Where are you going? 150 million?

About to land in the United States to where to plan to raise 125 million U.S. dollars, but the staggering figure is that the company "cumulative" loss of 150 million yuan. The facts are not as simple as they seem, only about 60 million of the 150 million yuan is a real operating loss, and the 75 million yuan is actually a floating loss figure, a carefully designed option--and the source of this loss is: Where to hold the 61% shares of the "maiden" Baidu is unwilling to be diluted. Why 2010 has been profitable to where Baidu 2011 after the loss? And for two years in a row, you lose more? Why is the flow of resources to support the company's famous Baidu has not given to where more cheap traffic? Floating loss 75 million where to go mainly by the search technology and SaaS system two major components, its search engine, specifically for access to comprehensive, accurate information on tourism products. Dynamic Data caching and indexing technology makes it possible to process a large number of search queries at a faster rate of efficiency and speed--where to deal with 1.8 billion of consumers ' air tickets and hotel search queries in 2012, and where to get advertising revenue with these high levels of access. Where to go will become Baidu's own first listed companies, which is absolutely a good thing for Baidu. In 2012, Baidu to the Securities and Exchange Commission submitted to the SEC 20F documents showed that year when Baidu occupancy to where to hold the stock ratio is 62%, now a slight decline, is 61.05%. In accordance with the relevant regulations of the United States accounting standards, Baidu if you want to go on the list of where to continue to consolidate the report, you can not let yourself go where the proportion of less than 50%, therefore, even through the issuance of shares to finance, where the space is not small, Baidu's shareholding ratio can be reduced space is reprinting This is also the proportion that Baidu can bear. In fact, Baidu's mind is of course the more equity the better--because where to go is a company that began to profit in 2010. From the earnings of the first half of 2013, there will be huge value-added potential once the scale of profitability begins. And where to go listing there is also a condition: according to the rules of the U.S. stock market, the company's listing financing can not be less than 100 million U.S. dollars, if less than 100 million U.S. dollars, some big funds will think the company's stock liquidity is too bad, trading too low, big funds will lose interest. This is where to go why the financing must be higher than 100 million dollars, but only 125 million dollars, the proportion of financing does not look so high. The problem, of course, is to find a solution-not to motivate employees through multiple options, so the results of years of hard work for employees need to be reflected by the value added of existing options. So where to go for the past three years has been the use of a downward pressure on employee options to allow the price of the market after the future earnings. To give a simple example: where to send an employee 1000 options, 10 yuan per share, suppose to go where should be 10 yuan a share of the price sold to employees, but now considering that employees can not get more options,So where to go to sell to employees at 1 yuan per share--9 yuan, is the future option into the stock, where the company from the employees less money, and this is just an employee let go where the less income of 9000 yuan. Despite the 9000 yuan, the amount of money will only occur, but will be in the option issued when the time to make a fortune to be counted in the loss-in accordance with U.S. accounting standards, the option cost as the current cost of the expenses incurred, rather than operating losses. Yang sister from where to see the financial results, in the past 2.5, where to distribute 28 million yuan, 27 million yuan and 14 million yuan options, eventually formed a 75 million of the book floating deficit. In fact, there are only 0.01 dollars in the right price to go to employees-almost as much as white. The loss is widening? Where to go the gross profit margin is very high, between 79-80%. But where to go the losses in the past three years have been widening. According to the financial data disclosed by the company, if the excluding option fee, where 2010 went to the net began to profit, although only less than 100,000 U.S. dollars. But in 2011 years, where to start to lose money, the amount reached 9.86 million, to 2012 years, the loss to expand to more than 50 million yuan. In the first half of 2013, where to finally profit 380,000. Where to go in the first half of 2013 adjusted net profit is positive, is 380,000 yuan, this is excluding option cost, is profitable. Where to go in the first half of 2013, EBITDA (tax depreciation and amortization profit) is 13.7 million, which is excluding option fees and income tax, interest and depreciation before the profit, similar to operating cash flow, is also profitable. The company's biggest expense is the high cost of human resources. At the end of 2010 there were only 230 staff, by the end of 2011 years, the number of engineers who went there had increased to 982, and in 2012 the staff had risen to 1285, and in the 2013 years the staff had risen to 1699--the result of the survey was , about half of all employees are developing programmers. This is the hallmark of a rapidly expanding technology company: Rapid revenue growth, and rapid growth in research and development costs.　　Once income reaches a certain size and keeps growing, and the hiring of researchers slows down, the company's profitability is quickly released-another reason why big shareholder Baidu is unwilling to be diluted. Iron noodles Baidu But in any case, the industry questioned where to go where always can not get rid of a fact: to Baidu and where the shareholding relationship, why Baidu can not give to where to transport flow of blood, so as soon as possible to where to profit. A listed company CFO to Yang Sister revealed: Baidu and where to go is in business, between the two in the flow is actually trading relationship, Baidu will not give free to where traffic. For Baidu, the only stock to go where 62% of the shares, rather than 100% holdings-equivalent to say, if the flow of free to go where, it is equivalent to where the smallShareholders in vain for the cheap, then Baidu might as well sell traffic to where outside advertisers. And in fact, if Baidu will be free to go where the traffic, to a certain extent already belong to the related transaction, and there is the suspicion of conveying interests, equivalent to encroach on the interests of Baidu company shareholders; Conversely, if Baidu will this part of the flow of high prices to where, it is equivalent to where the level is big shareholder to bullying small shareholders- So we can only operate at fair and reasonable market prices. On October 1, Baidu launched the intimate search, Baidu believes that this is a comparison of the core of a new generation of search products, but Baidu itself does not compete with where to go, which part of the exclusive use of the right to access the network. So Baidu's support for where to go is not as simple as traffic. Baidu to the intimate search of the exclusive right to go where, where to give Baidu shares, Baidu can always get where to go more shares-the number of shares is 229 million U.S. dollars divided by the price of the IPO. The "intimate agreement" of cooperation has produced an objective result is that Baidu through to where to go to the exclusive right to get a stake in where to go. Of course, although this cooperation is also in business, fair swap, but also can only happen in Baidu and where to go, because this cooperation must open back to each other system, to put their own operational data, consumer search data, open to each other to cooperate. If there is no such investment relationship between Baidu and where to go, it is not possible to open this data to a third party without such a degree of trust.