On February 27, Yisou Technology Holdings Limited (hereinafter referred to as "Yisou Technology") submitted its prospectus on the Hong Kong Stock Exchange, with Bank of China International as the exclusive sponsor.
According to Leju Holdings Ltd's "pre-examination IPO" of Finance and Economics, Yisou Technology was founded in 2005 and has been deeply engaged in artificial intelligence recommendation technology research and development. It has successfully applied its own intelligent recommendation engine-Yisou artificial intelligence recommendation engine to a variety of "data and human connection" application scenarios, including digital reading recommendation, digital marketing, online game distribution and other digital content.
Shanghai Shanda holds a 6.15% stake in the company, according to the prospectus. Shanghai Shanda's shareholders are Chen Tianqiao and Shanghai Shanda Innovation Investment Management Co., Ltd., which is also wholly owned by Chen Tianqiao. In addition, Suzhou Jade holds 7.32% of the shares. The limited partners of Suzhou Jade include Xuyong Phase I Golden rudder Equity Investment Fund Partnership (Limited Partnership) and Suzhou Jade rudder win Investment Company (Limited Partnership), all of which are actually controlled by Luzhou laojiao Group Co., Ltd. Luzhou Laojiao Group Co., Ltd. is a major shareholder of A-share Luzhou Laojiao.
In terms of performance, the revenue of Yisou Technology for the years ended 31 December 2020 and 2021 and the nine months ended 30 September 2022 was $410 million, $433 million and $333 million respectively, while the profits for the same period were $31.305 million, $50.011 million and $30 million respectively.
In the same period, the R & D expenditure of Yisou Technology was 54 million yuan, 51 million yuan, 38.8 million yuan and 28.7 million yuan respectively, accounting for about 13.2%, 11.8%, 12.3% and 8.6% of the company's total revenue, respectively.
During the track record period, a large portion of the revenue from search technology comes from digital reading recommendation services. For the years ended December 31, 2020 and 2021, and for the nine months ended September 30, 2021 and 2022, the revenue from the company's digital reading recommendation service was RMB 185.4 million, RMB 218.1 million, RMB 162.2 million and RMB 176.9 million, accounting for about 45.2%, 50.4%, 51.6% and 53.2% of the company's total revenue, respectively.
According to the prospectus, the cumulative number of registered users of App as of September 30, 2022 is 4 million. The average number of monthly active users of Yisou series reading App increased from 21.1 million in 2020 to 23.9 million in 2021, and further increased to 25.5 million in the nine months ended September 30, 2022.
In 2020, 2021 and the nine months ended September 30, 2022, the average monthly income of each paying household for the series of reading App was $35.7,45.20 and $56.9 respectively.