The Secret of Millet: the ownership structure was exposed

December 14 night, that let Gree Electric appliances chairman Mingzhu Anxious to get angry, millet company shares in the United States Group (000333), also disclosed the first time the millet company not to be secretive about the secret: first, Millet technology 2013 years operating income of 26.6 billion yuan, Operating profit of about 480 million, net profit of 350 million yuan; second, the Chairman of the LEI holding millet technology 77.8% of the shares, as the first major controlling shareholder. These two details and ordinary people understand that the millet has a large discrepancy. On the 1th, according to the Wall Street Journal claimed to get a confidential document, 2013 millet company revenue reached 27 billion yuan, net profit of 3.46 billion yuan, is disclosed in the above announcement 10 times times. In addition, Lei announced earlier this year, Millet 2013 tax-included sales is 31.6 billion yuan. Why is the difference so big? It is worth mentioning that, Lei December 13 in a forum also talked about the sales of millet, is expected to be over 70 billion this year certainly no problem, I think next year over billions, see. On the 2nd, as early as 2012, Kingsoft Software, a document disclosed that Lei holding millet technology more than 30% already issued shares, in the case of millet has been financing 4 times, now Lei shares continue to soar? December 15, millet to explain to the media, millet technology is only one of millet company. Millet science and technology can not represent the wealth of millet company as a whole, lei in the Millet technology holdings can not represent him in the whole millet company's shareholding structure, other companies have less shareholding. However, regarding the millet company structure how to set up, Millet has which company, the millet aspect has never disclosed, also expresses the inconvenience to the public. Millet Eco-chain product Planning director Peng in micro-blog revealed that they belong to millet communications staff, rather than millet technology, in addition to millet mobile software, such as several branches. Reporter on the website of the General Administration of industry and commerce, Millet in Beijing registered two companies, are Millet Technology limited liability company and Millet Communication Technology Co., Ltd. is located in Haidian District Qinghe Street 68th, is the location of the work of millet employees. Millet market in charge of Lai on Weibo revealed that the use of millet is the VIE architecture, the so-called VIE structure, can be variable interest entities (Variable acquires Datastore), also known as protocol control. Chinese companies must adopt the VIE structure if they want to list overseas and comply with Chinese regulations. This structure involves the establishment of two entities, located in China and overseas. Chinese entities hold licences and related licences required to carry out business in China. Another entity is an offshore holding company (usually chosen to register in tax havens such as Caimas, Is.), where overseas investors can buy shares in the offshore holding company. The foreign listed entity controls the domestic business entity by means of agreement. Alibaba is the use of VIE structure listed. Millet officials said it could not confirm, and can not tell overseas registration information. As for domestic entities, the industry speculated that it is millet technology. This 390 million of the net worth of millet technology, is clearly the core enterprises of Millet GroupIndustry。 First, it lei a 77.8% stake, without a parent company. Second, the company's operating income reached 26.5 billion yuan, millet can not have more than the company's sales revenue more enterprises. The financial columnist said to Xiao Tian. Millet using the VIE structure has traces to follow. According to industry and commerce information, Millet Science and technology 50 million yuan registered capital of the shareholding structure: Lei shareholding 77.8%, Li Vanchang shareholding 10.12%, Peak Holdings 10.07%, Liu De 2.01%. The above four are members of the Millet management team. There is no institutional shareholder, which shows that millet financing is done in the overseas vie structure. Millet technology itself is a domestic entity, most of the profits should be through the form of agreement to the foreign-funded enterprises. Said to Xiao Tian. Millet is suspected of tax avoidance. A person familiar with the matter told reporters that the Beijing local tax bureau had investigated the issue of millet tax, but was later dismissed. Since the application of the VIE model in China's Internet industry, the government regulators have adopted the tacit attitude, but there are many restrictions on the VIE structure enterprises in the aspects of investment acquisition, license issuing and so on, and the change of policy increases the risk of the use of the VIE model. It is noteworthy that this year's NPC, Lei has made a statement to the VIE: Vie is under the existing system, countless smart people exhausted the brains of the alternative model, this is a compromise, around 108,000 miles Road, there are risks. Because Millet did not disclose the company structure, can not know the ownership of the relationship between enterprises. According to industry and commerce information, millet technology and millet communications, the director of the same team, Lei is the chairman of two companies. But the former legal representative is Lei, the latter is Millet co-founder, vice President Li Vanchang. In addition, Millet newsletter registered capital of 130 million U.S. dollars, shareholders for the Millet Hong Kong Company (Xiaomi H.k 2¥q). The Hong Kong-owned company should be owned by the millet company. Guess to the little field. As for why millet with its millet technology and the United States of cooperation, but also investors are puzzled: strange they use the company to subscribe to the issuance of shares, the company's assets the more light the better.