Can the platform transform itself to restore market confidence? Poly Mei Excellent product public

Poly Beauty Products released today the fourth quarter and the full year earnings. According to earnings reports, the total net revenue of Poly-Mei products in the quarter was 166 million U.S. dollars, up 18.5% from 140.1 million US dollars in the same period last year.

Total net turnover (GMV) was $1.07 billion in 2014, up 30.9% from the same period last year, and 2014 net revenue of 632.9 million dollars, up 31% from a year earlier. The growth in GMV and net revenue in 2014 was mainly due to a 26.7% increase in active users and a 18.3% per cent year-on-year increase in total orders. Total active users are now 13.3 million, up 26.7% from last year.

In May 2014, Poly-Mei excellent products listed on the NYSE, but the share price shrank all the way, and suffered many negative news. In addition to the frequent fake complaints, at the end of December 2014, some U.S. law firms and a domestic law firm launched a class action against Poly-Mei, citing the existence of a "false and misleading financial statement, not disclosed that the changes in the sales model led to changes in financial conditions and other related facts, resulting in investor damage" Behavior. The news sparked a new round of declines in share prices, which still failed to restore investors ' confidence, even as the 100 million dollar share buyback scheme was announced by the United States.

In fact, the United States to adjust the business model from the beginning of last September transformation, from the third party platform model to direct business model, the main push overseas purchase business "speed duty-free shop", from the profit model from the service charge to the sales price difference. Choosing a direct-battalion model means getting involved in a complex supply chain and not scaling up as quickly as the platform is. But the United States has been deeply immersed in the fake scandal, the third party platform model the biggest risk is the quality of goods is not controllable, it is difficult to eliminate fakes, parallel imports.

The transformation of the United States excellent products in the fourth quarter of last year, from the financial results can be seen cut off third party sales to self-change: poly-US excellent products in the last quarter total net turnover (GMV) 235.2 million U.S. dollars, down 3% from a year earlier, the total number of orders fell 5.9% to 9.6 million But as active users grew, net revenue in the fourth quarter rose 18.5% from $140.1 million a year earlier.

Poly Beauty products are expected in the first quarter of 2015 Year-on-year net revenue growth of 45%-50%, the chain growth of 35%-40%, higher than the first quarter of 2014 net revenue 10% of the chain growth rate. During the reading of the earnings meeting, the team said the decline in short-term performance was mainly due to the impact of the transition, but at the expense of short-term performance in order to focus on long-term healthy development. 2015 will bet on the United States to buy overseas business, mainly to adopt a proprietary model with overseas brands to establish goods directly for cooperation, thus making up for the cancellation of Third-party platform beauty business after the reduction of SKU.

Poly Beauty Products in the four-quarter gross profit margin from 38% to 30.4%, still more than the other electric dealers in the stock will only be 24.9% higher. But the latter is gaining momentum, with total net revenue of four quarters of $1.36 billion trillion, exceeding analysts ' expectations.

After the report, Poly-Mei excellent stock in the trading after the increase of 6.73%, on behalf of the market for its transformation initially expressed optimism. But overseas purchases will lead to a rise in operating costs, and it is still doubtful whether Poly-American products will continue to attract new users, get rid of the shadow of selling fakes and meet market expectations.