The mystery of the first surge of Chinese electricity dealers

The stock price of the first stock of the electric trader was 1 from March 25. 94 dollars, a continuous rally of 2 days. 6 times times up to (above Friday) 5. 09 Dollars. The latest round of the recent rally in the stock market has been a matter of mystery. Its first IPO has been over two years, with a maximum market value of 10. 600 million trillion dollars, but the current market value has fallen to 90%. In the context of layoffs, closing and intensified industry competition, insiders say the future of stock prices will need to be hit by a big question mark.

Was once in the back of the city early warning line

By the end of last Friday (April 5), the stock price of Chinese electricity dealers rose to 5 per cent. 09 Dollars. The commercial newspaper reporter found that the price of Macaulay has been 1 from March 25. 94 of dollars soared 2. 6 times times. But the stock was once in the red line of a 1-dollar withdrawal rule.

The reporter learned that the MAI Lin once plunged into the plight of the city, through the 5-in-1 and 10 million-dollar share repurchase plan can not retain the situation. Shanghai million-engine Business Consulting Co., Ltd. CEO Ruzenwang told reporters, Mai Lin recently "salted fish", plate on the continued positive performance and the global E-commerce tycoon ebay is not irrelevant.

This January, the wheat network officially renamed "Fun Day Wheat Net", from the Fun day wheat network can be seen, the site's footer appeared on ebay logo. Industry insiders said that the general name change the most reason is the emergence of equity changes, was abandoned or acquired. Last November, Giosis teamed up with South Korea's online-buying company, which owns 60% per cent of the new company. The 49% per cent stake in the South Korean company belongs to ebay.

Mai Lin said, and Giosis together, is to the fun day Wheat network from an E-commerce site into an online shopping platform. At the same time, Giosis also wants a strong brand like the Fun Day wheat network, targeting women shoppers for business. "Korea giosis companies covet the domestic market, borrow Macaulay Lin into the bureau." ”

Another reason, Ruzenwang says, may be a sign of a narrowing of the Macaulay losses. Macquarie's latest earnings in 2012 showed a net loss of $7.2 million in the fourth quarter, a decrease from a 11.5 million dollar loss over a year earlier. Beichun, director and chief executive of Macquarie, said it was related to cost control, especially the reduction of Internet advertising. "We continue to focus on controlling costs in the fourth quarter because of the intense competition in the e-commerce industry," he said. Last year, we have always been cautious about the Internet business, we attach importance to improve operational efficiency, reduce costs, increase overall gross profit margin and reduce operating losses. Four quarters to keep cash, we continue to reduce online marketing costs. ”

The first wave of electricity dealers

Mai-Lin to "Network + shop + Telephone mail order" business model in October 2010 landed on the Nasdaq, opened the first Chinese manufacturers to open the market door, the stock price was once as high as 18. 5 dollars, the highest market value of 10. 600 million dollars. Mai Lin's listing also opened a round of shares in the U.S. listing of the upsurge, followed by Macaulay, when, Youku in December, respectively, the successful landing of the NYSE and NASDAQ, the next six months there are Qihoo 360, everyone and many other companies have successfully IPO.

"For the portal has a large number of loyal users and marketing environment, to reduce the cost of e-commerce, the conversion of users have a strong advantage." "Perhaps is a fancy to the Mai Lin's own business to supplement, March 2, 2011, Sina announced will and China's trend to buy Sequoia Capital with a total of about 29% of Mai Lin's stake, a stake in the Macaulay." Sina, with about 66 million dollars, buys 19% of its shares.

Although there has been a good performance in the near future, but the long-term low performance of the price of Mai Lin's shareholders embarrassed Sina. On March 5 This year, Macquarie's earnings figures showed continued losses in the fourth quarter and full-year 2012. The annual loss accumulated more than 55 million U.S. dollars, of which 2011 years loss of 33 million U.S. dollars, 2012 years loss of 22.4 million U.S. dollars. Even after days of soaring, the current market capitalisation of Macaulay is still only 0. 5.9 billion trillion dollars, market capitalisation has evaporated more than 90%, and Sina's investment at the time can now buy another Mai Lin.

Industry competition intensifies

Giosis's partnership with South Korea's online-buying company may explain the reason for the recent rise in the price of wheat, but Ruzenwang is not optimistic about the marriage. "In the end can only be more to burn the money of the wheat net out of the joint venture with the fun days, the control of equity in the hands of the fun days, this is the last chance of Macaulay." "Insiders also said that in E-commerce to seek cooperation, it can be said that this is the Mai Lin online under the impact of the business, stock prices continue to lower face the risk of withdrawal of the arm to survive."

Meanwhile, the company, which has been on the market two years ago, is now facing a brutal competition in the electric business winter. Dangdang, Jingdong, Suning easy to buy and a shop and so actively enter the field of clothing, inevitably impact to similar to the MAI, Massamasso, and Dream Bazaar site. Originally in the brand and supply chain management is not dominant, low prices by the traditional brand "cabbage price" of repression, encounter difficulties will be inevitable.

Independent Electric business analyst Li Chengdong said, independent electric business is not good. "New users to get more and more expensive, and with Taobao, Cat, Jing-dong, and so constantly strengthen the market position, coupled with integrated platform service capabilities and gradually subdivided, leaving other electrical business space has not been much." Analyst Zijianzhe also said that Macaulay and many of the previous vertical types of Web sites are the open platform of the strategy, because now independent operation vertical type of website traffic cost is very high, so through open platform to make profit and higher value-added service work is a big trend, the domestic electrical business in this piece has been competition to white-hot, It's hard to reverse the whole.

In addition, the user stickiness, marketing and category richness, independent clothing brand is not the day cat, Jingdong and the only product will be such a comprehensive electronic platform opponents. "Brand awareness, product reputation is not high." This will inevitably affect the actual purchase conversion rate of the electric dealers and stores. ”