Can't the hottest Yihang UAV go public in the Unit

2022-08-13
  • Detail

Can't Yihang UAV afford to burn money when it seeks to be listed in the United States

according to the news, Yihang plans to raise up to $200million in the IPO

Recently, a piece of news exploded the investment circle. According to a source, Yihang, one of China's largest UAV manufacturers, has secretly applied for an IPO and plans to list on NASDAQ

according to the news, Yihang plans to list 10% to 15% of its shares. Due to the fluctuation of the market environment, the valuation of the company has not been determined. One person said that Yihang may raise up to $200million in the IPO

1

who is Yihang

Yihang, a UAV technology R & D provider, was founded in Guangzhou, China in 2014. It is a UAV enterprise integrating R & D, production and sales, and continuously improving the installed proportion of domestic materials and services

its business includes Yihang 184 self piloted manned aircraft, intelligent UAV command and scheduling center, Yihang egret intelligent UAV fully automatic flight formation, Yihang Aerospace Eagle Industry Application UAV, ghostdrone series intelligent UAV

when it comes to drones, everyone will think of Dajiang. This is indeed a popular concept in recent years, and it is also a hot spot with high-tech shadow. However, in addition to Dajiang, Yihang is also well-known in the UAV industry

according to the enterprise investigation, the company has conducted four rounds of financing, the latest of which occurred in 2015, with the amount of financing of $400billion

in June, 2018, the company established a partnership with DHL Sinotrans International Air Express Co., Ltd. to solve the last mile express delivery problem in China, and cooperated with food chain Yonghui Supermarket Co., Ltd. to use drones to express food

in the earlier stage, Yihang launched a ghost UAV controlled by app, which achieved a record of 860000 dollars in indiegogo, an overseas crowdfunding station. In 2016, it released a manned aircraft called "Yihang 184"

this UAV has been widely reported by the media and directly made Yihang famous

184 is made of carbon fiber and epoxy resin composite materials, fixed eight rotor structure, electric drive. Official data show that the average speed of flight is about 100km/h, and the straight-line distance of flight can theoretically reach 50km. Zhihushang, the user who has experienced 184 on site, said, "the highest flying meter"

in January 2019, Yihang was authorized by the Civil Aviation Administration of China to become the first company to test autonomous aircraft, and is piloting low altitude unmanned aerial vehicles to carry passengers in Guangzhou

in addition, this start-up company also cooperates with Austrian partner FACC to produce hundreds of unmanned aircraft by the end of next year, which may be the first such aircraft in the world today due to social development

the news about the listing was actually reported as early as April this year, but eventually Yihang postponed its IPO plan in the United States and turned to raising up to $200million through private financing activities with the increasing use of plastics and composite materials in cars

previously, a source said that since this year, billion Airlines has been seeking an IPO in the United States in order to obtain $400million to $500million. Credit Suisse and Morgan Stanley have been actively helping Yihang prepare for its IPO

2

slot points are not small

from the data point of view, Yihang seems to have become one of the largest UAV manufacturers in China, but in fact, it also faces many slot points

the "Yihang 184" manned UAV that made Yihang famous also brought a lot of criticism to Yihang. After becoming famous, it was followed by widespread doubts

it is considered to have difficulties in realizability, security and legal issues. More people believe that Yihang released this product to explain to the capital

perhaps, the public's query really came true. In May 2018, Yihang filed for bankruptcy protection in the United States. Its consumer UAV was returned due to product quality problems, which made it difficult to form stable cash flow, and the U.S. branch declared bankruptcy

if you have a little understanding of the UAV industry, you will have a little impression of a UAV show on May 1st, 2018

on that night, Shaanxi LianBo heavily broadcast an article, which was introduced as follows - this will highlight the charm of Xi'an as a capital of hard science and technology

the evaluation object is the final UAV performance of the "red may Xi'an City Wall International Cultural Festival" on the evening of May 1, 2018. The planning of the whole cultural festival is actually good, and there are many places for publicity. For example, a total of 1374 UAVs participated in the show, which will challenge the Guinness world record of "the most UAVs flying at the same time"

however, this well-known event turned out to be a major performance accident - 1374 drones failed to form a complete pattern in the official performance that night. At the beginning of the performance, some UAVs did not fly to the predetermined position, resulting in local failure to form a pattern

the comment of friends is - garbled

some people also photographed that during the recycling process at the end of the performance, a drone directly fell down

it is obvious that this performance, which highlighted the charm of Xi'an as the capital of hard science and technology, failed so badly, and some problems of Yihang seem to have begun to be exposed

from the perspective of financing, the company's last financing occurred in 2015, with a scale of $40million. Compared with Dajiang in the same industry, the financing scale of the two companies in 2015 was similar, but by 2018, Dajiang had raised $1billion

hard core technology is a very money burning industry, especially in the UAV industry. Although the concept is very good, the story is also heard, and the profit model is very clear, there is no doubt that today's market revenue must be a difficult problem to support strong research and development

