Report says only goods are suspected of financial fraud misleading investors

Beijing time May 28 Evening News, Investment Research Institute Greenwich Study Group in Friday in seeking Alpha released a report that only the goods will (Nyse:vips) suspected of financial fraud, thus misleading investors. The report said that there were not many people in China who had heard of the only goods meeting, and that it was impossible to talk about shopping in the only goods. Therefore, only goods will be in the number of users, the average consumer and profit margins, such as fraud suspicion. The following is a summary of the contents of the report: Over the past three months, our analysts have conducted full due diligence on the business model and financial data of the company. We believe that the only product will mislead investors in terms of the number of users, the results of the release and Third-party agencies are also very different. Only products will be a special sale of Chinese website. The latest IPO, the first public offering, did not win the endorsement of Wall Street, which fell from the initial $10.50 trillion to $6.50 and the scale of its issuance to 11.2 million shares. In other words, just 12 months ago, few institutional investors were interested in the goods. But in September 2012, the situation suddenly changed. At present, the market net rate (Price/book Value) is 11 times times, and the expected P/E ratio in 2013 is 78 times times. Why did higher valuations suddenly increase from 5 to 37? The performance of the "Report" of the club has grown by 24,700% in the past four years. In the highly competitive China e-commerce retail market, such figures are true? The following is an investment banking professional's evaluation of the only goods meeting: 1 Only the financial data of the product will be misleading. 2) The business model of the Product Council does not work in China. There is no sufficient supply of high-end brands because high-end brands do not want to sell their products through this type of channel. Therefore, only goods will mainly sell low-end products mainly. 3 in a highly competitive market, the sustainability of profitability is extremely low. The industry's profit margin is usually 6% to 7%, and the gross margin of the product will not be explained. 4 in China has heard that the site is not a lot of people in the only goods will be shopping more than talk about. 5 The number of users and the average consumption amount is not reasonable. As an example of independent user visits, the data show that the average number of independent user visits in the first quarter of 2012 averaged 1.1 million, the second quarter was 1.5 million, the third quarter was 1.8 million, and the fourth quarter was 2.1 million. The Alexa data show that only the first quarter of 2012, the average number of independent users visited 770,000, the second quarter was 780,000, the third quarter was 790,000, the fourth quarter was 1.06 million. (Li Ming)