16/4/2018-7

Yijushen Mainboard listed a number of insider fierce people into shares

In 2016, the Mainland’s first-hand privatization agent, Delisting China, applied for “E-House China” to list on the Main Board of Hong Kong. From the end of December last year to March of this year, the company acquired a number of internal houses into pre-IPO investors (see table). Financing was nearly 8.9 billion yuan. This included several domestic listed houses, such as Country Garden (2007), Evergrande (3333) and China Vanke (2202), which each invested 1.781 billion yuan in shares in Yixing last December, holding a 15% interest before listing.

Other well-known investors and enterprises include Hengda vice chairman Xia Haikai’s privately-owned investment company, which holds 2% equity of Yijue; Agile (3383), Rili (2777) Chairman Li Silian and Sunac (1918) each invested 200 million yuan. Yuan, holding 1.75% of E-House’s pre-listed equity, etc., and at least 20 domestic housing enterprises are on the list of shareholders.

Behind the strong shareholder base, there are many connected transactions with real estate developers. According to the preliminary listing documents of the company, its single biggest customer from 2015 to 2017 was China Evergrande, with revenues of nearly RMB 606 million (RMB, the same below), RMB 1.074 billion and RMB 1.625 billion, accounting for 22.3% and 26.9% of the revenue for the period. 35.1%. The five largest customers accounted for 44.1% of their revenue in 2017. Country Garden, Evergrande and Vanke, which are the three largest shareholders, respectively appointed President Mo Bin, Vice Chairman Xia Haijun and President Zhu Jiusheng as non-executive directors.

This time, E-Commerce’s IPO is mainly used to expand the sectors and divisions of the industries covered by the existing big data systems, develop and upgrade real estate big data systems, and expand the scope of consulting services. The main income of E-House currently comes from the primary agency of RMB 3.927 billion; the profits from 2015 to 2017 were RMB 165 million, RMB 487 million and RMB 352 million respectively.