Guo Xiaofeng, author of Tencent News
On September 17, Communication Holdings (688036) issued an initial public offering and an investment announcement in Science and Technology Innovation Board.
The announcement shows that, according to the preliminary inquiry result, the issue price of the company is determined to be 35.15 yuan/ share. The price/ earnings ratio for this price is 38.50 times before the issuance and 42.78 times after the release. The transmission will be applied on September 19.
Voice Holdings intends to publicly issue 80 million new shares, accounting for 10 per cent of the total share capital of the issuer after the issue. The initial strategic placement of the issue is 12 million shares, accounting for 15 per cent of the current issue. The difference between the final strategic placement and the initial strategic placement will first be redialed to the offline issue. The initial issue number is 54.4 million shares, accounting for 80% of the initial strategic placement quantity, and the initial online issue quantity is 13.6 million shares, accounting for 20% of the issued number after deducting the initial strategic placement quantity.
According to the previous IPO, the acronym of the stock is referred to as
Financing is mainly used for seven projects such as the mobile phone manufacturing base of Chuanyin Zhihui Park. Six of these projects are planned to use 2.811 billion yuan of funds, and the remaining 300 million yuan is used as supplementary liquidity.
Annual shipments of 124 million mobile phones, more than millet, vivo and OPPO ranked fourth in the world. If not for the IPO, I believe many people would not necessarily know the voice, or even a little strange. Who is the speaker? How to achieve the fourth place in the world? Why did you choose IPO?
Popular in Africa
Audio Holdings was established in 2013 and is headquartered in Shenzhen's Niuniu Street Office.
The main products are TECNO (Mass Smart), itel (Low-end Functional Machine), Infinix (High-end Smart Machine) and Pice (between Functional and Smart Phone) and other four mobile phone brands. Data show that in 2018, the company shipped 124 million mobile phones, second only to Samsung, Huawei and Apple, ranking fourth over millet, vivo and OPPO.
Although Microphone ranks fourth in global annual shipments, it is not well known to Chinese people because 100% of its mobile phones are sold in overseas markets. More precisely, the sales of voice-over mobile phones are mainly concentrated in Africa, followed by South Asia, Southeast Asia, the Middle East and South America, and other emerging market countries around the world.
Especially in Africa, the voice-to-sound cell phone is a household name. According to the online information, over 80% of more than 80% of the phone's mobile phones were sold in Africa last year, with a market share of 48.71% in Africa. That is to say, the sound-transfer one takes up the whole of Africa's half-wall. Therefore, the sound transmission also has
It's not a new thing to go to sea, but it can survive overseas and be like voice transmission.
Zhu Zhaojiang, founder of Communication Holdings, said to the media earlier:
Zhu Zhaojiang was in charge of the overseas market of Qianwaveguide mobile phone in his early years. With the decline of waveguide brand, Zhu Zhaojiang, who has been the vice president of waveguide mobile phone in 2006, came out to establish a brand of voice, mainly in Africa and other markets.
Over the past decade, most domestic mobile phone brands have been digging gold in the Chinese market. Despite overseas expansion, the big head is still in China, after all, this is the world's largest smartphone market. But along the way, facing a series of high investment and cruel competition, such as price war, channel expansion, technology competition, marketing momentum, mobile phone manufacturers have encountered wave after wave of market differentiation and shuffling. Today, competition has never stopped and shuffling has never stopped.
In 2008, the voice industry avoided the fierce competition in the domestic market and focused on Africa, where the population was second only to China and India. At that time, there were only a few mobile phone brands in Africa, such as Samsung and Nokia. At that time, the market competition was relatively less fierce, and the voice industry gained more sales with relatively less investment. And profits.
The TECNO,itel function machine was the first to enter the African market, selling for about 65 yuan to 454yuan, which is very suitable for African users who are still struggling on the food and satiety line, and the function machine it has developed is very approachable. For example, the transmission of information aimed at the innovation of the essence
It is understood that the research and development team of voice transmission has developed a new facial localization technology specifically for African skin color and facial features. And on this basis, the African version of the beauty and filter was introduced. And in Africa, there are no street lights in most places at night. So the microphone adds a high-power flashlight to the mobile phone. To enhance the brightness of the flashlight. Many areas do not have adequate power supply, so the voice on the mobile phone used a super-large capacity of batteries, allegedly standby for a month. African people like music, like singing and dancing at any time and anywhere. The transmission of sound enhances the power of loudspeakers while guaranteeing the timbre. Headphones are also included in mobile phone packages.
Later, according to the needs of different consumers, different brand products were launched to meet the needs of different consumers, and multi-brand strategy was introduced. The price of itel is lower, mainly for young consumers, mainly for lively, personality labels; TECNO price is relatively higher, for people with higher consumption level, Infinix is mainly for e-commerce consumers. Spice is mainly aimed at the Indian market.
