Nowadays, enterprises are bigger and stronger through American listing, and the biggest advantage of American listing is that loss-making enterprises can also list for financing.

Apple does not have a factory only to do research and development of tens of thousands of patents worldwide with the world's largest market value.

Amazon has been losing money for 20 years, but it is the world's second most valuable company by virtue of its unmanned supermarket business model and proprietary intellectual property.

Xiaomi may have gained the essence and developed vigorously. Its patents have been more than 7,000 in the last month, and it has been more than 8,000 this month, with a market value of more than 500 billion Hong Kong dollars.

Founded in 2014, NIO lost 3.3 billion yuan in the first half of the year and raised $1.8 billion in a U.S. IPO.According to the interview, the core of the company is also intellectual property. There are more than 6,000 employees of NIO, among which the global research and development team has grown to more than 3,000, and the research and development expenditure is at least 67 billion yuan.Investors including tencent, baidu, jd.com, hillhouse capital and sequoia China have raised a total of 15 billion yuan.

However, some domestic enterprises focus on expanding fixed assets, land, equipment, etc., while ignoring intellectual property rights. The copyright of invention patent software has neither quantity nor quality.This is also the main reason for the low valuation and market value of some of China's valuing assets over research and development.

Overview of U.S. listings of some domestic companies in the first half of 2018

According to incomplete statistics, 15 Chinese companies went public in the United States in the first half of 2018

First, why should the company go public 

First of all, from the perspective of the company, the company's valuation and enterprise value will increase rapidly after the ipo, which is conducive to the expansion of the company's production scale, and the listing can also expand its popularity. For investors, the huge profit after the discount of the listed stock may turn to the next investment target to realize the leverage to make money and increased personal wealth.For most companies, companies are suddenly getting dozens and hundreds of times the price-earnings ratio, huge financial support.Listing is an important milestone in the development of an enterprise and a symbol of its success in stages.However, due to the pressure and fast pace in the high-tech field, most successful high-tech companies, whether amazon, Microsoft, apple, Google, or domestic BAT (baidu, alibaba, tencent) and xiaomi cannot leave the help of capital and promote, so they choose to list to promote their development.

Why do most Chinese companies choose to list in the U.S.?

There are too many limitations in listing on the Chinese mainland, and the threshold for domestic listing is high with more requirements!

For Chinese companies, domestic listings should be preferred. But in the face of the listing requirements set out in the company law, net profits have been difficult for 50-80 million a year. let alone for three years. Big companies like jd.com lost money for more than a decade before they started making money in the fourth quarter of last year.

Listing requires the company to be registered in China

Of course, the registration place also has certain requirements. A share requires the company to be registered in China, but nowadays the giant companies are initially registered overseas. For example, BAT (baidu, alibaba, tencent) is actually registered in the cayman islands.

PS. The UK is the fourth largest offshore financial center in the world. Due to its stable political situation, no foreign exchange restriction and no direct tax, foreign companies have come to the cayman islands to engage in financial business.

The process of domestic listing review is long and time consuming

In China at present , the company to be listed is adopted by the audit system.

Being audited only, A share may want to consume on half A year, let alone before appearing on the market , the company still has to queue.Statistics show that nearly 500 companies have been approved by the CSRC and in the queue every year, as well as a steady stream of applications.Time is money. Technology companies are growing very fast. If Internet giants such as alibaba and jd.com wait a year or two before listing, many opportunities will be missed.

U.S. listing has few limitation, high valuation and short period

Low threshold for U.S. listing

Different from the domestic audit system, the U.S. listing policy adopts the registration system, which does not set the profit threshold for the companies that need to be listed. Therefore, it is suitable for all kinds of companies that are in urgent need of financing for rapid development. Even Internet financial, agricultural and real estate enterprises that cannot be listed in domestic A shares can be listed in the U.S.. As long as your business is growing fast and has a large market share, you can go public even at a loss. For example, jd.com, youku and 360 cannot be available in China, because they cannot meet the conditions of profitability for three consecutive years.

