IPO Weekly Report | Midea Group and Carrot passed the hearing of the Hong Kong Stock Exchange; Suiyuan Technology launched an A-share IPO

One week of IPO dynamics, covering Hong Kong stocks, US stocks, and A shares.

This article is the original for IPO early knowing

Author|C

Midea Group

Hong Kong stocks|Passed the hearing

According to the IPO news, Midea Group Co., Ltd. (hereinafter referred to as "Midea Group") has passed the hearing of the Hong Kong Stock Exchange and disclosed the information set after the hearing on August 30, with CICC and Bank of America as joint sponsors.

According to the "IPO Early Know", Midea Group plans to raise $2 billion to $3 billion through this Hong Kong listing, and will officially land on the Hong Kong Stock Exchange in September at the earliest. This means that Midea Group may become the largest IPO project in Hong Kong stocks this year.

Founded in 1968, Midea Group now has two business segments: smart home business, which provides consumers with a wide range of home appliances, and commercial and industrial solutions. The latter provides a variety of solutions for enterprise customers, such as home appliance compressors and motors, commercial air conditioners, industrial robots, and supply chain services. Of course, most of the revenue still comes from home appliance sales in the smart home business.

According to Frost & Sullivan's report, Midea Group is the world's largest home appliance company in terms of sales volume and revenue in 2023, with a market share of 7.9% in terms of sales volume. In terms of sales volume in 2023, Midea Group ranks among the top three in the world in the fields of household air conditioners, washing machines, refrigerators, kitchen appliances and other home appliances, with market shares of 23.7%, 14.2%, 10.5% and 6.0% respectively. During the same period, Midea Group also ranked among the top three in the world in terms of retail sales, with market shares of 21.1%, 12.5%, 7.7% and 4.6% respectively, among which Midea Group ranked first in the field of household air conditioning and kitchen appliances and other home appliances.

In terms of production volume in 2023, Midea Group's home appliance compressor business ranks first in the global market, with a market share of 30.3%; The production volume of the residential air conditioning compressor business ranked first in the global market during the same period, with a global market share of 45.1%. In addition, in terms of revenue in 2023, Midea Group is the largest commercial air conditioning provider in Chinese mainland (market share 14.3%) and the top five in the world (market share 6.6%).

At present, Midea Group's business covers more than 200 countries and regions, with 33 R&D centers, 43 major production bases around the world, and more than 190,000 employees worldwide.

From 2021 to 2023 and in the first four months of this year, Midea Group's revenue was 343.4 billion yuan, 345.7 billion yuan, 373.7 billion yuan and 145.8 billion yuan, respectively, and the net profit margin was 8.5%, 8.6%, 9.0% and 9.4%, respectively.

Midea Group said in the prospectus that the net proceeds from the IPO will be mainly used for global technology research and development; the continuous construction of intelligent manufacturing system and the upgrading of supply chain management; Improve global sales channels and networks, as well as increase overseas sales of private labels; and for working capital and general corporate purposes.

Carrot

Hong Kong stocks|Passed the hearing

According to the IPO news, Carrot (Commercial) Limited (hereinafter referred to as "Carrot") recently passed the hearing of the Hong Kong Stock Exchange and disclosed the information set after the hearing on August 30, and intends to be listed on the main board, with France Paribas and CMB International as joint sponsors.

Founded in 2007, Carrot started as an OEM service for overseas brands, and since 2013 has shifted to focus on developing ODM business, designing, developing and manufacturing customized kitchenware products for international brand owners and retailers.

In 2016, the self-owned kitchenware product brand CAROTE brand was officially launched. Over the past 8 years, Carrot has established a prominent position in the online kitchenware segment in major markets such as China, United States, Western Europe, Southeast Asia and Japan, and has become one of the fastest growing kitchenware brands in the world.

From 2021 to 2023 and in the first quarter of this year, Carrot launched 520, 1,305, 1,374 and 361 SKUs of its own brand, respectively. As of June 5, 2024, Carrot's product portfolio includes more than 2,200 SKUs covering different kitchenware categories, including cookware, kitchen utensils, drinkware, and more.

