On Monday, the Shanghai Sci-Tech Innovation Board (STAR Market) listing committee released an announcement, showing that Yonyou Auto Information Technology (Shanghai) Co., Ltd. has been approved for an IPO. Guotai Junan Securities will serve as sponsor institution, and it plans to raise 563 million yuan through the transaction ($89.2 million).
Available information shows that the company was established in 2003, and its main business focuses on marketing and aftermarket services of the automobile industry. It is one of the leading enterprises of software products and cloud service providers in this sub-sector in China. After being acquired in 2010 by Yonyou, a leading domestic cloud services and enterprise resource planning (ERP) solutions provider, the company continued to operate the above business independently. In 2021, Yonyou decided to spin off Yonyou Auto and list it on the STAR Market.
According to its prospectus, Yonyou plans to raise 563 million yuan, of which 362 million yuan will be used for the car company’s marketing system upgrade project, 128 million yuan will be used for the car owner services platform upgrade project, and 73.14 million yuan will be used for a data analysis platform.
From 2018 to June, 2021, Yonyou Auto’s operating income was 487 million yuan in 2018, 487 million yuan in 2019, 476 million yuan in 2020 and 265 million yuan in 2021 from January to June. The net profit attributed to parent company owner’s after deduction of non-recurring was 67.808 million yuan in 2018, 75.6046 million yuan in 2019, 70.867 million yuan in 2020 and 57.9279 million yuan in 2021 from January to June.
Yonyou Auto expects to achieve operating income of between 575 million yuan and 598 million yuan in fiscal year 2021, an increase of 20.85%-25.58% compared to the same period last year. It estimated that net profits will be between 116 million yuan and 128 million yuan, an increase of 36.45%-50.64% compared to last year.
The company mainly provides digital intelligent transformation solutions, cloud services, software and professional services in the fields of marketing and aftermarket services for customers including automakers, dealers and service stations in the automotive industry. It builds a digital ecosystem platform integrating the automotive industry chain and across industries to empower the digital transformation. During the reporting period, the company also provided products or services in the field of marketing and aftermarket services to customers in the construction machinery and motorcycle industries.