[out of the advantages of IPO cost, close culture, market familiarity and easy communication with investors, many Unicorn companies in the mainland tend to be in Hongkong IPO. The rise of Chinese unicorns and the thirst for capital can inject considerable increment and activity into the Hongkong market. Alibaba, which missed four years ago, is reluctant to miss the IPO, the worlds largest technology startup this year. In April 30th, the Hong Kong exchanges new consultation on the listing system of emerging and innovative industries came into effect and was regarded as the biggest change of the HKEx in the past 25 years. In May 2nd, it was said that millet is expected to be the fastest in the day to submit a listing application, from the end of June to early July, and then consider the CDR (China pre - Securities) in the mainland. This will be the largest IPO ever recorded in Hongkong, and is expected to become the largest technology share in the world this year. IPO intermediaries close to the millet, according to the exclusive disclosure of the first financial reporters, the sponsor, investment bank, potential investors generally accept the current valuation at least 70 billion US dollars, IPO in the short term after the market value of millet more than 100 billion US dollar grasp. What is the overestimated value of millet? In recent years, almost every round of Millets financing is three level jump. At the end of 2010, millet completed $41 million of A round financing, valued at $250 million. In December 2011, millet was awarded $90 million to $1 billion; at the end of June 2012, millet was $216 million, valued at $4 billion, and the overall valuation of millet was $10 billion in 2013. The latest public financing information was in 2014, with a total financing amount of US $1 billion 100 million and a valuation of US $45 billion. What is the value of millet in the end? The high credibility of rumours is from $60 billion to $100 billion. People close to the millet IPO intermediary told the first financial reporters that the current estimates of the current valuations of the sponsor, investment bank and potential investors are at least $70 billion, and the market value of the IPO will be more than $100 billion in the short term. Lei Jun and his team have very rich experience and have some reservations in pricing. This allows everyone to make money and leave behind much room for market value management. He said. How to estimate the millet? First, see its business model. At the end of April this year, Lei Jun released an important message: the annual net interest rate of the overall hardware business is no more than 5%. The news shocked the industry. Public information showed that the overall net interest rate of Apple was 21.1% in 2017, and the overall net interest rate of HUAWEI was 7.9%. Even in the home appliance industry, which has a lower net interest rate, Haier is 6.6%, the United States is 7.7%, and it is also higher than 5%. Why does millet publish this information before IPO? The first mobile phone Research Institute president Sun Yanbiao to the first financial reporter analysis, this is actually millet to the outside world shows the future development direction, not a Hard Suits Inc, not simply by the hardware to obtain the main profit, but a Internet Co, which is also conducive to the capital market to see the commercial model of millet clear. The Lei Jun has explained that millet is essentially a Internet Co with mobile phone, intelligent hardware and IOT (Internet of things) platform, which is the Triathlon business model: Hardware + Internet services + new retail. In fact, from the beginning of the establishment of millet, Lei Jun has always stressed that millet hardware is close to cost sales, almost no money. But only the hardware is not necessarily a good story, regardless of the global smartphone shipments or the Chinese smartphone industry continues to negative growth. In the first quarter of this year, the domestic mobile phone shipments were only 87 million 370 thousand, down 26.1% from the same year, of which the shipments of domestic brand mobile phones were down 27.8% from the same period. But the good news is that the 5G business is approaching, and the bigger opportunities for overseas markets. From the hardware point of view, experience in 2016 and 2017 reversion, the number of millet mobile phone shipments reached 92 million 400 thousand last year, from the third quarter began to return to the first four of the world, to the first quarter of this year, only HUAWEI and millet achieved a year-on-year increase. In the India market, millet mobile phone market ranks first in the third quarter. However, if millet is regarded as a Internet Co with massive user base, hardware is only an entrance, and the price ratio of active control of hardware profit will help the millet to accumulate rapidly, expand the user base, and bring high activity, high transformation and high retention rate of Internet users. First financial reporters have obtained a millet Pre-IPO financing promotion materials, millet daily active users up to 132 million, the average daily user use of 312 minutes (5.2 hours). Xiaomis profit in 2016 was nearly 1 billion yuan, 79% of its revenue components came from hardware, and 21% came from the Internet service business. The net profit margin of hardware business is only 2.8%, while the net profit rate of Internet service business is more than 40%, mainly from games, advertising, application distribution, etc. There