Is Jumei.Com Really Undervalued? Is China'S First Cross-Border Electricity Supplier?

Chen Ou said that the reason for delisting was because poly America was "seriously underestimated" by the US capital market.

Previously, the United States had been subjected to class action because of improper information disclosure. Chen Ou responded by saying that the market was besieged by vultures.

- in the third quarter of 2015, the results showed that its revenues increased by several times.

It has always been criticized by "fake commodities". In 2014, it cut down the third party business and converted itself to self employment, aiming at "putting an end to fake products".

- vigorously promoting cross-border business, claiming to be the first but lack of cross-border business.

Support

Chen's open letter is just like a catalyst to push the stock market which was not optimistic about the US capital market to a deeper level.

At 10 a.m. Eastern time in the United States, the New York Stock Exchange and Nasdaq opened at 6.32 a.m. in February 17th. The stock market was red. Only the jumei.com curve was green. In the afternoon, it was closed at $6.32, and it rose by 8.22% throughout the day. After that, jumei.com announced that it received a private application of $7 per share.

The buyer is poly American founder and CEO Chen ou, co founder Dai Yusen and Chinese investor Sequoia Capital.

Chen EU sent a letter to all the employees, saying that the reason for delisting was because poly America was "seriously underestimated" by the US capital market.

Chen said that privatization is a milestone of a new starting point, and that the United States will once again enter the entrepreneurial process.

In his internal letter, he did not mention investors, especially those long-term investors. They bought poly American stocks at the selling price of $22. They supported the United States for 20 months. Finally, the United States brought them not only any gains but also 69% of their original capital.

In May 16, 2014, Chen Ou was confident in the opening bell of the New York Stock Exchange, and he was still confident in the open letter of January 27, 2016.

Is jumei.com really underestimated after 20 months in the US stock market?

Because of improper information disclosure, we encountered class action.

At the end of December 2014, a number of law firms in the United States and a law firm in the United States launched a class action lawsuit against the United States, on the grounds that there was "false and misleading financial statement" in the United States, which did not reveal the fact that changes in the sales mode triggered changes in the financial situation and led to the loss of investors.

The lawsuit alleges the three improper disclosure of information in the United States (including undisclosed). First, the company changed its revenue model through the pformation from the market service business to the commodity sales business. Two, this pformation brought great risks to jumei.com's successful financial performance. Three, jumei.com did not expand as it claims.

Service business.

The lawsuit is mainly aimed at eliminating the third party business in the United States.

In the prospectus before listing in 2014, poly said the first goal was to expand the category of commodities and "continue to expand the number of third party businesses".

However, in 2014, the media exposed the electricity supplier's third party platform to sell the fake watches.

By the end of 2014, the United States, which had been criticized by the "fake", had cut the third party business at the end of 2014, but it did not explain it to shareholders in detail.

Chen did not explain this class action.

The only response was that it was besieged by the vultures of the stock market.

"A bunch of Wall Street firms jumped out to sue the United States, saying that we didn't tell them before listing that they would cut the third party business lines and mislead investors.

The goal of the prosecution is to compensate the company, so that the company will make money.

Revenue multiplier, profit drop, bad review

The third quarter earnings report in November 2015 showed that the net revenue of the company was 1 billion 900 million yuan, an increase of 99.9% over the same period in 2013. However, the net loss attributable to shareholders amounted to 86 million 900 thousand yuan (the net profit attributable to shareholders in 2014 was 120 million yuan).

Based on this earnings report, TheStreet TheStreet, a rating agency of the financial website of the United States, issued a research report. According to the estimated return on the investment period of the next 12 months in jumei.com, its stock rating was pferred to the level of "D" sale, followed by jumei.com's share price plunging 4.49%, and investors suffered serious losses.

As for the situation of negative revenue multiplier, at the November 10, 2015 earnings interpretation conference, CFO Gao Meng told the US media that the company's profits had "declined" because of the provision of discounts and logistics costs. Another 56 million 600 thousand yuan loss was caused by the sharp depreciation of the renminbi.

Claiming cross-border first but lack data support

At the end of 2014, the United States was also vigorously promoting cross-border business.

Chen Ou's open letter said that in the capital craziness, the numerous electric business mad burn money, the huge loss's bad competition environment, the United States still can maintain the high speed growth while maintaining the outstanding profitability; since the listing, poly America has also changed the tire on the highway, has changed to the cross border electricity supplier pformation in a short season, becomes "China's first cross border electricity supplier".

As early as in May 2015, the United States joint CFO Gao Meng explained in 2015 Q1 earnings report that since the purchase of the mother and baby category in April 15, 2015 by the United States of America, it has occupied the leading position in less than 1 months, and the daily order volume is about 10 times that of the second. It has become the "China's first cross-border mother and baby category business".

For these two "first", the United States officials have given a set of figures: in September 2014, the warehouse in Zhengzhou bonded area and the fast duty free shop on the line, the speed of duty-free shops in six months increased from 1000 per day to 100 thousand per day, and the monthly growth rate increased by more than 300% for 5 consecutive months.

In addition, the United States did not give specific data on its cross-border business, and its earnings report was vague.

For example, in the 2015 Q3 earnings report, it only referred to the two brands of Japanese Kose and Shiseido, and authorized them to undertake and sell their products.

In contrast, Ali first disclosed in its latest earnings report in January 2016 that Tmall International's annual turnover increased by 179% over the same period last year. By the end of 2015, it had introduced 5400 overseas brands from 53 countries and regions in the world, of which over 80% of overseas brands were the first to enter the Chinese market for the first time in 2015.

Not to mention Tmall international, Jingdong's global purchasing, NetEase koala and other cross-border electricity providers also have something to do.