Orchid Pavilion Set potential performance big face in the good faith again be questioned

Sina Science and technology on the market two months, by investors, the concept of the Electric Quotient Pavilion (11.58,-7.69,-39.91%) (NYSE:LITB) suffered a performance Waterloo. Net revenue for the second quarter of the 2013 fiscal year was $72.2 million, lower than Wall Street's 75.8 million-dollar forecast, with a year-on-year growth rate of 52.6% per cent and a year-on-year growth rate of close to 100% in the first quarter, with a net profit of 600,000 dollars and a net loss of $1.4 million in the same period last year, according Among them, the second quarter of the Orchid Pavilion collection potential from the major market income growth has declined. Revenues from the European market rose by 105%, compared with 151% in the first quarter, and 16% in North America, compared with 40% in the first quarter. The pavilion is expected to have a net revenue of only 68 million to 70 million dollars in the third quarter, far below market expectations. The second quarter of the listing not only growth but also the forecast performance of the chain fell, so investors surprised. News, the Orchid Pavilion set potential stock price immediately tumbled 35%, the highest decline of more than 40%, as of the time of the Blue Pavilion set potential reported 12.59 U.S. dollars, a decrease of 34.56%. The big face. The Orchid Pavilion, which landed in the NYSE in JUNE this year, has been considered an ice-breaking trip to China's concept stocks, which had not been successful in the US listing for 6 months. Orchid Pavilion before the trend, the recent IPO or the November 2012 gathering Time (40.69,0.05,0.12%) YY, it ended since March 2012 only product will (41.37,-1.84,-4.26%) after the listing of 8 consecutive months to the United States listed empty window. But although YY listed good performance, but failed to open a new round of Chinese companies to the U.S. listing peak. Apart from the Orchid Pavilion, 2012 to date only 5 Chinese Internet companies (gathering time, global market, the network, only goods will, 365 nets, did not calculate the champion tour of the unlisted) in the global capital market to achieve IPOs, of which, only the era, only 2 companies in the U.S. stock market. After the IPO, the pavilion set from the 9.5 dollar price, all the way up to August 14 the highest value of 22.21 U.S. dollars, two months, the price rose 133%, many domestic listed companies due to the successful listing of Orchid Pavilion is encouraged. In the IPO roadshow, the Orchid Pavilion set potential CEO Guo disease has been emphasizing its 2010-2012 net revenue composite growth rate of 85%, and 2013 Q1 year-on-year growth is up to 99%. At that time Guo went to the company 2013 overall revenue growth is expected to be 64%. "Why is it that the growth rate in the second quarter fell to 52.6% after the IPO and the third quarter growth rate was only 33-37%?" Barron's analyst Shuli Ren wrote in question. The integrity of the shares in the stock is again questioned Orchid Pavilion set potential interpretation is very far-fetched, Guo to disease in the conference call, two quarters of two things affect the company's earnings, one is internal executionProblem, the company's commodity strategy too much focus on high-end products, low attention to low-end products, not expected to June, the conversion rate dropped significantly. "The second is that competitors have never reacted strongly to IPOs, and they have slashed the orchid pavilion by slashing prices and scrambling for traffic." "he said. The U.S. investment bank, which has been paying close attention to the Pacific Crest, has been disappointed by the explanation of Guo's illness, and its conclusion in the paper is "send off the Orchid Pavilion set". "Unless they can release strong earnings in the next few quarters and rebuild investor confidence, we will not look at him again." T.h.capital analyst Hou Tian also not optimistic about the development of Orchid Pavilion. "Rising prices in China and the appreciation of the renminbi will have a serious impact on the foreign trade companies such as the Orchid Pavilion, which will greatly weaken the competitiveness of Lan Ting." In addition, compared to Amazon (287.09,1.52,0.53%) and other electric dealers, orchid Pavilion set potential for foreign users do not have any brand awareness. "Chinese tech stocks have just had a hot summer, with an average return of 24.4% in the summer and only 6.6% of the Nasdaq (3613.59,24.50,0.68%)," Shuli Ren in the Barron's online edition. "And the pavilion has once again prompted the lack of a good reputation in Chinese companies, remember the muddy water short Chinese stocks?" "Company Profile: Orchid Pavilion Set potential was founded in 2007, is an E-commerce company, its lightinthebox.com is China's domestic well-known international trade website." The company has more than 800 employees in Beijing, Shanghai, Suzhou and Shenzhen.