Baidu-invested Leftbrain Seeks 2014 IPO
Securities Daily, 11/25/13
Liang Ran, GM of Marketing at Xgo.com.cn, a car review website operated by Beijing-based LBS mobile advertising firm Leftbrain Technology, has disclosed that the company will seek an IPO in 2014. The final location of the IPO, originally planned to take place in China, has yet to be determined. Income generated by Xgo.com.cn represents more than half of Leftbrain revenue. The company is 29% owned by Chinese internet company Baidu (Nasdaq: BIDU).
Leftbrain reported a net profit of RMB 5.61 mln in H1 2013, representing a YoY increase of 219% from H1 2012. The company's full year 2012 net profit was RMB 5.06 mln, up 99% YoY from a net profit of RMB 2.55 mln in FY2011, which in turn represented a 347% YoY increase from 2010.
According to Liang, Xgo.com.cn lags behind its competitors, such as Autohome, in terms of overall site traffic, but will look to complement its online ratings with offline automobile sales partnerships through its new "Maiche Hui" service.
"Maiche Hui" is a localized group buy-like O2O product launched by Xgo.com.cn, which is currently targeted at auto shows. According to Liang, at 13 auto show events since April 2013, over 10,000 users have ordered cars through Maiche Hui, with approximately 8,000 eventually completing purchases, representing a conversion rate exceeding 75%.
Maiche Hui is currently provided for free to resellers and users. Liang has revealed that the service will begin monetization in 2014.
Liang has stated that the primary function of Xgo.com.cn, in addition to providing vehicle and buyer information, is to customize car buying solutions and tools for target groups such as women, families, and businesses, as well as according to use and price.
Editor's Note: For more information on this topic, please see "Baidu Acquires 29% Stake in Leftbrain," MD 6/23/11 issue.
Keywords: Liang Ran Xgo Internet IPO automobile profit revenue Leftbrain online reviews