Zhu the biggest value of gem: P/E ratio reflects intellectual property

This reporter Yang Birch Silicon Valley reported that the average price-earnings ratio of the gem is up to 100 times times? What is the "no innovation" company that relies on one or two big customers to share the price of hundred dollars? Will the gem, which is the mission of promoting innovation, become a circle of money boards and casinos?　　Gem Open Board for a week, the vigilance of the various voices of risk. Perhaps it is too early to say anything about the gem.　　However, after the founder of the network, Cybernaut investment fund chairman Zhu and reporters in the Silicon Valley politeness, may be able to provide another way of thinking about the madness of the gem.　　San Francisco Time October 5 9:30 A.M., Silicon Valley Los Altos District 296 Main Road, a Starbucks, this reporter for the upcoming gem to Zhu conducted an exclusive interview.　　And many of the foreign VC cold water, Zhu to the gem optimistic, he thought the biggest value of the gem is that the concept of intellectual property is embodied through P/E. "The promotion of intellectual property is not how much a patent sells, it is a very narrow explanation, and the most obvious explanation should be: turn it into a P/E."　　"Turning intellectual property into a high-growth business and then giving it a high price/earnings rating is probably the biggest value of the gem," Zhu said.　　According to Zhu revealed that Cybernaut investment in a High-tech enterprises will soon be landing gem, "already in the relevant procedures."　　From net assets to P/E, 21st Century: China has been looking forward to the gem for ten years, what is your view on it? Zhu: Frankly, I've been through a mental journey. At the earliest, I didn't quite agree with that. Because I'm afraid the High-tech concept will be hype. For example, a drink, I say this is high-tech, so sell so well.　　Let's say I'm a desk, and I put a layer of stuff on it to prevent the bacteria from growing, and I said I was High-tech. In Chinese sense, all enterprises can be said to be High-tech, I was particularly worried about all enterprises will be so, worried that everyone is fooled. Over the years, I've seen too many nonsensical things, and the gem requirements are usually relatively low.　　In fact you go to see, the first batch of possible enterprise science and technology content is also relatively low.　　21st Century: Are you changing your understanding of the gem? Zhu: Yes, if we understand it from the perspective of a new thing. More importantly, I see because there is a gem, many local people are willing to invest in small and medium-sized enterprises, which include local VC or the future of possible foreign VC. They used to vote in real estate or something. I think this is a great incentive for the entrepreneurial sector and certainly a very good one.　　And the second, it actually represents an intellectual property.　　21st Century: Why do you think gem is a respect for intellectual property? Zhu: China's A-share listed companies are talking about net assets, the return on net assets, and American companies do not have this indicator. What does the United States say? To talk about P/E. What is the concept of P/E? SaidThe bottom is actually intellectual property. To measure an enterprise with net assets is to disrespect intellectual property. The intellectual property right here is not the legal concept, but the highest level of intellectual property concept. For example, I see you as your height and weight, so that's not respecting your intellectual property. For businesses, it's about how much money you can make in the future. I know you will make a lot of money in the future, so I would like to invest in you, this is intellectual property.　　Therefore, net assets is not respect for intellectual property rights, that is, the ability to completely remove people. The growth rate of profit is an intellectual property, I do not have to see your company's assets, I only see your profit growth. Of course, I am not saying that China did not respect intellectual property at all before, but it did not pay much attention to it.　　So now, once you start educating the P/E concept for the first time, it's actually an intellectual property.　　21st Century: Why do you think China used to talk about net assets? Zhu: The reason is the whole environment of China at that time, first, the economy is a blue-collar economy, blue-collar economy is looking at net assets, because blue-collar is not valuable knowledge, labor-intensive, workers are worthless, I now dismiss workers, tomorrow morning, the new workers are the same, but white-collar knowledge-intensive enterprises are on the head,　　So it's not a net asset concept, it's all about profitability: there's a business model, a technology product, and a lot of profits to come out tomorrow. Therefore, I think the gem is the first time to embody the concept of intellectual property. And the people are very intuitive, they see will feel: Wow, how this company only so few people will be worth so much money?　　Then they realized: Oh, the original few people are valuable intellectual property.　　21st Century: What are the main reasons why the United States does not encourage net assets per share? Zhu: The United States believes that once you don't focus on High-tech, you want to buy a high-rise, to buy a house, to buy fixed assets, then you are distracted. The United States is the reverse, once you go to buy a house and other fixed assets, then your business is going down, because you have to enjoy, you have other ideas. China, on the other hand, needs a lot of net assets, because it is afraid of the company's boss to buy a house, and then the last people walked away. So it has to do with society, and the second is to have a relationship with a blue-collar economy, or a blue-collar manufacturing economy.　　But China's external environment can not be skipped, because the integrity of society has not been established. "Locked in three years" meaning "21st century": How do you see the gem of the holding shareholder "locked three years" this rule?　　Typically, the Nasdaq is locked for six months.　　Zhu: This and the spirit of the intellectual property rights that we just talked about are in fact in the same vein. In other words, OK, now that I recognize your intellectual property, you do bring in so many rewards next year, but what if you cheat me? So, I'll lock you up for three years so you can't get out. I understand the rule very well.　　China is still in its early days and there are too many liars. The 21Century: If so, will it cause VCs not to enter? Zhu: I think it's okay.　　I have to say that in the context of China, I am now becoming more and more understanding. For example, why do other people say that a Chinese A shares do not have Nasdaq doing so well? I would like to say that China's external environment is not good. The outside Big Society does not have the good faith, you believed inside the small society to have the good faith? That's impossible.　　Just like, you want the independent director of China and the Independent director of the United States, it is impossible, because the outside society is different, independent director can not live in a vacuum, it lives in the society.　　21st Century: What do you think is the significance of the gem for the development of China's innovative economy? Zhu: Very meaningful. First, the gem will promote more people to start a business; second, a lot of money comes in, people are also concerned about the concept of P/E, so that we have a deep understanding of the value of intellectual property.　　You get a new thing out, we all agree with you, you have no net worth, but we give you 50 times times P/E. I think the previous understanding of intellectual property is too restrictive to explain, as if you have a patent, you sell how much money is how much. But in fact the most powerful thing is: you have an idea and turn it into a valuable product. I recognize you this product, you may have 10 million profit today, but I value your company 500 million, but at the same time, I am sorry, I will lock you for three years, because I want to see if you have real intellectual property. If you do, you must be rich.