On the evening of January 17, Beijing time, the online audio platform Litchi (LIZI.US) announced its official landing on NASDAQ in the United States, and the company’s founder and CEO Lai Yilong went to the United States to ring the bell. This means that Litchi is in the position of “China’s first online audio company”, and has taken the lead in listing on platforms such as Himalayan and Dragonfly FM.
On the first day of listing, lychee rose nearly 40% during the session. At the close of the report, it was reported at the US $ 11.63 per share, an increase of 5.73%, with a total market value of US $ 532 million.
Interestingly, the first time to post the “good news” on Weibo was the founder, chairman, and CEO of Xiaomi Group, Lei Jun. He said:
This is an enterprise in which Xiaomi Heshun Capital participates in investment. This is the first listed company in the Xiaomi investment in 2020, and it is a good start!
Lei Jun’s “opening door” may not stop there. On January 17, Xiaomi Group’s stock price rose 8.35% to close at HK $ 13.24 per share, setting a new 13-month high. The market value is also over 300 billion Hong Kong dollars, and the latest market value is 319.2 billion Hong Kong dollars.
Forbes’s real-time rich list data shows that as of now, Lei Jun’s total wealth is 12.4 billion US dollars (about 85.05 billion yuan), an increase of 882 million US dollars over the previous trading day (that is, this Friday compared with this Thursday). In the Forbes 2019 China Rich List released last November, Lei Jun ’s net worth was “only” $ 8.7 billion (about 59.6 billion yuan).
For several months, wealth has soared by 25 billion yuan. How much “good news” has Lei Jun encountered? Or, what happened to Xiaomi?
It took less than 3 months from the submission of the application to the listing of the lychee founder: a full profit can be achieved in 2020
Daily Economic News (Wechat: NBC news) reporters learned that the initial public offering of Litchi US shares was determined to be at an issue price of $ 11 per share, and a total of 4.1 million ADSs were issued, with an initial public offering of $ 45.1 million (excluding over-allotment rights) section).
On October 28 last year, litchi submitted an IPO application to the United States Stock Exchange (SEC). It took less than 3 months from the submission of the application to the listing. On the eve of the bell-ringing ceremony, at 8:30 pm on January 17, Lai Yilong accepted an interview with domestic media via a video connection.
He told a reporter from the Daily Economic News (WeChat: NBC news) that he would have thought of various excitement when ringing the clock, but in fact, he was very calm. “What I want most is to go back to work early and later Transcripts are due every quarter. “
Regarding why Litchi can quickly grab the beach to become the first online audio company, Lai Yilong said that Litchi has been insisting on the mission of “helping people show their voice talents” for six years. As long as the mission and ideas are firm, many things will be relatively easy to do. simple.
He also told reporters that litchi is expected to achieve full profits in 2020.
Litchi’s prospectus shows that litchi is a UGC (user-produced content) model audio platform, with operating income mainly from audio entertainment, podcasting, and advertising. Audio entertainment is the company’s main source of revenue.
In 2017, 2018 and the first three quarters of 2019, litchi achieved net income of 453 million yuan, 799 million yuan, and 815 million yuan, respectively;
In 2017, 2018 and the first half of 2019, litchi achieved a net profit of -154 million yuan, -9.342 million yuan and -56 million yuan respectively.
From October to November 2019, the total revenue of litchi was RMB 231 million, a year-on-year increase of 67.9%.
“In fact, we have basically flattened out in 2018, only a strategic loss of a few million yuan. In 2019, we lost a lot because we invested a lot in the share of the anchor, AI, and overseas strategies, so we lost money. Our loss Not because of business losses, but because of new investment. I think it will be possible to achieve full profits in 2020. In the short term, our income is mainly based on live broadcast income. “Lai Yilong said.
The happier smile is Lei Jun
The successful debut of Litchi, in the view of Lei Jun, is the “starting point” for Xiaomi investment companies this year.
On the other hand, Xiaomi Group, which is listed on the Hong Kong stock market, has also become popular recently. At the close on January 17, Xiaomi Group surged 8.35%, with a total market value approaching 320 billion Hong Kong dollars, and set a new high for the current round.
Data show that starting from the end of November 2019, Xiaomi’s stock price has rebounded strongly, becoming one of the most eye-catching stocks of Hong Kong stocks at the end of the year and the beginning of the year.
Since November 25, 2019, Xiaomi’s stock price has risen by nearly 60% in less than two months. If we only look at the 12 trading days since the beginning of 2020, Xiaomi’s stock price has also risen by nearly 23%.
