Ali First Disclosed VIE Structure For The First Time To Explain Alipay Incident

< p > the latest news indicates that Alibaba will officially visit the New York Stock Exchange in mid August, and domestic investors will have the opportunity to participate in the super IPO's "fight new" through fund product groups. < /p >
< p > < strong > valuations raised to 130 billion 200 million US dollars < /strong > /p >
< p > the latest prospectus shows that the 27 partners of Alibaba have the right to "nominate the majority of board members" and have the right to nominate 2 board members on the basis of the existing 9 board members. The prospectus of the previous edition revealed that after the listing of Ali, 9 people will form a board of directors, including Ma Yun, Cai Chongxin, Lu Zhaoxi and Zhang Yong from Alibaba partners. If the board of directors of Alibaba group increased to 11, Ali would occupy 6 seats, and the control of the company would be further strengthened. < /p >
In addition to P, Alibaba has raised its valuation in the latest prospectus. Previously, Ali gave a price range of $40-50 / share, the overall valuation of 93 billion -1163 billion; and this time, Alibaba released the common stock fair value of $56 / share, the overall valuation increased to 130 billion 200 million dollars. However, according to the reporter's understanding, the price of internal trading of Ali has been close to US $80 / share, and the overall valuation of Ali group will be around us $180 billion. < /p >
< p > < strong > Ali < a href= "http:// www.91se91.com/news/index_c.asp" > VIE structure < /a > complex < /strong > /p >
< p > the latest prospectus also disclosed for the first time the VIE structure of Ali's Taobao, Tmall and express sell. < /p >
< p > taking Taobao Tmall as an example, their VIE structure is divided into four layers. The first level is the Alibaba Group Holding Ltd registered in the Cayman Islands, that is, the main body to be listed in the US. The second level is Taobao Holdings Limited, which is also registered in the Cayman Islands; the third level is Taobao China Holding Limited registered in Hongkong; the fourth tier is Taobao (China) Software Co., Ltd. and Zhejiang Tmall Technology Co., Ltd. The above are pure foreign investment holding, and 100% shareholding between layers. The two companies that are responsible for the actual operation of Taobao and Tmall, corresponding to the two companies of the fourth tier, are Zhejiang Taobao Network Limited and Zhejiang Tmall Network Limited. The two companies are controlled by domestic companies owned by Ma Yun and Xie Shihuang, and have signed VIE control agreements with fourth tier Taobao (China) Software Co., Ltd. and Zhejiang Tmall Technology Co., Ltd. < /p >
< p > the US China Economic and Security Review Committee, which belongs to the US Congress, announced in June 18th that investing in China Internet Corporation such as Alibaba using VIE would bring risks to us shareholders. < /p >
< p > < strong > official interpretation < a href= "http:// www.91se91.com/news/index_c.asp" > Alipay < /a > Event < /strong > /p >
In the process of listing Ali, P has always been the focus of the outside world. < Alipay > But Alipay is not included in the list, because it was split in 2011. And the split Alipay incident also made the outside questioned Ma's integrity and business ethics. In the latest prospectus, Alibaba made the first official explanation of the incident. < /p >
< p > the prospectus explained that although Alipay was ready to submit a licence application as early as 2011, the people's Bank of China did not issue any guidelines applicable to foreign investment and payment companies. In view of the uncertainty of the license qualifications and the application process related to the foreign investment payment companies, the management of the company decided that it is necessary to reorganize Alipay into a company wholly controlled by Chinese citizens, so that Alipay's license application can be applied to the guidelines issued by the people's Bank of China to the entities in the country. Therefore, the company divested all the rights and control rights of Alipay, which made Alipay separate from the company's financial statements. < /p >
< p > although the Prospectus has explained the Alipay incident, the key information about whether the foreign shareholders' consent or the board's authorization was obtained prior to the separation of Alipay was not explained clearly. < /p >
< p > < strong > next month or < a href= "http:// www.91se91.com/news/index_c.asp" > listing transaction < /a > /strong > /p >
< p > although Ali has not yet announced the specific date of listing, the news of multiple channels shows that the super IPO may choose to trade on the NYSE in the second week of August, and the global road show will start at the end of this month. < /p >
< p > domestic investors are also seeking various channels to participate in this wealth feast. At present, if domestic investors want to buy US stocks, they need to deal with Hong Kong stock accounts through securities companies before they can open the US stock rights. Recently, however, a number of domestic fund companies have launched products specially designed to participate in Alibaba's IPO investment so that domestic investors can organize new businesses. < /p >