Shenzhen's big seller is heading for IPO, and it turns out that a post-90s generation is at the helm!

On the evening of September 16, the official website of the Shanghai Stock Exchange disclosed that Insta360 Innovation Technology Co., Ltd. (hereinafter referred to as "Insta360 Innovation") has passed the inquiry of the Listing Committee, which means that Insta360 Innovation will be listed on the Science and Technology Innovation Board soon. People in the industry may be unfamiliar with Insta360 Innovation, but its "Insta360" panoramic camera with the largest global market share and its founder born in the 1990s have brought more attention to Insta360 Innovation.

With revenue exceeding 600 million yuan in half a year, Amazon's panoramic camera brand is about to be launched

Aisen Innovations, headquartered in Qianhai, Shenzhen, is a company focused on the research and development, production and sales of consumer-grade smart imaging devices such as panoramic cameras and sports cameras. Its products mainly include consumer-grade smart imaging devices, professional-grade smart imaging devices, accessories and other products, covering more than 60 countries and regions around the world online and offline. Overseas, it is mainly sold to countries with strong consumption power such as the United States, Japan and Europe through Amazon, its own official website and offline channels .

The prospectus shows that in the first half of 2021 alone, the operating income of Arashi Vision has exceeded 600 million yuan, and the profit attributable to the parent company is 116 million yuan. Compared with the same period in 2020, the operating income increased by 70.08%, and the profit attributable to the parent company increased by 92.22%, close to the level of the whole year last year. In terms of Arashi Vision's performance, some industry insiders speculate that the increase in Arashi Vision's performance in the first half of the year may be related to the closure of several major sports camera stores.

But it should be noted that the revenue growth of Arashi Vision was already very encouraging, with revenues of 258 million, 588 million, and 850 million in 2018-2020, respectively. The growth in revenue was driven not only by the increase in the sales volume of imaging equipment from 103,000 to 309,000 units, but also by the increase in the average selling price from 1,510.55 yuan to 2,142.18 yuan . The growth in sales volume and customer unit price are undoubtedly driving the performance of Arashi Vision.

Among them, consumer-grade smart imaging devices (sports cameras, panoramic cameras and panoramic sports cameras) accounted for the largest revenue of Arashi Vision, with revenue of 663 million yuan in 2020, accounting for 79.14%. During the reporting period, more than 60% of Arashi Vision's main business revenue came from overseas , mainly including the United States, Japan, Europe and other regions with strong consumption power, accounting for the highest proportion of 75.35%.

Its brand "Insta360" panoramic camera ranked first in the global market share in 2020. It has multiple best-selling items on Amazon and has won multiple awards including Time magazine's "Best Invention of 2020".

Amazon is one of the most important sales channels for Arashi Vision, contributing more than 10 million yuan in revenue every year. It is understood that Arashi Vision has 15 online stores in multiple sites such as Europe and Asia, America and Asia, and its brands have many best-selling products on Amazon.

Judging from the account books, Innolux's performance has shown continuous growth year after year, but its IPO road has not been smooth. As early as July 23, 2021, Innolux's first meeting was suspended due to corporate governance risks, unclear equity relations, low social security contributions, and fixed asset investment . Now it seems that these problems have been resolved.

In addition, the high cost of the main business of Arashi Vision is also a point that needs to be paid attention to. It is understood that the core chips of Arashi Vision mainly come from international brands such as Sony and Ambarella, accounting for more than 30% of the raw material purchase amount. This means that if there is an accident that causes the delivery period to be extended or the supply cannot be delivered, the production and operation of Arashi Vision will be directly affected.

Backed by IDG Capital, Inspur Innovation will become the first post-90s startup company in the A-share market

Behind every successful company, there is an excellent leader, and so is Innovision. Liu Jingkang, the founder born in 1991, graduated from Nanjing University with a degree in software engineering. While in school, he was sought after by Kai-Fu Lee and Hongyi Zhou for his superb skills. After graduation, he chose to "enter" the panoramic camera field and founded Innovision in 2015. It earned more than 800 million yuan a year and went public on the Growth Enterprise Market six years later.

Once Innolux successfully goes public, its founder Liu Jingkang is expected to become the first post -90s to be listed on the Science and Technology Innovation Board.

In addition, a large investment team has been assembled behind Arashi Innovation, including well-known institutions such as IDG Capital, Qiming Venture Partners, CITIC Securities Investment, and China Merchants Fund . Regarding Arashi Innovation, IDG Capital said that it is optimistic about the potential of Chinese manufacturing companies to enter the overseas market, which is undoubtedly a great affirmation of Arashi Innovation.

Earlier, China's Ministry of Industry and Information Technology announced a list of "little giant" enterprises that are specialized, sophisticated and innovative, and Innolux was among them. Gaining national recognition is undoubtedly a major benefit for it.

However, Innolux also stated that the company currently faces problems such as insufficient capital and a certain gap with listed companies in the same industry . It mainly wants to improve the company's competitiveness and expand its market share through A-share listing financing.

According to the prospectus, Inspur plans to raise 464 million yuan to increase the construction of two projects, the intelligent imaging equipment production base and the Inspur Shenzhen R&D center . After the projects reach full production, new production capacity will be added. However, it is not denied that there may be idle equipment, redundant personnel and impairment risks due to obstacles in the development of downstream markets and performance growth that is lower than expected.

Inspur defines its core competitiveness as product R&D and design capabilities. According to the prospectus, Inspur 's cumulative R&D investment from 2018 to 2020 was 234 million yuan, accounting for 13.79% of its cumulative revenue over the three years ; in terms of employees, Inspur's R&D and technical personnel accounted for 46.31% of the company's total employees, nearly half, and its R&D investment is indeed high.

Just as a hit product often faces the risk of infringement, the road to success for Innolux Innovation has not been smooth, and industry insiders have mixed opinions about it.

This kind of company is too young and does not have a technological advantage.

The industry leaders will beat them down in minutes, and such a company won’t last long.

I hope that the four steps of raising money through IPO and then running away will not happen again.

The waves behind push the waves ahead forward.

It’s an emerging industry with great potential.

They kept talking nonsense and cheating, but the first quarter financial report after the listing was full of surprises.

Regarding the future of Arashi Vision, many people in the industry are worried that history will repeat itself, and there is no reason for it. After all, there are many bloody lessons learned from the past. However, the road to success of each company is not replicable. As for the future of Arashi Vision, we still need to wait and see!

In fact, under the tide of China's technological innovation, more and more post-90s have emerged in the cross-border circle. They are taking over the torch of science and technology with the power of the new generation. From their initial emergence on the stage to gradually becoming the mainstay of the industry, they are undoubtedly promoting the development of China's cross-border overseas expansion. We should respond with a good and positive attitude.

Shenzhen

Big Sell

IPO