BEIJING, Nov. 10 (Xinhua) – Yitu Technology, an artificial intelligence (AI) unicorn, has applied to Shanghai Stock Exchange (SSE) to list on the sci-tech innovation board via issuing 7.505 billion yuan of Chinese depository receipts (CDRs) , better known as the STAR market, reported Xinhua Finance Tuesday.
As the second red chip company expected to list via CDR issuance on the STAR market , Yitu Tech planned to issue no more than 36.41 million class A common stocks as base shares for converting into at maximum 291 million CDRs with a conversion ratio of 1:8.
The actual amount of total CDR issues, however, are still up to the registered issuance amount to be nodded by Chinese regulators.
The company planned to pour proceeds from the CDR issues into R&D in chip-related technologies and products, with 2.318 million yuan to support next generation of AI IP and high-performance system on a chip (SOC) programs, 811 million yuan to go into visional reasoning-based edge computing projects, and 1.07 billion yuan to be used in next generation of AI computing system.
The company divides its common stocks into class A and class B ones, with the former and the latter each carrying right for one vote and ten votes, except for several reserved matters specified in its corporate articles of association, in the general meeting of shareholders.
Registered in Cayman Islands, Yitu Tech is a globally leading AI company focusing on AI smart chips and algorithm technologies.
Recent years, Yitu Tech transformed itself from a purely AI algorithm firm to one also engaged in AI chips. Its revenue from hardware and soft and hardware products kept rising and from 2017 to 2020, the proportion of its software revenues declined from 55.90 percent to 14.82 percent while the proportion of its revenues from hardware and soft-and hardware combination rose to 84.21 percent from the 18.60 percent in 2017.
Thanks to optimized products combination and delivery capacity, the company saw its comprehensive gross margin keep growing during 2017-2020, with growth of 57.39 percent, 54.55 percent, 63.89 percent and 80.99 percent respectively in each year. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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