The Red Star Capital Bureau noted that Reading Lang is highly dependent on students' flat-panel products and offline dealer channels. From 20 19 to 202 1, the income of student tablet and offline dealers accounted for more than 80% of the total income.
Although the market scale will increase to 1000 billion in the future, the gross profit margin of Reading Lang is lower than the industry level. In addition, Reading Lang not only faces traditional competitors such as BBK in the industry, but also faces pressure from Internet companies such as Baidu, Tencent and Huawei.
The third impact on the IPO of Hong Kong stocks finally succeeded.
However, it broke on the first day of listing.
On July 12, Reading Lang landed on the Hong Kong Stock Exchange with an issue price of HK$ 7.6/share and an opening price of HK$ 5.4/share, down 28.9%. However, the decline has narrowed. As of the close of the day, Reading Lang reported HK$ 7.2 per share, down 5.26%, with a total market value of HK$ 2.534 billion. As of the close of 13 in July, Reading Lang rose 1. 1 1% to HK$ 7.28 per share, still not higher than the issue price.
The Red Star Capital Bureau noticed that in April 20021year and June 2002 1 1 year, Lei Dinglang submitted the form twice, but both failed to pass the hearing within half a year and were automatically invalidated. In May this year, Lei Dinglang submitted a prospectus to the Hong Kong Stock Exchange again, with CITIC Jiantou International and Macquarie as co-sponsors. In the third IPO, the scholar finally realized the "listing dream".
In this IPO, Langdong plans to issue 52 million shares, raising a net amount of about HK$ 365 million. In addition, eight cornerstone investors, including Zheng Changping, Gui Chunfang, Weilan Telecom Shunlong, Tieta Lead, Yang, etc., were introduced, with a total subscription of about HK$ 2,654,380.44 million, accounting for 46.84% of the shares sold at the middle price, and a six-month lock-up period was set.
According to public information, Reading Lang mainly designs, develops, manufactures and sells intelligent learning equipment embedded with digital teaching AIDS for primary and secondary school students, their parents and school teachers. Is an intelligent learning equipment service provider.
1999, Chen Zhiyong and Qin Shuguang, who worked together in Little Overlord, set up a reading lang. Chen Zhiyong served as the chairman of the board of directors of Reading Lang from1May, 1999, and then resigned in May, 201June, and was replaced by Qin Shuguang. Chen Zhiyong was appointed as a non-executive director on 202 1.
Similarly, in 20 16, they entered into an agreement on concerted action, and further entered into a confirmation letter on concerted action in 20021,promising to act in concert on key issues such as the shareholders' meeting and the company's business operation. According to the global offering announcement, Chen Zhiyong holds 42.829 1% of the shares of Reading Lang, Qin Shuguang holds 35. 1995% of the shares, and they hold 78.0286% of the shares.
It is worth mentioning that Chen Zhiyong 1983 graduated from the Department of Electronic Physics of Zhejiang University and is the younger brother of Duan Yongping, the "godfather of business". In addition, Chen Zhiyong and Duan Yongping worked together for 8 years, from 1988 to 1995. Chen Zhiyong used to be the deputy general manager of the marketing department of Xiaobawang Electronic Industry Co., Ltd., responsible for product development and marketing.
Reading lang also has a good performance in marketing. Advertising words such as "Reading Lang for Students" and "Reading Lang for Children" are well known to the public, and Leo and Wang Leehom are hired as their spokespersons. 20 19-202 1, the sales and distribution expenses of yuelang were 63.49 million yuan, 741630,000 yuan and 73.06 million yuan respectively, accounting for 9.5%, 10 1% and 9% of the income respectively.
Gross profit margin is at a low level in the industry.
Relying on a single product and offline dealer channels
Judging from the overall operating situation, Yue Wenlang's profits in the past three years have not kept up with the growth of revenue. According to the global offering announcement, from 20 19 to 20021year, its revenue was 670 million yuan, 730 million yuan and 8 10/00000 yuan respectively, and the net profit attributable to the parent company was 69.435 million yuan, 9.20130000 yuan and 82/kloc respectively. According to statistics of Essence Securities, the gross profit margin of the intelligent education hardware industry is basically 40%. It can be seen that the gross profit margin of Yuelang 20 19-202 1 is in the middle and lower level in the industry.
Reading Lang's products include students' personal tablets, smart classrooms, wearable devices and other products, but the overall revenue still depends on students' personal tablets. According to the global sales announcement, the personal tablet business income of 20 19~202 1 students was 540 million yuan, 660 million yuan and 7 10/00000 yuan respectively, accounting for 80.8%, 90.6% and 86.7% of the total revenue respectively, and the shipment volume was 456,900 units and 484.400 units respectively. 202 1 The decline in the gross profit margin of students' individual flat panels is attributed to the unstable supply of raw materials, which leads to an increase in costs.
According to the announcement of global sales of Yue Wenlang, in the first five months of 2022, Yue Wenlang's revenue decreased by about 465,438+0.0% year-on-year, and it also generated a net loss. Reading Lang explained that the higher marketing expenses and R&D expenses were mainly due to the rebound of epidemic situation and the strengthening of marketing and R&D, but reading Lang did not disclose the specific amount of net loss. In addition, Reading Lang predicts that the net profit in 2022 will be significantly lower than 202 1. The Red Star Capital Bureau noted that from June 5438 to May 2022, the personal tablet shipments of Reading Lang students totaled 97,200 units, down 44.6% year-on-year.
In addition, in the sales channel, Reading Lang relies on offline dealers. From 20 19 to 202 1, the revenue contributed by offline dealers accounted for more than 85%, and the offline distribution network has covered 3/kloc-0 provinces and autonomous regions (including municipalities directly under the central government) in China, with a total of 4608 sales points. Reading Lang said that the net proceeds of HK$ 654.38+RMB 50 million will be used to deepen the reform of distribution network and strengthen its regional expansion and penetration. It is estimated that about 100, 120 and 150 offline dealers will be added in 2022, 2023 and 2024 respectively.
According to yost Sullivan's data, from 2002/kloc-0 to 2026, the total market size of intelligent learning equipment in China will reach 65.9 billion to145 billion yuan, with a compound annual growth rate of 17. 1%. The market scale of To C branch is 32.9 billion ~74 1 100 million yuan, with a compound annual growth rate of 17.6%.
How many cakes can readers get in the market scale of nearly 100 billion in the future?
In 20021year, from the perspective of retail market value, Reading Lang ranked second among intelligent learning equipment service providers in China, with a market share of 6. 1%, while the market share of BBK ranked first was about five times that of Reading Lang. After reading, the market share of the three companies is 4%~5%, which is not far from the post-reading feeling. As far as equipment shipments are concerned, Redding Lang ranks fifth, ranking lower, with a shipment of 700,000, which is only a fraction of BBK, which ranks first.
In addition to competitors in industries such as BBK, reading aloud will also face the end of the Internet giant. In 20021year, Baidu launched the learning tablet product for the first time, Tencent launched the intelligent educational computer, and Huawei released the wizard learning smart screen.
Editor Yu Dongmei
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