DOCSLIB.ORG

Citron Stands Corrected … Qihu Is Not Mobi … Is It More Like China Mediaexpress (Ccme) ?

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Citron Stands Corrected … Qihu Is Not Mobi … Is It More Like China Mediaexpress (Ccme) ? CITRON STANDS CORRECTED … QIHU IS NOT MOBI … IS IT MORE LIKE CHINA MEDIAEXPRESS (CCME) ? For those of you who read part 1 of Citron’s analysis on Qihoo, (NASDAQ:QIHU), we compared the company to MOBI as operating a web 1.0 business that is presently misunderstood by the marketplace. From the company's rebuttal, we conclude Qihoo is not so much like MOBI…. it might be a lot more like China MediaExpress (CCME). Our intended part 2 on QIHU was planned to focus on the naïve analyst commentary and the dubious history of management. But all that has become a sideshow to what our research found, so hold on to your seat and call your class action attorney. While Qihoo does in fact have penetration in the free anti-virus software business — that we do not question — the rest of the business seems to be nothing more than an illusion that defies validation by any third party source. Either Qihoo has some magic pill that neither Citron nor the major players in the China internet space knows about, or this is a FRAUD. There are a number of chilling parallels to CCME in QIHU's current business model. Citron suggests that investors and analysts — especially those who are quick to proclaim "Citron doesn't get it" — read this report with an open mind. Foundation The main criticism of the initial Citron report was that we did not understand Qihoo's business model and therefore we could not draw a comparative valuation to any other business. The analysts describe Qihoo as a "master aggregator". We get that. They say they generate a lot of web traffic. Business – n. dealings or transactions especially of an economic nature. Giving away free software is not a business…lets call that a hobby. A business generates revenue. If you don’t believe us, just read QIHU's prospectus: "In 2008 and 2009, we generated a substantial portion of our revenues from sales of third-party anti-virus software. In the second half of 2009, we started offering 360 Anti-Virus to users free of charge as we adopted the business model of offering free Internet and mobile security products to build up a large and loyal user base and generating revenues through providing Internet services, including online advertising and Internet value-added services." So advertising is how they generate their revenues, and that is consistent with their revenue mix disclosure last quarter. Revenues June 2011 Qtr Total $35.1 million USD Online advertising $26.8 million Internet value add $ 8.1 services (mostly million games authored by 3rdparties) The company states that they generate this advertising revenue by posting links through their portal site. Undifferentiated Business Model Qihu's homepage, shown below, resembles dozens or hundreds of other web directory / navigation sites which are very popular in China. Here are just a few: http://www.2345.com/ http://www.265.com/ http://www.1616.net/?www2 http://www.tao123.com/ (taobao) http://www.wu123.com/ http://www.0460.com/ http://www.91913.cn/ http://www.44244.com/default.html http://www.9991.com/ http://www.537.com/ http://www.5566.net/ http://www.zgwdq.com/ http://www.46.com/ http://www.176176.com/ http://www.155.com/ http://www.haokan123.com/ http://www.129139.com/ http://www.wndhw.com/ You can see they're all very similar, (English speakers can get a pretty good sense of these using Google translate) In fact there's a fierce battle for domain-brand identity. In Qihoo's case, their portal is hao.360.cn. It is nothao360.com or hao360.cn, which appear to belong to others. These sites typically focus on link traffic, not brand (display) advertising. Companies that pay for links on these are paying out of their advertising budgets … their online advertising budgets. Qihoo classifies this as "advertising revenue". Citron gets that … do you? Comparing to Baidu Some analysts and commentators have been comparing Qihoo to Baidu. This is fatally flawed logic. Baidu also operates a directory / portal (hao123.com), but it is such a small part of the business that they don't break out its revenues or costs separately. Baidu's primary business is search, which is proven to be a highly profitable business model — at least for the winner in a winner-take-all category. Breaking Down The Top Line Qihoo's pre-eminent revenue generator is their flagship portal and within that domain, their PSP's (users can personalize their own start page). Linked to that are their vertical niche portal pages. Together, these sites generate 100% of Qihoo's current revenue. Below is a screen shot of Qihoo's flagship revenue driver HAO.360.CN : There are appx 200 links on this page. But how much revenue is generated from this site, and who is paying what? We are supposed to believe