Recently, Shanghai Shengtong Information Technology Co., Ltd. (hereinafter referred to as "Shengtong Technology", HK: 02495) disclosed the offering announcement that it will offer 4,365,660 H shares globally from June 28 to July 5, with another 15% over-allotment option, at an offer price of HK$152.1 per share, and is expected to be listed on the Hong Kong Stock Exchange on July 10, 2024.
Excluding over-allotment, the total amount of funds raised by Soundcom Technology is approximately HK$664 million, the net proceeds are approximately HK$572 million, and the market capitalization is approximately HK$5.4 billion. Among them, Jiangsu Jiangkong Investment Co., Ltd. and Wuhan Guangtong Win-Win Enterprise Management Partnership (Limited Partnership) are the cornerstone investors, spending a total of 250 million yuan (about HK$276 million) to participate in the subscription.
According to the prospectus, the funds raised by Shengtong Technology will be used to strengthen the basic research of the company's key technologies; to expand the solutions provided by the Company, build the Company's brand and enhance the Company's commercialization capabilities; to pursue strategic investment and acquisition opportunities at home and abroad; For general corporate use.
Tianyancha App information shows that Shengtong Technology was established in December 2005 and completed the C round of financing in 2023. At present, the registered capital of the company is 31.0592 million yuan, the legal representative is Sun Qi, and the main shareholders include Shengtong Rongzhi, Yingke Capital, Tang Jinghua, Sun Qi, Qifeng Investment, etc.
The company is an enterprise-level information technology solution provider, committed to providing convenient and diverse standardized solutions, which can effectively improve the convenience and intelligence of enterprise-level user information exchange and business interaction, according to the prospectus.
According to iResearch's report, in terms of revenue in 2023, Shengtong Technology ranks second in China's enterprise-level full-stack (Note) interactive AI solution market, with a market share of 3.8%, of which the largest solution provider has a market share of 13.1%.
According to the same source and by the same metrics, Soundtone ranked sixth in China's enterprise interactive AI solutions market with a market share of 1.3% and has a 1.2% market share in China's overall interactive AI solutions market, reaching RMB67.8 billion in 2023.
In 2021, 2022 and 2023, the revenue of Shengtong Technology will be 460 million yuan, 515 million yuan and 813 million yuan respectively, the gross profit will be 152 million yuan, 201 million yuan and 325 million yuan respectively, the net profit will be 36.384 million yuan, -85.811 million yuan and -29.201 million yuan respectively, and the adjusted net profit will be 62.334 million yuan, 71.693 million yuan and 118 million yuan respectively.
In the prospectus, Shengtong Technology said that the change in the book value of the redeemable capital injection is a non-cash item, mainly due to the company's net losses in 2022 and 2023, and the book value will be reclassified from financial liabilities to equity after the completion of the listing and global offering.
During the Track Record Period, the negative impact of the change in the carrying amount of the aforesaid redeemable capital injections on the net profit of Soundcom Technology was related to the Company's obligation to repurchase equity investments in respect of the pre-IPO investment and was the result of its growing market capitalization, which will be eliminated after the completion of the listing and the Global Offering.
It is worth mentioning that Shengtong Technology was once listed in the Shanghai Equity Exchange Custody Center with the code "300005". In August 2023, the company's shareholders passed a resolution to apply for withdrawal from the Q board. According to reports, its application for withdrawal from the Q board listing has been approved by the Shanghai Equity Exchange Custody Center in February 2024, and the withdrawal from the listing was completed on February 28.
Through Voicecomm Brain and Voicecomm Suites, the company provides a variety of enterprise-level solutions to a variety of end-customer industries, including city management and administration, automotive and transportation, communications, finance, education, healthcare, travel, media, e-commerce and retail, through Voicecomm Brain and Voicecomm Suites.
Since its establishment, Shengtong Technology has received multiple rounds of financing, raising a total of about 500 million yuan. On June 25, 2023, Shengtong Technology completed a Series C financing of 180 million yuan. Previously, in 2020, the company completed a round of financing of 74.4 million yuan, a round B financing of 140 million yuan in 2021, and a B+ round of financing of 105 million yuan in 2022.
Among them, Jiaxing Chengshun Phase II, Zhejiang Jiuli Investment, Neijiang High-tech Investment, Jinxuntong Software Technology, Zhang Weihua, and Chen Xuanjun participated in the C round of financing of Shengtong Technology in the first half of 2023, with a total investment of about 180 million yuan. Among them, Jiaxing Chengshun invested 100 million yuan in the second phase.
During the same period, Yuanzhi Xingjian, Song Qimin, Shuyi Enterprise Management, Pan Qi and others acquired part of the shares of Shengtong Technology, while Shengtong Rongzhi, Chenqi Information, Xue Guangtao, and Jiageng Culture reduced their holdings. After the reduction, Shengtong Rongzhi, Chenqi Information, Jiageng Culture, etc. are still shareholders of the company.
On June 28, 2023, Shengtong Technology submitted a prospectus to be listed on the main board of the Hong Kong Stock Exchange. From this point of view, Jiaxing Chengshun Phase II and Zhejiang Jiuli Investment constitute a surprise shareholding.