Digital Kingdom

On October 10, Jinlongdai updated its prospectus on its official website.

According to the prospectus, Golden Dragon Loan plans to issue 30 million ADS (American Depositary Shares), or 150 million Class A common shares. The ratio of ADS to Class A common shares is approximately 1:5.

ADS can be freely traded in the US market, and A shares are traded domestically.

It is estimated that the price range of ADS per share is US$50 to US$55, and the total financing amount can reach US$1.75 billion.

According to the prospectus, Jinlongdai’s total common stock is 1.15 billion shares. Based on an estimate of US$50 to US$55 per ADS, the valuation range of Jinlongdaidai after its listing is between US$11.5 billion and US$12.65 billion.

The high valuation is jaw-dropping.

A company established less than five years ago has achieved a market value of tens of billions. The capital market is crazy.

There has never been an industry that can accumulate wealth so quickly.

Here, myths are often staged.

There are two reasons why Jinlongdai has such a high valuation.

First of all, the company's strong business growth and financial performance in the past three years have given investors great confidence.

In 2013, Jinlongdai had a net loss of more than 10 million yuan. In 2014, it turned losses into profits and achieved a net profit of more than 100 million yuan. In the first half of 2015, its net profit exceeded 1 billion yuan. It is expected to exceed 2 billion yuan for the whole year.

As the domestic economy continues to grow, the future prospects are even more impressive.

The performance of Golden Dragon Loan in the past three years is largely due to the rise of cash loan business.

According to the prospectus, the transaction volume of Golden Dragon Loan in the first half of 2015 reached 10 billion yuan, a year-on-year increase several times compared to last year.

On the other hand, Jinlongdai is not a pure p2p company.

Due to the diversification of its business (robotic investment advisory, consumer installment, small brother credit, commercial credit, cloud risk control), King Long got rid of the restrictions of cash loan business to a certain extent, and its profits have increased substantially.

The profit contribution rate of microfinance has fallen below 10%.

In short, benefiting from Jinlongdai's industry position and outstanding performance of cloud risk control, Jinlongdai's P/E ratio is much higher than that of traditional P2P platforms.

For domestic P2P, although it is an "information intermediary" in name, it still has certain characteristics of a "financial institution". In terms of valuation, there is a tendency to "financial share of technology stock valuation".

Generally speaking, the 2015 PE given by investment banks is basically maintained at about 10-15 times, and the comparable objects of valuation are mainly consumer finance companies and banks.

But Jinlongdai rarely enjoys a PE ratio of 40 times.

Golden Dragon Loan cannot be regarded as a pure cash loan company, nor can it be regarded as a pure online loan.

It spans many fields, e-commerce, credit, technology, and lending.

From a single business model to diversified operations.

To this day, King Long can be called an Internet financial giant.

Generally speaking, in terms of valuation indicators, the high price-to-earnings ratio is related to the company's industry on the one hand, and on the other hand, it reflects the capital market's belief that its future earnings growth will be fast and can quickly digest the current high valuation.

Golden Dragon Loan's holding parent company, Digital Group, has recently increased its exposure. It is almost superb, holding an artificial intelligence killer, and domineering.

Its built-in powerful mapping capabilities make the capital market believe that the company's prospects are more brilliant and high valuations can be quickly digested.

As long as there is the support of the digital group behind it, Golden Dragon Loan is bound to enjoy the traffic import and technology output of the digital group, and its future development has greater room for imagination.

Therefore, to this extent, Golden Dragon's valuation does not represent the traditional "P2P" platform, and the shareholder premium behind it is the real reason.

You cannot be blindly optimistic just because Jinlongdai is valued at more than ten billion U.S. dollars, thinking that online loan companies are all golden babies.

Because there are other factors blessing, other companies can only sigh.

As soon as the prospectus of Jinlongdai was issued, it attracted attention and heated discussions both inside and outside the industry.

On the one hand, Jinlongdai is the first domestic online loan company to be listed overseas, which has a natural coordinate.

More than a thousand peers are paying attention to Golden Dragon's every move. It can be said that the valuation of 10 billion US dollars has greatly boosted the confidence of the industry and aroused the ambition of practitioners.

For a time, people's hearts floated.

People usually only see what they want to see. They don’t think about the gap between the two. They don’t see the gap in profitability, risk control ability, and industry status. They only see a lot of RMB in the market. Shaking.

Almost every online loan company thinks this way:

"Golden Dragon Loan, as the industry hegemon, can be valued so high. Our company is down-to-earth. It is not as ruthless. It is reduced by 100 times, 100 million US dollars.

In an instant, a market of hundreds of billions of dollars was born.

A lot of hot money has poured in, and every capital and every company does not want to miss the next outlet.

Originally, due to the recent increase in platforms that have run off and collapsed, the slightly declining online lending industry has been stimulated by Golden Dragon's listing plan to prosper again.

Only Golden Dragon Loan can change the situation of the entire industry with its own efforts.

Is it proud of it, or dumbfounding, can only experience it alone.

Zhao Ziming claims to be a big fan of the online lending industry, and he certainly doesn't like the influx of swarms.

For the people who eat melon outside the industry, the market value of tens of billions of dollars is the birth of another myth.

Wealth is naturally attractive.

The world of money, the prevailing standard of measurement, lies here.

According to the diluted shareholding ratio, some media have calculated the approximate stock market value of Golden Dragon Loan founders, executives and venture capital institutions.

It can be said that the listing of Golden Dragon Loan has created a large number of new rich people.

After the shares were diluted, Zhao Ziming, chairman and general manager of Jinlongdai, held 61.4% of the shares.

If you take the median of US$52.5 per ADS per share, the market value of Golden Dragon Loan is about US$12.075 billion, and Zhao Ziming's stock market value reaches US$7.3 billion, which is equivalent to more than 40 billion yuan.

Kunlun Investment Li Wei ranked second with a shareholding ratio of 12.3%, with a market value of US$1.47 billion, Ruida International Xu Baoping’s shareholding ratio was 5.5%, and a stock market value of US$660 million.

Digital Group executives Wang Tianbao and Shen Yiyi hold 4% of the shares, holding a stock market value of 480 million U.S. dollars, Golden Dragon Loan executives holding a total share of 3%, and holding a stock market value of 360 million U.S. dollars.

About 10% of the share plan was underwritten by three hundred companies. As the initiator of this plan, Loyal3 has been dedicated to communication and coordination.

Zhao Ziming has always been regarded as a billionaire with a net worth of 40 billion, which is not surprising.

What shocked and envied everyone the most was Wang Tianbao and Shen Yiyi, who entered the billionaire class with this.

Shen Yiyi's photos flowed out, and he was hailed as the face value responsible for domestic professional managers.