Lei Jun is here again.

Editor’s note: This article comes from the WeChat public account “IPO that thing” (ID :ipopress), author Sugar A Bao. The original title “Jinshan Office Branch IPO, the profit model is getting mature? 》

Lei Jun, who is known as the IPO harvester, once again won the next city.

At the moment, I am writing this article with WPS.

Unexpectedly, it is such an office software that will be separated from Jinshan Software and put into the bottle of “Jinshan Office” and go to the Kechuang Board for listing.
  In the year of 2018, Lei Jun, who was hailed as an IPO harvester, once again won the next city and added another stroke in his investment career.

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Speaking of Jinshan office products, most people are familiar with them, including WPS and Kingsoft.
 
  In your student days, as you take the exams, go to the society, and accompany you to work overtime, it is simply the trouble that Charlotte can’t get rid of.

In fact, as early as May 2017, Jinshan Office tried to list on the Science and Technology Board, but it was once terminated and it was gone.

There is a re-warming board, the sponsor institution is CICC, the proposed financing amount is 2,050 million yuan, and the proposed issuance of no more than 101 million shares, accounting for 21.91% of the total share capital.
  According to this calculation, if the Jinshan office reaches the proposed fundraising amount, the total market value of the company will reach 9.356 billion yuan.

The listing of Jinshan Software, the most concerned should be Lei Jun, when he refused Tencent to reject Ali, but in the past few years it has become an IPO harvester.

In these years, Xiaomi, Jinshan Software, Cheetah Mobile, Thunder, Happy Age, Century Internet, Carefree English, Palm Technology….. Lei Jun invested in too many listed companies.
  In just 2018, there are companies such as Yujiahui, Huami, Iqiyi, Weilai Automobile, Fun Head, Yunmi, 51 Credit Card, and Peptide.

At present, Lei Jun directly or indirectly has 25.70% of the voting rights of Jinshan Software, and Jinshan Software directly or indirectly holds 67.50% of the shares of Jinshan Office, and then through some investment companies, Lei Jun holds the company in total 11.99 % of the equity, calculated according to the market value of 9.356 billion yuan, this IPO will bring Lei, the 11.22 billion yuan of wealth.

Under the huge aura, after Jinshan Office as Jinshan Software and Xiaomi, Lei Jun’s third company is a listed company of real controllers, and the listing naturally has received great attention.

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The Jinshan office has evolved from birth to twists and turns, and finally went to the exchange, which is closely related to the development of the times.

In 1988, the Internet trend was blown into China. A 24-year-old young man named Qiu Bojun fought day and night in a hotel’s rental room and wrote WPS version 1.0.

From this point of time, it was actually born earlier than Microsoft’s office, but later Microsoft ruled the desktop operating system, entered China in the 1990s, and actively found Jinshan, hoping that Jinshan would share the WPS format with Microsoft. And they are compatible with each other.

It’s also this trick that allows Microsoft to dig the corners of WPS with little effort,
  Many troublesome old users have migrated to Microsoft’s office, and WPS has gradually been marginalized, and is even seen by many as a cottage product.

In 1992, Lei Jun joined Jinshan Software as the CEO of Kingsoft Software and began to promote the transformation and rebirth of WPS. He developed many features that Microsoft does not have, such as templates, cloud fonts, etc., and free The strategy against Microsoft’s charging strategy.

This is also in line with the development trend of China’s Internet, just like 360 ​​anti-virus fired with free strategy.Like the software, Jinshan Office has come out of the mud.

In 2011, Jinshan Office split from Jinshan Software and began its independent operation. Lei Jun, who has launched an attack on smart phones, proposed a new goal, All in Mobile.

This judgment succeeded in grasping the context of the development of the times, and let WPS achieve counterattack. In the PC market today, WPS has a 40% market share, while the mobile terminal has reached more than 90%.

At present, WPS Office Mobile has become the first mobile office software product in the domestic market with the most active monthly users.
  The company’s product monthly active users (MAU) is about 328 million, of which nearly 60% are on the mobile side.

April 2019 The Mac version of WPS Office is available at the Apple App Store.

Compared with Microsoft’s office office suite, the advantages are free, cloud synchronization is more convenient, but the disadvantages are equally obvious, that is, more ads and pop-ups.

And this is exactly the main source of income for Jinshan Office,
  From the first quarter of 2019, these revenues accounted for 75.87%, which can be said to be the money-making model of Jinshan Office, which is also in line with China’s national conditions and the Internet ecology.

As of March 2019, the company’s main products monthly active users (MAU) exceeded 328 million, of which WPS Office desktop version of monthly active users more than 132 million, ahead of other domestic office software;
  WPSOffice Mobile has more than 187 million monthly active users;
  The number of monthly active users of other products (such as Kingsoft PowerWord) is close to 0.1 billion.

In terms of popularity, WPS Office Mobile has reached more than 220 countries and regions in the world, and is ranked among the top in the global application market for Google Play and China App Store, and continues to lead.

This kind of data is already very leading in the whole office industry, and the WPS is mainly for white-collar workers, and the general public will also use it. Although the unit price is not high, it is better than the scale. So there is no doubt that Jinshan Office has taken the most plump piece of the entire office industry.

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As we all know, to C’s corporate ceilings are much higher, especially in China’s huge market and low payout environment, with broad room for growth.

According to the prospectus, Jinshan Office’s products and services are widely used in government, finance, energy, aviation and other fields, especially in the government sector. Currently, it covers more than 30 provinces, municipalities and autonomous governments, more than 400 City and county governments.

As of the end of March 2019, among the 120 Chinese companies in the Fortune Global 500, the company has served 69, with a ratio of 57.50%;
  Among the 96 central enterprises, 82 were served, with a proportion of 85.41%;
  The country’s five major state-owned commercial banks are corporate customers, and among the 12 national joint-stock commercial banks, the company has served 11 customers, accounting for 91.67%.

There is no doubt that Jinshan Office is in an absolute leading position in the field, especially in the Chinese market, and because of the domestic independent controllable demand and payment ecology, the number one competitor – Microsoft The office has gradually stepped out of the altar.

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Jinshan Office is a company that is well known to the public. There are Lei Jun behind the mountain and it is hot.

But actually, there are some uncertain risks. Far from it, the company is currently in the lawsuit with Foxit Software, and the demand for Foxit Software is 100 million yuan.

Financial aspects, as of June 30, 2019, the company’s total liabilities reached 490 million yuan, the company’s first half of the revenue of 685 million yuan, an increase of 38.38%, but net profit of only 146 million yuan, down year-on-year 19.42%.

The main reason for the decline was the increase in R&D expenditures, as the company was required to pay a 48.24% increase in R&D staff salaries, and the company admitted that this risk factor still exists.

In terms of the overall environment of the board, the high cost of research and development is a common situation. On the contrary, from the overall valuation, there is a general bubble. If the factor of Jinshan’s net profit decline does not disappear, will it not? It will become the needle that pierces oneself, and it is worth pondering.