China's "first stock of electricity dealers" Mai Lin: Positioning chaos and stocks to deal with the retreat of the city crisis

"The first stock of electric dealers" in China is still struggling in the mire.





Daily economic news reporter learned that in response to the exit crisis, Macaulay announced on the evening of 21st that it would adjust the proportion of its US depository shares (ADS) to common shares, representing 7 common shares per ADS, and 35 common shares per ADS. After this adjustment, ADS will automatically increase the transaction price.





Industry believes that the move is only tactic, and the company's transition is weak, positioning is still chaotic situation, may push it to be acquired or closed the situation, not just face the risk of delisting.





market capitalisation has evaporated by nearly 70%





Mecoxlane, in a notice posted on the evening of 21st, said the adjustment was for the common good of shareholders, and it would enable the company to meet Nasdaq's requirements and continue to trade.





, the daily economic news reporter, noted that last May 16, the first quarter of 2012, the results of the report, Macquarie reported that business receipts fell 22.8% Year-on-year, gross margin fell 18.4% year-on-year, net loss reached 4.2 million U.S. dollars.





this quarterly bulletin directly to the edge of the cliff back to the city. On that day, the price of Macaulay fell below 1 U.S. dollars. The Nasdaq market will issue a deficit warning if the listed company's shares are less than a dollar per share and the state lasts 30 days. Companies warned that they would not be able to take steps to help themselves to change their share prices during the 90-day warning issued will be announced to stop trading. Macaulay is facing a risk of delisting.





Since then, the price of Macaulay has been hovering around 1 U.S. dollars, frequently faced with the threat of retreat. 21st U.S. stocks close to 0.591 U.S. dollars, the market value of only 33.876 million U.S. dollars, only the October 26, 2010 IPO financing of 113 million U.S. dollars near 30%. In other words, the company's market capitalisation has evaporated nearly 70% after nearly 27 months.





location of unknown electronic business success





2010, the beginning of the market, the introduction of its operating model is "Internet (E-commerce) + Call Center (directory) + entity shop", the three distribution channels including networks, stores and mail order. Its operation category includes clothing, household items and so on, and founded the Euromoda, rampage and other own clothing brands.





However, the parallel of the three carriages did not allow Macaulay to advance steadily. In 2010, the Mai-Lam Mail-order business accounted for nearly 80% of its revenue, but after the launch of the concept of electricity quotient of the Mai Lin will be a large amount of money into the electricity business Channel to develop the transformation. However, its transformation to the electric power business strategy has not achieved the desired effect.





Macquarie's third quarter of 2012 reported a net loss of $6.1 million in the quarter, narrowing from a net loss of $14.4 million over a year earlier. But net operating income of 36 million U.S. dollars, down 32.3%, Internet net operating income of 17.2 million U.S. dollars, year-on-year decline of 42.8%.





is based on the lack of its own transformation, Macaulay has to seek external forces to find salvation. Last November, Macaulay suddenly announced a new joint venture "Giosismecoxlane" with South Korean fun Skynet parent company Giosis, which was controlled by the latter and transformed into an electric business platform. "Macaulay" Brand became one of several shops on the platform.





in the "Daily economic news," the reporter said in an interview, the current Mai Lin will still be the electricity dealers and offline stores as the main sales channels, both go hand in hand. "We have more than 300 stores nationwide, some of which are franchise stores," he said. ”





when the company on the market in all aspects of development is not stable, coupled with the cost of offline sales is too high, so that later growth slowed. Analysys International analyst Shou sent to the "Daily economic news" reporter said, "Positioning is very ambiguous, both proprietary brands, and do open platform, but also to manage the offline store." has been completely unable to adapt to the rapid development of the electric business industry, so it is difficult to obtain good results. ”





worthy of concern is that the time left for the Mai-lin transformation is not much, its competitors where customers Prudential products, has chosen to "build their own clothing brand" road, and contracted the original platform strategy, its positioning has become increasingly clear. The company is expected to achieve overall profitability this year.