2019, although the manned UAV of Yihang intelligent has been shipped and delivered, the process of commercialization has begun, and the UAV formation performance has fully realized commercialization and profitability, but whether these cash flows are enough to burn money is still a big question mark

therefore, when the company's business has just improved, it plans to go public in the United States, which somewhat conveys the impression that it can't afford to burn money to the outside world

at the end of 2016, the news of layoffs spread from Yihang, affecting more than 70 people in many departments, including software, development, logistics, sales, e-commerce, customer service and so on

in December 2017, Yihang closed its wholly-owned branch in the United States, dismissed its employees in the U.S. branch and transferred all its business back to China. According to the information released by the California court, the assets of Yihang company are $100000 to $500000, while the debt is as high as $1million to $10million

in February, 2018, Yihang first released the video of manned flight test of "Yihang 184" series of self piloted aircraft, but all the time, in addition to the release and demonstration of Yihang 184 manned aircraft to attract investors, the actual landing commercial value of Yihang in the past two years is not large

in June 2019, Yihang reached a strategic cooperation with Yonghui super species to try the smart retail + UAV distribution mode. However, as for the layout of UAV load logistics, Xie Tiandi, director of public relations of Dajiang, made it clear that "under the current technical conditions, it is neither economical nor safe to use multi rotor aircrafts to perform heavy-duty and long-distance transportation tasks."

at the same time, the market environment is also becoming severe. At present, consumer UAVs are almost monopolized by Dajiang, which is in an absolute dominant position. The rest of the industry can only find another direction. Domestic UAV consumption has been depressed in the past two years. Many cities have implemented low altitude flight control, and UAVs have changed from a toy for public consumption to a tool for professional groups

huhuazhi, founder and CEO of Yihang, also frankly said: "in the current competitive environment, it is really difficult for consumer UAVs to make better profits."

3

breakthrough of billion Airlines

facing the severity of the market, the breakthrough direction of billion Airlines is also very clear

Hu Huazhi of Yihang once said that Yihang would not compete with its competitors in the UAV market all day long, or fight a price war, and did not want to damage the industry. The traditional UAV positioning is aerial photography, and there are many applications of UAVs. Dajiang only occupies a small part of the market, and Yihang still has many opportunities. It is the ultimate dream to realize daily commuting by manned unmanned aerial vehicles

in fact, from the perspective of competition, Yihang has adopted the "differentiated" competitive strategy of UAV products - Yihang is positioned as an entry-level market with a product price of at least 3000 yuan, forming a stratification with its competitor Dajiang in terms of price

in fact, since 2017, Yihang has frequently cooperated with local governments to help them realize the digital transformation of government affairs and smart city management. When the government encounters a large emergency, it can command the UAV to collect data in real time through the system command and dispatching center, and take targeted rescue measures to save human costs

insiders of Yihang said that the intelligence and intellectualization of UAV technology will also become the future development direction of Yihang. Whether it is viaduct, subway or highway, the current transportation system still operates in 2D plane. In order to solve the problem of transportation efficiency and congestion, only 2D can be transformed into 3D traffic

it sounds like some science fiction, but UAV itself is a thing in the high-tech field, and in the tuyere of intelligent transportation, this is not a direction

at present, there are four major sectors of aviation intelligence, in addition to manned flight, logistics and distribution, UAV formation performance and smart city. Yihang intelligent manned UAV has been applied in some fields, including medical first aid, offshore oil well transportation, air tour and daily commuting

according to Hu Huazhi, UAV logistics will be one of the biggest profit points of the UAV industry in the future. UAV logistics is a trillion scale market. The business of Yihang is not only to provide the last kilometer of UAV distribution services, but also to transport goods between cities

4

conclusion

the tuyere of UAV has been blowing for several years. After entering 2019, the tuyere has gradually stopped, entering the normal development stage, and it is time to show the real weapon

in 2018, the size of the global UAV market is estimated to be $9billion. IDC, a market research company, predicts that the global UAV market will grow at a compound annual growth rate of 30% in the next five years. IDC also estimates that more than half of the expenditure will be spent on commercial drones

this is the future development direction, but at present, it is still difficult to produce economies of scale. There may be a large-scale market in the next 5 to 10 years, but it is undeniable that the current concept is still relatively strong

the listing of billion Airlines is also a way to reserve funds for the future war with the help of capital. In this battlefield, the pattern is still unclear, and whether the listing will become the help of billion Airlines is still unknown

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