News China Reading (QI' holding company) now worth 10 Billion US $

China Reading start trading in HK today, the news report it worth 900亿HK$，1亿=1e8, 8HK$=1US$, 1 Billion = 1e9, so it is almost 10 billion US$

it seems a very unlikely number, because I wonder how much it need to make every year, so it would act like a 10 Billion company

I did a few simple calculation
1. according to google androd market, its app has between 50K to 100K user, assuming android user make 80% of mobile user, and mobile user make 50% percent of QI user, and let be generous here, so currently it has 200K user

2. it worth 10 Billion, so it has to make 1/20 of these every year, and be generous again, lets assume it only make 10% of money from oversee market, so it is 50 Million every year

3. so it need to make 50 Million doller from 200 K user, so it need make 250$ from every user

250$ from every user, does it make any sense ?

I N-ple check this 10 billion US$ number again, source:

http://finance.sina.com.cn/roll/2017-11-08/doc-ifynrsrf2815499.shtml
http://finance.sina.com.cn/roll/2017-11-08/doc-ifynrsrf2828643.shtml
http://money.163.com/17/1108/09/D2N86OOU002580S6.html
http://finance.ifeng.com/a/20171108/15775886_0.shtml

 

Its calculation isnt like that dude,... -_-

 

watch some porn.
is better than calculating a company ingress.

 

You know chinese fakes their number in everything, from economy, stocks, etc. Don't trust Chinese bullshit.

 

Market cap =/= Earnings ...
Only if it were that easy ...

 

From the article below it's seems like the company's worth is in the millions not billions

https://www.google.com/amp/s/www.bl...na-literature-sets-ipo-price-at-hk-55-a-share

 

That's not how its work.

 

It is true..however there are honest Chinese bussiness people but the lying assholes outnumbered the good people 10 to 1

 

I think you're confusing net income and net worth.

 

Dude I think you got the translations wrong, go ask Qidian to fix it for you.

 

Company worth is nowhere near that simple, guy

 

you are quoting a old data, i read from Sina, it is a 1 hour early news , it say 900亿 http://finance.sina.com.cn/roll/2017-11-08/doc-ifynrsrf2828643.shtml

 

That would be their net worth, I suppose. Probably includes all assets.
Now revenue, on the other hand...it's not as high as they make it out to be. Wasn't there an article (can't remember when) about another company suing Yuewen over the breach of a contract or something? It spoke about low returns, if I recall correctly.
Besides, some companies do have the tendency to inflate numbers to make themselves look good. Gotta give prospective investors some confidence, you know~

 

Old data? It was from yesterday so I find it extremely unlikely that a company would go from millions to billions in 24 hours. But regardless I highly doubt its worth 10 billion dollars

 

Oh the IPO finally went out? Time to comment on all the news articles and let the world know about Qidian, the shameless, scummy young master.

 

So you're saying that Jack Ma being one of the richest guy in the world because dude faked his report? It doesn't work like that man.

 

I also doubt this number

but every news (from the big 4 chinese portal) I read, says it is 800 or 900 Billion HK$

the reason I make this post, it because I don't understand why it worth that much

 

Tencent is helping China creating a better citizen:

So yeah. Tencent will control your life if they could.

 

That's because you're conflating market cap with profitability and the actual value of a company. Market cap is what you get when you multiply the traded value of a stock by the number of stocks issued by a company. Since sometimes only a small number of shares are made available at the IPO this can create vastly over inflated market caps.

Also, a lot of companies have a high value relative to how profitable it is. A good example of this is Uber. They have not gone to IPO yet, but they're valued at several tens of billions of dollars. However, they have never been profitable, and they have no business plan for profitability, and they've also been losing gobs of money every quarter. Why are they valued so highly then? Sometimes, it really doesn't make any sense.