Shulou(Shulou.com)05/31 Report--

After nearly three years of preparation, Jinshan Office was born, it was born in Jinshan Software (03888. Hong Kong listed company HK) finally locked in Science and Technology Innovation Board and recently completed an inquiry on the Shanghai Stock Exchange.

Compared with the 565 million yuan to be raised when applying for gem IPO, the amount of funds raised by Jinshan Office Application Section directly increased from 262.8% to 2.05 billion yuan. It is planned to be used in the research and upgrading direction of WPS Office office software, the construction direction of artificial intelligence basic IPO center in office field, the Internet cloud service direction of office products and the international direction of office software, showing an obvious trend of technology research and development.

Kingsoft Office said in an inquiry letter that as of May 31, 2019, Lei Jun enjoyed 25.7% of the total number of issued shares of Kingsoft, making it the single largest voting owner of Kingsoft. If Jinshan Office is successfully listed in Science and Technology Innovation Board, the actual controller, Lei Jun, will usher in its third listed company. Lei Jun's single maximum voting status is also an important concern for regulators when asking about the independence of the Kingsoft office.

Jinshan office products mainly include WPS Office software, Jinshan Ciba and so on. Can be applied to Windows, Linux, MacOS, Android, iOS and other mainstream operating platforms. The company's services mainly include value-added services based on the company's products and related documents, as well as Internet advertising services to provide customers with one-stop, multi-platform application solutions.

As early as October 2016, Kingsoft announced that it was considering spinning off Beijing Jinshan Office Software and its subsidiaries and planned to list independently on the China Stock Exchange. In March 2017, Kingsoft Chief Financial Officer Wu Yuqiang said at the annual performance meeting that he planned to spin off its WPS to Shenzhen growth Enterprise Market and submit an application form in the near future. In May 2017, Jinshan Office submitted the application draft of gem, but after submitting the first application draft of gem, Jinshan Office did not update the pre-disclosure, and the listing process was slow; on April 29th, 2019, Jinshan Software announced that it planned to spin off the common shares of Beijing office software. listed on Science and Technology Innovation Board.

On May 8, 2019, the Shanghai Stock Exchange accepted Jinshan Office's "prospectus for initial public offering and listing of shares in Science and Technology Innovation Board"; on June 20, the company replied to pre-listing inquiries on the Shanghai Stock Exchange.

According to the Jinshan office prospectus, the shares of the company will not exceed 101 million shares, not more than 21.91% of the total share capital after the issue, and no more than 461 million shares after the issue. This offering is limited to the company's public offering of new shares, excluding shares transferred by the company's shareholders.

The funds raised are mainly used for WPS Office software client enhancement and optimization, WPS Office software security and reliability enhancement optimization, WPS Office products and services global Redd project, AI natural language processing platform project, AI computer vision recognition platform project, office products cloud service Redd center construction, Internet value-added service R & D, etc. The total amount of funds raised is about 2.05 billion yuan.

In addition, the prospectus shows that by the end of 2018, the number of monthly active users (MAU) of Jinshan office's main products exceeded 310 million, of which the monthly active users of WPS Office desktop version exceeded 120 million. Today, WPS has evolved from a single office app to an office cloud service, with customers including Alibaba's Alimama, Tmall, Taobao and Tencent Technology (Beijing) Co., Ltd.

According to Guoyuan International's research report on Jinshan Software, benefiting from the upgrading of cloud trend and user payment concept, the proportion of subscription revenue of Jinshan office has increased rapidly, especially on the 2C side. In the past, due to the absolute leadership of domestic pirated software and office, the value of the company's products was only recognized in G-end and central enterprises, and the company's revenue in the C-end market has been unable to produce scale. However, the company believes that the competitor is

As a Jinshan company, Lei Jun must be an unavoidable topic. In 1992, Lei Jun joined Kingsoft, responsible for developing and expanding business operations; later served as CEO of Kingsoft, resigned in 2007, transferred from an executive director to a non-executive director in August 2008, and became chairman of Kingsoft in July 2011.

As early as May 2017, when Jinshan Office submitted the gem prospectus, the regulatory authorities asked Jinshan Office IPO sponsor China International Capital Co., Ltd. to explain various issues such as standardization and relevance. For example, Jinshan Office is required to explain whether the disclosure of the controlling shareholder, the actual controller and the enterprise controlled is complete; whether the enterprise's main customers, suppliers, financial status, personnel, technology, products, Redd, etc., compete with Jinshan Office in the same industry, and whether the issuer's business is independent.

In addition, there are a large number of related parties in the Jinshan Office, and the regulatory authorities require the Jinshan Office to explain whether the main business of the related party is the same or similar to that of the Jinshan Office, and if so, whether it conflicts with the interests of the issuer, whether it competes with the issuer in the same industry, whether it overlaps with the customers and suppliers of the Jinshan Office, and whether it bears costs and transfers benefits for the issuer.

At the same time, regulators asked Jinshan Office to explain that Lei Jun did not directly hold shares in the issuer. In the risk warning column of the company's prospectus, it is also noted that the company has risks such as product singleness and technology upgrading, intangible assets sharing or usability, actual controller and controlling shareholder control.

According to Jinshan Office's response to the inquiry data of the Shanghai Stock Exchange, as of May 31, 2019, the actual control of Jinshan Office was Lei Jun, who indirectly held 11.99% of its sharehold. and through the "Voting Deed" agreement signed with Qiu Bojun and Zhang on July 7, 2011, enjoy the distribution right of Kingsoft held by Qiu Bojun and Zhang.

Voting rights for 10.40% of the total number of shares. Accordingly, Lei Jun enjoys 25.70% of the total issued shares of Kingsoft, which is the single largest voting right owner of Kingsoft, and the proportion of voting rights held by Lei Jun maintains a large gap with other shareholders of Kingsoft.

Lei Jun enterprises play an important role in promoting the development of Jinshan business. In Lei Jun business ecology, Xiaomi and Jinshan focus on hardware integration and software services respectively, which complement each other and form obvious synergy in the industrial chain. Over the years, the two sides have signed strategic cooperation agreements many times, involving cloud services, gaming business, hardware procurement, capital investment, and so on. According to the Guoyuan international research report, Xiaomi Internet of things helps Jinshanyun to grow rapidly, precisely because Jinshanyun and Xiaomi are both Lei military enterprises, so the rapid growth of Jinshanyun is closely related to the development of Xiaomi. Xiaomi itself has a huge ecosystem and needs strong cloud service support in the future; in addition, Xiaomi's Internet of things strategy fits the development strategy of Jinshan Cloud business.

Guangfa Securities warned in the risk tip of the research report that the valuation of WPS in Science and Technology Innovation Board is uncertain, 2C business growth is less than expected, and competition in the cloud services market will also lead to increased losses.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.