The stock price of 1 dollar is not the "shame cloth" of Yixian e -commerce

Edit | Yu Bin

Produced | Chaoqi.com "Yu See Column"

For Yixian e -commerce, the market's concern for its stock price has always been that its stock price can return to $ 1 to avoid being delisted by the New York Stock Exchange.

Fortunately, after the company's latest 2022 financial report, Yixian e -commerce stock price has risen, and recently, it has stayed above $ 1.

However, the stock price performance of about $ 1.030 in recent days may not be able to become the "shame" of Yixian e -commerce, at most it can be called the current status of "the first stock of Chinese goods" without the "so bad" status of the "Chinese goods makeup". Continuous controversy.

When the wind spreads, is it possible for Yixian e -commerce to return to the peak moment?

Without a counterattack, the performance of Yixian e -commerce continues to be sluggish

At the end of last month, the perfect diary parent company Yixian e -commerce released the company's second quarter financial report as of the end of June this year. According to the financial report data, Yixian e -commerce has achieved approximately $ 142.1 million in revenue this quarter, a sharp decline of more than 37 year -on -year declines exceeded 37 %.

At the specific business level, the makeup business represented by the perfect diary, Xiao Anting, Pickexiong, etc. Yixian e -commerce revenue fell by more than 50%year -on -year in revenue. The main factor of poor performance of Yixian E -commerce.

Fortunately, the skin care brand business of Yixian E -commerce returned blood for the company in this quarter. With the significant increase in the revenue of skin care brands by 49.2%, the proportion of related business revenue in the total revenue also exceeded one -third, which gave people a little expectations for the future of Yixian e -commerce.

At the level of profit data, the performance of Yixian e -commerce in the second quarter of this year is still unsatisfactory. The gross profit margin has declined year -on -year, and the net profit is still a huge loss.

Fortunately, the loss of Yixian e -commerce in this quarter has decreased, from 3912 million yuan in the same period last year to RMB 264.3 million in the second quarter of this year.

In general, the performance of Yixian e -commerce in the second quarter of this year still continues to be sluggish. Although it can see some signs of improvement, it is not enough to let Yixian e -commerce be at ease.

Investors' attitude towards Yixian e -commerce proves this. Although the company's stock price temporarily separated from the delisting crisis below $ 1, it still fluctuates in the range not far from $ 1, which shows that Yixian e -commerce is now now The situation is not better than before.

It is worth noting that the current problems of Yixian e -commerce are not only on the surface.

At the market level, the company's main brand's perfect diary is facing the situation of being overtaken by the Huoxi brand, which has covered the future development of the perfect diary and will continue to press the company at the performance level. In addition, in recent years, in order to take it for in recent years To reverse the dilemma, Yixian e -commerce is carrying out a large number of transformation actions in the dimensions of brands, products, business layouts, and marketing. The growth of skin care brand business shows that its transformation has achieved certain results.

However, the transformation is always a long -term "double -edged sword". Whether these transformation actions can help Yixian e -commerce regain the growth channel and achieve good performance, it is still unknown, especially the listing of Yixian e -commerce companies. In the past two years, it is infinitely beautiful. It is obviously far from the counterattack.

The forced second entrepreneurship, the difficult market change bureau

In April this year, a warning letter from the New York Stock Exchange exposed the current status of Yixian e -commerce to the public.

As Yixian e -commerce experienced the stock price of 70 consecutive trading days from March to June, it was not only facing a crisis of forced delisting at that time, but also facing the market comprehensiveness.

In this case, Huang Jinfeng, the founder of Yixian e -commerce, who had rarely appeared, was forced to stand out. He conveyed a plan to lead the company to "secondary entrepreneurship" to the outside world. Subsequently, Yixian e -commerce opened a strategy. The pace of transformation.

With the release of the latest second quarter financial report, we can also feel the new development route that Yixian e -commerce wants to pursue from the financial report data. However, from a deeper perspective, the subsequent performance of Yixian e -commerce seems difficult to be regarded as optimistic, because it does not seem to solve the deep problem that the company is in trouble.

A few years ago, Yixian E -commerce has become a classic case of domestic beauty brands with the positioning of the perfect diary "big -name replacement", the marketing grass model of social media, and the traffic dividend. To this day, many brands still have the success path of the perfect diary, and want to "recreate" a perfect diary in its successful experience.

However, the disadvantages of this development model are also obvious, that is, high marketing costs. In the period of high -speed expansion of the brand and the period of platform traffic, maybe these marketing investment will still appear highly cost -effective. With the changes in the market environment, this heavy marketing model can no longer bring sustainable growth to the brand, but it will make it bear hugely The burden.

In recent years, Yixian e -commerce has been showing a significant increase in marketing costs. From 300 million yuan in marketing expenses in 2018, to 4 billion yuan in marketing costs in 2021, the company's attention to marketing is evident, marketing costs The proportion of the total revenue also exceeded 68%.

In sharp contrast, the company's R & D costs from 2018 to 2021 were only 2.64 million yuan, 23.18 million yuan, 66.51 million yuan, and 140 million yuan. Such a model of heavy marketing and development is destined to cause Yixian e -commerce to suffer a dual crisis at the brand and product level.

In recent years, as consumers have decreased their freshness in the perfect diary, more and more people have begun to realize that this is a company that has limited investment in the product and spends more money on advertising. In addition, it is related to the brand.The quality of various types of products has emerged endlessly, which eventually led to the current situation of Yixian e -commerce.Considering that the company has always relying on marketing advertisements to obtain sales and increase, marketing investment cannot be said to be reduced, but the returns brought by must be getting lower and lower, and the company's revenue has fallen sharply.

The huge amount of marketing investment has made the company's profit indicators worry. Although the new business growth point has emerged at the same time, the internal pressure that has not been reduced is combined with the increasingly severe competitive pressure of the outside.It's difficult.

In the future, the competition of domestic beauty circuit will only become more and more intense. Without setting enough brand power to face crisis, Yixian e -commerce will become a typical typical typical?

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