Rice rice positioning swings, high level turbulence hit

With the issuance of the third quarterly bulletin, the Rice Net, a comprehensive interactive entertainment platform for Chinese children, has been pushed to the cusp.

According to its earnings, the net revenue of the rice net in the third quarter was $12.3 million, up 17% from a year earlier, and the net profit for ordinary shareholders was 1.2 million U.S. dollars, which fell 50% from the net profit of 2.4 million dollars a year earlier.

Although some market participants said that the net profit of the stock price is not good or is subject to greater cost. In addition, the company is undergoing the transition period of pain, the new business layout and brand promotion investment, which requires a process.

However, in Beijing, the electricity business personage Tanglina, "The net profit of rice rice declines year by year, its future profit condition is uncertain." ”

Performance is stagnant

December 5, the rice net plunged 14.59%, the stock price creates the record low, the market value also left only 114 million dollars.

Although in some market personage's view, the stock price falls mainly is affected by the external big environment, is the market temporary fluctuation, should treat objectively. However, some analysts pointed out that this is or with the recent report of the Rice Net released three quarterly results.

According to its earnings, the net revenue of the rice net in the third quarter of 2014 was 12.3 million U.S. dollars, which grew 17% from a year earlier. The net profit attributable to ordinary shareholders was $1.2 million, down 50% from the net profit of 2.4 million a year earlier. And its future profitability shows uncertainty.

Financial Weekly reporter finishing the rice net from the second quarter of 2011 to the third quarter of 2014 reported key data found that the market 3.5 of the time, the company's performance growth is weak.

And looking at the beginning of 2011 company listing, the company's total revenue of 11.8 million U.S. dollars, of which net profit of 4.3 million U.S. dollars. That is to say, 3.5 of the time, the company's revenue growth is only 1.5 million dollars higher than the beginning of the IPO. What's worse, in terms of net profit, the market has not risen and fallen for 3 years. From the beginning of the listing of 4.3 million dollars down to now 2.4 million U.S.

You know, in the rapid development of the domestic Internet industry, the performance of rice washing is "not in the back." This is intolerable for investors chasing the high growth of concept stocks, and may lose interest in the stock of rice.

June 19, 2011, the Rice net is still cold in the U.S. capital market when the market, the total issue of 7.2 million shares, financing 64.7 million U.S. dollars. Although the issue price set at 9 U.S. dollars, at the price range of 9 to 11 U.S. dollars in the lower limit, but on the day of the listing trading break, eventually closed to 8.23 U.S. dollars, the market value of about 300 million U.S. dollars.

Its share price was slightly pulled up in the one months after the IPO, hitting a record 14.72 dollars. And then the stock price began to fall all the way, in the past two years of age, the stock price is basically in the 3-6-dollar range hovering. Today, the market capitalisation is only about One-third.

Positioning wavering

What led to the current situation of rice washing?

Company listed at the beginning of the company at the helm of the Wang Haibing view, 2011 is the rice washing "from a simple virtual community brand to the cartoon brand into the process." "This year, rice not only first listed, but also began large-scale practice of Disney-style business logic," from the computer screen radiation to the television, film and other screens, basically completed the cartoon brand as the core of the children's industry layout. ”

The layout of rice rice is mainly under its brand authorized business, which is where Wang placed great expectations. But the division's share of annual revenue from rice washing has never been more than 20% per cent, and it is still hard to come by.

In the summer of 2013, Wang Haibing acknowledged that the company has developed more twists and turns in the past two years because of the loss of a "relatively clear focus" in diversifying online and offline, and he thinks that washing Rice's business as a rice-washing game and a rice-washing cartoon is a very clear response.

But the loss of rice rice is not only the performance of online offline which is heavier, the company's core revenue Department of the Rice game also lost its position.

A person familiar with the industry said that the management of the Rice ARPU that the company's performance is low and children's users do not contribute too high to the value of the user (average income) is related to the idea of rice to ARPU high value of adult game transformation.

After the introduction of the children-oriented game "Moore Manor" and "Purcell", Rice has launched the "Kung Fu Faction", "The Creation of the Legion", "Ares League" and other 10 to 18 years old user group game.

To know in the field of adult gaming, there has been a mature netease, Shanda, Tencent Rob this market, leaving the market share of rice is left. As a result, the company's efforts to build the "creative corps" and other games contribute to the performance is also not obvious.

and children's preferences with the growth of the age change is very large, in the children's game market is not focused, the consequences are serious.

Baidu Search Index shows that 2013 China's most popular children's online games in the top 5, hundred fields already have 3, rice only 1. The first game of the Hundred Fields "Obi" released in the 3rd place for many years, the first game of Rice rice, "Moore Manor" slipped to 7th place.

High-level unrest hit

As the company's business changes, corporate management is also deeply affected by the turnover. Last September, the Rice executive vice President Zhu Chenghua left office, July vice president of the Qiang iron maple leaves, into 2014, CTO Wei also announced the departure.

Zhu Chenghua before joining the Rice, has been in Disney for 5 years authorized brand management, you can see his dream of the rice net Disney's importance. And Qiang Tiefeng is to qiming Venture (one of the big shareholders of Rice Rice) Deputy general manager of the status of the rice net.

The departure of the company's executives is no doubt a blow to the company. "It can be said that the three-bit departure for the rice is not 1:30 will be able to slow down," says Tanglina. ”