In the overnight U. S. stocks against the trend to close higher, a Chinese stock has sadly left this foreign capital market.

On the evening of April 27th, Jumei filed with the Securities and Exchange Commission From 15 (also known as "Certificate of Registration and notice of termination of Registration"), which meant that it was officially delisted from the New York Stock Exchange.

Perhaps, the "consummation" that Jumei has been striving for will finally be realized. after all, this is not the first time it wants to privatize and delist.

In retrospect, Jumei applied for privatisation in February 2016 on the grounds that "stocks in the US were grossly undervalued" at US $per ADS7, but gave up because of shareholder resistance to the offer price (the offer price was US $22).

And the process of privatization and delisting from application to taking effect is quite smooth. After all, in this special period of the epidemic, with the increasing uncertainty of the global economy and the upsurge of risk aversion in the market, today's repurchase price is still more conscientious for the major shareholders.

On January 12, Jumei CEO Chen ou issued a proposal saying that the buyer group would buy shares not already held by the buyer group at the price of $20 per American depositary receipt. If the deal is concluded, Jumei will become a private company owned by Chen ou, and Jumei will be delisted from the New York Stock Exchange.

On February 26, Jumei announced that he had reached a final privatization agreement with his parent company SuperROI Global Holding Limited and Jumei Investment Holding Ltd.The parent company and the buyer will acquire all the issued A shares of Jumei at a price of US $20 / ADS (the parent company is Jumei founder Chen OuquanCapital ownership)

On April 9, the group of buyers acquired more than 40.34 million Class A common shares through tender offer, accounting for about 63.7% of the total Class A common shares issued by Jumei in circulation. So far, Jumei's group of buyers has held about 96% of the voting rights of listed companies and officially launched a simple merger.

On April 15, Jumei announced the completion of privatization, becoming a privately held company owned by a group of buyers, and was about to be delisted from the New York Stock Exchange.

Source: Wind

Thirty years in Hedong and thirty years in Hexi, now for Jumei, who is "constantly marginalized", it may be a rational choice to comply with the trend.

The moment from prosperity to decline?

As "the first share of Chinese beauty makeup e-commerce"Jumei also had those enviable highlights.time。

In March 2010, Chen ou, Dai Yusen and Liu Hui jointly founded Jumei (formerly known as "Tuanmei"), which set a sales record of 500 million yuan in the first year of its establishment.

In 2013, Jumei occupied the first place in China's cosmetics online retail platform with a market share of 22.1%.

In May 2014, Jumei landed in US stocks with an offering price of US $22 and a market capitalization of more than US $3.5 billion. Its founder, Chen ou, born in 1983, became the youngest listed company in the history of the New York Stock Exchange for more than 220 years.Its share price has since hit $39.45.。

The above series of glory really existed, but also like floating clouds, they were forgotten by the world in the dark corner of the competition field in the twinkling of an eye, and this is all because Jumei tasted the benefits of e-commerce, but did not adjust the strategic direction in time and made him lose step by step.

Jumei stock price

Source: Wind

In fact, at the beginning, Jumei took the right path, that is, when the competition of integrated e-commerce is in the bottleneck of development, there may be opportunities in the field of vertical e-commerce, which will make all kinds of people rush for the beach layout and get a piece of the pie in the wind.

However, how to make vertical e-commerce thoroughly is the difficulty, and in the competition of overheated capital, few companies really achieve specialization and differentiation and come out of their own day. Coupled with the monopoly momentum of the giant's entry (Taobao, JD.com, Vipshop Holdings Limited, etc.), which brings new variables to the comprehensive e-commerce field, this is the main reason why Jumei fell into decline in the face of performance bottlenecks in the later stage.

Source: Weibo Corp

At the same time, the fakes surrounding it may be the "straw that kills the camel."

Source: Weibo Corp

In July 2014, a supplier of Xiangpeng Hengye Trading Co., Ltd. was exposed to sell counterfeit clothing and watches on Jumei and other e-commerce platforms by forging brand authorization and customs declaration forms.

In January 2015, a netizen who claimed to be a former employee of Jumei revealed on the social platform that Jumei's big-brand cosmetics came from a fake professional place in Guangdong, and the proportion of fake products was as high as 90%. And said Jumei has been suspected of purchasing overseas, or even counterfeit cosmetics from unknown sources.

Fake goods storm after wave after wave, for the e-commerce platform, the most important thing is credibility, and this is mainly from the quality and quantity of the strength, Jumei obviously lost the trust of consumers in this respect. Even cutting the cosmetics business on all third-party platforms, or making a public apology or clarifying the announcement, will not stop its share price from falling, its business in decline, and even being sued by a number of US law firms.