that this site is generating over $40 million revenues this quarter, and further, is growing at a rate that outstrips all the major players in the China internet space, raising serious questions about its credibility. Below is a screenshot of the same site 21 months ago when it was generating less than $10 million per qtr in revenues: Feb 12, 2010 (QIHU revs of $9 million in that quarter) – http://web.archive.org/web/20100212202913/http://hao.360.cn/ And lastly the same page from early 2009, when it was generating only $3 mil a quarter in online revenues. http://web.archive.org/web/20090210050039/http://hao.360.cn/ A few less links, but essentially identical in structure and function. So exactly how did revenues increase 400% from last year and 1200% from two years ago? The quantity of links certainly hasn’t increased 400%. We have no verification that the traffic has increased anything near 400%. Have the ad rates gone up 400%? Or is this just a fraud?? For that matter, are there even verifiable ad rates for this page? Below is a list of advertisers on the front page of HAO.360 that we believe do not pay QIHOO one dime. Yahoo Mail NBA Hotmail (Microsoft) Amazon Vogue (Conde Nast magazine) Self (Conde Nast magazine) Further, of these well-known Chinese brands, some of whom directly compete with Qihoo for games or traffic, isn't there a serious business issue requiring disclosure as to how much they are paying for links? Ctrip QQ Mail Baidu China Mobile Sina (8 links) Sohu (6 links) Todou Netease Taobao (2 links) Youku (2 links) Tencent CNTV Dangdang Our favorite of the "advertisers" is West Point Military Academy ( Look in the "Military academies" section, left column, 4th row … http://translate.google.com/translate? hl=en&ie=UTF8&prev=_t&rurl=translate.google.com&sl=zh- CN&tl=en&twu=1&u=http://hao.360.cn/junshiguofang.html … Yep, that's it, … right next to the link to the "U. S. National Defense University". E-commerce aggregator Qihoo recently launched an "e-commerce aggregator page" which sounds exciting. OK, so let's look under the hood at this page : http://mall.360.cn/ It is filled with logos of global companies you will recognize : Nokia, Samsung, Motorola, Sony, Sharp, Giordano, Reebok, Converse, Puma, Nike, Lee and many others. Ask on the conference call how much revenue this page generates for the company. We did. Despite the lack of revenue, here's a selection of logos displayed on Qihoo's "mall" page: The creepy thing is this is exactly what CCME's strategy was. In order to convince investors that it was a huge advertising channel, it produced a small number of copies of a very glossy catalog filled with logos from top-name brands like Coach, Lexus, and Coca-Cola. Here are some screen shots from Citron's 3 favorite pages out of CCME's "Investor Presentation, October 2010": Qihoo’s other sites are the following 4 vertical portals, for group buying, video, games, mini games, and literature. They are merely aggregators and the company has told us that none of them except games represents more than 3% of revenues: Wan.360.cn – Games Tuan.360.cn – Group Buying Xiaoyouxi.360.cn – Minigames Xiaoshou.360.cn – Literature Competition An early sign to Citron that China Media Express was a fraud was simply the incredible pace that they were growing revenues and profits compared to their well-known competition. During the trailing twelve months, both SINA and SOHU have grown their top line revenue around 23%. Both companies have diversified revenue streams and a PROVEN internet footprint. During the same trailing twelve months we are supposed to believe that Qihoo has grown their revenue 400%? Yet, just like China Media Express… none of their pre- eminent competitors even consider them competition. Qihoo fancies themselves as competition for BIDU. Yet in its own filings, BIDU describes their competition as: " Google and Microsoft, and China- based Internet companies, such as Netease, Sohu, Tencent and Alibaba" SOHU, who recently launched a popular browser and who also sells games and lists their competition this way. “not limited to Sina Corporation (or Sina), Tencent Holdings Ltd. (or Tencent) and NetEase.com, Inc. (or NetEase), and vertical sites, such as YouKu.comInc. (or Youku), Tudou, Inc. (or Tudou), Ku6 Media CO., Ltd (or Ku6), Pacific Online Limited (or PConline),SouFun.comLimited (or SouFun), China Real Estate Information Corporation (or CRIC), and Bitauto Holdings Limited (or BitAuto). In addition, we compete with operators of leading global websites and Internet service providers, including Yahoo! Inc. (or Yahoo!), Microsoft Corporation (or Microsoft) and AOL Inc. " SINA, who describes themselves AS AN INTERNET PORTAL and fights for ad dollars as well, voluminously defines their competition as: Our competitors include existing or emerging PRC Internet portals as well as vertical websites competing in a specific niche such as automobile, finance and IT information.
