New Stock Research Report | Qiniu Intelligence (02567) starts IPO today, introducing Jiaxing State-owned Assets Supervision and Administration Commission as cornerstone investor.

Qiniu Intelligence (02567) provides audio and video cloud services in China. Based on revenue for the 23rd year, the company is the third largest audio and video PaaS service provider in China, with a market share of 5.8%. IPO Date: September 30th to October 10th Listing Date: October 16th Joint sponsors: Shenwan Hongyuan Group Hong Kong, BOCOM INTL Receiving Bank: BOC HONG KONG 1.5975 billion shares will be offered, with 90% for allocation and 10% for public offering, with an additional approximately 15% for over-allotment. If the public offering is subscribed 15 times or more up to at least 50 times, the public offering proportion will increase from 10% to 30%. If subscribed 50 times or more up to at least 100 times, it will increase to 40%. Subscriptions of 100 times or more will result in a 50% callback. However, if the allocation is not fully subscribed but the public offering is fully subscribed, or if both are fully subscribed but the public offering is subscribed less than 15 times, the public offering proportion can increase to a maximum of 20%, with a price floor. The offer price per share is HK$2.74 to HK$2.86, raising a maximum of approximately HK$457 million, accounting for about 8% of the total market value, with listing expenses of approximately HK$72.60 million. Based on 1,000 shares per board lot, the entrance fee is HK$2888.84. Based on the upper price limit of HK$2.86, the market value is approximately HK$57.104 billion. As of the end of March 2024, the average net asset value was approximately negative RMB 3.16 billion (adjusted to RMB 167 million if excluding fair value changes of financial liabilities). The public offering is divided into Group A (up to 5 million applicants) and Group B (more than 5 million applicants). Business: Revenue for the years 2021 to 2023 was RMB 1.47 billion, RMB 1.14 billion, and RMB 1.33 billion respectively, with revenue for the first three months of 2024 at RMB 342 million. Gross profit for the years 2021 to 2023 was RMB 291 million, RMB 228 million, and RMB 280 million respectively, with gross profit for the first three months of 2024 at RMB 70.54 million. Net profit for the years 2021 to 2023 was a loss of RMB 2.19 billion, a loss of RMB 2.12 billion, and a loss of RMB 3.24 billion respectively, with a net loss for the first three months of 2024 at a loss of RMB 1.48 billion. Adjusted net profit for the years 2021 to 2023 was a loss of RMB 1.05 billion, a loss of RMB 1.18 billion, and a loss of RMB 1.15 billion respectively, with adjusted net profit for the first three months of 2024 at a loss of RMB 24.24 million (excluding one-time factors such as listing expenses, fair value loss of convertible redeemable preferred shares). The company's main products and services include (1) MPaaS products, a series of audio and video solutions, including the proprietary content distribution network "QCDN" for accelerating content delivery, the object storage platform "Kodo" for storing content, interactive live streaming products for real-time streaming of audio and video content, and the "Dora" smart media data analysis platform that provides a wide range of data processing and analysis functions; and (2) APaaS solutions, which are scenario-based audio and video solutions that leverage MPaaS capabilities and low-code platforms, aimed at enabling customers to easily deploy and rapidly call different functions to achieve business objectives. The company has a wide customer base across various industries, including entertainment, social networks, healthcare, e-commerce, education, media, financial services, automotive, telecommunications, and smart manufacturing. In the 23rd year, revenue from the top five customers accounted for approximately 34.3% of the total revenue. Approximately 38% of the funds raised will be used to penetrate and solidify the market share of application scenarios in the APaaS business, and to develop and expand the customer base; approximately 20% will be used to expand overseas business; approximately 12% will be used to enhance research and development capabilities and improve technical infrastructure; approximately 20% will be used for selected mergers, acquisitions, and strategic investments, and approximately 10% will be used for operational funds and general corporate purposes. Pre-IPO financing: From February 2012 to October 2019, multiple rounds of financing were conducted, with a discount of approximately 81.24% to a premium of 3.49% compared to the mid-price, and a lock-up period of 12 months. Early investors included Alibaba, Yunfeng Fund, Sequoia Capital, and China Everbright Asset Management. Cornerstone Investors: Jiaxing State-owned Assets Supervision and Administration Commission was introduced as a cornerstone investor, subscribing for 63.9 million shares, accounting for approximately 40% of the offering based on the mid-price, with a lock-up period of 6 months. Main shareholder structure after listing: Chairman Mr. Xu Shiwei and the persons acting in concert hold 37.19% of the shares. Alibaba holds 16.27% of the shares. Other early investors hold 38.54% of the shares. Public shareholders hold 8% of the shares. Summary: Qiniu Intelligence (02567) provides audio and video cloud services in China. Based on revenue for the 23rd year, the company is the third largest audio and video PaaS service provider in China, with a market share of 5.8%. Based on the upper price limit of HK$2.86, the market value is approximately HK$57.104 billion. Due to the company's significant investment in research and development and administrative expenses, the business is still operating at a loss. Jiaxing State-owned Assets Supervision and Administration Commission was introduced as a cornerstone investor, subscribing for 63.9 million shares, accounting for approximately 40% of the offering based on the mid-price, with a lock-up period of 6 months. This article was contributed by "Cinda Securities" and written by Cinda Securities analyst Chen Bohao; GMTEight Editor: Chen Xiaoyi.