[Why Foxconn IPO is "quick and slow afterwards", where is the 27.7 billion yuan spent on preparation? ] Foxconn’s prospectus was late after setting the fastest record of 36 days. Yesterday, the Foxconn Industrial Internet Co., Ltd. (Foxconn), which received much attention, formally disclosed the “Proposal for Initial Public Offering of A Sharesâ€, the stock issuance arrangement and preliminary inquiry announcement. According to the prospectus, the stock of Foxconn is abbreviated as "Industrial Fulian" and the stock code is "601138". The company plans to issue approximately 1.97 billion shares, accounting for 10% of the total issued capital, all of which are public offerings of new shares without old shares. transfer.
Doubt
Why Foxconn IPO "Before and After"
According to the capital raised and the number of new shares to be issued, the estimated price of the "industrial rich" is expected to be around 13.84 yuan per share. The corresponding price-earnings ratio is 17.18 times, with a valuation of 273.1 billion yuan. The industry believes that because of the amount raised and valuation is too high, in order to avoid excessive impact on the market to explore a better issuance mode, Foxconn may be the reason for the official approval of the IPO after the “light speed overâ€.
Beijing Youth Daily reporter noticed that Foxconn submitted the manuscript submission form to the China Securities Regulatory Commission on February 1 this year. Prior to this, in January, the Hon Hai Group had discussed plans to land on the A-share market when it held its first extraordinary shareholders' meeting since its listing.
On February 9, Foxconn disclosed the manuscript report and feedback at the same time. On February 11, Foxconn submitted its second draft report, and on February 22, it updated the pre-disclosure of the prospectus. On March 8th, Foxconn’s IPO met. From the submission of the prospectus report to the first meeting, Foxconn took 36 days. This speed has set the fastest record for the A-share companies to be listed. In particular, under the current background of increasingly strict IPO approval, Foxconn has been called As "speed of light will be."
However, from the March 8 meeting to the May 11 approval, until the formal disclosure of the prospectus today, Foxconn’s IPO process clearly showed “before and afterâ€.
Disclose
The main competitors are Siemens and GE
For Foxconn, its impression of the outside world is more mysterious. Among them are the superior industrial manufacturing skills of Apple and other international giants, and negative rumors from time to time. In short, in the eyes of more people, Foxconn is a mysterious enterprise.
Then, what exactly is a Foxconn enterprise? According to the prospectus, Foxconn Industrial Internet Corporation is a leading provider of professional communications network equipment, cloud service equipment, precision tools and industrial robots. In the field of intelligent manufacturing of electronic equipment, according to IDC database statistics, in 2016, the global server and storage equipment manufacturing market output value was approximately USD 35.3 billion, and Foxconn Industrial Internet Company’s turnover accounted for more than 40% of the total global output value; global network equipment in 2016 The output value of the manufacturing market is approximately USD 27.9 billion, and Foxconn’s turnover accounts for more than 30% of the global output value. In 2016, the global telecommunications equipment manufacturing market generated approximately US$ 12.2 billion in output value, and Foxconn’s turnover accounted for more than 20% of the global output value. The issuer holds a leading position in the market in which the issuer is located. However, Foxconn also mentioned in the prospectus that Siemens and General Electric are its main competitors.
In short, landing the A-share market as a public company will undoubtedly become the best way for Foxconn to open its mystery to the outside world.
Focused
60 subsidiaries have 269,000 employees
The prospectus shows that Foxconn’s operating revenue for 2015, 2016, and 2017 were respectively 272.8 billion yuan, 272.713 billion yuan, and 354.544 billion yuan, while net profit for the same period was 14.35 billion yuan, 14.366 billion yuan, and 15.868 billion yuan respectively. Comparing the performance of domestic A-share listed companies in 2016, Foxconn’s revenue can enter the top 15 and the net profit scale can enter the top 30, with the strength of the listed companies exceeding 99%.
So where does Foxconn make money from? As can be seen from the prospectus, Foxconn's main business includes three major areas: communication network equipment, cloud service equipment and precision tools and industrial robots. Among them, the communication network equipment is Foxconn's main business, accounting for more than 50% of revenue. Precision tools and industrial robots accounted for less than 0.3% of revenue in 2017. However, Foxconn's industrial robot project can not be overlooked, its gross profit margin was as high as 49%, much higher than the gross margin of the main communications network equipment, about 14%.
It is worth mentioning that Foxconn’s main revenue from Greater China accounted for 38.58% in 2015, but it has gradually declined in the past two years. By 2017, the proportion of main revenue in Greater China has almost halved. This was 19.67%. Other regions’ revenue quickly rose from 61.42% two years ago to 80.33%.
Employees working at Foxconn are quite mysterious in many people's minds. According to Foxconn's prospectus, the company currently has a total of 269,000 employees in 60 domestic and foreign subsidiaries. Of the nearly 270,000 employees, 78% are college graduates or below, college and undergraduate education only account for 20%, and masters degree or above account for about 0.6% or more than 1,600 people. For the average enterprise, more than 1600 employees with master's degree or above are already small. However, since Foxconn is a highly labor-intensive enterprise and the number of employees at the manufacturing side is extremely large, there are more than 1600 employees with nearly 270,000 employees. The proportion in the team does appear to be a bit low.
