biggest beneficiary, but in addition, behind Hikvision there is also an investor with a net worth of nearly 90 billion - Gong Hongjia.
According to the prospectus, as of September 30, 2022, CETC held 36.08% of the shares of Hikvision through its wholly-owned subsidiary CLP Hikvision, 2.46% of the shares of Hikvision through its wholly-owned subsidiary CEC Investment, and 1.92% of the shares of Hikvision held through its subsidiary, CETC 52, holding a total of 40.46% of the shares of Hikvision, and was the actual controller of Hikvision.
CETC indirectly controls 60% of the shares of Hikvision through Hikvision and is the actual controller of Hikvision. Qinghe Investment holds 40% of the shares of Hikrobot Robot.
After the IPO, Hikvision held 45% of the shares, and Qinghe Investment held 30%.
Open Hikvision's top ten shareholders will find that there is such a name - Gong Hongjia, long-term ranked Hikvision's second largest shareholder, even if he has repeatedly reduced his holdings of Hikvision, up to now still holds 10.2% of Hikvision's shares, holding a market value of nearly 40 billion yuan, and this person is neither an executive of Hikvision, nor a member of its board of directors, when looking at the previous management personnel, I saw that he has been the vice chairman of Hikvision from 2008 to 2021, Among them, he was a director from 2008 to 2015, a non-executive director from 2015 to 2018 and a non-independent director from 2018 to 2021.
Unlike investors with overseas backgrounds such as Shen Nanpeng and Zhang Lei, Gong Hongjia, like Xia Zuoquan, became famous by relying on an investment, and he has labels such as "A-share cash-out king", "China's most bullish angel investor", "China's version of Son Zheng" and "security godfather".
Born in 1965, Gong Hongjia was a high intellectual of that era, he loved words in middle school, was good at writing, and once won the only perfect score in the Hubei Provincial College Entrance Examination essay, at that time his dream was also to be a journalist, lawyer and other humanities-related work, but in the end, under the influence of a teacher who valued him, he applied for the computer major of Huazhong Institute of Technology (now Huazhong University of Science and Technology), which was not a popular major at that time.
In addition, in sports, Gong Hongjia's preferences are also relatively unpopular, and he is still a third-level national javelin far mobilization.
Gong Hongjia's preference for the unpopular is also reflected in his subsequent investment philosophy. In the 90s, when the real estate began to flourish, he set his sights on the sunset industry radio, and in 1994 he founded the radio brand Desheng, under his management, did not fail because of the sunset industry, and the market share once exceeded 70%, becoming the first brand of radio in China. He earned more than $10 million from the radio business.
Of course, what really made Gong Hongjia famous in the battle was Hikvision.
In 2001, a team of 28 engineers composed of Chen Zongnian and Hu Yangzhong left CLP and founded Hikvision in Hangzhou, mainly engaged in the development and production of video compression boards. In order to help her old classmates realize their dreams, Gong Hongjia became an angel investor of Hikvision, investing a total of 2.45 million yuan, accounting for 49% of the shares, becoming the second largest shareholder of Hikvision.
After Hikvision went public in 2010, after the ban on restricted shares was lifted, Gong Hongjia began to reduce his holdings, and the latest reduction occurred in the first quarter of 2021. Some media estimates that Gong Hongjia has reduced his holdings in Hikvision by more than 30 billion yuan over the years, so he has also been labeled as the "A-share cash-out king".
Up to now, Gong Hongjia's investment of 2.45 million yuan has received a return of nearly 70 billion yuan, with a return rate of more than 28,000 times, which is an investment multiple higher than Xia Zuoquan's investment in BYD.
Gong Hongjia's investment success cases do not stop there, according to incomplete statistics, in addition to Hikvision, the listed companies he invested in also include Fuhan Micro, United Optoelectronics, Qingke Entrepreneurship, Zhongyuan Concord, VeriSilicon shares, Genetron, etc., investment involves security industry chain, biotechnology, chips and investment management and other fields, coupled with the fluorite network spun off by Hikvision, Hikvision may become Gong Hongjia's 9th IPO.
