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Millet updated prospectus revealed the latest point: valuation, high-level holdings ...

via:网易科技     time:2018/6/14 20:31:48     readed:212

Today, on June 14, the Securities and Futures Commission once again updated the Xiaomi CDR prospectus. The updated version disclosed more detailed company operations, CDR circulation, senior management and shareholdings, comparison of the gross margin of mobile phone business, IoT business, and Internet business with the industry...

Second quarter grant Lei Jun stock costs about 9.8 billion

Xiaomi's updated version of the CDR prospectus indicates that Lei Jun has made great contributions to the company. Therefore, in April 2018, the company issued a total of 63,959,619 Class B common stocks to Smart Mobile Holdings Limited, which is controlled by Lei Jun, for a consideration of US$1599. The shareholding incentives confirmed a share payment of RMB 9.827 billion. The equity granted to Lei Jun has been issued prior to listing and will not dilute the interest of holders of depositary receipts after listing.

At least half of the CDR circulation valuation over 80 billion US dollars

The latest disclosure of Xiaomi CDR prospectus disclosed that the company intends to issue Class B common stock as the basic stock to be converted into CDR: “The proportion of the total share capital after CDR and Hong Kong stock issuance shall not be less than 7%”. The CDR financing amount has not been disclosed. . In addition, the proportion of the underlying shares corresponding to the issuance of CDR to the total size of the CDR and Hong Kong stocks (including the issuance of old shares) is not less than 50%.

Not less than 7% is financing how much? This depends on the market value of Xiaomi. If the analysts of major institutions give over 80 billion U.S. dollars in market value, the CDR financing limit may exceed 5.6 billion U.S. dollars.

According to another report, as one of the underwriters of Xiaomi's IPO, Goldman Sachs analysts believe Xiaomi’s market value is between US$70 billion and US$86 billion. In the report, Morgan Stanley stated that the current fair value of Xiaomi can reach 84.8 billion U.S. dollars.

JP Morgan Chase Bank analysts said in the report that due to strong cash flow growth, millet fair value is 71 billion to 92 billion US dollars. CITIC Lyon Securities analyst pointed out in the report, Xiaomi established a huge Internet service platform, Xiaomi's market value of 80 billion to 90 billion US dollars.

Credit Suisse analysts pointed out in the report that Xiaomi is very suitable for "iceberg theory", Internet service profit is 90% below the iceberg, and Xiaomi's market value is between 71 billion and 94 billion US dollars.

Top shareholdings

Senior management and shareholdings

Millet updated CDR prospectus shows that Xiaomi has a total of 7 directors, of which 3 are independent directors. Independent Directors took office after listing on the company's Hong Kong Stock Exchange. Lei Jun is chairman and chief executive officer; Lin Bin is a director and president; Xu Dalai is a director; Liu Qin is a director; Chen Dongsheng is an independent director; Li Jiajie is an independent director; Wang Yude is an independent director.

In addition, Xiaomi also announced millet stock options and restricted stocks.

Zhou Youqi is a senior vice president and chief financial officer. The exercise price is 0-1.0225 U.S. dollars per share. The number of Class B common stocks that have not exercised options is 5,000,000 shares. The lockup period is 5-10 years; Hong Feng, senior vice president, line The right price is US$1.0225 per share, the number of Class B common stocks that have not been exercised is 1,000,000, and the lock-up period is five years; Jain Manu Kumar, Vice President of India, General Manager of Millet India, exercise price 1.0225-3.44 USD/share, not yet exercised The number of Class B common stocks is 2.3 million, the lock-up period is 1-10 years; Liu De, senior vice president, exercise price is US$1.0225 per share, the number of Class B common stocks without options is 1,000,000, and the lock-up period is five years; Yan Senior Vice President, the exercise price is 0-1.0225 U.S. dollars/share, the number of Class B ordinary shares of the outstanding options is 1900000, and the lock-up period is 4-5 years;

