Chapter 697: The storm is brewing again, with the highest amount reaching 340 billion US dollars? Lao Ma: I want to have a chance with you!
The next morning, WiFi Master Key announced that the number of users had exceeded 500 million.
For a company that has only been established for two years, achieving such results is enough to make it a phenomenal application in China.
The speed of growth is truly amazing.
Immediately afterwards, Byte Technology announced the latest user data of Lingxi Browser: the number of registered users exceeded 500 million, and the number of active users reached 190 million.
Relying on the Orange mobile phone ecosystem, Lingxi Browser has successfully become a pre-installed browser for brands such as Orange, 360, Xiaomi, Meizu and OPPO.
With the pre-installation support from major mobile phone manufacturers, its user growth rate has naturally increased by leaps and bounds.
Soon, some curious netizens compared the UC Browser, which Ali had just acquired, with the Lingxi Browser, and found that: the cumulative number of users of the two was almost the same, but the daily active users of UC Browser were 90 million less than that of Lingxi Browser.
It is not difficult to see that the user stickiness and retention rate of Lingxi Browser are much higher than those of UC Browser.
"To be honest, Lingxi Browser's UI design is much more comfortable, the gesture controls are very reasonable, and most importantly, it has far fewer ads than UC Browser."
"I've stopped using UC Browser! Nine out of ten websites in my favorites are blocked. How can I happily 'reward myself'?"
"Brother upstairs, can you lend me one to talk?"
"Serves you right! This is Ali's old problem. No matter what product, once it acquires it, it immediately becomes a traffic transfusion tool for Tmall and Taobao. Click it casually, and the screen is full of ads. It's exactly the same as Qiandu!"
The comment section was filled with a bunch of UC Browser victims, but as they chatted, the tone suddenly changed and they started discussing several new teachers who had recently debuted.
Half an hour later, Orange Technology officially announced that it had submitted a preliminary application form for issuance and listing to the Hong Kong Stock Exchange, commonly known as the A1 application form. Also submitted were relevant documents such as the draft prospectus, audit report and legal opinion.
According to the regulations of the Hong Kong Stock Exchange, the first round of feedback will be issued to Orange Technology within 15 working days.
Once the feedback is reviewed and approved, the company can participate in the hearing of the Hong Kong Stock Exchange and respond to questions raised by the Listing Committee regarding business model, financial data, compliance, etc.; after passing the hearing, it will be eligible for listing.
Next comes roadshow promotion, IPO pricing, share allocation and fund raising, and finally the listing.
The entire process can take as little as three months to six months to complete.
As soon as the news came out, the popularity exploded instantly!
You should know that Orange Technology's shipments in 2013 were 117 million units, and in the first half of 2014 it was said to be 100 million units, making it very likely to surpass Apple and become the world's second largest manufacturer.
At this time, Apple's market value is 630 billion US dollars, Sanxing Electronics is 190 billion US dollars, and Sony Mobile is 37 billion US dollars. How much should Orange Technology be worth?
Regarding the issue of Orange Technology's IPO valuation, bloggers from the digital, technology and financial circles have all jumped in to grab traffic.
They conducted analysis from their respective professional perspectives, not only listing a large amount of data, but also using valuation indicators such as price-to-sales ratio and price-to-earnings ratio, combined with peer comparison methods, to conduct a detailed analysis of Orange Technology's listing valuation.
Well-known financial blogger "Financial Report Decoder" was the first to publish a 10,000-word article on Toutiao. The title directly pointed out his core point - "From 2010 to 2014, from 1 to 100 million units: Orange Technology's valuation should not be less than 340 billion US dollars."
In the article, he marked key data in bold red font: In 2013, the global total shipment of smartphones was about 1 billion units, and Orange Technology ranked third with a market share of 11.7%.
In the first half of 2014, global shipments increased by 75.8% year-on-year, and Orange Technology's shipments of 100 million units accounted for 16.7% of the market share.
Calculated by price-to-sales ratio, Apple's current price-to-sales ratio is 3.6 times, and Sanxing Electronics' is 1.2 times. Considering Orange Technology's annual growth rate, it is completely reasonable to give it a price-to-sales ratio of 2 times.
He then further analyzed the financial data, showing that Orange Technology's revenue in 2013 was approximately 360 billion yuan, and its revenue in the first half of 2014 was 300 billion yuan, with the full-year revenue expected to reach 600 billion yuan.
Converted into U.S. dollars based on the exchange rate, the valuation of 340 billion U.S. dollars seems aggressive, but in fact it is very consistent with its growth potential.
Many netizens do not agree with this!
In their view, although Orange Technology's mobile phone business is booming, it has always been at a disadvantage in product lines such as tablets, laptops and desktop hosts, and can only be barely regarded as a second-tier brand.
In terms of influence in the computer field alone, it cannot be compared with Apple.
The valuation of 340 billion US dollars is too exaggerated!
After all, Sanxing Electronics’ total market value is only 190 billion US dollars!
Shanxing shipped 286 million smartphones last year and generated revenue of US$228 billion, both of which are twice that of Orange Technology.
Even though Orange Technology has great potential and high market expectations, its reasonable valuation is at most US$100 billion.
The technology blogger "Digital Frontier Observation" puts forward a different view from the perspective of product ecology.
In terms of price-to-earnings ratio, Apple is currently 16.5 times and Sanxing is 8 times.
