｜Sanyan Finance Author｜DorAemon
Less than half a month after its listing, its market value exceeded Alibaba , JD , Pinduoduo and other giants. Do you dare to believe it? I'm afraid I don't dare to write this even in online novel plots?
However, such a "magic" thing really happened.
In the past two days, the circle has been shocked by this monster stock called "Shangma". As of the close of August 2 local time, Shangmeng Technology was US$1,679, with rising by 126.28%, and the total market value reached US$310.7 billion.
At the same time, Alibaba US stock stock price was US$92.62, with a total market value of US$245.3 billion;
JD.com US stock price was US$59.73, with a total market value of US$93.283 billion;
Pinduoduo stock price was US$48.98, with a total market value of US$61.93 billion;
PetroChina US stock price was US$45.54, with a total market value of US$83.348 billion.
Look at this unknown Shanghe Technology, its stock price has soared in recent days. Now the total market value not only exceeds Alibaba, but also has even big brothers like PetroChina have been thrown away several streets. If calculated according to RMB, Shangmax Technology's market value had already exceeded one trillion mark.
Not long ago, it took 20 years for BYD to achieve a trillion-dollar market value breakthrough; this is a good guy, Shangmax Technology was able to complete it in half a month after it went public. What is the origin of this company?
Li Ka-shing concept stock?
Shangsheng International was split from Shangsheng International in 2019. Shangsheng International is currently a listed company in New York and Singapore, with a market value of about US$800 million, and Shangsheng International is a subsidiary of Shangsheng Group.
So, before introducing Shangshengji, you must first understand Shangsheng Group.
In 2003, Shangcheng Group was established. The group is involved in financial services, digital technology, arts and culture and entertainment. One of the founding shareholders is Li Ka-shing's Cheung Kong Industrial Group and Hutchison Whampoa .
However, the prospectus of Shangcheng Technology does not disclose its equity structure, so it is impossible to know exactly how much money Shangcheng Group or Li Ka-shing can get from this "stock price myth".
However, whether Li Ka-shing's Changhe has a direct and indirect relationship with Shangmax Technology, lacks relevant information.
In 2003, Shangcheng Group was jointly established by Changhe and Commonwealth Bank of Australia to provide financial services; Shangcheng Group's management team was appointed by Changjiang Hutchison Industrial Co., Ltd. .
According to media reports, at the end of 2015, Lingrui Capital acquired most of the interests of Shangcheng Group, and the former management team was replaced. In January 2016, Cai Zhijian was appointed as the chairman of Shangcheng Group.
In addition, in October 2004, Shangcheng Group launched the insurance solution business; in July 2016, it launched the digital investment business, and then launched the spider web ecosystem solution in December 2017.
In September 2019, Shangcheng Group was established, which is a wholly-owned subsidiary of Shangcheng Group; it was reorganized in December 2019 and became a holding company of Shangcheng Group's digital financial services, spider web ecosystem solutions, digital media, content and marketing, and digital investment businesses.
In December 2020, Shangcheng Group and Lingrui Capital signed an repurchase agreement , repurchasing specific shares of Shangcheng Group that were previously allocated to Lingrui Capital; and the other shares held by Lingrui Capital in Shangcheng Group were sold to a third party on December 31, 2021. Since then, Lingrui Capital is no longer a shareholder of Shangcheng Group.
On February 23, 2022, Shangcheng International acquired most of the interests of Shangcheng Technology.
According to the prospectus of Shangheji Technology, Shanghe International holds 97.1% of the issued shares of Shangheji Technology and has 99.9% of the voting rights. After listing, Shangcheng International held 88.7% of the equity of Shangcheng International and 99.4% of the voting rights.
Shangcheng Group holds a 50.6% interest in Shangcheng International. In addition, Shangcheng Group holds a 32.5% interest in Infinity Power Investments Limited, a wholly-owned company under Cai Zhijian, and is the largest shareholder of Shangcheng Group.
In this way, Cai Zhijian is the biggest beneficiary of the soaring stock price of Shanghemax.
