Beijing, August 26, 2016. Mother and baby home listed on the new third board. At the ringing ceremony, Mr. Zou Yongming, the company's founder and CEO, delivered a keynote speech on "Life Management is the Ultimate Mission of Mother and Infant ??百乐宫网上游戏??". While inspiring employees, he discussed his understanding of the mission of Mother and Infant ??百乐宫网上游戏??.
At the moment of ringing the bell, Zou Yongming felt that the new historical journey of the mother-infant home had just begun.
The listing of the new third board is the starting point, but the road to "life management" in the capital market for mothers and babies ended abruptly in November 2018.
On November 2, the stock transfer company issued the "Announcement on the Undisclosed Relevant Information of the Company's Termination of Listing in the 2018 Semi-annual Report. , Was forced to delist.
At this point, this new third board "maternal and child e-commerce first share" has ended its two years and two months of the road to the new third board.
Since its listing, the share price of Mother and Baby House has been in a narrow range around 298 yuan. Before delisting, the company's closing price was 294.7 yuan / share, ranking first among all listed companies on the New Third Board. ".
Lost 180 million in four years, where did the money go?
Shanghai Maternal and Child ??百乐宫网上游戏?? Network Technology Co., Ltd., established in February 2007, focuses on the maternal and infant industry. It is a one-stop professional online shopping mall for maternal and infant products. Sales of baby products, a professional retail service provider that provides 0-3 year old baby products, new mothers and expectant mothers products.
In 2014-2017, the operating income of the Maternal and Infant ??百乐宫网上游戏?? first rose and then declined, realizing 253.259 million yuan, 439.001 million yuan, 1.9497 million yuan and 58.64 million yuan, respectively. During the same period, the company's net profit attributable to its parent was -27.444 million yuan, -61.652 million yuan, -65.319 million yuan, and -25.352 million yuan.
Over the past four years, the operating income of mother and infant homes has fallen by 77%, with a total loss of 180 million yuan.
Continued losses have successfully turned the mother-infant home into an "insolvent" company. As of the end of 2017, the company's net assets were -16,855,400 yuan. If you just don't create profits, but healthy cash flow, it is a good choice. However, the cash flow of the mother-infant home is just as bad.
In the past four years, the company's operating activities had net cash outflows of -24,313,600 yuan, -96,895,200 yuan, -35,799,400 yuan and -176,670 yuan. As of the end of 2017, the book cash of the mother-infant home was only 1.376 million yuan, and the accounts payable owed to suppliers were as high as 13.619 million yuan.
In the annual report, the mother and baby home once stated that "there is still some difficulty in changing the situation where the operating cash flow is negative in the short term, and the net cash flow from operating activities in the short term may continue to be negative."
As we all know, the "strategic" loss in the early stage of entrepreneurship is a characteristic of the Internet e-commerce industry. It is mainly a warehousing and rapid logistics system established to rapidly increase market share and improve user experience.
In the field of mother-to-child e-commerce, competition has intensified. Mother-to-child homes are not only facing competition from integrated platform e-commerce providers such as JD.com, No. 1 Store, and mother-to-child vertical e-commerce providers such as Miya, Beibei, etc. Offline channels.
Market information is becoming more and more transparent, and product price wars have continued. Increasing costs of labor, logistics, and traffic, and consumers' more and more rational shopping habits, have greatly reduced the profit margins of mother and baby products, resulting in a sharp decline in product gross profit. At the same time, the attempt and promotion of the company's new business model also require capital investment.
In summary, there are four main reasons for the continued loss of mother and baby homes: IT platform construction investment, fierce industry competition, new business and regional expansion investment, and brand investment.
The birth of the new third board "stock king"
A share "King of shares", Maotai, Guizhou, stock price 567 yuan / share;
GEM "Share King", Ruike Laser, stock price 138 yuan / share;
"Stock King" of Hong Kong stocks, Tencent Holdings, stock price 287 yuan / share;
Nasdaq "stock king", Amazon, stock price 1627 US dollars / share ...