As a brand focusing on the DTC model, Carrot cooperates with online platforms such as Tmall and JD.com in China, and cooperates with Amazon, Walmart, Rakuten, Qoo10, Shopee, Lazada, etc. internationally. Since the brand's products first entered the international market in 2017, as of June 5, 2024, Carrot's online business has expanded to cover a total of 48 self-operated online stores in 19 online markets in 19 regional markets.

According to the CIC report, in terms of retail sales in 2023, Carrot ranks among the top five in the online cookware industry in all major markets, fourth in China, second in United States, third in Western Europe, second in Southeast Asia and third in Japan.

In terms of financial data. From 2021 to 2023, Carrot's revenue will be 675 million yuan, 768 million yuan and 1.583 billion yuan respectively. In the first quarter of this year, Carrot's revenue increased by 72.2% to 503 million yuan from 292 million yuan in the same period in 2023.

Among them, from 2021 to 2023, Carrot's brand business revenue increased from 283 million yuan at a compound annual growth rate of 120.7% to 1.380 billion yuan. In the first quarter of this year, Carrot's brand business revenue was 450 million yuan, an increase of 82.6% from 247 million yuan in the same period in 2023.

From 2021 to 2023, Carrot's adjusted net profit was $32 million, $109 million and $243 million, respectively. In the first quarter of this year, Carrot's adjusted net profit was 97 million yuan. From 2021 to 2023 and in the first quarter of this year, Carrot's adjusted net profit margins were 4.7%, 14.1%, 15.3% and 19.3%, respectively.

In the prospectus, Carrot said that the net proceeds from the IPO will be mainly used to pursue acquisitions and investment opportunities; product research and development; expand sales channels; ESG-related investments; and for working capital and other general corporate purposes.

Nest

Hong Kong stocks|Submit a prospectus

ACCORDING TO THE IPO NEWS, HIVE BOX HOLDINGS LIMITED (HEREINAFTER REFERRED TO AS "HIVE NEST") OFFICIALLY SUBMITTED A PROSPECTUS TO THE HONG KONG STOCK EXCHANGE ON AUGUST 30, 2024, TO BE LISTED ON THE MAIN BOARD, WITH HUA Thailand AS THE SOLE SPONSOR.

Founded in 2015, Hive Hive is positioned as an end-of-line logistics solution provider. As of May 31, 2024, Hive Hive's smart express locker network consists of 330,000 sets of Hive Hive smart lockers, with a total of about 29.9 million lattices. As of May 31, 2024, the Hive Hive Smart Locker network covers about 209,000 communities in 31 provinces in China.

As of May 31, 2024, Hive Hive has served a total of 368 million consumers and 3.5 million couriers. From 2021 to 2023, the number of parcels delivered by Hive Hive Express's terminal delivery service was 6.204 billion, 5.823 billion and 6.463 billion, respectively, while the number of parcels sent by Hive Hive Consumer Smart Delivery Service was 114 million, 142 million and 233 million respectively, with a CAGR of 42.8%.

According to CIC, Hive Hive is the largest end-of-line logistics solution provider in China in terms of revenue in 2023. In terms of the number of cabinets as of December 31, 2023 and the volume of parcels in 2023, Hive Hive is the world's largest smart express locker network operator.

Relying on its own smart cabinet network operation, Hive Hive has expanded other value-added services, such as cleaning and home care services that cater to local community service scenarios - in the first five months of 2023, Hive Hive has 962,000 orders for cleaning and care services and 71,000 orders for home living services. Hive Hive is also involved in the advertising industry, serving approximately 6,000 advertisers in 35 industries as of May 31, 2024.

In terms of financial data. From 2021 to 2023, Hive Hive's revenue was 2.526 billion yuan, 2.891 billion yuan and 3.812 billion yuan, respectively, and the revenue in the first five months of this year increased by 33.6% to 1.904 billion yuan from 1.425 billion yuan in the same period in 2023.

