In June 8, 2018, Foxconn industrial Internet was listed on the Shanghai Stock Exchange. Prior to this, from the prospectus draft report to the first batch approved for 36 days, Foxconn shares created a new speed of the A share market IPO.
Industrial rich union
According to the prospectus, its issuing price is set at 13.77 yuan. Issue price earnings ratio (17.09 times earnings per share). This will issue 1 billion 969 million 500 thousand shares publicly, accounting for 10% of the total share capital issued.
Prior to this, Foxconn industrial Internet Limited by Share Ltd has issued the initial public offering of A shares and issued the initial announcement on the Internet. In the list of strategic investors, BAT is allocated 21 million 786 thousand shares and the stock lock up period is 3 years.
According to the prospectus, the total revenue of the industrial alliance in 2017 was 354 billion 543 million yuan, an increase of 30% over the same period last year. Net profit was 16 billion 220 million yuan, an increase of 12.7% over the same period last year.
Executive speech: there are 60 thousand robots at the moment
Tim Chen, chairman of the industrial Fu Lian, said that the Federation will be a high-quality listed company and share its value with investors.
It indicated that the industrial Fu Lian is widely distributed in four continents and has extensive experience in the field of intelligent manufacturing. The industrial Fu Lian has in-depth layout in the field of big data, artificial intelligence, unmanned production and so on. At present, there are 60 thousand industrial robots.
Tim Chen said that the Industrial Federation, as a pioneer of intelligent manufacturing, will provide a vision for the transformation and upgrading of manufacturing enterprises with the upper and lower reaches of small and medium-sized enterprises.
Below is Foxconn's listing and background information.
The way of listing Foxconn
In February 1, 2018, Foxconn shares formally reported to the SFC on the prospectus and opened the process of landing A shares.
In February 9th, the SFC announced the draft and feedback of prospectus. The information shows that it is going to be listed on the Shanghai Stock Exchange and the sponsor is CICC.
In February 11th, two shares of Foxconn were submitted to the declaration.
In March 8th, the seventeenth Issuance Examination Committee of the China Securities Regulatory Commission convened the forty-first issuance audit committee working conference in 2018, and Foxconn shares were first approved. From February 1st, Foxconn shares in the stock prospectus report on the date of the report, the meeting was only used for 36 days, Foxconn shares created a new speed of the A stock market IPO.
On the morning of June 8th, Foxconn hit the bell on the market.
The relationship between Foxconn shares and Hon Hai Precision, Foxconn
Foxconn stock performance: low net profit predicament
As a leader in the global electronics industry, Foxconn has a big Mac revenue performance. In 2016, Foxconn achieved 932 billion 769 million yuan in revenue, and even the split - listed Foxconn shares, its revenue data exceeded most of the A - share listed companies.
From the information published in the prospectus, 2015 to 2017, Foxconn's share revenue was up to 272 billion 800 million yuan, 272 billion 712 million yuan, 354 billion 544 million yuan, and the annual average growth rate was 14%. Compared with 2017 revenue data, only 13 of the companies that have been listed on the A share in 2016 have exceeded this volume. It is possible to say that the Foxconn shares after the success of IPO will become another giant of the A shares.
Despite its 100 billion scale revenue scale, the gross margin and net interest rate of Foxconn's shares are not in the lottery.
The prospectus data showed that from 2015 to 2017, the net profit of Foxconn's shares was 14 billion 350 million yuan, 14 billion 366 million yuan and 15 billion 868 million yuan, and the annual average growth rate was 5.16%, and the net interest rate was around 5%.
In 2017, the overall gross profit rate of the company was about 10.14%, of which the communication network equipment business and the cloud service equipment business accounted for 60.5% and 33.96% of the company's revenue, respectively, but the gross interest rate of the two operations was only 13.65% and 4.65%, although the gross interest rate of the precision tools and industrial robots reached 49.23%, but the business was in the general camp. The ratio of income to collection is only 0.27%, so the gross profit margin of Foxconn shares is not obvious.
In addition, Foxconn shares at present also objectively exist without actual controllers, related transactions, industry competition and other technical issues of the trial, although it has entered the IPO fast channel, but the market is still in the wait-and-see of the success of the Foxconn shares.
The use of capital raising funds on the market
Foxconn shares locked the IPO investment project in the field of industrial Internet and intelligent manufacturing, and intelligent manufacturing is the focus.
The prospectus shows that the Foxconn shares will raise 27 billion 300 million yuan to build the eight platforms of intelligent manufacturing. Only the investment funds involved in the field of intelligent manufacturing have reached 17 billion 300 million yuan, accounting for 63% of the total amount of funds raised, and the rest of the industrial Internet platform construction, cloud computing, and the Internet of things will also help Foxconn to realize intelligence. The factory can be fully networked, cloud based and platform oriented.
The implementation of a series of projects will not only improve the technical level, R & D strength and production efficiency of the company, but also help to alleviate the difficulties faced by the Foxconn shares and the increase of human cost. In fact, the direct labor cost of Foxconn shares reached 16 billion 562 million yuan in 2017 alone, even beyond the net profit of that year.
In 17 years, it grew up 50 times
In 1990, Foxconn was just a small business. In 2000, Foxconn's output value reached $3 billion, and by 2017, Foxconn's output value was already $15 billion.
17 years, 50 times the growth, Foxconn's growth can be described with flying speed.
Why is it so fast?
At the beginning of June this year, Tim Chen gave the answer when he attended the DeepTech2018 conference. Tim Chen believes that the main reason is that Foxconn has basically cut in in every age, cloud computing, communications equipment, intelligent terminals, and the industrial Internet that Foxconn is doing recently. The industrial Internet will explode AI, and big data will also be involved.
Basically, every burst point, Foxconn group can quickly cut into the burst point. Foxconn's reliance on the development of intelligent manufacturing industry has been able to accumulate new fields and new key technologies in the past few years, and the Foxconn group can grow up to 50 times.
The key steps for Foxconn to develop
He also mentioned several key steps to develop Foxconn's industrial Internet:
The first step: the industrial Internet in the Foxconn group itself, we estimate that we have implemented the 15%-20%, we still have 70% or 80% to do. In the future, we should continue to play the role of raising value, increasing efficiency, reducing the cost and reducing deposits in the group.
The second step: there are about tens of thousands of suppliers in our upper and lower reaches, and we want to be able to get the data from the supplier, and we can use this big data to produce better results.
The third step: I think the key is to serve SMEs.
The fourth step: we Foxconn want to be an industrial platform, all of our production data, we can use this data to provide people with more accurate, broader, more yuan, more sample services.
Tencent science and technology integrated writing / Fu Xiao Meng review / Suyang
Source material: DeepTech deep technology, open data collation