Highlights
"Strategic Allotment" of about 30% of the shares in "Industrial Fulian"
It is worth mentioning that this "industrial rich" IPO will introduce strategic allotment, the initial strategic placement accounted for 30% of the new shares issued this time, the number of shares issued was 590 million shares. The difference between the final number of strategic placements and the number of initial strategic placements will be reversed based on the principle of “callback mechanismâ€. Prior to the launch of the callback mechanism, the initial number of online issuances was 965 million shares, which accounted for approximately 70% of the issued amount after deducting the initial strategic placements.
So, who can participate in strategic distribution? According to the prospectus, the selection criteria for strategic investors include: investors with good market reputation and market influence and representing broad public interest; large state-owned enterprises or their subordinate enterprises, large insurance companies or their subordinate enterprises, and state-level investment funds Investors with strong financial strength; those with a strategic partnership or long-term cooperation vision with the issuer, and those who wish to hold shares for a long time. It is understood that among the stocks allocated by this strategic investor, the lock-up period for 50% of the shares is 12 months, and the lock-up period for 50% of the shares is 18 months. Among them, to reflect the intention of strategic cooperation with the company, some investors may voluntarily extend the lock-up period of all their shares to not less than 36 months. This means that investors who participate in strategic placements have a lock-up period of at least one year.
prompt
70% of shares issued under the Internet will be locked for one year
"Under Industrial Fulian" offline and online purchase time is May 24, and the purchase code is "780138". The initial number of online issuances is 414 million shares. About 30% of the issued amount after deducting the initial strategic placement quantity. It is estimated that the top-level purchase of the "industrial rich alliance" will require a stock market value of 4.13 million yuan, which is the second highest ever. The date of the signing of the "Industrial Fulian" was May 28th.
What needs to be reminded is that 70% of the shares issued under the net will be locked for one year, and investors who participate in offline purchases will have no choice whether to lock or not, but must recognize the conditions, which means that before the purchase Do a good job of locking up for a year. The remaining 30% of the shares are locked-in period, that is, the trading of shares can be started from the date of the online issuance of shares on the Shanghai Stock Exchange.
attention
Foxconn financing will be used in eight areas
The Foxconn intends to issue approximately 1.97 billion shares, accounting for 10% of the total share capital after the issuance, all of which are public offerings of new shares and no transfer of old shares. The financing amount was 27.253 billion yuan, which was unchanged from the amount previously disclosed. So, for this 27.253 billion yuan of financing, Foxconn will spend? In fact, Foxconn has disclosed this in the previous draft of the prospectus. The reporter of Beiqing Daily compared and observed yesterday that the total investment of the eight major businesses disclosed yesterday was consistent with the data in the detailed and previous submissions. According to the disclosure of the prospectus, Foxconn's financing will be used in eight areas:
The "Industrial Internet Platform Construction Project" aims to integrate industrial Internet, big data, and cloud computing software with industrial robots, sensors, switches, and other hardware to form an industrial Internet system platform with upstream and downstream interconnection and resource sharing functions. The investment amount was 211.678 million yuan.
The "Cloud computing and high-performance computing platform project" aims to help companies use high-performance computing to perform real-time calculations and data processing in the areas of edge computing, cloud processing, artificial intelligence, cloud-linked cloud, and 8K image processing applications to implement cloud software and The cooperation between the production of data at the edge layer. The investment amount was 1005.33 million yuan.
The "Efficient Computational Data Center Project" aims to provide the infrastructure for the development of cloud-connected cloud, network-connected, and connection-connected devices in the industrial Internet and achieve smart applications such as 8K image big data, Internet of Things, security monitoring, automation, and smart factories. The project will carry out efficient cloud computing services and the expansion of high-speed network link equipment purchases. The investment amount is 121.572 million yuan.
The "Network Communication Equipment for Cloud Services" project is designed to help the company perform data collection on the production line of the production line, fully automate the storage and handling equipment, and upgrade and upgrade the equipment needed for unmanned factories and robots. The project will continue to invest in the company's industrial Internet platform and high-performance computing, thus establishing an intelligent unmanned plant that connects artificial intelligence based devices and processes data in real time. The investment amount is 496793 yuan.
The "5G and Internet of Things Interconnect Solutions Project" focuses on breaking key technologies for broadband low-latency, high-density RF communications and developing a new generation of industrial Internet system solutions based on 5G communications. The investment amount was 632.88 million yuan.
“Intelligent manufacturing new technology R&D and application project†refers to Shenzhen and Zhengzhou as the base for research and development of smart manufacturing technologies for mobile phone components of the company, researching and developing new applications of smart manufacturing technologies, covering sensors, precision tools, and new materials needed for smart manufacturing. , Miniaturized communication devices, edge layer data acquisition devices, intelligent product detection equipment based on 8K imaging technology. The investment amount is 510,769 ten thousand yuan.
"Intelligent Manufacturing Industry Upgrade" refers to the company's existing processing equipment, testing equipment, logistics systems and industrial robots based on the application of intelligent manufacturing new technologies, upgrades, upgrades, improve quality, improve efficiency, reduce costs, to enhance the smart phone components Competitiveness in the industry. The investment amount is 8662.2 million yuan.
"Intelligent manufacturing capacity expansion" refers to the company's ability to meet future capacity requirements for smart manufacturing, invest in capacity expansion projects, upgrade environmental safety devices and monitoring systems, optimize energy conservation and environmental protection, and build a new generation of green smart manufacturing bases. The investment amount was 354462 million yuan.
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