According to the data, from 2016 to 2018, the number of active customers of Jumei was 15.4 million, 15.1 million and 10.7 million respectively; the number of new customers was 9 million, 8.9 million and 6.1 million respectively; the total number of e-commerce orders was 61.5 million, 63.5 million and 38 million respectively; in addition, the number of suppliers and third-party merchants cooperating with Jumei dropped from 2244 to 1341.

I thought it was a gorgeous robe, but there were many lice hidden inside. Perhaps this was the impression that Jumei left on the public at that time. With the continuous loss of user stickiness, coupled with the fierce competition in the e-commerce market, it can no longer maintain its existing market share, and the market leaves it little time and space to struggle for survival.

Such a small-cap stock with low liquidity has lost the trust of consumers and the favor of investment institutions, especially when there is a pain point in the internal development power, it can be said that the improvement of investment value in the future is relatively slim, therefore, instead of spending time and effort to maintain a "decent" listing status, it is better to let go and start again.

By the end of 2019, a total of 107 Chinese stocks had been delisted from the three major US exchanges, while 240 were still traded in the US stock market, but more than 70 per cent had fallen below the offering price. "--Wind data

At the same time, as far as the general environment is concerned, Chinese stocks landing on US stocks are also facing great pressure, especially as the fuse of Lucky fraud has been triggered, the situation of Chinese stocks is not optimistic enough. after all, in addition to the stricter supervision of the Securities Regulatory Commission and exchanges, the "covetousness" of short sellers and the class action brought by them Coupled with the high operating costs and other practical factors make many targets in the foreign capital market every day "like walking on thin ice".

Change careers to share portable battery's career

The struggle between trapped animals may be meaningless, and how to break through the air is the key to a new life. To complete privatization and delisting to get rid of the shackles brought about by stock price fluctuations, and then to pave the way for the transformation, is an important step for Jumei to start the next stage.

"privatization means that the company is once again in the process of starting a business." -- Chen ou

After investing in mother and child e-commerce, film and television dramas, air purifiers, and other industries with unsatisfactory results, Jumei may have the opportunity to "turn the corner but have another village," and will soon share portable battery's great cause to the end.

Under the comprehensive arrival of the Internet era, with the continuous acceleration and even saturation of the penetration of smartphones, coupled with the commercial landing of 5G, people also have a large demand for its battery life, thus prospering the development of the shared charging market.

"the number of shared portable battery users in China will reach 305 million in 2019, and the number of users is expected to increase to 408 million in 2020." -- Open data

Based on this, Chen ou spent 300 million in May 2017 to acquire Street Power, a shared portable battery enterprise, and as of March 31, 2019, Jumei held a stake of 82.07%.

And this choice is obviously correct, at a time when its main e-commerce business is in decline, the growing sharing portable battery business has become a pillar of its promising performance.

In 2018, its shared portable battery business rose to 879 million yuan from 73.73 million yuan in 2017, accounting for 22% of total revenue; at the same time, gross profit as a percentage of net GMV in 2018 increased from 19.5% in 2017 to 23.7%; in the same period, gross profit as a percentage of net income increased from 22.2% to 25.4%.

Jumei deducts the net profit which is later vested in the shareholders of the parent company

Source: Wind

Entering 2019, the performance of street electricity is not to be underestimated. In the first half of the year, it occupied the first place in the industry with a market share of 40.5%, and the cumulative number of users reached 107 million, becoming the first platform to share the cumulative number of users in portable battery industry. Small electricity, monsters and incoming calls followed (23.6%, 20.9% and 11.7%, respectively).

Share portable battery brand echelon

Source: iResearch data

However, with the popularity of the sharing portable battery industry, the giant led by Meituan also began to increase the size of this field, it is obvious that Jumei, who started his "second venture" with street electricity, may still have an uphill battle to fight.

Source: Weibo Corp

Conclusion

Under the condition of "harmony between the people and the people", Jumei finally successfully completed the privatization, which can be said to put an end to a hanging wish of its founder Chen ou. After all, the road of e-commerce may have become a thing of the past. Both enterprises and people need to get out of the haze and start all over again.

At the beginning of the new year, Chen ou wrote in a message from Weibo Corp: 'the new 10 years will definitely be better, right?

Behind this wish, there is five points of affirmation and five points of uncertainty. Jumei will have both risks and opportunities in his future journey. I do not know whether he will show Sinorama again in the future, and the unknown may be judged by time.