Author | Liu Dafang
Editor Li Yiming
Source | Ma Ye Finance
"Received the offer of iSoftStone, Huawei outsourcing, fresh graduates, is it worth going?"
"I also want to go to a big factory. I have been outsourcing for three years. Goodbye ... "
Since the "debut", as a well-known IT outsourcing company in China, there have been many discussions on soft power supply on major social platforms, and recently there has been news of listing on GEM.
In February this year, the IPO application of iSoftStone Growth Enterprise Market was accepted, and CITIC Jiantou Securities, as the sponsor, planned to raise RMB 3.5 billion. On September 3rd, iSoftStone submitted a draft prospectus to the Growth Enterprise Market of Shenzhen Stock Exchange, which has been successfully held.
In fact, as early as 20 10 and 12, iSoftStone was listed on the US stock market. However, only four years later, due to the decline in performance, the company's share price plummeted and chose to privatize and delist. After that, its three attempts to seek backdoor regression failed. In 20 16, 20 17, and 20 19, the company planned to go public through the backdoor reorganization of Vantone Technology, Ziguang Xueda and Xianglong Electric, and all of them were terminated.
After three ups and downs, iSoftStone relentlessly started its fourth capital operation, this time choosing an independent IPO. What kind of company is this? Why are you in such a hurry to go public?
As a software and information technology service provider, iSoftStone's main business is to provide end-to-end software and digital technology services and digital operation services to customers in communication equipment, Internet services, finance, high-tech and manufacturing industries. In more popular terms, IT is actually doing IT outsourcing services.
In the field of IT outsourcing services, iSoftStone is an established player. According to the prospectus, it was established on1October 4, 2005, 165438. According to the report of CCID Consulting, a domestic IT consulting organization, by 20 18, iSoftStone will rank second in the competitiveness (comprehensive comparison of development ability and market position) of China IT outsourcing market.
Behind it, there are a number of luxury shareholders, including Yunfeng Qitai, Chunhua Qiushi, Chen Da Venture Capital, Hongtu Great Wall and other well-known private placements. Yunfeng Qitai holds 3.89%, making it the seventh largest shareholder. Ai Qicha shows that behind Yunfeng Qitai, Alibaba's capital contribution ratio is 34. 18%, and Shanghai Yunfeng Xinchuang Equity Investment Management Center (Limited Partnership), in which Ma Yun holds 39.75438+0%, is also its general partner.
From 20 18 to 2020, the main business income of iSoftStone reached 801080,000 yuan,10580,000 yuan and12981000,000 yuan respectively, with a compound growth rate of 26.53% in recent three years. Among them, "software and digital technology services" achieved revenue of 7.727 billion yuan, 9.953 billion yuan and 65.438+0.210.88 billion yuan respectively, becoming an absolute revenue pillar.
Source: Prospectus
Although IT is engaged in "software and information technology service industry", IT outsourcing is a human resource-intensive industry, and the business model of iSoftStone is still driven by intensive human resources. According to the prospectus, from 20 18 to 2020, the proportion of R&D investment in the company's revenue was 6.22%, 7.89% and 6.6 1% respectively, while the main business cost (accounting for more than 99% of the operating cost) accounted for 9 1.06% and 96% respectively. For companies, employee compensation is the most important operating cost.
Judging from the investment of the funds to be raised in this IPO, iSoftStone plans to raise 3.5 billion yuan to invest in six projects, of which 654.38+0.99 billion yuan will be used for the new construction and expansion projects of the delivery center. As the company's main business, the industry digital transformation products and solutions project ranks third in the amount of funds raised, with a planned investment of 560 million yuan.
Source: Prospectus
Among the expenses of new construction and expansion projects in the delivery center, the housing construction cost reached 654.38+374 million yuan. In this way, as a "software and information technology service provider" to be listed on the GEM, nearly 40% of the company's fundraising projects are used for building houses.
Source: prospectus
A noteworthy detail is that in its reply to the third inquiry letter of Shenzhen Stock Exchange, the company revised the positioning part of GEM in the prospectus: it deleted the disclosures such as "blockchain, 5G, semiconductor and integrated circuits, and information security", which further supplemented the specific introduction of promoting the integration of old and new industries.
According to the prospectus, the company began to turn losses into profits from 20 18. The operating income from 20 18 to 2020 is 81390,000 yuan,106.05 million yuan and1300 million yuan respectively. The main growth point of this performance comes from software and digital technology services, accounting for more than 90% of the main business income within three years. At the same time, the gross profit margin of the overall main business kept rising, which was 24.3%, 26.87% and 27.22% from 2065438 to 2020 respectively.
Source: prospectus
Overall, the company's revenue and profits both continued to rise, and its performance was bright. Behind this, Huawei, Ali and other big factory customers have contributed. According to the prospectus, the company's main customers are Huawei, Alibaba, Tencent, Baidu and Bank of China. Among them, Huawei accounts for more than 50% of the company's operating income and has been its largest customer for four consecutive years.
Source: Prospectus
With such an important source of income, iSoftStone naturally needs to be vigorously maintained. ISoftStone said that after the implementation of the new and expanded delivery center in this IPO and fundraising project, the company's service ability to Huawei will be further enhanced, which may lead to further increase in the company's sales revenue to Huawei. But on the other hand, it will also increase customer concentration, "which may bring certain risks to the company's operation."
Since the Sino-US trade war started, Huawei has been listed as an "entity list" by the US Department of Commerce. At present, the business cooperation between iSoftStone and Huawei is stable and continues to grow. However, iSoftStone also said, "If the friction intensifies, it may lead Huawei to reduce the procurement of related services of the company, which makes the company have the risk of large fluctuations in sales revenue."
Listing was once a bit "imminent" for iSoftStone. According to the prospectus, iSoftStone has signed listing-related gambling agreements with about 36 institutional shareholders. If the target of applying for listing at the end of 2020 is not fulfilled, the company needs to redeem its shares: the redemption price is calculated by adding the investment price of shareholders to the annual simple interest 10%.
However, due to the regulatory requirements for the "gambling agreement" of A-share listing, this year, IPO projects on GEM have received notices to clean up the "gambling agreement" and fulfill their disclosure obligations. The gambling of iSoftStone has finally come to an end.
According to the prospectus, in April this year, the company and Liu Tianwen (the actual controller of iSoftStone) re-signed the gambling termination agreement with the above 35 shareholders. According to the new gambling termination agreement, the special clauses including gambling clauses will be terminated from the date when the company submits the listing application materials to the Exchange, and will no longer take effect under any circumstances. In addition, the gambling termination agreement signed by the company, Liu Tianwen and Zhoushan Changtong will take effect again in the case that the company's listing application is not accepted or withdrawn and the listing application is not passed, but it does not involve the repurchase of shares by iSoftStone.
Now, with the application of iSoftStone for IPO of Science and Technology Innovation Board, the remaining gambling agreement issues have been cleared up. Get rid of shareholder pressure and go into battle lightly. After the successful meeting, it is not far from the official listing. Are you optimistic about its future?
What do you know about IT outsourcing? Say it in the message area.