There are many reasons for the rise of Xiaomi’s stock price. China Securities reported that the direct reason was that it was included in the Hong Kong Stock Connect on October 28 last year. Since then, it has obtained a large number of domestic funds to continuously increase positions. Wind data shows that from October 29, 2019, to January 17, 2020, the Shanghai-Shenzhen-Hong Kong Stock Connect has cumulatively purchased 878 million shares of Xiaomi.
According to comprehensive media and industry analysts, the factors that promote Xiaomi’s “nothing is too Thai” are-
1. Xiaomi upgrades AloT (Artificial Intelligence Internet of Things) strategy
On January 2, Lei Jun issued an open letter, deciding to upgrade Xiaomi’s AIoT (Artificial Intelligence Internet of Things) strategy, and to upgrade the five-year plan of 10 billion yuan proposed in early 2019 to 50 billion yuan in five years.
Xiaomi itself has the first-mover advantage in AIoT. As of the end of the third quarter of 2019, the number of Xiaomi AIoT connected devices reached 213 million, which has formed the world’s largest consumer-grade Internet of Things.
Among Xiaomi’s AIoT products, the most noticeable is the TV. In early January 2020, Lei Jun announced that Xiaomi TV ’s shipments in the Chinese market in 2019 exceeded 10 million units, breaking the record for the annual shipments of a single brand in the Chinese market.
2. “Price Butcher” finally hits 5G
The 5G concept is still heating up. Once the 5G replacement wave comes, the price is undoubtedly a weapon to seize the market. Xiaomi’s ultimate price/performance ratio in the 4G era has its place in the 5G era.
On December 10, 2019, Xiaomi released the Redmi K30 5G, which reduced the starting price to less than 2,000 yuan. In order to accelerate the penetration of 5G equipment, it also launched a 5G package. Lei Jun also said that he will launch more than 10 new 5G models in 2020 in order to regain market share in the 5G era.
Known as the “price butcher” of Xiaomi, the market has been unable to sell high-end machines. But in the 5G mall grab, Xiaomi’s price advantage is likely to play out again.
3. Multiple leaders join
At the beginning of 2020, Xiaomi announced the joining of several capable professionals.
For example, Chang Cheng, former vice president of Lenovo Group, officially joined Xiaomi as vice president of Xiaomi Group after New Year’s Day.
Guoxin Securities analysis said:
The advantage of Changcheng is product planning, which is complementary to Xiaomi. For companies whose main business is selling hardware, “products + sales” are the two core competitiveness and two “thighs” moving forward. In terms of external channels, brands and markets of the Xiaomi Group, Lu Weibing, the current president of China, has played an advantage. Before that, he did not give full play to the advantages at the product level. Joining Xiaomi, responsible for mobile phone product planning, will complement another company “thigh”.
On January 5th, Lei Jun announced on Weibo that the founder of Xiaochi Wang Xiaoyan joined Xiaomi.
Little Chili Phone was born in 2012. It is one of the imitators of Xiaomi mobile phones and was a popular Internet mobile phone brand. According to reports, Wang Xiaoyan will be the vice president and general manager of the second sales department of Xiaomi China, responsible for the business of the first e-commerce, the second e-commerce, and the third e-commerce, and report to Lu Weibing, vice president of the Xiaomi Group.
4. A number of Xiaomi companies are lining up to go public
In addition to the lychee just listed, Stone Technology was approved to register the science and technology board on January 14th, and it will become the first company in the Xiaomi ecological chain to land on the science and technology board. Stone Technology’s main business is sweeping robots. The main products are Xiaomi’s customized brand “Mijia Intelligent Sweeping Robot”, as well as its own brands “Stone Intelligent Sweeping Robot” and “Xiaowa Intelligent Sweeping Robot”.
Cinda International pointed out in a research report that Stone Technology is still the third listed company under the Xiaomi Ecological Chain after Huami and Yunmi listed on US stocks. Stone Technology was established two years ago to achieve an annual revenue of 3 billion. This time it was approved for listing and opened the “gateway” for Xiaomi’s ecological chain model to enter the A-share. And attach great importance to the company’s valuation.
In addition, there are many Xiaomi-based companies in line to prepare for listing, and a large number of companies directly or indirectly held by Xiaomi have emerged in the science and technology board alone, such as Xinyuan, Hengxuan Technology, No. 9 Smart, and Chuangxin Laser.
Investment income has already contributed a lot of value to Xiaomi’s performance. As of September 30, 2019, Xiaomi had invested in more than 280 companies with a total book value of RMB 28.7 billion, a year-on-year increase of 16.8%. In the third quarter of 2019, Xiaomi disposed of its investment and achieved a net income of 392 million yuan after tax.
(The content of this article is for reference only, and does not constitute investment advice. Investors should do so at their own risk.
Daily Economic News Comprehensive App (Reporter: Chen Pengli), China Securities Journal, Securities Research Report, etc.