Only product will be afraid to pull low China's electricity quotient valuation will enter the consolidation period

"We are talking about the last round of financing, and one has already signed up, and the capital is proposing a new valuation after the goods are on the market," he said. "This is a common occurrence in financing companies," said a CEO of a vertical company in China.

Only goods will become the first U.S. IPO in 2012 Chinese companies, but the listing two days later, compared to the issue price plunged nearly 30%, to the next listing of financing of the electric business enterprise splashed a scoop of cold water.

Only the blood of the goods will be listed by the industry known as testing, the result is to China's electricity companies listed a higher standard-the profit space and the company's profits. Jinsha Venture partner Zhu Yuhu bluntly, "only goods will be a very failed listing, the next listed electric dealers must have a profit, otherwise it is difficult to go public." ”

"False-false" difficult to solve the profit problem

From an investor's point of view, its first two rounds of financing have given a high valuation, the market competition environment is deteriorating, if not listed but another round, the future exit will be more pressure.

Capital chain rupture, layoffs, closures and other pressures, e-commerce fierce competition behind the burning of money traps, but also let a large number of investors back to wait and see.

In this context, "listing financing" has become a way for some electric dealers to seek future survival and development. But in the Beijing-east, Fank and other big electric platform listing news is rampant, only the goods will why rob the limelight?

"Only the goods will not spend enough money, if not listed will face the crisis of capital chain rupture." "A luxury electric dealer in the industry told the China Business newspaper reporter."

Public data show that the cash flow is only 32.24 million dollars after the cash and cash equivalents of the goods will offset bank loans. With the 2011 operating costs of only 150 million U.S. dollars, its existing net cash limit can only maintain 2.5 months of operation.

From an investor's point of view, its first two rounds of financing have given a high valuation, the market competition environment is deteriorating, if not listed but another round, the future exit will be more pressure. Analysys International analyst Zijianzhe Analysis that the only products in this opportunity to choose to go public, to a large extent from the promotion of capital.

Only the product will be able to "bird first", but also with its background resources rich investors have a lot of relationship. Zhu Yuhu said that only the goods will be able to false success, is also a large extent investors Sequoia Capital and DCM in this area has a wealth of experience, the timing of the operation is very strong. Zijianzhe told reporters that the investor's resource relationship is very important, these big investment institutions and the two-tier market relationship is better, the U.S. investors to their investment companies will also be more recognized.

From the time window of the listing, which is better than the second half of last year, the Nasdaq (micro-blogging) index has risen 13% in 2012 and the Dow has returned to pre-crisis levels. In addition, although the goods will not belong to the luxury goods, but positioning in high-end brand-name special selling, its similar to the United States gilt model of the concept of packaging, still can arouse the imagination of some investors.

Despite the success of the listing, the continued sharp fall is hard to hide the profit dilemma. Zhu Yuhu points out that only a negative profit is a direct reason for preventing the market from getting a good IPO price, and that foreign investors are pessimistic about their expected earnings next year.

Huaqiang North Online Vice President Shangxiang told reporters, limited to buy the model although easy to do large-scale, but category single must always rely on low prices to attract users, which leads to low gross margin, profitability difficulties.

Zijianzhe pointed out that only the goods will be limited to buy the model determines its profit margin is relatively low, the future to be profitable there are two ways to go, one is to expand user size, enhance user stickiness, improve the bargaining power of the brand, the second is to expand the brand, increase high-end brand, improve profit margins.

The electric business industry enters the "whole plate period"

The brutal bloodshed will once again weigh on the credibility of the Chinese concept stocks in the US capital markets, while at the same time pulling down the valuations of China's electricity companies ' refinancing.

The future of the electric business in the capital market, but the capital market needs to see real, credible, beautiful performance statements. Only the blood of the goods will be listed, the next to seek a listing of the electric business enterprises have a great impact.

Some investment bankers point out that the success of the product will not mean that the U.S. capital market in the recovery of stocks. On the contrary, the brutal bloodshed will once again weigh on the credibility of the Chinese concept stocks in the US capital markets, while at the same time pulling down the valuations of Chinese electricity companies ' refinancing.

An early VC said that some of the current lack of final signing of the electric business enterprise financing have met the investors to reconsider the valuation requirements, the reference price is the only product.

In the development of China's electricity market is seen empty, combined with the two-tier market IPO cold, the capital for the electricity business investment more cautious, this will also bring a group of independent electric dealers under the capital pressure to face survival dilemma.

Shangxiang said that the market size of the business has enthusiasm reality. China's electricity market has not reached maturity, but 2010-2011 years the entire electricity market is too hot, into too much money, we continue to ripen the market, resulting in oversupply. Vicious competition causes the whole industry to fall into a state of unhealthy loss.

Qing Ke Research Center analyst Zhangyanan in the interview with our correspondent, said that 2012, China's e-commerce industry will enter the consolidation period, there will be a number of electric dealers are facing closure, it can also be called the electricity market self-repair period.