On November 9, Hello Travel announced the completion of a new round of financing contracts with a total amount of 280 million US dollars, and the investment institutions include Ant Group and Alibaba, which is the first time that Alibaba has invested in the shares. According to the previous rate of burning money, this money can make Haro burn for about 2 years.
In fact, in April this year, when Haro was preparing to go to the United States for an IPO, Ling News Agency did statistical analysis, Halo has raised almost 10 billion yuan since its establishment, and there were 800 million yuan on the account at that time, which can only be burned for 1 year, that is to say, according to the previous burning rate, Haro's money has been almost empty before the 9th. And just now when the financing market is in winter, the ant itself failed to list, Ali was punished by the stock price fell by half, Ali ant wind and rain, but Ali still helpless to take out his wallet, do not let Hello fall.
In fact, for Hello, Ling Tong feels that Ali and Ant should make a decision on the spot, if there is still value as a diversion of payment, it may as well be a public welfare undertaking of common prosperity, and it is too difficult to achieve profitability and then IPO through price increases, because the monopoly model is already a dead end. And if there is no value to the ants themselves, they will not burn money, and they will not be ashamed when they die, Sun Zhengyi will also suffer a big loss this year, and it is not interesting to die to face the guilt. For market-oriented investors, investment failure is also very normal, and for investors in state-owned enterprises such as Shanghai Poster Industry, it is enough to find a way to unwind.
Ling Tong Agency is a bit confused is that ali invested in any ecology before, it is a substitution! But the CEO of Hello burned 10 billion and can still sit on the Diaoyutai, is this because no one wants to take up this mess?
The following is the April article, and individual data may have changed for reference
After the platform economy of the Ant Building was rectified, its ecosystem lost the almost uncontrolled supply of milk powder that ants had previously had
Ling News Agency took a look at Harrow's F1 IPO prospectus in the morning, preliminarily added the company's financing history, looked at the basic financial data, about more than 1 billion US dollars + 3 billion yuan (almost 10 billion yuan) of this registered in the Cayman Islands activities in Shanghai's money burning company opened the tip of the iceberg of this platform, in 2018, 2019, 2020, Hello Travel's net losses were -2.208 billion yuan, -1.505 billion yuan, -1.134 billion yuan, respectively. The total is 4.847 billion yuan (I don't understand where else is 5 billion yuan burned?). The renminbi is not orange peel), now there are 800 million yuan on hand, probably can only burn for another 1 year, in the case of the ant platform itself is difficult to protect, if you do not continue to raise funds, Harrow is very likely to become the second of the OFO. As CEO, Yang Lei now accounts for about 10% of the company's shares through CEO awards.
But because Harrow Bike uses the Emerging Growth Company (EGC Listing Standard (turnover less than $1 billion) in the United States, the company does not need to disclose a lot of corporate governance information, which also brings uncertainty to the company's future. In fact, the IPO prospectus did not disclose the personal history of the company's founder Yang Lei, as the majority shareholder and founder of another company Ai Dai Driving has been filed for bankruptcy, including the Shanghai Poster Industry Group and other investments may have been lost. The Shanghai Minhang District Court once issued a document restricting Yang Lei's high consumption in this regard.
Founder Yang Lei owns 10.4% of his company, and another of his companies is filing for bankruptcy
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Yang Lei, who was previously the CEO of Aidai Driving, is still the majority shareholder
02
Ant is the majority shareholder with 36.3% of the shares
There is great uncertainty under the antitrust of the platform
Ant Financial, which owns 36.3% of the shares through Ant Financial Hong Kong, has publicly reported that the valuation in 2021 is about $4-5 billion, and it is not clear what price the NASDAQ listing can do, but Link news agency feels that in the case of the instability of Ant Building and the company has been losing money, it is still difficult for Ant to unwind from Harrow or even make a profit.
Originally, Harrow's main function was to appear as an important application scenario of Alipay, which is also an important reason for Harrow to take over the company with huge funds, but in the current anti-monopoly background, public information says that the central bank has asked Alipay to disconnect some applications, and Ant Group will apply as a financial holding company as a whole, and Harrow's users are diverted through Alipay, and the rectification of the platform has great uncertainty about how the ant ecosystem field awareness enterprises such as Harrow will affect the lack of uncertainty. Remember that before a cash loan company called Qudian began to rely on Alipay diversion, listed only the boss once said that it must do 100 billion US dollars of the company, and then was disconnected by Alipay plus Internet financial rectification, Ling Tong just went to see the market value of less than 500 million US dollars.