In terms of profitability, Orange Technology is not as good as Apple, but it is one level higher than Shanxing. A valuation of 10 times is more appropriate. Based on the net profit of 130 US dollars in 2013, the valuation should be between 130 billion and 150 billion US dollars.
But not long after, a blogger named "Geek Review" completely denied the views of "Financial Report Decoder" and "Digital Frontier Observer".
He posted a video on Douyin, clearly refuting the claim: "You have all overlooked a key issue: patent barriers!"
A patent data comparison chart then popped up in the video: Apple has 2,003 global patents, Sanxing Electronics has 4,800, and Orange Technology has only 1,700 public patents.
It may not seem like much, but its quality outweighs its quantity. It includes core components such as semiconductors, displays, communication technology, memory, camera modules, as well as the design and software of the entire mobile phone.
In addition, the cumulative patent fees that Apple paid to Qualcomm, Nokia, Ericsson, and InterDigital in 2013 amounted to US$4.36 billion.
Orange Technology has less than 400 million US dollars!
This shows that Orange Technology owns a large number of core patents in the fields of communications, semiconductors, displays and batteries.
Moreover, as the number of users of Aurora Future OS grows, Orange Technology's capabilities in the application distribution field will become stronger and stronger.
Therefore, anyone who dares to say that Orange Technology’s valuation is less than 200 billion US dollars has absolutely not thought twice.
This valuation debate quickly spread to the capital market.
Several brokerage firms in Hong Kong released research reports overnight. Goldman Sachs gave it a "neutral to bullish" rating and estimated the valuation range to be US$140 billion to US$180 billion.
Morgan Stanley is more optimistic, setting the target valuation at US$200 billion to US$260 billion, on the grounds that "Orange Technology's penetration rate in emerging markets has reached 25%, far exceeding Apple's 17% and Sanxing's 18%, and there is room for future growth."
The reaction of ordinary investors was more direct.
On the Hong Kong Stock Exchange's investor interaction platform, thousands of questions emerged in just two hours. Some people were concerned about "whether ordinary retail investors can participate in new listings", and some were worried about "whether overvaluation will lead to a price drop upon listing."
At the Orange Technology headquarters, Zhou Shouzhi is also closely monitoring market trends.
For him, the higher the company's market value, the higher the value of the options he holds.
After all, who doesn't love money?
More than 8,000 people from top to bottom at Orange Technology are all looking forward to going public.
But the most important thing right now is that the stock must be split first.
Because Orange Technology's total share capital is only 1 billion, if calculated based on a valuation of 150 billion US dollars, the price of one share must be set at 150 US dollars, equivalent to more than 900 Chinese yuan.
The price is too high!
An overly high stock price is not necessarily a good thing.
Stock split is inevitable!
Why do this?
Firstly, it lowers the investment threshold and expands the investor group;
Second, it improves stock liquidity;
Third, it will enhance market influence and the possibility of inclusion in the Hang Seng Index.
To this end, Zhou Shouzi met with Gao Weilin. After discussion, they finally decided to "split one into ten" and expand the total share capital to 10 billion, so as to facilitate user investment and attract more domestic and foreign capital.
On the afternoon of the day the stock split plan was finalized, Orange Technology issued an announcement, officially announcing that it would split its share capital at a ratio of "1 to 10", increasing the total share capital from 1 billion shares to 10 billion shares.
The content specifically emphasizes that the stock split is only for optimizing the equity structure and will not change the company's total market value and shareholders' equity. It is expected that the stock split process will be completed after the first round of feedback from the Hong Kong Stock Exchange is passed and before the hearing.
Investors in Hong Kong, Mainland China and overseas were immediately excited when they learned about this.
Mimo, Douyin and Toutiao are filled with various messages from netizens.
“Has the threshold for new stock subscriptions been lowered after the stock split?”
“Will the 10 billion shares in circulation affect the stock price stability?”
"Before, I couldn't even imagine it would cost over 100 USD per share. Now after the stock split, it's only a dozen USD per share, making it a breeze to buy!"
At the financial forum, some people even spontaneously formed the "Orange Technology Investment Exchange Group", which attracted thousands of people to join in less than half a day. The group enthusiastically discussed details such as financing quota allocation and subscription strategies.
But the reality is that Orange Technology has only just submitted its IPO application!
There is no way. The main reason is that when Pinbei was first listed, only a very small number of people dared to take the risk to invest, but in the end they made a fortune.
Now that Orange Technology has gone public, it is normal that it is sought after by financial institutions and investors.
Chen Yansen, who was far away in Shanghai, originally planned to take a day off, but his phone never stopped ringing from morning to night.
Most of the callers were from securities firms. They were very polite and straightforward in their words. They all wanted to contribute to Orange Technology's listing and strive for cooperation opportunities.
Among them are Goldman Sachs and Morgan Stanley, with whom we have previously cooperated, as well as Hong Kong-based companies such as Bright Smart, Phillip Securities and Winlead Securities.
Just as Chen Yansen was busy preparing for Orange Technology's listing, Ma Liyun had also returned to Hangzhou.
He first held a celebration for Ali's successful listing, and then immediately summoned Zhang Tao and Tang Yongbo.
To put it bluntly, even though he has sufficient funds, he is still reluctant to give up the "big cake" of O2O. He wants to take the opportunity to get a piece of the pie and have a head-on confrontation with Chen Yansen!
(End of this chapter)
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