Millet "stealth" overseas: Net profit of overseas company is 10 times times of domestic company

Overseas financing Millet Company, 2013 net profit amounted to 3.46 billion yuan, while domestic investment in the United States Group of Millet, 2013 net profit is 347 million yuan. This led to a lot of speculation, if the same millet, its profit data seems to be too much contradiction, the two are almost 10 times times the difference. Securities Times reporter inquires many millet registration material, combs out the most logical explanation is, the overseas financing millet and the domestic investment millet, is each has the correlation but the different two companies. Millet, which can produce high profits, is placed in overseas companies. Millet technology and Millet communication August 2013 an external financing information showed that the value of millet has reached 10 billion U.S. dollars. A year later, media reports said the number doubled, to $40 billion trillion. According to the latest data disclosed by the United States, Millet Technology Co., Ltd. 2013 revenue of 26.583 billion yuan, operating profit of about 486 million yuan, net profit of about 347 million yuan. With this profit scale and profit margin, millet technology can not afford billions of dollars in valuation. There is no doubt that if the net profit of Millet technology is only 347 million yuan, it is a fairly high valuation level to give us billions of dollars. At the same time, millet technology debt rate is very high, as at December 31, 2013, Millet science and technology total assets of about 6.452 billion yuan, the total liability of 6.057 billion yuan, debt rate of up to 93.88%. However, the Wall Street Journal recently turned over a score and found its 2013 net profit of 3.46 billion yuan from its overseas financing instruments, up 84% per cent, and 27 billion yuan in revenue. Financing documents also show that Millet estimated 2014 net profit will grow 75% year-on-year, that is, to reach 6 billion yuan. The earnings figures, once exposed, are compared with the 347 million yuan net profit disclosed by Millet technology, which makes it doubtful whether the decimal point is in advance or if the Wall Street Journal is wrong about the decimal point. Some people think that millet to overseas financing, profit more attractive, so the profit will be higher. But changing financial data at will is unthinkable for such a large company. From the two millet sales revenue, has not yet found a more than 27 billion of the revenue of the above companies to operate a larger platform. Reporter from Beijing Enterprise credit Information System inquiries, September 9, 2014, Beijing Municipal administration of Industry and Commerce Haidian Branch has been punished millet technology, the reason is that advertising degrades other production operators of goods or services, it seems that the company should be millet mobile phones and other products of the main platform. And the United States and the announcement of the corresponding, registration data show that millet technology and no institutional investors. Millet Science and technology was established when the registered capital of only 1 million yuan, May 12, 2010 for the first shareholder change, the change before Lei accounted for 900,000 yuan, Li Vanchang accounted for 100,000 yuan, after the change, added a natural person shareholder Hong Feng. July 28, 2010, Millet technology shareholders again changed, registered capital increased to 26.375 million yuan; 20May 24, 11 again changed, the amount of capital change to 26,915,898 yuan, and added a call Liu De natural person shareholders. By June 4, 2013, the registered capital had increased to 50 million yuan. If Millet's previous financing is in the millet technology this platform, so after a lot of dilution, Lei also accounted for nearly 78% of the equity, which is basically impossible, unless the lei particularly strong, or there is a large-scale holding shares, but the holding of shares at home and abroad are not allowed. In fact, in the millet science and technology was established soon, August 25, 2010, Millet Communications Technology Co., Ltd. was also established, the coincidence is two companies in Beijing, Haidian District Qinghe Street 68th, China Resources Colorful City shopping center two, but Millet technology in the 13 layer, millet communication in 9 layers. Millet communications legal representative for Li Vanchang, Lei and other millet technology executives are also millet communications executives, although the current from the stake is still not see the relationship between the two, but from the same management can be seen, two companies for affiliated enterprises. In addition, Millet communication licensing business projects and millet technology is basically coincident. Millet technology Licensing project for: Mobile phone technology development, cell phone production, mobile phone services (limited Haidian District, Yong-Jie North Road, 2nd, two-storey operation). and Millet communications licensing business is: production of mobile phones (only in Haidian District, No. 2nd Yong Jie North Road, three-storey production). Millet communication is a pure foreign company, the amount of capital contribution of 6 million U.S. dollars, investors for the golden Value Limited. by October 24, 2011, the investor changed to Xiaomi H.k 2¥q, the amount of capital invested into $18 million, and by December 23, the registered capital increased to $36 million, and by August 2012, the registered capital had increased to 65 million dollars; August 2013, Equity increased to 130 million dollars. In addition, the name of the Millet newsletter has been changed to millet (Hong Kong) Limited, and then changed back to Xiaomi H.k. 2¥q. In fact, has been the outside attention of more millet is millet technology, the company was founded on March 3, 2010, the legal representative for Lei. Lei attend large-scale public activities are mostly millet technology identity, Millet's main operating platform is also the company. Stealth overseas indications are that Millet uses the VIE structure which is habitually used when Chinese enterprises are listed overseas, that is, the agreement control. Therefore, in the Millet technology shareholders, no foreign shareholders figure is also very normal. Because overseas investors can use offshore companies to achieve indirect control. This structure of ownership can facilitate the entry of foreign investment in the industry. To millet science and technology as an example, the company has Beijing Chong Faction Strength Technology Co., Ltd., the British-Peng Mutual Entertainment Technology (Beijing) Co., Ltd., Beijing Millet Payment Technology Co. Among them, millet payments involved in the financial sector third party payments. The reason why Mr Ma will be alipay out of Alibaba, is that foreign investment status is difficult to be allowed into the field. This investment in the United States Group, is also based on millet technology as a platform. August 21, Lei 4Shareholders pledged all the 50 million shares they held. That is to say, now all the stock rights of millet technology are in the pledge state. Therefore, millet in Hong Kong's platform company Xiaomi H.k 2¥q, should be the overseas financing of millet or operation of the main body, but also overseas investors familiar with millet. This may be with Lei at the helm of Kingsoft Software has been listed in Hong Kong, lei more familiar with the Hong Kong capital market and the way the operation of equity. In addition to Xiaomi H.K 2¥q, Millet has other companies in Hong Kong. Founded in December 2010, Beijing Millet Digital Technology Co., Ltd., legal representative Majnoon, investors for Hong Kong to see more Investment Co., Ltd., Lei as a director. It is obvious that the foreign investment is convenient to enter the industry, by the millet in Hong Kong, the company direct investment, foreign investment is not convenient to enter the industry, through the millet technology investments. And the mobile phone business profits, most likely through related transactions, such as the flow of millet communications or millet in Hong Kong platform companies. Otherwise, can not explain millet technology sales net profit margin so low, also can not explain the eyes of overseas investors why Millet is so hot, and in the millet technology and overseas millet company revenue is similar, the latter net profit is about 10 times times the former.