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The company can't leave Ant Ecology
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Yang Lei owns 10.4% of Harrow shares and the CEO rewards come
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Yang Leigang received 35,994,402 shares of common stock or CEO awards
According to the IPO prospectus, upon completion of the offering, A-shares of common stock and 166,772,842 Class B common shares will be issued and issued (208,669,186 Class B common shares if the CEO Award disclosed below was issued prior to the offering). Holders of Class A common shares and Class B common shares have the same rights, but have the right to vote and conversion. Each Class A ordinary share will have one vote, while each Class B ordinary share will have 20 votes and may be converted by the holder into one Class A ordinary share at any time.
Taking into account Mr. Yang Lei's past and future services, under certain conditions, prior to this offering, we plan to issue 35,994,402 ordinary shares or CEO awards to Mr. Yang Lei (or his wholly owned entity) at nominal value
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Financing more than $1 billion + 3 billion yuan Burned 9 billion
The IPO prospectus details the various financing situations of Haro in the past 3 years, which is very complicated, useful US dollars, useful yuan, and some seem to be physical, but I don't know why the IPO prospectus does not give a specific total, Ling News Agency roughly added about 1 billion US dollars + 3 billion yuan. That is to say, almost 10 billion yuan of financing, according to the current company's calculation of 800 million yuan, in the past 3 years, Yang Lei led Harrow Bicycle to successfully burn 9 billion yuan.
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There are still 825 million yuan available
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The three-year loss was 4.847 billion
In 2018, 2019 and 2020, the net loss of Halo Travel was -2.208 billion yuan, -1.505 billion yuan and -1.134 billion yuan, respectively
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Bicycles don't make money what hitchhiking violations
The IPO prospectus shows that on the basis of sharing bicycles, Harrow has now begun to do its own ecology, and the ecological story includes local life services such as hitchhiking and power exchange (there is no vegetable sales), which is called our flywheel in the IPO prospectus.
However, we all know that this is the most competitive scene, and as far as Link News Agency itself is concerned, in addition to preferring the service of Harrow (meituan no difference) bicycle, it is almost unheard of for Harrow's other services. Moreover, as stated in the IPO prospectus, there is a huge risk of violation of the fact of the hitchhiking business, which is being regulated in many places, in fact, the so-called hitchhiking is not at all a hitchhiking ride in the same direction as described in the IPO, but a pure business behavior.
EGC listing Incomplete information disclosure
And there's something
This time, Harrow Bikes was listed using the Emerging Growth Company (EGC Listing Standard (turnover less than $1 billion) in the United States.
In fact, the IPO prospectus did not disclose that a company that CEO Yang Lei had once been a major shareholder had entered bankruptcy proceedings.
1. The requirement to disclose audited financial statements has been shortened from three years to two years, helping companies to better hide their unbearable past. 2. Exempt from the constraints of SOX 404b, there is no need to establish an internal control system before listing, which saves money and effort for egc. 3. Form S-1 is only disclosed to the SFC and certain investors, allowing the EGC to understand the valuation of the capital markets on itself without disclosing information to the public, and to determine the best time to list.
Yang Lei can't look back on the past
According to the company's information, Yang Lei is the actual controller of Shanghai Binda, and the investors also include Beijing E-Car (yes, it is the company of Azure Automobile Li Bin), as well as the Suzhou Industrial Park 825 Fund.
Li Bin and others were cut leeks
LPs of the 825 Fund include the Shanghai Poster Industry Group
Now Shanghai Binta has filed for bankruptcy
Shanghai Binta has 153 cases executed
Yang Lei himself has also been restricted by the court
As the actual controller, Yang Lei withdrew from the management of Binta after driving harrow bicycles, but various investors who were cut leeks have been suing Bunda, although Harrow later argued that Yang Lei was only an investor in the limited company, but if Yang Lei had various personal guarantees for various financings, then, as the CEO of Harrow, Ant's original back tune seemed to have some flaws.
Can Yang Lei turn around and look at the IPO
In principle, if it is only a joint-stock company, even if the last company goes bankrupt, Yang Lei will only invest zero, but we all know that for investors like the Poster Industry, many of them cannot lose, and it is not clear what kind of investment these investments were made through in the beginning, but Yang Lei may obviously be traced in multiple cases.
Fortunately, Yang Lei still has a 10% stake in Harrow, and these investors may also take legal action. And Yang Lei himself, it depends on whether the IPO can succeed, and whether it can finally successfully cash out and land.
For the ants, all kinds of investments seem to be unsuccessful, and perhaps this IPO can at least stop feeding Yang Lei.