Who is Cai Zhijian?
According to public information, Cai Zhijian was born in August 1978 and graduated from the University of Waterloo, Canada in 2001.He holds an honorary bachelor's degree in accountant majors, an honorary doctorate in law, and an Oxford University Side Business School Advanced Management Training Development Diploma.
Cai Zhijian was one of the first Hong Kong people to engage in audit services in the mainland.
From December 2000 to August 2005, he served as Senior Manager of the Audit Department of PricewaterhouseCoopers' Offices in Hong Kong and Beijing. During his tenure, Cai Zhijian led or participated in the annual audit of many Chinese and foreign banks in China. Including Bank of Communications , Bank of China , Minsheng Bank , and JPMorgan Chase China and other large financial institutions audit business.
From August 2005 to December 2008, Cai Zhijian served as executive director of Citigroup's investment banking department and chief of China's chief strategic cooperation officer. During this period, Cai Zhijian led the team to complete capital market transactions such as CITIC Bank H shares IPO, Kuwait Investment Bureau strategic investment in Industrial and Commercial Bank of China , CITIC Bank's acquisition of Hong Kong Jiahua Bank and listing of Changyou US under Sohu Group.
From January 2009 to January 2016, Cai Zhijian served as Director of the Hong Kong Corporate Financing Department of PricewaterhouseCoopers and Managing Director of the Investment Banking Department of UBS Group.
Since January 2016, Cai Zhijian has served as the chairman, president and managing director of Shangcheng Group. It is reported that Cai Zhijian led the restructuring of Shangcheng Group's equity and introduced strategic shareholders including Morgan Stanley and Lingrui Capital Group.
shows that Shangmax is a product of Cai Zhijian's acquisition of Shangmax Group. However, Cai Zhijian himself also has some controversial events.
From 2014 to 2015, during his time at UBS Group, he was investigated by the Hong Kong Securities Regulatory Commission due to conflicts of interest and information disclosure issues.
In 2022, the Hong Kong Securities Regulatory Commission issued a "Notice of Decision", ruling that Tsai Chi-jian had two illegal acts of disclosure and fair treatment, and a conflict of interest, and made a two-year penalty decision on him. After that, Cai Zhijian submitted a review application and requested a closed-door hearing.
The Hong Kong Securities Regulatory Commission rejected its application for a closed-door hearing, and the official hearing will be held publicly from December 12 to 16, 2022.
In addition, in 2019, Cai Zhijian was accused of financial fraud , and then his whereabouts began to be low-key. According to Caixin, from March to April this year, Cai Zhijian went to Singapore to avoid debts.
Shangmax Technology's annual revenue does not exceed HK$200 million
Huili, Jiayu Fund, and Maoyan are shareholders
After talking about the general background of Shangmax Technology, let's take a look at the company's main business related information.
On May 20, 2021, Shanghemax Technology submitted a prospectus to US Securities and Exchange Commission, which is planned to be listed on New York Stock Exchange with the stock code "HKD"; on July 15, 2022, the company officially logged on NEWS.
According to its prospectus, in addition to Shangcheng International, Shangcheng Technology's shareholders include the Greater Bay Area Common Home Fund, Huili, one of Asia's largest independent asset management companies, Maoyan Entertainment, and Jiayu Fund founded by former Alibaba CEO O Weizhe .
company's main revenue comes from four major businesses, including digital financial services, spider web ecosystem solutions, digital media, content, marketing and digital investment.
Among them, digital financial services mainly provide one-stop cross-market smart digital financial services to Asian retail and corporate customers through the entities, investment targets and business partners they control.
Cobweb Ecosystem Solution is to help Asian entrepreneurs and businesses reach resources and technologies and collect membership fees. It is worth mentioning that Shanghezi Technology has also cooperated with Xiaomi .
At present, Shangmax Technology has signed an agreement with its controlling shareholder to empower Tianxing Bank to use the spider web ecosystem and support the bank to gradually establish its own ecosystem.