In addition, in order to enhance service, in 2010, Microphone established Carlcare Customer Service Center in Africa, which specializes in providing after-sales service for its brands. Audio is the first foreign mobile phone company to build a local after-sales service network in Africa. At present, there are more than 2,000 professional service outlets, covering more than 40 countries in Africa, the Middle East and Southeast Asia. In the outside world, it not only expresses their determination to cultivate the place for a long time, but also strengthens the consumer's willingness in Africa, thus expanding the brand influence.
In addition to the above mobile phone products, Microphone has also created digital accessories brand Oraimo and household appliances brand Syinix. At the same time, rumors have also independently developed HiOS, itelOS, XOS and other intelligent terminal operating systems, around the OS operating system to develop application stores, game platforms, advertising distribution platforms and mobile phone housekeepers and other tools software.
From Zhu Zhaojiang's point of view, the survival principle of voice transmission abroad lies in adhering to high-quality brand, local innovation and co-creation and sharing. At present, there are more than 14,000 employees worldwide, and its global sales network covers more than 70 countries and regions in Africa, the Middle East, Southeast Asia and South Asia.
Thanks to the application innovation of localization and the high attention paid to technology research and development, the performance of voice holding company has also achieved substantial growth.
According to the prospectus, from 2016 to 2018, its operating income was 11.637 billion yuan, 20.444 billion yuan and 22.646 billion yuan respectively, with an average annual compound growth rate of 3.95%. The net profit attributable to the owner of the parent company was 0.63 billion yuan, 671 million yuan and 657 million yuan, respectively. The main business is outstanding and the revenue growth is obvious. In the first half of this year, the company's revenue was 105.04168.8 billion yuan, and its net profit was 816 million yuan. In terms of net profit alone, it has surpassed the whole year of 2018.
After gaining a firm foothold in the African continent, Chuanyuan entered the Indian market in 2016 and began to expand to Southeast Asia, the Middle East and Latin America. Similar to Africa, India currently has about 800 million people living on the food and clothing line, who still have a great demand for inexpensive functional machines.
With the continuous expansion, some problems have also been exposed. Despite the market for functional phones, demand for Smartphone replacement in Africa and India is increasing day by day. Compared with functional phones, the competition in the smartphone market is much fiercer and needs more financial support.
Take the Indian market for example. There are two sales companies in India, but the two sales companies have accumulated losses of more than 700 million yuan for three consecutive years. The net profits of the two companies from the second half of 2016 to 2018 are 32.38 million yuan, 168 million yuan and 500 million yuan, respectively. In this regard, the rumor said that the main reason is that India is still in the period of market expansion, in the early stage of brand promotion, marketing and after-sales network construction and personnel compensation have invested a large loss.
Industry analysts believe that the main problem is that low-priced voice products lead to gross margin pressure and weakened product competitiveness, especially in smartphones. In addition, millet, which also started at a low price, has already stabilized the Indian market. In order to make a breakthrough in voice transmission, we must increase R&D investment and improve product competitiveness.
In addition, the African market is facing the same problem. With Samsung, Huawei, Millet and other mobile phone companies attaching importance to the African market, voice transmission is facing a greater crisis.
Since 2018, Samsung Electronics has increased its investment in Africa, including the establishment of retail stores and the expansion of offline channels. Huawei, a leading high-end brand in Africa, has also launched cheaper low-end smartphones. In January this year, millet announced the establishment of an African department by issuing an internal document. It also cooperated with Jumia, an African e-commerce platform, to sell online products. After OPPO entered the African market, the main model cost $140. These domestic brands are looking for opportunities to erode the market for voice transmission.
One fact is that as competition in the African market intensifies, the gross industry interest rate will fall further. In its prospectus, Chuan Yin suggests that if we can't maintain product technological innovation and provide better products and services in the future, we will face the risk of declining share and dragging down profitability.
Therefore, in order to achieve greater development, open up new markets, improve product competitiveness, only to expand capital, and IPO is the best solution. Through the IPO, voice not only introduces a lot of capital, but also expands brand influence, so as to facilitate the transformation to smart phones and business expansion.
According to the prospectus, one third of the funds raised will be used for the construction of mobile phone manufacturing base project in Yiyin Zhihui Park. The project intends to expand the production of various types of mobile phone products, mainly smartphones, to increase the proportion of assets. The remaining funds will establish two mobile phone research centers in Shanghai and Shenzhen, as well as a mobile Internet platform base, with the aim of improving R&D and service capabilities.
Earlier, Microphone has launched its own news media service Scooper and music media service Boomplay, and the number of users of the two core applications is increasing. On the other hand, Microphone has also launched credit and savings services in the field of mobile finance.
IPO is only the first step for voice to expand outward. However, on the road of smartphones, R&D is always bottomless, even with risks.In the global market where competition is ubiquitous, the key to success or failure in the future is whether voice can rely on smartphones, quickly adapt to the market and transfer to high-margin services such as mobile Internet services.