Load more

Recommended publications
  • Global / China Internet Trends
    Global / China Internet Trends Shantou University / Cheung Kong Graduate School of Business / Hong Kong University November 7, 2005 [email protected] [email protected] 1 Outline • Attributes of Winning Companies • Global Internet • China Internet • Your Questions 2 Attributes of Winning Companies 3 Attributes of Winning Companies… 1. Large market opportunities - it is better to have 10%, and rising, market share of a $1 billion market than 100% of a $100M market 2. Good technology/service that offers a significant value/service proposition to its customers 3. Simple, direct mission and strong culture 4. Missionary (not mercenary), passionate, maniacally-focused founder(s) 5. Technology magnets (never underestimate the power of great engineers) 6. Great management team / board of directors / committed partners 7. Ability to lead change and embrace chaos 8. Leading/sustainable market position with first-mover advantage 9. Brand leadership, leading reach and market share 10.Global presence 4 …Attributes of Winning Companies 11. Insane customer focus and rapidly growing customer base 12. Stickiness and customer loyalty 13. Extensible product line(s) with focus on constant improvement and regeneration 14. Clear, broad distribution plans 15. Opportunity to increase customer “touch points” 16. Strong business and milestone momentum 17. Annuity-like business with sustainable operating leverage assisted by barriers-to-entry 18. High gross margins 19. Path to improving operating margins 20. Low-cost infrastructure and development efforts 5 Global Internet 6 Internet Data Points: Global… Global N. America = 23% of Internet users in 2005; was 66% in 1995 S. Korea Broadband penetration of 70%+ - No. 1 in world China More Internet users < age of 30 than anywhere 7 …Internet Data Points: Communications… Broadband 179MM global subscribers (+45% Y/Y, CQ2); 57MM in Asia; 45MM in N.
    [Show full text]
  • Freedom on the Net 2016
    FREEDOM ON THE NET 2016 China 2015 2016 Population: 1.371 billion Not Not Internet Freedom Status Internet Penetration 2015 (ITU): 50 percent Free Free Social Media/ICT Apps Blocked: Yes Obstacles to Access (0-25) 18 18 Political/Social Content Blocked: Yes Limits on Content (0-35) 30 30 Bloggers/ICT Users Arrested: Yes Violations of User Rights (0-40) 40 40 TOTAL* (0-100) 88 88 Press Freedom 2016 Status: Not Free * 0=most free, 100=least free Key Developments: June 2015 – May 2016 • A draft cybersecurity law could step up requirements for internet companies to store data in China, censor information, and shut down services for security reasons, under the aus- pices of the Cyberspace Administration of China (see Legal Environment). • An antiterrorism law passed in December 2015 requires technology companies to cooperate with authorities to decrypt data, and introduced content restrictions that could suppress legitimate speech (see Content Removal and Surveillance, Privacy, and Anonymity). • A criminal law amendment effective since November 2015 introduced penalties of up to seven years in prison for posting misinformation on social media (see Legal Environment). • Real-name registration requirements were tightened for internet users, with unregistered mobile phone accounts closed in September 2015, and app providers instructed to regis- ter and store user data in 2016 (see Surveillance, Privacy, and Anonymity). • Websites operated by the South China Morning Post, The Economist and Time magazine were among those newly blocked for reporting perceived as critical of President Xi Jin- ping (see Blocking and Filtering). www.freedomonthenet.org FREEDOM CHINA ON THE NET 2016 Introduction China was the world’s worst abuser of internet freedom in the 2016 Freedom on the Net survey for the second consecutive year.
