The More Important Thing About Lanting Pavilion Is The Lack Of Money.

At the financial level, Lanting Pavilion has lost 7 consecutive quarters.

In early June, the 2015 Q1 earnings report released by Lanting Pavilion showed that Lanting Pavilion's net loss was $8 million 700 thousand as of March 31, 2015, compared with a net loss of $7 million 600 thousand in the same period last year.

Correspondingly, the cost of marketing in the 1 quarter was $31 million 500 thousand, an increase of 21.63% over the same period last year.

Lanting Pavilion's overseas advertising is mainly online, such as Google search advertising and Facebook graphic advertisement. Fortunately, the conversion effect is about $11.2 per unit, which is higher than the 13.2 US dollars in the same period last year.

But compared to the domestic retail electricity supplier 40 yuan (about 6.4 U.S. dollars), the cost of acquiring passengers is nearly twice that high, so the high cost of acquiring customers is the bruising of Lanting Pavilion.

While Lanting Pavilion is aware of this problem, it will increase its pformation effect and increase its efficiency.

To reduce the cost of performance, the average performance cost of the current single order is controlled at $2.43, a decrease of US $0.09 over the same period last year.

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It also faces competition from peers such as Alibaba, Dunhuang and Jingdong international station. If we reduce the cost of advertising, its revenue growth will slow down. The gross profit has dropped by 7.3% in a year, gross profit has declined and orders have increased.

Therefore, these two contradictions are facing.

It is necessary to use new obligations to "hematopoiesis".

In early 2015, it launched the "Lanting Pavilion intelligence" - a global cross border logistics open platform.

To open up platform for cross-border e-commerce vendors to integrate logistics services providers around the world.

Or you can understand that Lanting Pavilion wants to set up a "rookie network" in cross-border electricity providers. At present, it only opens up the business of butt sellers, and the subsequent opening and docking of individual consumers still need a lot of capital investment.

Building overseas positions is a key step to enhance the effectiveness of the "Lanting Pavilion Zhi Tong" platform and reduce the cost of performance.

But as of the 1 quarter of this year, the total cash and details equivalent of Lanting Pavilion holdings was about $67 million 700 thousand ($83 million 400 thousand in the 4 quarter of 2014).

On the other hand, when Lanting Pavilion's stock price continued to decline at the end of 2013, it announced a $20 million stock repurchase program, but the implementation of the plan was extended. As of the 1 quarter of 2015, the Lanting Pavilion had already bought back 13 million 900 thousand US depositary shares, and the remaining 6 million 100 thousand US dollars had already accounted for 1/10 of Lanting Pavilion's cash flow.

In the final analysis, the Lanting Pavilion is "short of money" and is cold in the capital market.

For now, in the case of Lanting Pavilion's potential earnings, the cost of equity financing is much lower than the cost of bond financing. AOKANG international sends "hot money", and there are complementary gimmicks of products and channels. Is there any reason to refuse?