In addition to direct investment, Gong has also established a number of investment management companies, such as Tianjin Fuze, wholly owned by Wealth Strategy, a wholly Hong Kong-owned enterprise. In addition, his wife Chen Chunmei and brother Gong Chuanjun are also quite active in the capital market.
The most important investment carrier of the Gong Hongjia family is Shenzhen Kadogu Investment Management Co., Ltd., equity investment funds such as Kado Success and Kadoku Cheng, among which Kadogu Investment is also the LP behind Sequoia China, IDG Capital, Hillhouse Capital and many other institutions.
According to the Tianyancha App, as of March 20, 2023, Jiadao Gongcheng Equity Investment Fund has invested in 117 enterprises.
In 2022, Gong Hongjia and her family ranked 138th in the Forbes Global Billionaires List 2022 with a wealth of US$13.2 billion, or nearly RMB 90 billion.
Gong Hongjia summarized his investment philosophy as the "three noes" principle, that is, the more others are unwilling to do, dare not do, and the project is not good, the more you have to do.
Many people will say that Gong Hongjia's investment philosophy will make him miss a lot of investment opportunities, but the author believes that there is no shortage of opportunities in the capital market, but investors can only earn money within their own capabilities, and Gong Hongjia's "three noes" principle is obviously that he has been in the capital market for so many years to sum up a self-consistent investment philosophy, he can use it freely, as for other opportunities left to other investors.
02 Robot companies without "people"
The robots of the Haikang family are not what you think.
Maybe you've seen the Atlas that Google's can jump on one foot, the Optimus Prime that Tesla's can carry and water flowers, and the Xiaomi family's well-behaved and obedient iron egg, if you also think that the robot of the Hikang family is also like this, it will disappoint you, it is not so much a robot as a machine.
In 2015, in the era of encouraging entrepreneurship, many large companies also launched an entrepreneurial system within enterprises, Hikvision also implemented an innovation co-investment system in this year, Hikvision held 60% of the equity of the innovation business, and the remaining 40% of the equity was co-invested by employees, turning middle and senior managers and core technical backbones into "entrepreneurial partners" and sharing the results brought by innovative business development.
Under the "co-investment plan", Hikvision has established 8 innovative businesses on the existing technical channel resources, including fluorite network, Hikrobot robot, Hikvision automotive technology, Hikvision microshadow, Hikvision storage, Hikvision Huiying, Hikvision fire protection and Hikvision security inspection and other businesses, covering smart home, robotics, electronic car and other industries.
In 2014, Hikvision established the Machine Vision Business Center, mainly engaged in independent research and development of machine vision and mobile robot software and hardware; In 2016, the center was independent as Hikrobot Company, and its main business includes machine vision, mobile robots, computer software, drones, etc.
Machine vision mainly includes hardware products and software products, of which hardware products include industrial light sources, industrial lenses, industrial cameras, and software products mainly include VM algorithm software platform and 3D vision application platform.
Mobile robot is a battery-powered, equipped with electromagnetic, vision, laser and other navigation modules, capable of driving autonomously along the planned route, with safety protection and various transfer functions of transportation. At present, Hikvision Machinery mainly launched hardware products such as latent series, shift/heavy load series, forklift series, material box series, robot scheduling system RCS and intelligent warehouse management system iWMS software products in mobile robots.
Hikvision's UAV products are mainly multi-rotor flight platforms, supplemented by various optical or functional mountings, which are mainly used in patrol inspection, emergency and other fields.
From the perspective of Hikvision Machine's products, Hikvision Robot does not have much concept of "people", but more is an extension of Hikvision in the application of vision technology, but this has not affected the performance of Hikvision Machine.
