The reporter learned from informed sources that Baidu has already selected Huatai Securities and CITIC Securities as sponsors for the issuance of CDRs. The two brokers are preparing for the battle. People familiar with the situation expect Baidu to become the first company to return A shares from the Nasdaq stock market through the issuance of CDR.
Or become the first company to return A shares from US stocks by issuing CDRs
In the early hours of June 11, the Securities and Futures Commission disclosed the Xiaomi Group’s CDR prospectus. Xiaomi expects to issue the CDR on July 16. Informed sources said: "Baidu should not submit an application to the China Securities Regulatory Commission after Xiaomi. However, it is preparing in full swing and is expected to be the first company to return A shares from US stocks by issuing CDRs. ”
“ Of the first batch of CDR companies, Baidu has a good profit, and the equity structure is relatively simple. During the NASDAQ listing period, credit and standards are high, which makes Baidu likely to be the first to return to A shares. Internet giant. "The above person said.
Regarding stock pricing, informed sources said that stock pricing should refer to Baidu’s share price on NASDAQ, CDR and underlying stocks should first determine an initial ratio to obtain a CDR’s base price, and then proceed to the market based on this base price. Inquiry.
Regarding the scale of issuance, informed sources stated that since Baidu’s main listing place is still NASDAQ, the ownership structure is VIE structure, so it is expected that the scale of issuing CDRs will not be too large. On the one hand, it is due to the company’s large body size if the scale is too large. It will have a certain impact on the market. On the other hand, it will also produce a certain dilution of Baidu's equity.
Baidu stability “Run-in period”
On May 18, Baidu’s former president and chief operating officer Lu Qi’s resignation caused Baidu’s share price to fall, and its market value dropped by 15%. A number of foreign media and analysts have commented that it is normal for executives to leave the stock market to fluctuate, but Baidu’s share price is “over reactive” and the departure of executives will not change Baidu's artificial intelligence strategy. planning.
According to Baidu’s quarterly report in 2018, the total revenue was RMB 20.9 billion, an increase of 31% year-on-year, and net profit was RMB 6.7 billion, a year-on-year increase of 277%. The first quarter came from "Baidu Core" revenue of RMB 16.1 billion, an increase of 26% year-on-year; and iQiyi's revenue of RMB 4.9 billion, an increase of 57% year-on-year.
One week after Lu Qi left office, Baidu's share price returned to warming. On June 11, Baidu’s market value returned to 9.1772 billion. It has rebounded 9.84% since the low of the stock price on May 23.
“AI First” Helping Improve Performance
“Movement first” began to "" AI first "" Baidu, AI technology driven, the rapid development of core business, and in optimizing the search experience and expand video content on the promotion. Since the second quarter of 2017, the information flow business has contributed more and more to Baidu’s financial report. In March of this year, Baidu App Day active users reached 137 million, an increase of 18% over the same period of last year, and daily user usage grew by over 30% year-on-year. In May, Baidu released a "simple search app", and Li Yanhong promised that the search would never be advertised.
In 2017, Baidu formed the intelligent voice DuerOS and automatic driving Appllo two artificial intelligence ecosystems in terms of AI commercialization. At present, the commercialization of Baidu's AI-related business is accelerating. Apollo has 100 open platform partners and commercialization of unmanned vehicles will soon be available; DuerOS has been installed in more than 90 hardware products, covering all aspects of daily life such as mobile communications, smart home, wear, and vehicle.
As of the first quarter, Baidu unmanned car Apollo open platform partners have expanded to 100, including Mercedes-Benz, BAIC, BYD, FAW and other domestic and foreign car makers and component manufacturers are among them. In terms of driverless safety, Baidu established the Apollo Automotive Information Security Laboratory.
Baidu’s smart voice operating system, DuerOS, has reached partnerships with 160 companies including Skyworth, Haier, and Miji, and released more than 90 hardware products featuring DuerOS. In March, DuerOS has responded to more than 200 million voice search requests, more than double the data for December 2017. Baidu even invested RMB 1 billion in the cool opening of Skyworth Holdings.
It is reported that in the upcoming AI Developer Conference, Baidu brain, Baidu smart applet, DuerOS open platform, Apollo open platform will also have a critical update.
Now Foxconn, Ningde times, and WuXi unicorn enterprises have successfully landed A shares. In the future, new economies such as Xiaomi and Baidu will usher in. Analysts pointed out that with the unicorn listing, overseas technology giants return, the future A-share index will be stronger. In this context, the truly outstanding technology leader will win. In terms of opportunities, Baidu and other companies will return to A shares through CDR. A-share companies that have a cooperative relationship with them, especially equity cooperation, will also benefit from the premium bonus brought by the listing of these companies.