The cattle network is expected to be officially listed tomorrow (9th)

Absrtact: According to the Nasdaq official website data shows, the pedestrian cattle net is expected tomorrow (9th) official listing. But surprisingly, the net loss in the first quarter of this year was as high as $62.8 million, according to an addendum to the IPO prospectus submitted to the SEC by the travel network in Tuesday, while the same period last year

According to the Nasdaq official website data show, the cattle Network is expected tomorrow (9th) officially listed. But surprisingly, the net loss in the first quarter of this year was as high as $62.8 million, compared to $5.4 million in the same period last year, according to an addendum to the SEC's IPO prospectus submitted by the pedestrian travel network in Tuesday.

Online travel business "loss of public" play, where has been played. Next, where to go. Executives will also usher in a period of deregulation in May, where this market trend may affect the valuation of the cattle. At present, the US depository voucher issued by the pedestrian travel network is 9 U.S. dollars to 11 U.S. dollars, the highest amount of funds from the earliest 120 million U.S. dollars reduced to 101.2 million U.S. dollars.

The amount of money raised by the cattle net was reduced to about 100 million dollars

If a successful listing, you may want to thank the network. 2013, where to go net in the background of Leinian losses, IPO opening, the first day of the opening 28.35 U.S. dollars, more than 15 U.S. dollars in the issue price Rose 89%, for China's online tourism enterprises set a "loss of listed" model project.

Today, the cattle network is expected to be officially listed on May 9, its top raise funds from the first 120 million U.S. dollars reduced to 101.2 million U.S. dollars. And at the time, where to go to the IPO financing amount is only 1.25 dollars. "There is a reason for this, according to the rules of the U.S. stock market, the company's listed financing can not be less than 100 million U.S. dollars, if less than 100 million dollars, some big funds will think the company's stock liquidity is too bad, trading too low, big funds will lose interest." That is why the ratio of the financing of the bull is not that high. "The founder of the network, CEO Wei Changren to the south are reporters analysis, comprehensive many factors, the way cattle IPO wins is 100%."

Passers-cattle travel network in Tuesday, the IPO prospectus submitted to the SEC added that the total revenue for the first quarter of the 2014 fiscal year is 582 million yuan, the same period last year, 372 million yuan, the year-on-year growth of 56%, compared to the last quarter of the quarter-on-quarter growth of 19%. Gross margin was flat with the same period last year, at 7%, up 3% from the previous quarter. Although the business to the good, but the earnings show, the first quarter of the net loss of cattle for 62.8 million yuan, the same period last year net loss of 5.4 million yuan, last year four quarterly loss of 53.69 million yuan.

Of course, "a loss to make a yell" of the play, where has also been played over. South reporters further investigation also found that the two companies the logic of the burning money is also surprisingly consistent: the rapid increase in research and development costs and the huge expansion of marketing spending. Earnings showed that the first quarter of the development of the cattle net expenditure of 17 million yuan, the same period last year, 8.1 million yuan, sales and marketing expenditure of 73.5 million yuan, the same period last year 13 million yuan.

"We expect the absolute value of our operating expenses to increase," he said. "The cow said in the prospectus.

Future or where to compete

Previously, where to go, founder and CEO Zhungchengsu once told reporters that "the biggest exchange we have with US investors is how different we are." Ctrip is a ranked first tourist website they provide a better quality of services and products, but also provide a more call center; Where to go is the leisure consumer as the core, mainly based on price and service selection as the core, at the same time, to where all the people from the online or mobile, we are a 100% Online company. ”

Now, in the prospectus submitted by the US Securities and Exchange Commission, the main advantage of the bull is "the consumer of leisure". "Third-party research firm Iresearch's statistics show that in 2013 we ranked first in China's online tour market, according to trading prices," he said. ”

If the successful listing of the bull, two companies are the inevitable competition. "And at this point in time, where to go the executive will also be in May to usher in the stock ban period, where the shareholders will take the opportunity to cash in, where this market trend or will affect the valuation of the cattle. "People close to the cattle said.