After a year of listing, it fell 13.74% on the day of the lifting of the ban, and Yuntian Lifei's revenue shrank, continued to lose money, and its gross profit margin declined one after another

Producer: Sina Finance Listed Company Research Institute

Author: Kun

One year after its listing, Yuntian Lifei not only failed to get rid of losses and achieve growth in performance scale, but ushered in a stock price decline for several days after the ban was lifted.

As early as December 2020, Yuntian Lifei's IPO application for the Science and Technology Innovation Board was accepted, and in August 2021, it passed the review meeting of the Listing Committee of the Shanghai Stock Exchange, but due to the investigation of the intermediary agency Bei Securities Regulatory Commission, the registration process of Yuntian Lifei was forced to be suspended, and the issuance registration process was not resumed until February 2022. It was not until April 2023 that Yuntian Lifei was officially listed on the Science and Technology Innovation Board. On the day of listing, the stock price rose sharply to 189% to 127 yuan, and finally closed with a share price increase of 137% to 104 yuan.

On April 8, 2024, the 178 million shares of the original shareholders' restricted shares and strategic placement shares of Yuntian Lifei were lifted, of which 171 million restricted shares were issued in the initial offering, corresponding to 50 shareholders of restricted shares, and 64 million shares of strategic placement shares, corresponding to 7 shareholders of restricted shares, with a total market value of 6.223 billion yuan.

Although before the lifting of the ban, Yuntian Lifei had issued relevant repurchase announcements, it still did not affect the successive declines in the stock price. On the day of the lifting of the ban, Yuntian Lifei closed with a decline of 13.74%. As of the close of trading on April 18, 2024, the share price of Yuntian Lifei was 27.95 yuan/share, a decrease of more than 20% compared with the closing price of 35 yuan/share before the lifting of the ban, and a decrease of 36% compared with its issue price of 43.92 yuan/share. Up to now, the market value of Yuntian Lifei is only 9.9 billion, compared with more than 40 billion when it was listed a year ago.

Behind this, it is the AI "common problem" of Yuntian Lifei that is still unsolved, not only has its revenue declined significantly in the past two years, but it is still in the red, and its gross profit margin is not only at the bottom of its peers, but also significantly reduced. Under the continuous loss and difficulty in recovering payments, it has not developed its own "hematopoietic" ability, but it has not stopped acquiring smart wearable technology companies at a premium of 6 times, which will help or drag down the performance in the future, which remains to be seen.

One year after listing, it fell 13.74% on the day of lifting the ban

In April 2024, one year after the listing of the Science and Technology Innovation Board, Yuntian Lifei ushered in the moment of lifting the ban.

On April 8, the 178 million shares of the original shareholders' restricted shares and strategic placement shares of Yuntian Lifei were lifted, of which 171 million shares were restricted shares in the first place, accounting for 50.05% of the company's total share capital. There are 50 shareholders of restricted shares, 64 million strategic placement shares, and 7 shareholders of restricted shares, with a total market value of 6.223 billion yuan.

Last year, the issue price of Yuntian Lifei was 43.92 yuan / share when it was listed, but the opening price on the lifting day was less than 35 yuan / share, which means that the shareholders who participated in the initial strategic placement will have a floating loss of more than 20% after one year of accompaniment. However, for investors who are early investors, cashing out at this moment may still be able to make a lot of gains.

A few days before the lifting of the ban, in order to stabilize the stock price and investor confidence, Yuntian Lifei also issued a repurchase announcement. In the announcement, Yuntian Lifei stated that the company intends to use the over-raised funds to repurchase the company's shares in a centralized bidding transaction, with the total amount of funds repurchased not less than RMB 25 million (inclusive) and not more than RMB 50 million (inclusive), and the repurchase price not exceeding RMB 60 per share (inclusive).

But even so, more than half of the shares were lifted, and the performance was still unsatisfactory on the day of the lifting of the ban and the next few trading days.

On the day of the lifting of the ban, Yuntian Lifei closed with a decline of 13.74%, and then fell for several days. As of the close of trading on April 18, 2024, the share price of Yuntian Lifei was 27.95 yuan/share, a decrease of more than 20% compared with the closing price of 35 yuan/share before the lifting of the ban, and a decrease of 36% compared with its issue price of 43.92 yuan/share. Up to now, the market value of Yuntian Lifei is only 9.9 billion, compared with more than 40 billion when it was listed a year ago.