Looking at the New Third Board, the stock price turned out to be a ST company, ST mother and baby!
Regarding Leopard, can you know what the value orientation of this market is?
In the first half of this year, Gaosi Education delisted, and ST mothers and babies with negative profit, negative cash flow, and negative assets became the new stock king of the New Third Board with a stock price of 294.7 yuan / share.
Based on the secondary market transaction price, the market value of the mother and baby home reached a staggering 1.824 billion yuan.
The only listed company in the mother-to-child e-commerce industry where Mother-to-Child ??百乐宫网上游戏?? is located is the Hong Kong-listed China Parenting Network, with a market value of only RMB 420 million, which is only a quarter of the Mother-Child ??百乐宫网上游戏??. The profit is still 34.58 million yuan, which is much higher than that of the mother and baby home.
The valuation of the last round of financing before the delisting of another momnet, similar to the business of mother and baby homes on another new board, was only 1.55 billion yuan.
So, what gives a mother and baby home the courage to support such a high market value?
Brother San Fat consulted the company's public transfer book and found that before listing on the New Third Board, the Mother and Baby House had introduced institutional investor Shanghai Ao Asset Management Center (Limited Partnership), which subscribed for 150,900 shares of the company for 45 million yuan, corresponding to each The price is 298.03 yuan.
Prior to this, Shanghai Zhe had also transferred the 5.032% equity held by the original shareholder Hong Kong Red Tiger for 45.27 million yuan.
Investing in a mother-infant home twice, the valuations given by Shanghai Yan are 900 million yuan and 1.85 billion yuan, respectively, only six months later.
According to the data, the capital contribution of Shanghai Ao Asset Management Center (Limited Partnership) is 100 million yuan, and there are only two natural person partners. After being delisted compulsorily, the honor of the new third board "stock king" also has a new owner, 210 yuan / Shares of Kongming Technology.
New normal for maternal and child e-commerce: capital winter
The hottest industry in 2014-2015 is the "mother and baby e-commerce". Under the catalysis of mobile e-commerce and cross-border e-commerce dual air outlets, mother-to-baby e-commerce sprouts and grows rapidly, such as honey buds, babes, spicy Ma Gang waited for a group of mother and baby e-commerce.
Immediately after honey buds, babes, and baby trees started the price war, advertising war, and marketing war, it seemed as if they were back to the "hundred group war" of group purchase. In this fierce battle, although the home of the mother and baby took the lead to break through and successfully listed on the new third board, the end was not ideal.
Under the new normal of mothers and babies, capital has started to cool down, the industrial structure is being optimized, and products and services are being integrated. At the same time, innovation needs to be driven to tap new needs. This is very different from the past two years.
After experiencing capital fever and money-burning wars, mother-to-child e-commerce has begun to return to the essential stage of commercial competition. This will be a medium-to-long-term process. The essence of business competition is to solve the pain points of user needs and meet user needs.
On the other hand, leading companies in the maternal and infant e-commerce industry are accelerating capitalization.
The baby tree, the largest mother-to-child community in China, has been confirmed to land on the Hong Kong Stock Exchange on the 22nd of this month, and plans to raise 800 million US dollars.
Public information shows that Baby Tree was established in 2007, and 10 financings have been completed before listing, with a cumulative total of more than 6 billion yuan. In June this year, Alibaba strategically invested in the baby tree. After this round of financing was completed, the baby tree's valuation reached 14 billion yuan.
With many corporate giants and capital endorsements, Baby Tree's revenue data is also not ideal. According to the prospectus issued by Baby Tree, from 2015 to 2017, Baby Tree's revenue was 200 million yuan, 509 million yuan and 730 million yuan. Losses during the same period were 286 million yuan, 935 million yuan, and 911 million yuan.
This is still the case of industry leaders, let alone a small company such as the Mother and Baby House. The "second child age" has accelerated, but the spring of mother and baby e-commerce seems to be far away.