, Tianxing Bank is a virtual bank jointly established by Shangcheng Group and Xiaomi. In June 2020, it has obtained one of the eight virtual bank licenses issued by the Hong Kong Monetary Authority.
In terms of digital media, content and marketing, Shangmax Technology launched its digital media, content and marketing business in May 2020.
In terms of digital investment, Shangheji Technology directly invested in a number of innovative technology companies, including Peixing Interactive Technology, Riribob, WeDoctor, etc.
Specific financial data, according to the prospectus, the company's revenue from the 2019 to 2021 fiscal years and as of February 28, 2022 was HK$8.67 million, HK$9.87 million, HK$11.72 million and HK$10.1 million, respectively; the revenue from the spider web ecosystem solutions segment was HK$5.88 million, HK$160 million, HK$180 million and HK$160 million,
However, Shangmax mentioned in the prospectus that compared with the ten months ended February 28, 2022, compared with the ten months ended February 28, 2021, the revenue of the digital financial service business decreased from HK$10.4 million to HK$10.1 million; the profit decreased from HK$1.3 million to HK$1.1 million.
spider web ecosystem solutions business revenue increased from HK$152 million to HK$157.4 million; profits stabilized at HK$116.5 million.
. In terms of investment, ShangMultimeter has also made a lot of money.
prospectus shows that the changes in the fair value of financial assets recorded through profit statement boosted the company's net profit performance. This earnings in the first 10 months of fiscal year 2022 were HK$127 million.
This is mainly because Shangmax sold a life platform involving a content-driven style during the period, and recognized revenue of HK$130.7 million. In addition, as of the 2021 fiscal year ended April, Shanghemax also sold an investment involving artificial intelligence technology services, recognizing revenue of HK$55.1 million. In terms of the overall revenue of
, from fiscal 2019 to fiscal 2021, the revenue was HK$150 million, HK$167.5 million and HK$195.8 million, respectively; profits during the same period were HK$22 million, HK$158 million and HK$172 million, respectively.
In the ten months from May 2021 to February 2022, the company's revenue was HK$168 million and its profit was HK$187 million. increased by 3.8% and 65.5% year-on-year.
Can Shang Multiplier Technology support its stock price?
It can be seen from the financial data disclosed in the prospectus that the company's revenue mainly relies on the spider web ecosystem solutions business. In recent years, the revenue of this business accounted for more than 90% of the total revenue.
But even so, the revenue and profits brought by this business do not exceed HK$200 million. How can it support a market value of over US$100 billion?
Some media analysts said that on the one hand, Shang Multiplier Technology's high profitability is due to investment returns, but in the next period of global capital markets, it is questionable whether Shang Multiplier Technology can achieve good investment results, and the company's investment project inventory is not much, so it is probably impossible to support performance growth in the short term.
On the other hand, the various financial data of Shangmax Technology can be said to be seriously overestimated. The company's revenue and profits are far less than those of giants like Alibaba, but their market value has significantly exceeded that of those of Alibaba, and there is a large bubble.
In addition, there is also a view that after the IPO, Shangcheng International held 88.7% of Shangcheng Technology's shares. This means that Shangmax Technology Co., Ltd. is highly concentrated, so that there are very few shares circulating in the market. Taking the closing on August 2 as an example, Shangmax Technology's trading volume was 351,200 shares, with a turnover rate of only 0.19%.
, as of the close of August 2, Alibaba's trading volume was 34.43 million shares, with a turnover rate of 1.30%; JD.com's trading volume was 6.3954 million shares, with a turnover rate of 0.41%; Pinduoduo's trading volume was 12.08 million shares, with a turnover rate of 0.96%.
According to relevant definitions, the higher the turnover rate, the higher the stock's liquidity, easy entry and exit from the market, active trading, and the higher the willingness of people to buy the stock; on the contrary, the lower the turnover rate, which indicates that the stock is less attention and is an unpopular stock.
So, from this perspective, Shangmax Technology's turnover rate is less than 0.2%, which is really very strange for a company with a market value of over 300 billion US dollars.
So, how long can Shanghemax Technology last for such performance?