    [Show full text]
  • SINA CORPORATION (Exact Name of Registrant As Specified in Its Charter)
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 20-F o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2010 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR o SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report Commission file number 000-30698 SINA CORPORATION (Exact name of Registrant as specified in its charter) Cayman Islands (Jurisdiction of incorporation or organization) 37F, Jin Mao Tower 88 Century Boulevard, Pudong Shanghai 200121, China (Address of principal executive offices) Contact Person: Chief Financial Officer Phone: +8610 8262 8888 Facsimile: +8610 8260 7166 Address: 20/F Beijing Ideal International Plaza No. 58 Northwest 4th Ring Road Haidian District, Beijing, 100080, People's Republic of China (name, telephone, e-mail and/or facsimile number and address of company contact person) Securities registered or to be registered pursuant to Section 12(b) of the Act. Title of Each Class Name of Each Exchange on Which Registered Ordinary Shares, $0.133 par value The NASDAQ Stock Market LLC Ordinary Shares Purchase Rights (NASDAQ Global Select Market) Securities registered or to be registered pursuant to Section 12(g) of the Act. Not Applicable (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
    [Show full text]
  • The Recovery in Wireless Is Visible Aaron M
    Industry Note July 30, 2004 Safa Rashtchy, Senior Research Analyst Technology 650 838-1347, [email protected] The Recovery In Wireless Is Visible Aaron M. Kessler, Sr Research Analyst 650 838-1434, [email protected] KEY POINTS: The China Analyst is our weekly report on the Chinese Internet and technology Reason for Report: market. Our commentaries are based on data we collect daily in China using our Industry Overview staff and consultants as well as industry contacts in Mainland China and Hong Related Companies: Kong. Our goal is not to summarize news, but to analyze the most important CTRP 34.70 developments in Internet, online games, wireless services, economy, technology, CHINA 6.73 consumer behavior, corporate activities, and government regulations, and to LTON 11.09 discuss how these trends impact both our existing coverage companies in China as NTES 37.59 well as the broader, long-term development of the Chinese Internet market . SINA 28.48 SOHU 19.97 SNDA 17.35 Summary of Internet TOMO 13.82 Activity in China (MM) Jun-04 Jan-04 Jun-03 Y/Y % Total active users 87 80 68 28% Dial-up subscribers 52 49 47 11% ISDN subscribers 6 6 5 20% ADSL subscribers 31 17 10 210% Source:China Internet Network Information Center, Piper Jaffray China Research Summary of Telecom Activity in China (MM) Jun-04 May-04 Jun-03 M/M % Y/Y % Fixed line subscribers 295 290 238 1.7% 24% Penetration rate 24% 21% 19% - - Mobile users 305 301 234 1.3% 30% Penetration rate 24% 21% 18% - - Source: Ministry of Information Industry of China, Piper Jaffray China Research Industry Commentary – The recovery in wireless is visible.
    [Show full text]
  • 2008 Annual Report
    Baidu,Inc. 2008 Annual Report ACE BOWNE OF MONTREAL, INC 04/09/2009 07:15 NO MARKS NEXT PCN: 002.00.00.00 -- Page is valid, no graphics BOM H03242 001.00.00.00 14 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 20-F (Mark One) n Registration statement pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934 or ¥ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2008. or n Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to or n Shell company report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of event requiring this shell company report Commission file number: 000-51469 Baidu, Inc. (Exact name of Registrant as specified in its charter) N/A (Translation of Registrant’s name into English) Cayman Islands (Jurisdiction of incorporation or organization) 12/F, Ideal International Plaza No. 58 West-North 4th Ring, Beijing, 100080, People’s Republic of China (Address of principal executive offices) Jennifer Li, Chief Financial Officer Telephone: +(86 10) 8262-1188 Email: [email protected] Facsimile: +(86 10) 8260-7007 12/F, Ideal International Plaza No. 58 West-North 4th Ring, Beijing, 100080, People’s Republic of China (Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which Registered Class A ordinary shares, par value US$0.00005 per share The NASDAQ Stock Market LLC* (The NASDAQ Global Select Market) * Not for trading, but only in connection with the listing on The NASDAQ Global Select Market of American depositary shares, each representing one Class A ordinary share.
