1, the reason why the valuation difference of millet company is so large is mainly focused on three points: 1. money or loss? Does millet earn money on earth? 2. hardware or Internet? What is millet a company? First, from the mobile phone related data, the sales of millet mobile phones in 2017 reached 91 million 400 thousand units, a significant increase of 64.9% compared with 2016; income reached 80 billion 560 million yuan, a significant increase of 65.21% compared with 2016. At present, millet has entered 74 countries in the world. In the past three years, Millets income in the overseas market is 4 billion 50 million yuan, 9 billion 150 million yuan and 32 billion 80 million yuan respectively. In 2017, the overseas revenue rose by 250% year on year. Second, from the Internet related data, the gross profit margin of Internet services is as high as 60.2%, and the cost of obtaining passengers is negative. In 2015, 2016 and 2017, the income of millet Internet service was 3 billion 240 million yuan, 6 billion 540 million yuan, 9 billion 890 million yuan, and the annual compound growth rate was 74.7%. The gross profit was 2 billion 80 million yuan, 4 billion 210 million yuan, 5 billion 960 million yuan, and the annual compound growth rate was 69.3%. In 2017, the gross profit margin of millet Internet service reached 60.2%, which contributed to the overall gross profit of millet. As seen by the subscribers index, the average time for users to use the millet mobile phone every day is about 4.5 hours by March 2018, and the millet operating system is more than 190 million MIUI months. Third, from the ecological chain data, millet investment or hatched more than 90 ecological chain enterprises, millet nearly three years of intelligent hardware and consumer goods income is accelerating growth, respectively, 8 billion 690 million yuan, 12 billion 410 million yuan, 23 billion 440 million yuan, 2017 year-on-year increase 89%, an annual growth of 64.4%. Since 2013, Xiaomi began to layout its ecological chain, with mobile phones as its core, and its surrounding products include small speakers, mobile power, air purifiers, sweeping robots, etc. Among them, millet technology has been listed in the United States last year. 3. overseas and ecological chain? Where is the long-term development of millet? Judging from its shipments, Xiaomi is the fourth largest smartphone manufacturer in the world. In 2017, the number of mobile phone sales reached 91 million 400 thousand, a significant increase of 64.9% over 2016, and revenue reached 80 billion 560 million yuan, a 65.21% increase over 2016. According to IDC, among the top five smartphone manufacturers in the fourth quarter of 2017, except millet, all enterprises shipments were all declining, and millet shipments increased by 96.9%. At present, millet has entered 74 countries in the world. In the past three years, the income of overseas market is 4 billion 50 million yuan, 9 billion 150 million yuan and 32 billion 80 million yuan respectively. In 2017, the overseas revenue rose by 250% year on year. The prospectus revealed that millet has connected more than 100 million smart devices (without mobile phones and laptop computers). In 2017, the consumption level IoT hardware market share was calculated by the number of connections, and Millets global market ratio was 1.7%, followed by Apple 0.9%, Amazon 0.9%, Samsung 0.7% and Google 0.6%. In addition, Xiaomi invested or incubated more than 90 companies specializing in the development of intelligent hardware and consumer products. The prospectus shows that Millets income of smart hardware and consumer goods in the past three years has increased rapidly, 8 billion 690 million yuan, 12 billion 410 million yuan and 23 billion 440 million yuan respectively. In 2017, it rose 89% year on year, and the annual compound growth was 64.4%. Expert opinion: Wu Chao is the chief analyst of CITIC TMT industry. Our valuation of millet is more about its entire ecosystem. From the bottom of the millet business city, more is Millets own brand and intelligent hardware; the second layer is the MI Jia business city, more is the millet investment and incubation of the entire ecological Hard Suits Inc, including our well known rice, purple rice, green rice, and so on, almost covered the whole intelligent hardware eco industrial chain products. The third level is millet public funding, in fact, it extends more to the ecology of the derivatives it hatches. In addition to the millet brand, millet ecosystem has shared the ecological chain of millet, and more importantly, the long-term ecological closed-loop. For example, around the Internet of things, we can see the creation of its entire entrance. In fact, we see that the millet ecosystem will in turn give the profit pattern of the whole millet, or its Internet attribute. Two, the Lei Jun has the absolute control of millet The same shares of different rights system in April 30th formally entered into effect in Hong Kong, and the chief executive of Hong Kong exchange, Li Xiaojia, was also directly expressed, if millet did not come to the port, it would be surprised. In the prospectus, it can be clearly seen that millet will use a dual ownership structure, while millet founder Lei Jun has the absolute control of millet. On the equity structure, the shareholding ratio of the executive director, the chairman and chief executive officer of the board of directors and chief executive officer is 31.4%, such as the option pool of the total equity ESOP employee stock ownership plan. The share ratio of the Lei Jun is 28%. After completing the initial public offering, the circulation shares of the millet company will include a class a common stock and a B class common stock. The special shares held by the millet shareholders, such as the Lei Jun, will adopt the upper limit of voting rights of the shares of the same shares, that is, the voting rights of the special shares of the shares of 10 shares of the common stock. After calculating the voting weights of different stocks, Lei Juns voting power exceeds 51%, which is the actual controller of the company. After several rounds of financing, millet still maintained the founders independent decision-making power. Three, the future or the CDR return to the A share Hou Kaidi? Reporter: the shareholding structure of Xiaomi is similar to that of Alibaba, which is the VIE structure. In addition to millet technology, millet companys flag also includes millet communication, millet electronic software, millet payment, millet mobile software, millet software technology, millet digital technology and so on at least 7 subsidiaries. If not approved, in view of the VIE structure of millet, the structure of millet A+H is almost impossible. Earlier, there were many rumors about the listing place of millet. Insiders expect that after the listing in Hong Kong, millet will probably return to A shares in the form of CDR. At the end of March, the SFC issued a number of opinions on the launch of stock or depository Certificate in innovative enterprises, and made the CDR clear as the path to support the listing of unicorns. Although the definition of unicorn is clear, the conditions such as rapid growth in revenue and international leading technology are still ambiguous. Millet will be given priority in the H-share listing because China Securities Regulatory Commission has not yet announced the rules of the implementation of CDR (China depository certificate). As the regulatory follow-up will introduce more detailed implementation rules, millet is likely to choose to be listed in the form of back to A in the form of CDR after the listing of Hongkong. Expert opinion: Xu Xiaoping? The founder of the founder of the fund will have a demonstration role in Hong Kong. It will be a great incentive and demonstration for the innovative companies and investors in China. Of course, A shares are also in reform, for A shares, still have a certain time, of course, I personally as an investor, willing to see the mainlands A shares and Hong Kong stocks to form a benign competition, this investor, to the entrepreneurs, to the majority of the stock market participants, is a great good thing. The source of this article: CCTVs responsible editor: Yao Liwei _NT6056 At the end of March, the SFC issued a number of opinions on the launch of stock or depository Certificate in innovative enterprises, and made the CDR clear as the path to support the listing of unicorns. Although the definition of unicorn is clear, the conditions such as rapid growth in revenue and international leading technology are still ambiguous. Millet will be given priority in the H-share listing because China Securities Regulatory Commission has not yet announced the rules of the implementation of CDR (China depository certificate). As the regulatory follow-up will introduce more detailed implementation rules, millet is likely to choose to be listed in the form of back to A in the form of CDR after the listing of Hongkong. Expert opinion: the founder of Xu Xiaoping?