After listing, revenue shrank and continued losses Do not have the ability to "hematopoietic" but want to acquire smart wearable technology companies at a premium of 6 times?

In the AI boom in the past few years, AI companies were once highly sought after by capital, and in just a few years, financing was soft, and valuations rose. However, when it really faces the listing level, it is often "completely exposed", the scale of revenue is no longer growing by leaps and bounds or even gradually shrinking, the lack of profitability and "hematopoietic" ability, and the continuous high investment in R&D is still doubtful about its competitiveness, all of which make its listing bumpy road. Especially after the listing and fundraising, the performance of many AI companies has still not improved significantly, and the successive declines in stock prices have also made investors who entered the game later. Yuntian Lifei is obviously one of the above-mentioned companies.

In the first three quarters of 2019-2022, Yuntian Lifei's operating income was 230 million yuan, 426 million yuan, 566 million yuan, 546 million yuan, and 227 million yuan respectively, of which the first three quarters of 2022 and 2023 decreased by 3.44% and 11.37% year-on-year respectively.

At the same time, the profitability of Yuntian Lifei is still unsolved. In the first three quarters of 2019-2023, the company lost 510 million yuan, 398 million yuan, 390 million yuan, 448 million yuan, and 299 million yuan per year, respectively, and the net profit margin in the same period was -221.24%, -93.43%, -68.92%, -81.96%, and -131.44% respectively. On top of the shrinking revenues, the extent of losses has clearly deepened.

Although Yuntian Lifei has not yet announced its 2023 financial report, judging from the previously released performance reports, 2023 may still not be optimistic. In 2023, Yuntian Lifei will achieve an operating income of 535 million yuan, a year-on-year decrease of 2.14%, and a net profit attributable to the owners of the parent company of -390 million yuan, which is narrower than the net loss of 447 million yuan in the same period last year, while the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses in the same period will be -507 million yuan, which is little changed compared with the same period last year.

In the performance report, Yuntian Lifei listed several reasons for the company's loss changes, such as the decline in equity incentive expenses, the increase in income from wealth management products, and the increase in sales expenses, including the company's R&D investment to maintain a high level, and the company's operating gross profit does not cover R&D and other aspects of investment.

From the perspective of Yuntian Lifei's presence in the AI track and its entry into the large model, it is understandable that the continuous high R&D investment is understandable, but it should be noted that the gross profit margin of Yuntian Lifei was already at the bottom of its peers before listing, and the gross profit margin continued to decline after listing. In the prospectus before listing, Yuntian Lifei compared the company with peers such as SenseTime Technology, Yuncong Technology, and Cambrian, but compared with the above-mentioned peers, which can basically maintain a gross profit margin of more than 60%, Yuntian Lifei's gross profit margin performance is almost at the bottom of the industry. In the first three quarters of 2023, Yuntian Lifei's gross profit margin fell to 32.47%.

At the same time, because the landing scenarios of the company's products/solutions are related to the nature of the end customers, the end customers of Yuntian Lifei are mainly G-end and B-end, which means that it is difficult for Yuntian Lifei to have strong bargaining power, and the ability to collect payments is basically determined by customers. In recent years, although the growth of Yuntian Lifei's revenue scale has been limited, its accounts receivable have increased from 86 million yuan in 2019 to 343 million yuan in the first three quarters of 2023, and the number of days of accounts receivable turnover has nearly doubled from 114 days in 2019 to 211 days in 2022, and then to 456 days in the first three quarters of 2023.

In the first three quarters of 2019-2023, the company's net operating cash was -188 million yuan, -243 million yuan, -176 million yuan, -411 million yuan, and -381 million yuan respectively.

What's more, even if the main business focusing on the G-end and B-end has not yet run through the profit model, Yuntian Lifei is still betting non-stop on the new business of the C-side. In March 2024, Yuntian Lifei announced that the company intends to use its own funds or self-raised funds to purchase 100% of the equity of Chengcheng Technology for no more than RMB 180 million, and the owner's equity of Weicheng Technology as of October 31, 2023 is 26.03 million yuan, and according to the evaluation report, the value of all shareholders' equity assessed by the income method of Weicheng Technology is 183 million yuan, the value-added amount is 157 million yuan, and the value-added rate is 604.46%. However, the technology of Yucheng Technology is mainly in the software and hardware development and technical services of smart wearable products, and the C-end is strengthened, and the non-net profit deducted in the first 10 months of 2023 is still a loss.