Only goods will be accused of alleged financial fraud shares plunged 13% in Tuesday

Beijing Time May 29 news, according to the financial blog Seeking Alpha reported, investment agency Greenwich Research Group (hereinafter referred to as "GWRG") issued a study, accusing only the goods will be suspected of financial fraud. Affected by the news, only the goods will share prices plunged 13% in Tuesday. The report pointed out that only goods will not be well-known in China, many users do not even know the site, so it is difficult to attract users to trade on its platform. GWRG said: "In the past three months, we have conducted a careful analysis of the business model and financial data of the sole commodities council, and concluded that the goods will be suspected of misleading investors in terms of the number of users, average consumers and profit margins, and that the published earnings data are significantly different from those published by Third-party agencies. "Gwrg also raised questions about the performance of the only commodities IPO (initial public offering). "The IPO was initially priced at $10.50, but the price was not approved by Wall Street, and it was forced to cut its offering to $6.50 and reduce its distribution to 11.2 million shares, to drive the IPO smoothly," the agency analyst said. "This means that only 12 months ago, it would be hard to attract investor interest," he said. But in the September 2012, this form has undergone a dramatic change, only the stock price has soared, from the IPO has risen by 523%. Currently, the market net rate (Price/book Value) is 11 times times, and the expected P/E ratio for 2013 is 78 times times. "The main reason for the frenzied rise in stock prices is that the company's reporting performance has increased 247 times-fold in the past four years," he said. In the fierce competition in China's E-commerce market, such performance growth is true and credible? GWRG said in the report, some investment banking professionals also questioned the only product. Among the questions the professionals question are: 1, the only product will be a special sale of Chinese websites, but this business model in China is not successful. Because high-end brands do not want to sell through this type of channel, it will be difficult to get high-end brand sufficient supply of goods, the sale of its products are mainly low-end. 2, China's E-commerce market competition is very fierce, in such a market profitability is very low sustainability. Only the main competitors ' profit margins are generally between 6% and 7%, but the company's gross margin has reached an incredibly high level. 3, only goods will be in China's popularity is not high, many people have not even heard of this site, so in the only goods will not be able to buy shopping. 4, the only product will be published financial data is suspected misleading investors, the number of users and the average consumption amount is not reasonable. The report noted that, in the first quarter of 2012, the average number of independent users visited was 1.1 million, the second quarter grew to 1.5 million, the third quarter was 1.8 million, and the fourth quarter reached 2.1 million. But data from Alexa showed that in the first quarter of 2012, the only product will day independent users average visit only 770,000, the second quarter is 780,000, the third quarter is 790,000, the fourth quarter is 1.06 million, far less than the data released by the club. The GRWG did not respond to the report, but analysts at Deutsche Bank said that although much of the analysis in GRWG's report was debatable, it could lead to greater scrutiny by US regulators of the only product. Deutsche Bank downgraded its stock rating to "hold" and targeted its share price to 36.50 U.S. dollars, and estimated that only 2013 per share (non-US GAAP) for the fiscal year was 1.15 USD, with a composite average growth rate of 53% from 2013 to 2015. Affected by the above news, the only stock prices in Tuesday after the opening sharply lower, to the deadline (Beijing time May 29 2:20) fell 4.86 U.S. dollars, a decrease of 14.29%, reported 29.14 U.S. dollars. In the past 52 weeks, the highest price of the goods will be 38.46 U.S. dollars, the lowest price of 4.76 U.S. dollars. (Risen)