The Net Red Company With 2 Billion 200 Million Of The Goods Is Going To Be Listed, But It Hasn'T Made Any Profit In 3 Years.

The net red incubator company submitted its prospectus to the US Securities Regulatory Commission (SEC) on March 7, which is ready to go public on NASDAQ this year.

In 2018 4, less than two years after landing the new three board, if Han delisting, he was preparing for the listing of US stocks.

In the first three quarters of fiscal year 2019 (from April 2018 to December), such as Han holdings, the income of 9 months was 856 million yuan, up 751 million yuan from the same period last year, an increase of 13.9%.

More than one hundred web red companies created 2 billion 200 million yuan sales in this period.

Such as the two major sources of income are the electricity supplier business and net red service revenue.

The former includes product design, outsourcing production, supply chain and after sales (that is, selling products like self owned products), and the latter is mainly marketing, promotion and charging of service fees.

The mode of culvert is becoming lighter and lighter.

Initially, it covers the links from factory to operation.

In early 2016, the assets of the plant were stripped.

Starting from 2017, we began to connect the net red and the third party brand, that is, let our net red push goods for other brands, so that we do not have to undertake a series of links from the net red design products to the supply chain, outsourcing production and after sale.

It believes that this light asset model will enable it to cooperate with wider network Hong and brand.

By the end of 2018, the company has already worked with more than 500 brands and 28 retailers.

A total of 113 net red signings were signed, including Zhang Dayi, Dajin, worms, Zuo Jiaojiao and aunt Guan.

It opened 91 self run shop for these networks.

If the three "net red heads" are sold over 100 million yuan per person per year, there will be 7 net sales of 30 million to 100 million yuan per person per year.

In the future, we should continue to increase the KOL talent pool, choose different characteristics of KOL, and diversify.

There are 148 million fans in all these nets. The main position is micro-blog, and more than 111 million fans gather here. The remaining 30 million fans are in the micro panning, with only 670 million in WeChat.

If micro-blog relies on this information distribution channel, it is rarely involved in the short video platform.

Not surprisingly, 78% of the fans of the red net are women, and the 80% is the millennial generation.

About 39% fans will buy at least once again.

The main selling products are clothing.

It mentioned in the prospectus that women's shoes and clothing are the largest market share and source of income for Chinese electricity suppliers.

However, the growth rate of cosmetic products is faster. Between 2013 and 2014, the annual growth rate of cosmetic products online sales exceeded 211%.

Such as the head of the Bo Bo advocated that Daye created its own beauty brand BIG EVE, in 2017 BIG EVE sales in Taobao last year was 5000 million yuan.

In 2018, the blogger beauty brand entered Tmall.

The story told by American investors is that China's social networking providers and content providers expect an annual compound annual growth rate of about 35.5% from this year to 2022.

As the first part of social e-commerce and content business, KOL electric business created 32 billion 900 million yuan in 2017.

The risk may come from operations, especially when the prospectus shows that it has not yet made profits in the past 3 years.

The main reason for the loss is the expenditure of product sales and marketing expenses, warehousing and logistics projects.

In the first three quarters of fiscal year 2018, the cost of warehousing and logistics was 99 million 517 thousand yuan, up 39.33% compared to the same period last year, and sales and marketing expenses were 158 million yuan, up 41.34% over the same period last year.

Other risks come from maintaining and optimizing the KOL ecosystem. Zhang Dayi's dependence may also be a problem.

In the past, it was not uncommon for net red to leave the cult after being popular. This has always been a risk for the incubator company to consider.

And the change of fans' consumption preferences may also affect its operation.

Feng Min, the founder of the company, holds 29.27% shares as the largest shareholder of the company. Zhang Dayi holds 15% stake in Himalaya Investment Limited, and is the second largest shareholder. She is also the CMO of the company.

Taobao China holds 8.56%.