Jumei.Com'S Delisting Of Former Stars Fell Into A Crisis Of Confidence.

In the evening of February 25th, jumei.com announced that the company accepted the privatization plan proposed by CEO and CFO Chen ou.

Jumei.com announced that it had reached the final privatization agreement with the parent company Super ROI Global Holding Limited and the buyer made up of Jumei Investment Holding Limited and wholly owned subsidiary of the parent company. Under the agreement, the parent company and the buyer will acquire all the issued class a common shares of jumei.com.

The announcement disclosed that the future acquisition process will be dominated by the parent company and the buyer company, and the buyer company will purchase all the class a common shares issued in the market. After the acquisition is completed, the parent company will absorb the merger with the buyer company, and the parent company will continue to purchase A-class common stock that the buyer has not yet held. After the acquisition, jumei.com will complete the delisting, and the privatization delisting will be completed in the two quarter.

It is reported that jumei.com's parent company Super ROI Global Holding Limited is wholly owned by Chen ou. At the same time, Chen Ou is also the founder, chairman, chief executive officer and acting chief financial officer of jumei.com. At present, the parent company and the buyer jointly hold 44.6% of the issued shares of jumei.com, and have 88.9% of the voting rights.

The reporter interviewed jumei.com on the privatization plan and the company's development plan after the delisting. As of press release, the other side did not reply.

In January 12th of this year, jumei.com announced that the board of directors had received a non binding preliminary proposal issued by chief executive officer and acting chief financial officer Chen ou and its affiliates in January 11, 2020. Can the United States complete its self salvation after the completion of the delisting?

Re privatization

This is not the first attempt by Chen Yu to privatize jumei.com. In February 2016, Chen Ou had jointly privatized jumei.com, including Vice President of products, Dai Yu Shen and shareholder Sequoia Capital. The purchase price at that time was $7 per ADS.

For the specific reasons for privatization, Chen Ou said in an open letter that jumei.com was seriously underestimated in the US stock market, and privatization means that the company once again entered the process of starting a business. But because the price is less than 1/3 of its issue price, and at that time, jumei.com listed nearly two years, most of the time its stock price was over $7, which aroused strong opposition from minority shareholders.

In September 2017, jumei.com shareholders Heng RenPartners also published an open letter to jumei.com chairman Chen Ou and Sequoia Capital Partners Shen Napeng, who said that the proposed privatization deal of $7 per share greatly underestimated the value of the company, and said that the 18 of the EU's "privatization" was in office. In a month's "disaster", a series of mistakes led to a 45.2% fall in the US stock market and a loss of 397 million US dollars in market value.

In a doubt, the agreement was issued six months later, and the privatization of the buyer's group announced the withdrawal of the takeover plan. Regarding the decision to withdraw privatization offer, jumei.com official explained that this is a strategic choice based on the company's current business development and diversified transformation progress. After the failure of privatization this time, the internal executives of jumei.com also changed greatly. The co-founder, wearing Yu son, left jumei.com's market confidence down to freezing point. In the eyes of the outside world, the executives of the company have a lot of complaints about Chen Ou's unruly attack.

After four years, Chen Ou again threw out the offer of privatization, the purchase price was $20 per ADS. On the surface, the premium was relatively high, but in January 10th of this year, jumei.com implemented a joint stock plan. Specifically, jumei.com adjusted the ratio between us depositary receipts and class a common stock, from 1 original American depositary receipts to 1 shares of class a common stock to 1 shares of American Depositary Receipts representing 10 class a common stocks.

In other words, Chen ou and its affiliates are going to privatize jumei.com at a price of $2 per share, which has shrunk considerably compared with the offer price in 2016. It remains to be seen whether Chen will be supported by shareholders. In addition, capital is also an important part of privatization. According to the requirements of the US regulators, the privatization of shareholders should be carried out in cash, so the privatization of the delisting must be based on abundant capital and financial resources.