    [Show full text]
  • Throttling Dissent: China's New Leaders Refine Internet Control
    FREEDOM HOUSE Freedom on the Net 2013 1 Throttling Dissent: China’s New Leaders Refine Internet Control Madeline Earp, Research Analyst, Freedom on the Net July 2013 Acknowledgements ....................................................................................... 2 About This Report ........................................................................................ 3 Key Developments: May 1, 2012-April 30, 2013 ................................................... 4 Key Figures ................................................................................................. 5 Introduction ................................................................................................ 6 Obstacles to Access ...................................................................................... 10 Limits on Content ........................................................................................ 17 Violations of User Rights ................................................................................ 32 Conclusion ................................................................................................. 45 About Freedom House ………………………………………………………………47 CHINA FREEDOM HOUSE Freedom on the Net 2013 2 ACKNOWLEDGEMENTS Xiao Qiang, founder and chief editor of China Digital Times and an adjunct professor of the School of Information, UC Berkeley, served as an advisor for this report. A second advisor based in Hong Kong requested anonymity. At Freedom House, Sanja Tatic Kelly, project director for Freedom on the Net, guided
    [Show full text]
  • 2011 Annual Report
    SINA CORP (SINA) 20-F Annual and transition report of foreign private issuers pursuant to sections 13 or 15(d) Filed on 04/27/2012 Filed Period 12/31/2011 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2011 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report . For the transition period from to Commission file number: 000-30698 SINA CORPORATION (Exact name of Registrant as specified in its charter) Cayman Islands (Jurisdiction of incorporation or organization) 37F, Jin Mao Tower 88 Century Boulevard, Pudong Shanghai 200121, China (Address of principal executive offices) Chief Financial Officer Phone: +8610 8262 8888 Facsimile: +8610 8260 7166 20/F Beijing Ideal International Plaza No. 58 Northwest 4th Ring Road, Haidian District, Beijing, 100080, People's Republic of China (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act. Title of each class Name of each exchange on which registered Ordinary Shares, $0.133 par value The NASDAQ Stock Market LLC Ordinary Shares Purchase Rights (NASDAQ Global Select Market) Securities registered or to be registered pursuant to Section 12(g) of the Act.
    [Show full text]
  • Sina Corporation
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 20-F n REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ¥ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2007 OR n TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR n SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report Commission file number 000-30698 SINA CORPORATION (Exact name of Registrant as specified in its charter) Cayman Islands (Jurisdiction of incorporation or organization) Room 1802, United Plaza 1468 Nan Jing Road West Shanghai 200040, China (Address of principal executive offices) Contact Person: Corporate Secretary Phone: +8610 8262 8888 Facsimile: +8610 8260 7166 Address: 20/F Beijing Ideal International Plaza No. 58 Northwest 4th Ring Road Haidian District, Beijing, 100080, People’s Republic of China (name, telephone, e-mail and/or facsimile number and address of company contact person) Securities registered or to be registered pursuant to Section 12(b) of the Act. Title of Each Class Name of Each Exchange on Which Registered Ordinary Shares, $0.133 par value NASDAQ Global Market Ordinary Shares Purchase Rights Securities registered or to be registered pursuant to Section 12(g) of the Act. Not Applicable (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
    [Show full text]
  • View Annual Report
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2012 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report . For the transition period from to Commission file number: 000-30698 SINA CORPORATION (Exact name of Registrant as specified in its charter) Cayman Islands (Jurisdiction of incorporation or organization) 37F, Jin Mao Tower 88 Century Boulevard, Pudong Shanghai 200121, China (Address of principal executive offices) Chief Financial Officer Phone: +8610 8262 8888 Facsimile: +8610 8260 7166 20/F Beijing Ideal International Plaza No. 58 Northwest 4th Ring Road, Haidian District, Beijing, 100080, People’s Republic of China (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act. Title of each class Name of each exchange on which registered Ordinary Shares, $0.133 par value The NASDAQ Stock Market LLC Ordinary Shares Purchase Rights (NASDAQ Global Select Market) Securities registered or to be registered pursuant to Section 12(g) of the Act. Not Applicable (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
