IPO | Shangtang-W restarts IPO public offering, which is expected to be listed on December 30

According to Futu News on December 20,$SENSETIME-W (00020.HK)$An announcement was issued to restart the public offering on December 20. The issuance scale and price range remain the same as before.

Shangtang-W issued a total of 1.5 billion shares. The offering price ranged from HK$3.85 to HK$3.99 per share, raising approximately HK$6 billion. The subscription for the stock ends at 12:00 noon on December 23, and is expected to be listed on December 30.

Earlier, on December 13, Shangtang issued an announcement stating that since the US Treasury included the Shangtang Group in the “List of Non-SDN Chinese Military Industrial Complex Companies,” the company's board of directors decided to adjust the listing process, refund the shares already applied for, and emphasized that the company is still committed to completing the global sale and listing as soon as possible.

Shangtang Technology is an artificial intelligence software company focusing on computer vision software.According to Frost & Sullivan's report, according to the 2020 revenue scale, Shangtang Technology is the largest artificial intelligence software company in Asia, and became the largest computer vision software provider in China with an 11% revenue market share in 2020.

As of June 30, 2021, the total number of customers on the Shangtang Technology software platform has exceeded 2,400, including more than 250 Fortune 500 companies and listed companies, 119 cities, and more than 30 automobile companies. At the same time, it has empowered more than 450 million mobile phones and more than 200 mobile apps.

Since its establishment, the company has won more than 70 championships in various global competitions, published more than 600 top academic papers, and has more than 8,000 artificial intelligence patents and patent applications. Shangtang Technology has forwardly built a SenseCore AI device, an unprecedented general artificial intelligence infrastructure in the industry, to achieve large-scale mass production of multi-functional ultra-high-precision AI models; the artificial intelligence software platform developed by the company can quickly deploy AI models to massive scenarios and achieve continuous expansion of its own scale.

According to Sullivan's report, with excellent technology and the scale effect of model production, Shangtang Technology has achieved a leading market position in the fields of smart commerce, smart cities, smart living and smart cars, serving commercial space management, residential property management, urban management, manufacturing, infrastructure, transportation, mobile devices and applications, medical care and automobiles.

In terms of financial conditions, from 2018 to 2020, the company's revenue was 1,853 billion yuan, 3,027 billion yuan and 3.446 billion yuan respectively, with a compound growth rate of 36.37%. Revenue for the six months ended June 30, 2021 was 1,652 billion yuan, an increase of 91.8% over the previous year.

In 2018, 2019, 2020, and the six months ended June 30, 2021, the company's gross profit was RMB 1,047 billion, RMB 1,719 billion, RMB 2,432 billion, and RMB 1,2005 billion, respectively, with gross margins of 56.5%, 56.8%, 70.6% and 73.0%, respectively.

On the industry side, the size of China's computer vision software market reached RMB 16.7 billion in 2020, and is expected to grow at a compound annual rate of 43.5% from 2020 to 2025, and reach 101.7 billion yuan in 2025.

Cornerstone investors include China Chengtong's mixed ownership reform fund, Xuhui Capital, Guosheng Group, Shanghai Artificial Intelligence Industry Investment Fund, SAIC Motor Group, Cathay Pacific Junan, Hong Kong Science and Technology Park, Xima Eye, and Taizhou Cultural Tourism. The investment scale further increased to US$510 million from earlier.

In terms of funding, the company plans to use the funds raised for the following purposes: 60% will be used to enhance R&D capabilities; about 15.0% will be used for business expansion; about 15.0% will be used to seek potential strategic investment and acquisition opportunities; and about 10.0% will be used for operating capital and general corporate purposes.

Click to view Hong Kong Stock Exchange documents“Supplementary Prospectus”

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