Chen said in an offer document: "I intend to provide funds for acquisitions by combining loans and equity financing. If necessary, loans will be provided by third party loans, and I believe I can get enough funds in time to complete the acquisition. "

　　 Fallen stars

Since its birth, jumei.com has been challenged by fake products. The landmark event of the outbreak of counterfeit goods was the fact that in 2013, jumei.com's "3rd anniversary" activities were left behind by Lancome, Guerlain, DHC and other world-renowned brands. In July 2014, jumei.com was exposed by its supplier, Yi Peng Heng, to sell fake clothing and watches through multiple electronic business platforms. Jumei.com fell into a crisis of confidence because of this, and its share price fell sharply, and it was prosecuted by eight law firms in the United States.

After the incident, jumei.com repeatedly strengthened the tune of virtual Ukrainian, Chen ou with "false one lose one million" slogan in an attempt to quell fake storm. But then the company's market value evaporated by 60%. Since then, jumei.com has continued to decline in revenue and user numbers. Active users are decreasing year by year at the rate of hundreds of thousands of people.

Despite the fact that jumei.com turned off the third party supply model at the expense of gross margin, turning most of its businesses into self run business still had no effect. In April 2016, the new cross border tax policy in 2016 greatly increased the tax rate of clothing and cosmetics, and gave jumei.com a head start in preparing for cross-border efforts.

According to the financial report, from 2016 to 2018, the number of active customers of jumei.com was 15 million 400 thousand, 15 million 100 thousand and 10 million 700 thousand respectively. The number of new customers was 9 million, 8 million 900 thousand and 6 million 100 thousand respectively, showing a declining trend year by year. The total number of orders from 2016 to 2018 was 61 million 500 thousand, 63 million 500 thousand and 38 million respectively, and the operating income decreased from 6 billion 277 million yuan to 4 billion 289 million yuan, down 14.51%, 7.33% and 26.27% respectively, while the net profit to the parent was RMB 142 million yuan, RMB -3698 million and RMB 117 million yuan.

According to Analysys's quarterly monitoring report on China's online retail B2C market released in the fourth quarter of 2018, jumei.com's market share accounted for only 0.1%. Cao Lei, director of the e-commerce research center of the network society, said that the United States went downhill and had a close relationship with the platform's exposure of counterfeit goods.

Ge Ge, an Internet analyst, said in an interview with reporters that jumei.com's development path also reflected the dilemma of vertical electric providers in China. "The relative platform electricity supplier, the vertical electricity supplier's guest cost is too high, is very difficult to form the core barrier." He said.

Can jumei.com turn against the wind?

Under the predicament, Chen Ou tried to transform the United States into a predicament through transformation.

In July 2015, jumei.com invested in the vertical mother and infant community (01761.HK) $250 million, holding 11.6% of the shares, but the investment did not give Chen EU substantial returns. In 2018, Chen Ou sold a 4% stake in the baby tree to Alibaba for $86 million 500 thousand, and still held 3.33% of the stock. According to the market value of the baby tree at HK $2 billion 887 million (about US $371 million 520 thousand), jumei.com could hardly recover its cost.

In January 2016, at the annual meeting of the company, Chen Ou announced that jumei.com would enter the economy of Yan value, enter the film and television culture, and create a new mode of "fashion entertainment + electricity supplier", which means that the future electricity supplier is just a small piece of beauty. The first work is called "the warm string". Chen Ou said that jumei.com will move closer to the direction of "fashion entertainment media + e-commerce", and integrate entertainment and e-commerce business more closely.

Chen Ou believes that Ju Mei has four advantages in making films and television: 1, the United States has a lot of resources to help film and television works to be implanted; 2, television can combine with the electricity supplier to cash in; 3, the United States makes fashion industry, has more industry resources, and can better obtain resources; 4, its personal influence and resources can also help TV and drama play a good role in spreading.

However, this is ridiculed by shareholders as a serious business. Since then, jumei.com has also been in the film and television industry. But Chen insisted that "everything is for traffic". Jumei.com's investment in the popular network IP drama is conducive to platform publicity and sales, and even with exclusive promotional packages.

Chen Ou's crossover is more than that.