It is worth noting that in the first five months of this year, Hive Hive achieved a year-on-year turnaround, with a net profit of 72 million yuan, an adjusted net profit of 219 million yuan, and an adjusted EBITDA of 728 million yuan, an increase of 5.6% from 689 million yuan in the same period in 2023.

Since its establishment, Hive Hive has received investment from well-known institutions such as China Post, Chuanfa Lomon, GLP, Trustbridge Capital, CDH Investments, Asia Investment Capital, Bell Capital, Feldspar Capital, Sequoia China and so on.

Hive Hive said in the prospectus that the net proceeds from the IPO will be mainly used to expand and optimize the Hive Hive smart cabinet network; strengthening the capacity and scope of value-added services; R&D work; strategic investments; and for working capital and general corporate purposes.

Suiyuan Technology

A-shares|Signed a mentoring agreement

According to the IPO news, Shanghai Suiyuan Technology Co., Ltd. (hereinafter referred to as "Suiyuan Technology") signed a mentoring agreement with CICC on August 23, 2024, officially launching the A-share IPO process.

Founded in 2018, Suiyuan Technology focuses on cloud and edge computing products in the field of artificial intelligence, and is committed to building a computing power base for general artificial intelligence, providing original innovation, AI acceleration cards, system clusters, and software and hardware solutions with independent intellectual property rights. Based on its innovative architecture with high computing power, high energy efficiency ratio and efficient and easy-to-use software platform, Suiyuan Technology's products can be widely used in multiple industries and scenarios such as pan-Internet, intelligent computing centers, smart cities, smart finance, scientific computing, and autonomous driving.

On the team side. Zhao Lidong, founder, chairman and CEO of Suiyuan Technology, served as vice president of Unisplendour Communication Technology Group Co., Ltd., in charge of semiconductor investment, and later served as president of RDA Microelectronics Co., Ltd., a subsidiary of Unisplendour Group, and was appointed as vice president of Unisplendour Group Co., Ltd. in March 2017. Prior to joining Unigroup, he worked in Silicon Valley for more than 20 years, where he held various positions in management, R&D and marketing. From 2007 to 2014, Mr. Zhao served as Senior Director of the Computing Division, responsible for CPU/APU product planning, market analysis and development. Senior Director of Product Engineering, responsible for the R&D of CPU/GPU/APU and a number of related core IPs, with a team size of more than 1,000 people, and participated in the establishment of a China R&D center. Prior to that, Zhao also worked at Juniper Networks (formerly Netscreen), where he was responsible for the development of network security chips, and S3 Inc., which was engaged in the research and development of GPU graphics processor chips.

Yalin Zhang, the founder and COO of Suiyuan Technology, joined AMD in 2008 and has served as senior chip manager and technical director. As one of the main leaders of global chip R&D, he successfully led the development and mass production of many world-class chips at AMD's Shanghai R&D Center, and has rich practical experience in engineering and productization. These include leading a global team to custom develop the XBOX-ONE series of main chips for Microsoft; He led the development of the world's largest fusion chip APU, and successfully mass-produced the chip in the latest Z+ gaming computer released by Xiaobawang. He also co-founded, developed and managed the Convergence Chip Division of AMD Shanghai R&D Center, AMD Beijing R&D Center, and AMD China Multimedia IP Division.

Since its establishment, Suiyuan Technology has received investment from well-known institutions such as Yihe Capital, Zhen Fund, Datai Capital, Yunhe Capital, Shanghai Science and Technology Venture Capital, Tencent, Red Dot China, Oceanpine Capital, Sunshine Ronghui Capital, Xinzhongli Capital, Wu Yuefeng Capital, CPE Yuanfeng, CICC Capital, Primavera Capital, subsidiaries and industrial funds of Shanghai International Group, Meitu, Yuntai Capital, Hongzhuo Capital, GF Qianhe, Ruian Datai, Pudong Investment Holdings, etc.

Among them, Tencent has led the Pre-A round of financing of Suiyuan Technology since 2018, and has supported Suiyuan Technology for several consecutive rounds. Before the IPO, Tencent was the largest external investor in Suiyuan Technology, and Yao Leiwen, managing director of Tencent Investment, served as a director of Suiyuan Technology.