The third edition of the prospectus shows that the current fair price of its common shares is $56/share

The 130 billion valuation is far below the market's widely circulated 200 billion dollar valuation said. Traders close to Alibaba told Caixin that 56 dollars per share was priced at 20% per cent compared to what had already happened in the market, and that Alibaba's shares were now trading at $70 trillion/share. The bid to buy Alibaba shares is close to $80/share, valued at $180 billion trillion.

For 56 dollars per share of the "fair price", Alibaba insiders said and the current company's internal equity repurchase price equivalent. "The fair price will not be in full accordance with the current capital market quotes, but internally, to do the reference price, this price is determined according to the Bisou pricing method." "he said.

Compared with the previous version of the prospectus, the prospectus points out that after Alibaba's listing, its 27 partners have the right to nominate 2 additional board members on the basis of the existing 9 board members, up to 11 board members. At present, 9 people board of Directors Ma, Tsai, Lu and Zhang Yong for Alibaba Management, soft silver nominated son as Non-executive Director, Alibaba Group also invited Tung Chee-hwa, Yang, Guo Deming (Walter Kwauk) and Michael Evans as independent non-executive director. This means that if the Alibaba partner nominates 2 more members of the Board, the management board will be more than half the board and the Board's control is further strengthened. However, the prospectus also disclosed that Alibaba after the listing of its board members still 9, the provisional exercise of the power to nominate directors.

For the mobile-side business, which is generally of concern, the prospectus disclosed more data: Alibaba's 2014 per cent total mobile GMV 319 billion yuan, up 81 billion from the previous year to 394%. The total turnover of the mobile end rose from 10.7% to 27.4% in the 2013 fiscal year. The mobile end of the 2014 first quarter income of 1.162 billion yuan, accounting for 12.4% of the total income, the same period last year, mobile end income of only 147 million, the proportion of total income is only 2.2%.

Data show that the first quarter of 2014, the mobile end of the monetization rate (group revenue/Commodity trading total) of 0.98%, the same period last year, 0.47, the mobile end of the ability to become more than doubled, but still less than half the overall business monetization rate, its ability to become inferior to the PC. Notably, the overall business monetization rate for the first quarter of 2014 was 2.18%, down from 2.3% in the same period last year.

Main business VIE complex structure

The prospectus also disclosed the Alibaba Group's vie agreement holding structure, with a total of 202 subsidiaries and business entities in the Alibaba Group. According to the U.S. listing requirements, Ali mainly disclosed the Consumer-to-consumer business Taobao, the business day cat and overseas business-to-business business Alibaba.com, the domestic business-to-business business 1688.com and the overseas business of the fast-selling VIE shareholding structure, these businesses have a VIE structure of up to four floors.

For example, Taobao Cat, the listed entity for the registered Caimas, IS. Alibaba Group Holdings Limited, its 100% wholly-owned Caimas, Is. Taobao Holdings Limited, the company's 100% wholly-owned registered in Hong Kong Taobao China Holdings Limited. Hong Kong company 100% Holdings in China registered Taobao (China) Software Co., Ltd. and Zhejiang Cat Technology Co., Ltd. All these are holding companies and the shareholders are pure foreign capital.

And in the domestic real responsible for Taobao and cat business operation of the company are Zhejiang Taobao Network Co., Ltd. and Zhejiang Cat Net Co., Ltd. The two companies are owned by Ma Yun, Shei holdings of domestic companies, they and the above Taobao (China) Software Co., Ltd., Zhejiang Cat Technology Co., Ltd. signed an agreement to control the contract.

The prospectus also disclosed the market's most interest in Alipay equity and future equity arrangements, and explained the 2010-year Alipay event.

The prospectus explains the Alipay event: in June 2010, the People's Bank of China issued a new regulation requiring non-bank payment companies to obtain licences to operate in China. These provisions only provide specific guidelines to applicants for domestic licence applications. Regulations say that any foreign investment payment company wants to obtain a licence, the scope of its business, the qualifications of foreign investors, the proportion of shares will need to comply with the future release of the provisions, and the approval of the State Council. Payment companies that do not have a licence must stop operating before September 1, 2011. Although Alipay was ready to file a licence application early in 2011, the People's Bank of China did not issue any guidelines applicable to foreign investment payment companies (the guidelines were not released as of the prospectus submission).

In view of the uncertainties associated with the licensing and application process of foreign investment payment companies, Ali Management decided to restructure Alipay into an internal company, stripping out all rights and control of Alipay owned by Alibaba Group and separating the financial statements of the two parties. Alibaba said: "This will enable Alibaba in time to obtain payment of business licences in May 2011, and will not have any adverse impact on our Chinese retail business or Alipay." ”

Alibaba said Alipay's spin-off came into effect in the first quarter of 2011, when Alibaba Group and small Micro Financial services company (Alipay parent company), Alipay, Yahoo, SoftBank, Ma Yun and Tsai reached a framework agreement on managing the future group's relationship with Alipay and its parent company. Under the agreement, Alipay will give priority to payment services to the group.

However, the prospectus on the restructuring of Alipay in the process, whether the prior approval of foreign shareholders or the board authorized the key fact, did not make a clear explanation, and outside the controversy and the team's business ethics criticism of the main focus on this.

After the separation of Alipay, the parent company of Zhejiang Alibaba E-commerce Co., Ltd., the small micro-financial services group has become the Ma Yun and Shei Holdings, employee-owned domestic companies. According to the prospectus, it has recently rearranged its shareholding structure, with a 58% per cent stake in Hangzhou June Han Equity investment partner Company (limited partner) and a 42% per cent stake in Hangzhou June-AO Equity investment partner company.

The prospectus did not specifically disclose the detailed ownership structure of June ' AO, saying only "Several Alibaba partners are in control". And June Han's stake is owned by Ma Yun and Shei, Alibaba Group employees and small Micro Financial services company employees.

Ma Yun, as an unlimited partner in He Jun, has the right to vote, while the limited partner Shei only has an economic stake. Therefore, Ma Yun can be a small micro-financial services company's shareholders to June O He Jun exercise voting rights. In other words, MA will continue to master the small Micro Financial services companies in the voting rights, and then grasp Alipay.

Previously, Alipay had an external explanation of the future equity arrangements, Alipay will gradually increase the proportion of employees, and Ma Yun's shareholding will fall to and its Alibaba Group in the proportion of shares, that is 7%. The prospectus also describes the plan: the shares of June Han's partners will be transferred to employees of Alibaba Group and small microfinance companies as employee incentives. In addition, the prospectus will also introduce private equity investors, but its stake will not be higher than Mr Ma and his staff share.

For Alibaba Group employees to hold the arrangement of Alipay, close to Alibaba market personage analysis said: The U.S. market, including the U.S. Securities and Exchange Commission for Alibaba Group on the control of Alipay worry, "in the eyes of the United States, the group is the group, Ma Yun is MA, To ensure that Alipay and the interests of the group are consistent, can not be fully linked to Ma Yun. "Alibaba Group employees and small micro-finance employees in the joint shareholding, will further strengthen the relationship between the group and Alipay."

But some in the market have expressed concern to the Caixin reporter that Alibaba Group employees hold the stake in Alipay, will make the electronic business entity and the payment of financial entities related transactions become more complex, taking into account Alibaba's partner system.

Wen/Chinian nan Hao