In May 2017, if it were not for the January 12, 2020 jumei.com founder Chen Ou ti's privatization offer, jumei.com would not enter the public view again. Since the listing of US stocks in 2014 has only been more than 5 years ago, jumei.com has fallen from its highest market value of US $6 billion 600 million to a market value of less than US $300 million.

Jumei.com's early development, because the "net red" Chen Ou solved the company's traffic problem, but jumei.com's heavy marketing and light construction did not precipitate the construction and capability in the supply chain, and gradually lost the platform even the same vertical jumei.com announced the acquisition of shared charging treasure brand "street electricity". As of March 31, 2019, jumei.com held 82.07% of street electricity. Equity.

According to the results of the report, the share of the share charging part rose sharply from 73 million 730 thousand yuan in 2017 to 879 million yuan in 2018, accounting for 22% of total revenue, becoming a new pillar of jumei.com. For the subsequent sharing of charging treasure will become jumei.com's main business, jumei.com did not respond to reporters' interviews.

In the short video of the big fire in 2019, Chen Ou also launched a short video called APP, which is different from the jitter and quick hands. But many users reflect that the APP can not really be reflected.

On the black cat's complaint, search for "brush treasure APP" is full of complaints, most of which is more than brush APP's automatic turning brush treasure that can be converted into cash.

Misfortunes never come alone. In view of the fact that "Bao Bao" APP uses technical means or artificial way to "move" short videos and commentary in APP, Beijing micro broadcasting horizon Technology Co., Ltd., on the grounds of unfair competition, will take the "brushing" operation company to the Haidian court. In June 28, 2019, the Haidian court issued an injunction to prohibit "APP" from illegally grabbing and displaying the action of "jitter" APP short video and user reviews.

After many attempts, do jumei.com still have the possibility of turning over?

Cao Lei said that although the United States is gradually marginalized, there is still the possibility of turning over. The ideal state of pluralistic transformation is that the cross boundary area is related to the main business, and can form an effective closed loop in series, and establish a small ecological circle to form its own core competitiveness. "

However, the investment of poly America is too fragmented. At the moment, we should choose to contract investment appropriately and aim at rewarding projects. If poly America can re-establish its image in authentic products and word of mouth, we can operate a "small and beautiful" vertical platform. He further said.

Internet analysts told reporters that after the completion of the delisting, Chen Ou is likely to open up some new products in the layout, and then combine the charging treasure business, and the early A shares will be re listed.

We will continue to focus on how jumei.com will follow.

If it were not for the January 12, 2020 jumei.com founder Chen Ou ti's privatization offer, jumei.com would not enter the public view again.

Since the listing of US stocks in 2014 has only been more than 5 years ago, jumei.com has fallen from its highest market value of US $6 billion 600 million to a market value of less than US $300 million.

The early development of jumei.com has solved the problem of company traffic because of "net red" Chen ou, but jumei.com, which reconstructs marketing and builds less, has not been able to precipitate its construction and capability in the supply chain, and has gradually lost the ability to compete with partners in large platforms or even vertical fields. At the same time, with the continuous increase in the cost of Internet access, the vertical electricity supplier is restricted by category, and the cost of purchasing and amortization is far higher than that of the integrated electricity supplier with the user base. Once the marketing cost of traffic purchase is reduced, the drop in traffic and the decrease in operating income will often follow.

Chen Ou is also trying to change the status quo, not "knock" in the electricity supplier, in recent years, frequent diversification layout, such as video, smart home, sharing charging treasure......

But "cross-border" diversification is a double-edged sword. In recent years, frequent cross-border has not found new business growth points for jumei.com, while spending money on energy, it also missed the time window of resource integration and supply chain construction in the e-commerce industry. The cross boundary between IP and smart home is obviously due to the shortage of resources and industry chain, which makes the cross-border diversification impossible.

To a certain extent, street electricity is more important to Chen Yu than poly America, which may be one of the reasons why he initiated this privatization. Under the competition of market segments, Chen ou, Jie electric and jumei.com front geometry still need time to give answers.