Had to open the cowhide cattle last year revenue only 201 million yuan

Absrtact: In April 2014, the way cattle network to the SEC to submit a prospectus, to raise 120 million U.S. dollars. Jointly underwritten by Morgan Stanley, Credit Suisse and Huaxing capital. The prospectus shows that the online leisure travel company, founded in October 2006, provides users with a source from 3,000 tours

In April 2014, he submitted a prospectus to the SEC to raise 120 million dollars. Jointly underwritten by Morgan Stanley, Credit Suisse and Huaxing capital.

The prospectus shows that the online leisure travel company, founded in October 2006, provides users with services from 3,000 tour providers, covering a wide range of tourist attractions in all of China's renowned and more than 70 countries. Product line by the tour (more than 100,000 units), self-help tour (more than 100,000 library units), travel customized services and attractions tickets (including 1000 places at home and abroad) constitute. The 2011､2012､2014 annual revenue is 765 million, 1.12 billion and 1.962 billion respectively, according to the prospectus. Annual compound growth rate CAGR more than 60%.

The cowhide that had to be lifted

Comparing the cattle network with other online travel companies, it found that gross profit margins were surprisingly low.

Internet companies ' research and development costs are not to be saved and should not be saved, market costs are also necessary, there is a huge administrative costs. Ctrip, Art dragon, to which net gross profit margin is above 70%, and 58 city as high as 94.2%.

The gross profit margin is too low, the profit pattern is afraid to have the problem. To explore the 8-year margin profit margin is less than 8%, 8 years can be raised to 16%? The problem is that 16% is not necessarily profitable.

The problem is in the revenue confirmation. Other online travel companies are receiving revenue from Commission. For example, Ctrip said very clearly:

As we generally do not take ownership of the products and services maximally sold and act as a agent in substantially all of our Transa Ctions, our disorientated of the loss due to obligations for cancelled hotel and airline ticket the is reservations. Accordingly, we recognize revenues primarily based on commissions earned rather than transaction value.

Passers-net confirmed that self-service tour revenue when the same as other, but with the group tour of the amount of transactions to confirm the total revenue (revenues from organized tours are recognized on gross basis, abound represent amounts Received from customers). And with the group tour revenue accounted for 96.5% of the total revenue.

Passers-cattle network to take a unique way to confirm revenue, intended to package listing. From the 2011, 2012､2013 three consecutive fiscal year, the net loss is more than 100 million yuan, can not calculate the P/E PE only with the market rate PS (Total market value divided by revenue) to valuation. The market value of 3 billion dollars to where the net is also not profitable, the city sales rate is about 22 times times. The market value of more than 6 billion U.S. dollars in Ctrip sales rate is only 7 times times more. Passers-net to the revenue packaging into 320 million U.S. dollars, according to the city sales rate of Ctrip can also be estimated to more than 2 billion U.S. dollars. Even if the investor doubles, also mixed 1 billion dollars.