Listed allows companies in the United States has a good story concept, investors care about most is the core of his intellectual property rights of high-tech products and new business models. As long as the company continues to grow over the past few years, and the market is willing to pay for it even if it loses money, there will be a listing that is "most likely to break through the trillion-dollar market value of amazon", as there was no clear path to profitability.

High valuation and high price-to-earnings ratio in the U.S.

The reporter found that American investors mainly give high valuations based on the company's core proprietary intellectual property rights under high-tech products and new business models.Apple does not have factory entity only to do research and development, more than 100,000 patents worldwide are soft layout.As of August 2 local time, apple shares broke through $207.05 in intraday trading to reach the peak of $1 trillion market value. It is also the world's first company to be worth more than a trillion dollars.The global tech industry group is dozens of times larger than apple's fixed assets, but its share price is less than a fifth of apple's. This may be worth thinking about and awakening domestic listed enterprises.

As a result, the number of patents owned by technology companies is an important parameter in the valuation of U.S. stocks.

New business model

RYB priced at $18.50, up from the previous $16-18 range.Based on earnings per share of 0.33 in the last 12 months, the offering price/earnings ratio is 56.06.Vaichuang shares (002308) have A p/e ratio of 58.89. Given the systematic discount to IPO multiples, the U.S. market values RYB on A par with a-share valuations.

The U.S. listing policy is relatively loose and the cycle is short

And the listing cycle in the United States is shorter than in China. The comparison is as follows: listing in the United States can be done in four months if it is quick, and business opportunities for high-tech companies are fleeting. In China, when the IPO is done (no surprise after three or four years), the opportunity is long gone.

Listing in the U.S. is risk-free and the founders still have control over the company

First, technology companies tend to have different rights to the same shares, which can only be listed in the U.S., while China, Hong Kong and Europe all share the same rights, which carries the risk that your company could become someone else's, with high probability.

Listing in the United States, whether on NASDAQ or NYSE, does not require new shareholders to be given a proportional share of the vote, meaning that your listing does not affect your control of the company. Technology and Internet companies often need a lot of financing, and the founder's equity is constantly diluted, resulting in the founder may no longer have the control of the equity share. For example, Facebook, zuckerberg is the actual controlling person of the company no matter how many shares he owns. Mr. Ma has just 7% of alibaba's shares, but still has absolute control over the company. That prevented jobs from being kicked out of apple.

Note: according to the "company law" of China and the United States, the existence of different rights in the United States refers to the right to vote, not the right to share.

More room for market cap growth

New York stock exchange and nasdaq stock exchange, the world's largerst and the second.

The high-tech products under the core proprietary intellectual property rights and the new business models of amazon and tesla, the U.S. capital market has an almost irrational worship of high growth, and the U.S. stock market has never been reluctant to give enterprises high market value.

In a-shares, issuance is capped at 23 times earnings, which is bad for emerging sector companies. In the U.S., the issue price is entirely determined by the market, and the price-to-earnings ratio of the U.S. stock market is higher than that of the Hong Kong stock market and close to the a-share market.

Maximize the interests of the management

Corporate executives can hold shares or options, and circulation is not restricted, while the us stock market is highly volatile, almost equating to holding cash.

Selection of listing guidance agencies in the United States

First of all, it is necessary to develop patent software under the core independent intellectual property rights and to innovate the design of new business models for enterprises.

This is also why brokerages, accounting firms and law firms are competing with lending networks. Any brokerage, accountant, lawyer and third-party agency do the subtraction after due diligence. For example, the annual profit of the enterprise is nearly 10 million, and the net profit immediately shrinks to several million years, and even requires the enterprise to pay tens of millions of tax to straighten out the financial system, which makes the enterprise formidable. Compared with the domestic annual net profit of 50-80 million. Hong Kong's annual net profit of hk $50 million for two years is different. The U.S. can also list with losses, but the core is the technology and business model valuation after the independent intellectual property research and development.