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Baidu’s share price closed on the first trading day in Hong Kong. Robin Li said it was a second company.
Chinese Internet giant Baidu was officially listed on the Hong Kong Stock Exchange on the 23rd, completing its second listing sixteen years later. Until now, BAT will accumulate in Hong Kong shares. Baidu rose 0.79% at open to trade at HK $ 254, the intraday high was HK $ 256.6 and the low was HK $ 251.6, a decrease of 0.16. %, below the issue price of HK $ 252. At the closing price, the share price closed unchanged at HK $ 252, with a total market value of HK $ 712.9 billion.
By Ni Ming, All Media Correspondent, Guangzhou Daily
Positioning: From search to artificial intelligence, core business revenue accounted for more than 70%
“Returning to Hong Kong for the second listing is Baidu’s second start and Baidu’s second company,” Baidu founder, chairman and CEO Robin Li said in a speech on the listing site.
On March 22, Baidu announced on the Hong Kong Stock Exchange that the IPO price of Hong Kong shares was HK $ 252.00 per share, and that the Hong Kong public offering was oversubscribed. 112 times. As a result of attracting oversubscription, Baidu increased the number of shares allocated to Hong Kong retail investors from 4.75 million shares to 11.4 million shares under the rollback mechanism. The number of shares allocated to institutional investors decreased from the initial 90.25 million shares to 83.6 million shares.
Baidu said the planned use of the funds includes attracting and retaining talent, strengthening the commercialization of smart cloud solutions, enhancing the commercialization of smart driving and other growth plans, investing in artificial intelligence chips and synergistic investments, and further developing plus the mobile ecosystem.
In terms of financial data, the prospectus shows that Baidu’s total revenue increased 5% from 102.3 billion yuan in 2018 to 107.4 billion yuan in 2019. In 2020, Baidu’s total revenue will be 107.1 billion yuan. In 2018, 2019 and 2020, the net profit attributable to Baidu Group Co., Ltd. will be 27.6 billion yuan, 2.1 billion yuan, and 22.5 billion yuan, respectively. The net profit attributable to Baidu Group Co., Ltd. in 2019 includes the non-cash impairment loss on Ctrip’s investment of 8.9 billion yuan. In terms of R&D investment, Baidu’s R&D expenses will increase from RMB 18.3 billion in 2019 to RMB 1.2 billion to RMB 19.5 billion in 2020. In terms of participation, Robin Li owns 45,749,128 shares, which represents 17% of the total number of ordinary shares and has 57% of the voting rights.
Can new businesses like “car construction” boost stock prices?
Regarding the use of the funds raised this time, Baidu indicated in the prospectus that 50% will go to continuous investments in technology to promote the commercialization of innovations based on artificial intelligence; 40% will go to the development of Baidu’s mobile ecosystem to achieve diversified realization; the remaining 10% is used for general company purposes. Among them, half of the ongoing investment in technology includes: attracting and retaining talent, especially software and artificial intelligence engineers, data scientists, and other R&D personnel; strengthen the commercialization of smart cloud solutions; improve autonomous driving technology and invest in smart electric vehicles Research and development development, undertake mass production, increase the scale of Appllo Robotaxi fleet and obtain more driver’s licenses.
At present, Baidu makes frequent moves in the “automobile construction”. For example, Baidu and Geely Automobile jointly formed a joint venture and signed strategic agreements with various automakers. As of December 2020, Baidu Apollo has accumulated 4.3 million miles of test mileage and owns 199 Chinese autonomous driving licenses. From a share price perspective, Baidu’s US share price rebounded in a “U-shape” under the influence of “car manufacturing.” At the same time, the market analysis believes that new areas such as Baidu’s smart driving have a huge imagination for the future. The Industrial Securities Research Report noted that in the medium and long term, artificial intelligence businesses such as smart driving and smart cloud will provide new development opportunities for Baidu. The company’s second listing is conducive to the in-depth deployment of the artificial intelligence industry, increasing investment in technology, promoting the commercialization of artificial intelligence-based innovations, maintaining its leading position in the field of artificial intelligence and optimistic about the company’s development space in the medium and long term. The company’s operating income in 2021 and 2022 is estimated to be 121.8 billion and 139.1 billion respectively.
Sina completes privatization and withdraws from Nasdaq
Guangzhou Daily (Ni Ming all media reporter) On March 23, Sina officially announced the completion of the privatization. After delisting on Nasdaq in the United States, Sina will change its name to “Sina Group Holdings Limited” and will become a private company jointly controlled by Sina Chairman Cao Guowei and Sina management. This means that after almost 21 years of trading, Sina officially withdrew from the capital market.
You are still the majority shareholder in a company listed on Weibo.
After privatization, Sina Group will remain the majority shareholder of a Weibo-listed company and will not have any significant impact on Sina’s business. The original Sina portal business with Sina Mobile as the main entity will be more closely integrated with the Weibo business. while the original Sina. Some of its vertical businesses, such as Sina Finance, Sina Finance and Sina Sports, will develop more independently. At the same time, Sina Group will increase investment in the future, accelerate the pace of mergers and acquisitions and realize the diversified development of the group’s business.
In April 2000, Sina was listed on the Nasdaq. Pan Helin, Executive Dean of the Institute of Digital Economy at Zhongnan University of Economics and Law, said that the privatization of Sina is related to his own performance. At present, other than Weibo, Sina has basically released no better products, including live broadcasts. videos and other clues The lack of bright spots, in such circumstances, the US capital market is at a disadvantage. He believes that based on the current low market value, Sina hopes to gain more freedom after delisting and gain some imagination for diversified design, including new listing sites or new business modules.
The vertical business can become a new growth point
According to the financial report, in 2019, Sina’s revenue was US $ 2.16 billion, of which advertising revenue was US $ 1.74 billion, representing more than 80%. Divided by business, Weibo contributes 80% of the revenue and the remaining 20% comes from the portal’s financial technology and advertising businesses. It can be seen that Sina’s income is too dependent on Weibo, and its structure is unique, relying mainly on its advertising business. At the close of US shares on March 22, Weibo’s share price was $ 52.46 per share, and its market value was $ 11.88 billion, which was 4.6 times the value of Sina market before its delisting. According to the latest Weibo financial report, in 2020, Weibo’s revenue was US $ 1.69 billion, a year-on-year decrease of 4%, and its net profit was US $ 313 million, a year-on-year decrease of 36.6 %. Among them, Weibo’s top advertising and marketing revenue was $ 1.49 billion, a 3% year-on-year decrease.
Weibo CEO Wang Gaofei said that in 2021, Weibo will fully seize the market opportunity to accelerate online and get an incremental advertising budget from the market through differentiated social advertising products and a continuously optimized advertising bidding system. .
Looking to the future of Sina, the new growth point may be vertical businesses such as Sina Finance, Sina Finance and Sina Sports. After all, the news of Sina Finance’s independent listing has been reported in the industry for a long time, and In fact, the delisting of Sina may promote these vertical businesses to become more independent.
