Original title: the new egg will be listed on the US stock market, losing 64 million yuan in 2017. It has fought price war with Jingdong.
On the evening of September 13, Liaison Interaction of A-share listed companies (002280) announced that the company's third provisional shareholders'meeting this year decided to consider and pass the "Bill on the Listing Scheme of Companies Affiliated to Foreign Countries" and planned to split its New Egg company to list in the United States.
Previous announcements showed that the new egg was listed on the New York Stock Exchange or the Nasdaq market, and that the specific listing plates would be determined on the basis of the recommendations of the Securities and Exchange Commission of the United States (SEC) after submission of materials to the Securities and Exchange Commission (hereinafter referred to as the "SEC") for review, and in accordance with the SEC's minimum liquidity ratio requirements and the new The financial needs of the future development of eggs determine the size of the specific issue.
Separate market for split new eggs: a more mature valuation model in the US market
Although the new egg is still unfamiliar to many domestic consumers, but for some loyal consumers, it has been known for a long time. At the same time, due to years of business in Europe and the United States, the new egg in the world 3C products enthusiasts have a special position
Up to now, Newegg has 36 million registered users, 14 million mail subscribers, 17 million monthly independent visitors, covering more than 50 countries around the world, in many countries at the same time established a million square feet of logistics storage center.
The person in charge of liaison and interaction told the Beijing News that the US IPO of Newegg New Egg is to further enhance the existing business capabilities of Newegg New Egg. The fund will be used to broaden the product range of the platform, open up the global e-commerce market, increase research investment, develop its own payment system for the new egg platform, and optimize the payment environment for overseas e-commerce. Especially important, the funds raised will also increase the investment in domestic cross-border e-commerce, further promoting the development of the industrial chain.
As for the separate listing of Newegg eggs, the person in charge of liaison and interaction said that promoting the independent IPO of Newegg eggs in the U.S. market is mainly to protect the interests of small and medium investors. In A-share market, investors value enterprises mainly by P/E ratio. For E-commerce enterprises in the expansion period, this model can not reflect the fair value of enterprises.
In this regard, an investor told reporters that in the A-share market, the valuation model of E-commerce enterprises is not mature, most of the U.S. market E-commerce enterprises are valuated by market sales rate (PS), the valuation model of the market is more mature.
2017 loss of 64 million yuan
Earlier liaison and interactive disclosure announcements showed New Egg's revenue of $2.383 billion in 2015 and $2.254 billion in 2016, with net profit of $17.756 million and $13.573 million respectively.
In June this year, the company disclosed in its Annual Report on the Shenzhen Stock Exchange in the "Bulletin Responding to the Inquiry Letter" that revenue of new eggs in 2016 and 2017 were RMB 15.216 billion yuan and 14.571 billion yuan, respectively, with net profits of RMB-092 million yuan and - 064 million yuan.
In this regard, e-commerce research center B2B and cross-border e-commerce Department director, senior analyst Zhang Zhouping said that Newegg new egg as the main technology products B2C e-commerce platform, although there is a first-mover advantage, but whether in the domestic or overseas e-commerce market, are facing strong competitors in the competitive market in the short and medium term If you want to make a profit, it will not be optimistic. This will also affect the overall financial situation in the short term. E-commerce platform is driven by traffic, and it has no advantage to rely on technology products to take the vertical line of the industry.
Despite being called the second largest e-commerce company in North America, GMV is only a tenth of Amazon's, Zhang said, which means breaking through Newegg's new egg in such a competitive market environment is a challenge.
Jingdong and the price war, late fade out of the market was acquired
New egg was founded in 2001, headquartered in Los Angeles, California, the United States, the main business B2C, B2B and third-party platforms. In 2006, the new egg entered the Chinese market, and many supporters were obtained through electronic products, which once surpassed Jingdong.
"The price war was particularly fierce at the time, and we hit the time lag as soon as many commodities were priced at one price," recalled a Jingdong insider who recalled competing with New Egg, a multinational company with a long decision-making chain that was unable to compete in China's domestic market environment. As a result, the development of New Egg in China has been frustrated repeatedly due to various reasons, such as the bad localization and the lack of understanding of the Chinese market by American senior officials. Subsequently, the new egg by Jingdong, Tianmao Electrical, Suning, Gome and other local competitors to catch up, and gradually fade out of the e-commerce market. According to public information, the turnover of new egg China accounts for only 1% of the global turnover.
In July 2016, Liaison Interactive purchased a 55.70% controlling stake in New Eggs in cash at a transaction price of $264 million, which was finally completed in 2017. Up to now, the interactive interaction holds 61.55% stake in the new egg.
After the completion of the acquisition, liaison interactive launched the "two-way" cross-border e-commerce platform. On the one hand, new eggs take advantage of the global supply chain, warehousing, logistics system, cross-border payment and other aspects of the advantages of high-quality goods to carry out the global direct purchase business; on the other hand, make full use of new eggs in North America's user resources to sell domestic products.
The parent company of A-share listing Liaison Interactive Technology Co., Ltd. was founded in 2007, and then landed in A-share through backdoor restructuring in 2014. The listed entity is Hangzhou Liaison Interactive Technology Co., Ltd.
Domestic Internet Co welcomes the third listing tide
Recently, a large number of e-commerce platforms, including group reviews, Qijia, Baby Tree, Jiduo, Zhaogang, Youzhao, Tongyilong, and what is worth buying, have disclosed prospectuses or IPOs.
Data show that the technology companies listed this year will surpass the sum of 2016 and 2017. Therefore, some insiders say this is the third wave of listing of domestic Internet companies after Baidu, Tencent, Shengda, Sohu, Netease and other e-commerce listings around 2000 and Ali, Jingdong and other e-commerce listings around 2010.
It is worth noting that, like the new egg, many Internet companies on the market are not profitable. In response, one investor said that the investment funds investing in Internet start-ups around 2014 have entered the withdrawal period. Therefore, many companies that are still unprofitable have difficulty financing in the primary market, thus choosing the two tier market. At the same time, under the current exchange rate situation, the Hong Kong stock market has the advantage of exchange rate difference.
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