China's auto market promotes the myth of related industries

China's auto market has again spawned the myth of related industries.

Yesterday, China's vertical car website leader Auto to the U.S. Securities and Exchange Commission (SEC) to submit a listing application, plans to go on the NYSE listing, raise 120 million U.S. dollars. This is the second big car website in China that has tried to list in the U.S. in recent years.

It is worth mentioning that, according to the valuation of 1 billion U.S. dollars, if Auto successfully listed in the United States, 5.3% of the 32-Year-old founder Li's personal wealth will reach 53 million U.S. dollars (equivalent to about 320 million yuan).

Li and its partners founded Auto in 2005 to provide automotive products, covering the major cities of the country's preferential information, car evaluation, shopping guide for the characteristics. 2007, Auto to achieve 10 million yuan advertising revenue, the overall site traffic climbed to the first place in the country. Then auto into the fast-rising channel.

The prospectus shows that 2008-2012 years, auto annual operating income of 52 million yuan, 148 million yuan, 253 million yuan, 433 million yuan, 733 million yuan, an annual increase of more than 70%. The first 9 months of this year, revenue for 831 million yuan, an increase of 63% per cent, net profit of 333.5 million yuan, the year-on-year increase of 97%.

Auto growth trajectory and the Chinese auto market close to synchronization, as the Millet cell phone founder Lei once said, "Standing in the tuyere, pigs can fly up." China's car sales grew at an annual rate of more than 20% per cent in the past 10 years, with China becoming the world's largest auto consumer in 2010 and more than 19 million vehicles in 2012. Meanwhile, with the development of the Internet, carmakers and distributors are increasingly relying on the internet to promote their brands and products.

It is worth mentioning, Li himself quite some legendary color. 1998, Lee wanted to give up the college entrance examination, the creation of personal first website, the site in 2005 to obtain 20 million yuan operating income. In 2004, Lee wanted to think that the auto market would be converted from a seller's market to buyer's, so he prepared auto with his partner to decide to tackle the boss of the car site when the market reversed.

The auto Prospectus quoted a survey company as saying that the site's daily traffic was among the first in the domestic car site; auto plans to raise 120 million of dollars in the IPO, and the proceeds will be used for technology and product development, as well as marketing activities.

Auto Current total revenue from online advertising and reseller subscription services, in September this year, auto from advertising services revenue of 101 million U.S. dollars, dealer subscription service income of 34.74 million U.S. dollars. Prior to Auto has tried to expand a variety of ways to profit, the introduction of group buying, online purchase of auto parts, decorative parts, maintenance and other electrical business services. But most of the above profit way is to explore, not really become auto pillar income.

The general manager of a Shanghai auto 4S store told the first financial news reporter that auto dealer subscription service is about 4000 yuan/month, you can get price quotes, customer search and other member services, "for example, when a customer looks at a certain car information, he (she) can also see our store discount promotional information and address." ”

"I do not see the enterprise as a child, not so serious control complex, it only means commercial profitability, efficiency." In an interview, Lee said.

In 2008, Australia bought auto 55% of its shares from Sheng Media at a price of $76 million. In 2012, Australia's telecom cost 37 million dollars to raise its stake from 66% to 71.5%, a deal that valued auto at $336 million trillion.