Shang Jin, Vice President, The exercise price is 0-1.0225 U.S. dollars/share, the number of Class B common shares that have not been exercised is 2000000, the lock-up period is 5-10 years; Wang Chuan, Senior Vice President, exercise price is 0- US$1.0225 per share, the number of Class B common stocks not yet exercised is 5,000,000, and the lock-up period is five years; Wang Lingming, vice president, exercise price is US$1.0225 per share, and the number of Class B common stocks not yet exercised is 920000 shares. The period is 5-10 years; Wang Xiang, senior vice president, exercise price is 0-1.0225 U.S. dollars/share, and the number of Class B common stocks that have not exercised options is 2000000, which is locked for 5-10 years; Zhang Feng, vice president The exercise price is US$1.0225 per share, the number of Class B common stocks that have not been exercised is 1,000,000, and the lock-up period is five years.

According to reports, from January 2017 to March 2018, the directors of the company did not receive salary from Xiaomi Group. In 2017, the company’s senior management received a total salary of RMB 202.83 million from Xiaomi Group; from January to March 2018, the company’s senior management received a total salary of RMB 13.212 million from Xiaomi Group.

Smartphone gross margin

Internet business revenue gross margin

The highest gross profit margin for handsets is 11.59%. Higher Internet gross margins

During the reporting period, the gross margins of the millet smart phones (in the 2015, 2016, 2017, and 2018 quarters) were 3.25%, 5.72%, 11.59%, and 8.49%, respectively. Xiaomi said that the change in gross profit margin was related to changes in the unit price of smartphones and unit costs. . Xiaomi said that the gross margin of smart phones was relatively high in 2017, mainly related to the following two factors: 1) Xiaomi strengthened supply chain and cost control in the year, while sales volume increased, and scale effect led to cost reduction; 2 The company’s brand effect gradually increased, Gross margins have increased on pricing strategies.

In contrast, during the reporting period, the gross profit margins of Apple and Samsung were between 38% and 40%. The gross profit margin of Xiaomi’s smartphone business was lower than comparable companies in the same industry. Xiaomi said that the main reasons are: 1) Xiaomi’s smartphone business always adheres to the strategy of maintaining low gross margins under the premise of guaranteeing the performance and quality of hardware products; 2) Apple and Samsung Electronics’ comprehensive gross margin includes other high-margin products (such as Internet services). ) Therefore, its comprehensive gross margin level may be higher than that of mobile handsets.

However, Xiaomi’s gross profit margin for Internet services is relatively high, with gross margins of 64.81%, 65.54%, 64.10%, and 65.58% achieved in the first quarters of 2015, 2016, 2017, and 2018, respectively. During the reporting period, Baidu, Ali andTencentThe gross margin of the Internet service business was before 49%-67%.

It can be seen that during the reporting period, Xiaomi’s gross margin of Internet service business was higher than that of comparable companies. The main reasons were: 1) There was a certain difference between the business structure of Internet services and the business structure of comparable companies, which led to differences in gross margins; 2) The company passed Sales of terminal hardware devices such as smart phones naturally acquire a large amount of user traffic resources. When the Internet advertising promotion business is carried out on this basis, the related external flow purchase costs and content purchase costs are small, while other comparable companies such as Tencent have a large number ofvideoDue to the cost of purchasing content, etc., the gross profit rate of the company's advertising promotion business is relatively high, making the overall gross profit margin of the Internet service business higher.

In addition, the prospectus mentioned that Xiaomi’s board of directors has decided that Xiaomi will have an after-tax net profit margin on its overall hardware business (including smartphones, IoT and consumer products) for the year ending December 31, 2018 and subsequent years. Set to 5%, and the excess of 5% is returned to the user in a way that the directors consider reasonable.

For example, in the form of a cash voucher, etc., it is returned to users who shop at Xiaomi Mall and/or Xiaomi's House. This user does not specifically refer to a user who has previously performed a purchase.

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