    [Show full text]
  • Tencent Holdings Limited: an IPO Case Study
    UNIVERSITY OF CAPE TOWN Department of Finance and Tax Tencent Holdings Limited: An IPO Case Study DARIO DE WET Prepared under the supervision of Doctor Ryan Kruger and Doctor Francois Toerien and presented to the School of Management Studies in fulfillment of the requirements of the degree of MASTER OF BUSINESS SCIENCE April 2015 Abstract The purpose of this case study is to empirically investigate the phenomenon of initial public offerings (IPOs) by applying it to Tencent Holdings Limited (Tencent). Tencent is a Chinese internet and telecommunications value-added service provider that launched its IPO on 16 June 2004. Tencent is China‟s largest internet firm and Asia‟s most valuable brand, boasting a current market capitalization of HK$1.224 trillion (US$157.9 billion). The origins of Tencent‟s success story trace back to its IPO decision, an important topic in the field of finance. The aim of this study is to investigate the structure of Tencent‟s IPO, its listing decision and determining an intrinsic value of its IPO shares on its listing date. It was found that Tencent‟s IPO extensively relates to academic literature surrounding IPO underpricing and valuing unlisted companies. The results reveal that Tencent left money on the table by underpricing its offer shares and exercised its over-allotment option as a form of price stabilization. It was further found that Tencent‟s underpricing was not influenced by competitor IPOs but rather by stringent IPO allotment policies and other signals of firm quality. It was also discovered that there may have been bias in the allocation of Tencent‟s shares.
    [Show full text]
  • Download Ringtones and Logos for Their Mobile Phones and Participate in Matchmaking Communities and Interactive Games
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2007 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report For the transition period from to Commission file number: 000-30666 NETEASE.COM, INC. (Exact name of Registrant as specified in its charter) N/A (Translation of Registrant’s name into English) Cayman Islands (Jurisdiction of incorporation or organization) 26/F, SP Tower D Tsinghua Science Park Building 8 No. 1 Zhongguancun East Road, Haidian District Beijing 100084, People’s Republic of China (Address of principal executive offices) Onward Choi 26/F, SP Tower D Tsinghua Science Park Building 8 No. 1 Zhongguancun East Road, Haidian District Beijing 100084, People’s Republic of China Phone (86 10) 8255-8163 Facsimile (86 10) 8261-7072 (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act. NONE Securities registered or to be registered pursuant to Section 12(g) of the Act. Name of each exchange and Title of each class on which registered : American Depositary Shares, each representing 25 ordinary shares, par value US$0.0001 per share, NASDAQ Global Select Market (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
    [Show full text]
  • United States Securities and Exchange Commission Washington, D.C
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2009 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report For the transition period from to Commission file number: 000-30666 NETEASE.COM, INC. (Exact name of Registrant as specified in its charter) N/A (Translation of Registrant’s name into English) Cayman Islands (Jurisdiction of incorporation or organization) 26/F, SP Tower D Tsinghua Science Park Building 8 No. 1 Zhongguancun East Road, Haidian District Beijing 100084, People’s Republic of China (Address of principal executive offices) Onward Choi 26/F, SP Tower D Tsinghua Science Park Building 8 No. 1 Zhongguancun East Road, Haidian District Beijing 100084, People’s Republic of China Table of Contents Phone (86 10) 8255-8163 Facsimile (86 10) 8261 8627 (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act. NONE Securities registered or to be registered pursuant to Section 12(g) of the Act. Name of each exchange and Title of each class on which registered: American Depositary Shares, each representing 25 ordinary shares, par value US$0.0001 per share, NASDAQ Global Select Market (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
    [Show full text]