is also the imagination of millet house, especially at todays new retail gateway, including millet and its competitors in the layout. Sun Yanbiao said, this is also one of the reasons that the outside world is so large in the valuation of the floating space, the way to support its valuation, one is according to the Internet Co (game, advertising, members and so on) valuation, two is based on the mobile phone, TV, box to intelligent hardware of the whole industry chain valuation, the three is as line line. The valuation of the new retail enterprises can be said that the mode of millet has little reference in China. Widening the channels for listing in Hong Kong Millet will be surprised if it does not come to Hong Kong in the end. Li Xiaojia, President of HKEx, said publicly that after the same rights were landed. Starting in April 30th this year, the new rules of the HKEx allowed companies with different voting rights structures to go public, allow biotech companies that failed to pass the boards financial qualification test, and set up a new second access channel for large China and international companies seeking second listed companies in Hongkong. This means that the special equity held by Lei Jun, chairman of the chairman of the millet, will adopt the upper limit of the voting rights of the shares of the same shares, that is, the right to vote for 10 shares of the common shares of a special share. In other words, Lei Jun only has to hold at least 9.1% special shares after listing, so that he can have the controlling power of millet. Not only millet, ant gold suit may choose A+H (Shanghai, Hongkong) to be listed at the same time. Ma Yun also expressed hope that ants gold suits will be listed on A shares in the future. With their current size, the two markets will be theoretically possible. Li Xiaojia also said he had confidence in millet, Saudi Amy and Ant King to Hong Kong. Beijing Representative Office of the port of Hong Kong, Zhang Xiaoxia, previously introduced, Hongkong IPO does not need queuing, in the report as a trial process, the whole process of listing may be controlled in 6~9 months. Listed companies in Hongkong do not have a priority system. According to the time of submission of materials, who can solve the listing problem first can be listed first. According to the industry structure of Hongkongs new shares in 2017, the proportion of new technology, media and telecom industry in Hongkong in 2017 was 18%, lower than 19% in 2016. The proportion of the financial services and the consumer industry has also declined, and the proportion of the increase is mainly from the traditional industries, such as real estate, manufacturing and other industries. The new shares of real estate accounted for 28% in the Hongkong new stock market in 2017, ranking the first. It is worth mentioning that in last years Hongkong market known as the new economic three treasures zhong an online, Wen Wen and Yi Xin listed, it has caused a lot of attention. In this, the public offering for retail investors to subscribe for the public offering is 392 times oversubscribed, and the stock price has doubled in less than half an hour on the first day of listing, and the market value approximated to HK $100 billion. But with the arrival of the new rules of the HKEx, the attraction of the Hongkong market for overseas technology companies is becoming stronger. Due to the advantages of IPO cost, similar culture, market familiarity and easy communication, many Unicorn companies in the mainland tend to be in Hongkong IPO. The rise of Chinese unicorns and the thirst for capital can inject considerable increment and activity into the Hongkong market. In January of this year, Tong Shihao, one of the millet investors and GGV management partner, said in an interview with the first financial reporter that American investors could understand that the number of China Internet Corporation was limited and that they were hard to bet on China or all bets on China Internet Corporation in order to disperse the risk. Compared to the US market, the future will see a large number of Chinese companies choose to list in Asia, and the IPO in mainland China and Hongkong will increase. Li Kaifu, founder of innovation works, also said that this is good news for investors, entrepreneurs and investment institutions. If CDR is settled again, it will be a good match. TMT, biotech companies have more access to market access and more choices, and entrepreneurs can focus more on innovation and choose a capital market that understands the value of the company more. Source: first financial daily editor: Yao Liwei _NT6056 In January of this year, Tong Shihao, one of the millet investors and GGV management partner, said in an interview with the first financial reporter that American investors could understand that the number of China Internet Corporation was limited and that they were hard to bet on China or all bets on China Internet Corporation in order to disperse the risk. Compared to the US market, the future will see a large number of Chinese companies choose to list in Asia, and the IPO in mainland China and Hongkong will increase. Li Kaifu, founder of innovation works, also said that this is good news for investors, entrepreneurs and investment institutions. If CDR is settled again, it will be a good match. TMT, biotech companies have more access to market access and more choices, and entrepreneurs can focus more on innovation and choose a capital market that understands the value of the company more.