1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
IH
Event Date
2020-10-09
IPO Date (Actual)
2020-10-07
Sector
Consumer
Subsector
Diversified Consumer Services
Offer Range
$12.00-$12.00
Shares Offered
7M
23.47M
$236.6M
29.8%
Implied Upside vs Midpoint
Description
Our Mission We aspire to drive educational excellence for a better world forever. We endeavor to transform learning into a fun journey for every child. According to the Frost & Sullivan Report, we are a leading childhood edutainment company in China, with core expertise in providing integrated and innovative products and services catering to the education demands for children mainly aged between three and eight. According to the Frost & Sullivan Report, we ranked No. 1 across each of the following metrics in the first half of 2020: • No. 1 in terms of paying users among online childhood edutainment providers in China; and • No. 1 in terms of MAUs among online childhood edutainment providers in China. With innovative and high-quality products and services targeting both individual users and education organizations, we have built a trusted and well recognized brand, as well as a massive and loyal following among families and educators throughout China. Our learning apps have attracted a user base of 10.3 million average total MAUs in the second quarter of 2020. Our line-up of highly effective edutainment products and services include (i) interactive and self-directed learning apps, and (ii) learning materials and smart learning devices. • Interactive and self-directed learning apps that are engaging, innovative and fun, designed to maximize effective learning among children, which deliver an immersive learning experience and enable children to conduct self-directed learning in an efficient manner, making working parents' lives easier at the same time: iHuman Chinese, iHuman English World, iHuman Pinyin, iHuman Magic Math, iHuman Books, and iHuman Stories. Our learning apps seamlessly integrate solid pedagogy, attractive gamification features and systematic assessment tools, thereby striking a proper balance between education and entertainment. • Time-tested learning materials and smart learning devices that encompass learning materials in both physical and digital formats, as well as smart learning devices that augment the effectiveness of our learning materials. Our learning materials serve both individual users and education organizations, covering diverse subjects including literacy and reading, English, mathematics and critical thinking, Chinese learning, music and painting. Our smart learning devices, designed to be used in tandem, further drive the effectiveness of our learning materials. We launched our online operations with the debut of our first interactive and self-directed learning app iHuman Chinese in 2016 and began to monetize this learning app in the second quarter of 2018. In late 2019, through a business combination under common control between our online operations and certain traditionally offline businesses of Hongen Education & Technology Co., Ltd., or Hongen Education, we embarked on a new chapter of integrated development. The combination merged the decades-long operational experience and deep insights in China's childhood education sector from Hongen Education with our industry-leading product development and original content creation capabilities. Content. Leveraging our deep insights in China's childhood education sector and technological strength in gamification and animation, we offer a variety of high-quality original education content covering various subjects in rich formats, catering to the evolving and diversified needs of both individual users and education organizations for childhood education. We have strong in-house content development expertise in educational materials, gamification features, video and audio effects as well as art design. In addition, our products and services are imbued with the rich operational know-how and deep understanding of China's childhood education sector accumulated throughout the past decades, making our content highly compelling to our users. We also selectively collaborate with leading global learning content providers to jointly develop educational materials to further enhance our content origination capabilities. Technology. We consistently pioneer new products that capture new market opportunities generated by the latest technological breakthroughs, meeting the evolving user demands for effective learning services. We deploy advanced game technologies, AI technologies and big data analysis to provide superior user experience. According to the Frost & Sullivan Report, we were among the first in the education sector in China to apply sophisticated game engines to the design of online education products. Our proprietary game technologies enable our online education products to offer a uniquely interactive and entertaining experience, inspiring children's learning interests and driving their engagement. We also deploy advanced AI technologies that power various teaching and voice assessment tools, all to improve the learning effectiveness for children. Leveraging our proprietary big data system, we are able to consistently refine and upgrade our products, as well as to intelligently recommend content to our users, continually improving user experience. Capitalizing on our proprietary technology infrastructure and innovative products and services, we have built a scalable business. We mainly generate revenues from users' paid subscriptions for the premium content of our learning apps, as well as the sale of learning materials and smart learning devices to both individual users and education organization. --- Our principal executive offices are located at K2, North America International Business Park, No. 108 Beiyuan Road, Chaoyang District, Beijing 100012, People's Republic of China. Our telephone number at this address is +86 10 5780-6606. Our registered office in the Cayman Islands is located at the Office of Maples Corporate Services Limited, PO Box 309, Ugland House Grand Cayman, KY1-1104, Cayman Islands. Our main website is www.ihuman.com. Our agent for service of process in the United States is Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, NY 10168.
iHuman Inc. annual income statement and balance sheet, FY 2021 to FY 2025, as reported in SEC filings (CNY).
| Metric | FY 2021 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue | CNY 945M | CNY 1.0B | CNY 922M | CNY 807M |
| Gross profit | CNY 661M | CNY 721M | CNY 640M | CNY 548M |
| Operating income | (CNY 54.2M) | CNY 160M | CNY 71.9M | CNY 66.8M |
| Net income | (CNY 37.1M) | CNY 181M | CNY 98.6M | CNY 95.4M |
| Metric | FY 2021 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Total assets | CNY 1.1B | — | CNY 1.4B | CNY 1.4B |
| Total liabilities | CNY 493M | — | CNY 459M | CNY 373M |
| Total equity | CNY 608M | CNY 958M | CNY 961M | CNY 995M |
| Cash & equivalents | CNY 855M | CNY 1.2B | CNY 1.1B | CNY 1.2B |