According to the prospectus, in 2019, 2021 and the first nine months of 2022, Hikrobot's operating income was 941 million yuan, 1.525 billion yuan, 2.768 billion yuan and 2.81 billion yuan, respectively, and the net profit attributable to the parent was 45.4786 million yuan, 65.0964 million yuan, 482 million yuan and 428 million yuan, respectively.
It can be seen that the performance of Hikvision Machinery is not bad, but a closer look at the financial statements shows that tax incentives and government subsidies have added a lot to Hikvision's profits.
In 2019, 2021 and the first nine months of 2022, the total amount of tax incentives enjoyed by Hikrobot was 60.4124 million yuan, 73.8209 million yuan, 118 million yuan and 127 million yuan, respectively, accounting for 133.37%, 112.51%, 24.74% and 32.29% of the total profit.
In the same period, the amount of government subsidies (excluding VAT and refund) included in the profit and loss of Hikrobot in the current period was 42.5436 million yuan, 14.9841 million yuan, 90.9121 million yuan and 9.0395 million yuan, accounting for 93.92%, 22.84%, 19.06% and 2.30% of the total profit respectively.
From the perspective of revenue composition, the two major businesses of machine vision and mobile robots account for 90%, of which machine vision exceeds 60%.
Higher performance cannot hide the reality of cash flow pressure. From the perspective of long-term solvency, in 2019, 2021 and the first nine months of 2022, its asset-liability ratio was 85.69%, 86.84%, 69.46% and 71.44% respectively, and the long-term liquidity pressure has a tendency to expand.
In terms of short-term liquidity, except for 2020, in the first nine months of 2021 and 2022, the net cash inflows generated by HikMachinery's operating activities were negative, -325 million yuan and -398 million yuan, respectively, while in 2019, 2021 and the first nine months of 2022, Hik's notes receivable and accounts receivable were 494 million yuan, 506 million yuan, 808 million yuan and 1.280 billion yuan, accounting for 52.50% and 33.18% of the current revenue, respectively. 29.19%, 45.55%, short-term liquidity pressure is large.
The liquidity pressure is so great, coupled with Hikvision's own performance has also reached a bottleneck period, which also makes it have to make the decision to let Hikvision machine go public independently.
03 The market pattern of industrial robots is undecided, and the investment enthusiasm is unabated
Machine vision as the first technology in the field of AI, the application scenario has penetrated from the initial security to the industrial field, there have been many financing events related to industrial robots over the years, and the market has begun to become crowded, but due to the fragmentation of the specific landing scene, the overall market pattern has not yet been formed, and it is difficult to form a market pattern similar to Hikvision in the field of security in the future, which has also caused the investment and financing heat around industrial robots is not reduced.
According to data from MIR Rui Industries, in 2022, there were 93 investment and financing events in the field of industrial robots, and the market segments included core components, robot ontology, mobile robots and machine vision. From the perspective of subdivision, the largest number of financing events in the field of industrial robots in 2022 are in the field of machine vision, followed by mobile robots, and then industrial robots themselves.
In 2022, there will be 41 billion-dollar financing events in the field of industrial robots, most of which are concentrated in the field of mobile robots and collaborative robots, of which the largest amount is the D round financing of Jieka robots in the field of collaborative robots, which reached 1 billion yuan.
From the perspective of financing rounds, most of the financing rounds are between angel rounds and A and B rounds, and there are fewer companies in the C and D round financing stages, a total of 11. Only a handful of companies can enter the Series E and IPO rounds, with only 4 in 2022.
In June 2022, Jingsong Intelligent IPO was held, the science and technology innovation board was successfully listed, and Zhichang Group also entered the pre-IPO round of financing. On December 19, 2022, Jieka Robot signed a listing guidance agreement with Guotai Junan, officially launching the IPO process.
Although Hikvision machines have grown rapidly under the shade of Hikvision, in the eyes of many investors, it seems like a child who has not been "weaned", but in this increasingly competitive market, it is undoubtedly impossible for many entrepreneurial enterprises to rely on a big tree.
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