The main business of Beijing Papaya Mobile Technology Co., Ltd. is based on massive data and core algorithms, providing customers with the best advertising solutions, the form is mainly divided into search display services and effect services, display and promotion to overseas users; As of 2018, the company ranked in the top two and top five in terms of overseas marketing revenue from Facebook and Google media channels, respectively.
Papaya Mobile was founded in 2008, the initial scale of operation is not large, according to the company in 2016 when applying for listing on the New Third Board released a public transfer prospectus, as of the end of 2013, the company's undistributed profit account balance is still -86.0402 million yuan, there is a huge amount of accumulated losses, it can be seen that the operation of Papaya Mobile in the entrepreneurial period is not optimistic.
Interestingly, in August 2011, Ms. Shen Si, the founder of Papaya Mobile, participated in 21 consecutive episodes of the "Do Not Disturb" program, although in the end she did not hold hands in the program, but got the title of "Internet Beauty CEO".
Papaya Mobile was listed on the New Third Board in April 2016, but only 8 months later, it applied for the termination of listing in the National SME Share Transfer System in December 2016, and then issued a prospectus (draft declaration) for the Science and Technology Innovation Board in March this year and submitted an application for listing on the Science and Technology Innovation Board. However, whether the core business of Papaya Mobile is consistent with the positioning of the science and technology innovation board is worth reflecting.
Papaya Mobile's core business is to represent Facebook's CPM (per thousand impressions per thousand impressions model), this business procurement accounts for more than 90% of the total purchase of Papaya Mobile, that is, Papaya Mobile's operation is heavily dependent on Facebook, essentially belongs to Facebook's display advertising business agencies. Reflected in the gross profit margin, the gross profit margin of Papaya Mobile's agency business is very thin, and the gross profit margin of the core business "search display" business is 4.26%, 4.65% and 3.79% respectively, which is consistent with the "intermediate fee" rate of 5% in the general simple advertising agency industry, and has fallen sharply in the latest year.
According to the Notice of Q&A on the Review of the Issuance and Listing of Shares on the Science and Technology Innovation Board issued by the Shanghai Stock Exchange, the types of enterprises recommended for priority include: 1. Scientific and technological innovation enterprises that conform to the national strategy, break through key core technologies, and have high market recognition; 2. Scientific and technological innovation enterprises belonging to high-tech industries and strategic emerging industries such as new generation information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, and biomedicine; 3. Scientific and technological innovation enterprises with deep integration of the Internet, big data, cloud computing, artificial intelligence and manufacturing.
Is Papaya Mobile's Facebook agency business in line with the national strategy? Is it a key core technology that needs to be broken through urgently? Is it possible to form scientific and technological innovation achievements in the future? It's all questionable.
Not only that, Papaya Mobile's research and development strength is also doubtful, according to page 169 of the prospectus, Papaya Mobile's R&D expenses from 2016 to 2018 were 27.9032 million yuan, 27.3061 million yuan and 30.5243 million yuan, respectively, and according to page 45 of the prospectus, Papaya Mobile's "scientific and technological achievements include 1 U.S. patent, 10 applications for invention patents and 17 software copyrights."
At the same time, on page 156 of the prospectus, Papaya Mobile's only U.S. patent is "the core module of the big data cluster synchronization management system", and the authorization date is February 13, 2018, that is, the eve of the company's application for listing on the Science and Technology Innovation Board; The technology was put into production as early as April 2014. Similarly, of Papaya Mobile's 10 patents pending, 7 were put into production in 2014 or before, and none were new technologies put into production in 2018.
So, Papaya Mobile spent more than 30 million yuan in R&D investment in 2018, in addition to paying salaries to R&D and technical personnel, what scientific research achievements have been achieved? In response to the above questions, Papaya Mobile did not reply to the interview of the Global Network reporter.
According to the content of the first training course of the Sponsor Representative Series (Sci-Tech Innovation Board Topic) held by the Shanghai Stock Exchange on March 18, among the "6 angles for assessing the scientific and technological innovation ability of enterprises", it includes "whether it has an efficient R&D system, whether it has the ability to continuously innovate, and whether it has the foundation and ability to break through key core technologies". Whether Papaya Mobile has an "efficient R&D system" and "continuous innovation ability" is also worth questioning.