2019, fresh new retail there are too many bad news.
In March, the US group's elephant fresh Changzhou shop was blasting closed; April, Ali's box horse Fresh green announce the end of May closed Kunshan certain stores; community fresh electricity providers in November, four years old - wonderful life was blasting all closed shop, and had to exit; June radish spent 634 million yuan to get financing, capital chain, "Bao Lei", staged a war strife; in December, "Kat and fresh" CEO Yang Lu Taiwan announced financing fails, the company to large-scale layoffs , customs warehouse; the one hand and support for its fresh fruit Ali easy to become a "debtor" ......
Whether dashing record companies, or wealthy enough of giant, fresh players, "Every family has its cupboard", which is fresh track is repeated demonstration of the rules of survival, and anyone escape the hardship head of life, do not survive it is quite another matter.
Of course, the haze shrouded fresh new retail in 2019 is not without good news. December 9, was established in 2013. Cross-border fresh platform - live music in the world, officially presented the first edition of the prospectus in the United States, the NASDAQ launched the attacks.
According to the official website Broadwood public information, its founder Zhang Yanyue early return home in 1998 venture, the "LOHAS" (Lifestyles of Health and Sustainability: a healthy and sustainable lifestyle) concept back home, opened in 2003 in Shenzhen related investment, 10 years after the establishment of the current world of live music.
For its own position, it will be live music is described as "fresh smart new retail platform" and "preferred global LOHAS yield, yield move by Broadwood Things traceability throughout the cold chain system and ensure food security; use of direct mining base and community, accusing mode (F2B2C mode), and ultra-smart micro, electric vehicles and cold chain community, accusing point to solve community last 100 meters and distribution of fresh convenience, advocating life is live music. "
Fresh new to the retail industry, there are players finally began to engage in IPO, at least, show that fresh players still have the light of day, but for live music itself, the choice of fresh tracks in the United States to find any of the 2019 financing , and perhaps last resort.
Sleeper Variable: Unicorn then to the new three-plate IPO
From the players point of view of the type of whole fresh track, there is live music Internet genes and gene technology, even as early as around 2013 began to promote large data block chain, networking and other technologies used in agriculture, and implement it as an important methodology "music live".
But Broadwood geographical genes of heavy, live music started in Shenzhen, the country is far less well-known horse box Ali, Yonghui super-species, small groups like the fresh beauty.
Nearly two decades of Xing Xu, Broadwood actually develop slowly, nothing like a fresh player has the technology and the Internet genes. And from the financing point of view, live music and very traditional, over the years has incurred no public financing, but in fact alive and Broadwood Road to the vast majority of game players is better, because those players fresh surface beauty, is likely sly It had already been devastated.
2016 Broadwood listed three new board announced first half earnings reporting period to achieve revenues of 125 million yuan, an increase of 1445.64% over the previous year; attributable to shareholders of listed companies net profit of 15.3392 million yuan, a year earlier an increase of 249.68%.
Three new board to become the first turning point of live music, dazzling performance, let Broadwood particularly noticeable in the capital markets, live music and therefore become a fresh handful of industry players to achieve profitability.
But it seems there is live music bigger ambitions. August 2018, Broadwood issued a notice that the contents of the resolution by the general meeting of shareholders has been "terminated listing", the share of small and medium enterprises to the national transfer systems submitted an application. Broadwood reason given is "with the company long-term business development and strategic planning."
Come easy, but difficult to walk. Until today, from live music to submit the listing application has been terminated in the past over one year period, Broadwood still failed to do so, and the relevant 2018 Annual Report undisclosed suspicions, but also attracted many of the speculation period. Once the three new board dark horse, and now even trapped in the three new board, bizarre true.
Hardship capital market does not seem to affect Broadwood ambitious development goals. September 2018, with the rapid fall of intelligent ultra-micro projects, Broadwood Fresh proposed to do smart new retail unicorn. But before this time, the Broadwood growth rate has been far less, it was reported that the first half of 2018, its revenue of 337 million yuan, an increase of 67.30%.
After the outside, since the goal is to more than $ 1 billion valuation unicorn, it inevitably also need Broadwood precipitation years, until revenue and profits reach a certain order of magnitude, we go to open a new round of capital road. But Broadwood does not seem to think so, but again the initiative to accelerate this process, directly seek a listing in the United States.
Broadwood this confidence, faith in the official micro-channels of live music, the latest article, wrote: "In 2020, on a journey Broadwood globalization strategy, complete IPO process, successfully landed on the NASDAQ trading board on the market. "this description, full of live music craving for listing.
Throughout the live music capital of the road, twists and turns, and relatively rapid. Three new board from short dark horse, to dream of becoming a unicorn, and then to the heart of the IPO, to attack the Nasdaq, live music is varied, while the desire for financing also more intense. For live music, the firm implementation of all this driving force, perhaps, or a rare opportunity, as well as fresh track cruel.
The situation of oppression
2019 perishable players the status quo, pointing to a common external bad environment: Fresh cold winter has been to the track, dramatic reshuffle underway. For surviving fresh players are concerned, 2019 was a profound warning, in 2020 the living environment may be more severe.
The fact may be true. According to iResearch July 2019 release of "2019 China Fresh electricity supplier industry research report," 2018, Chinese electricity provider fresh market remains good growth, but also showed a clear trend, whether it is comprehensive track, or vertical track, head effects are becoming evident.
In addition, financing, fresh electricity supplier from 2015, the number of declining funding, about half of 2018 only 2015, but the total amount of financing has increased, which shows a lot of growth in the average amount of financing, the head fresh more and more local commercial power of money.
2019 financing environment is not very good. According to the Economic and Social Network, "the number of electrical treasure" Monitoring data show that as of December 11, 2019, during the year 2019 the number of fresh electricity supplier industry financing event 22 times, down 38.89 percent year on year.
Broadwood you were in a bad environment is also under pressure throughout the industry, and this external pressure is also growing, so the public financing is actually imminent, had made.
1, intense competition
In 2016, three new board has just listed Broadwood, probably would not imagine the competition it is facing today, will be more than ten times the number of intense couple of years ago, or even hundreds of times.
The problem is, this competition affected the Broadwood core data - profit. According to the latest prospectus, semi-annual net profit as of March 31, 2019 was $ 2.65 million, compared with the first half of fiscal year 2018 of $ 3.1 million, down 14.5%. Net profit margin decline is also more serious, from 9.87% 2018H1 and 2019H1 down to 5.89%.
The reason for the decline in net profit, live music in the prospectus will be attributed to the two points: first, most of the rise in import prices of fruits; second, resulting in fierce competition situation will not fully pass on cost increases to consumers.
Prospectus, Broadwood clear that he is in a highly competitive retail food industry, and lists their separate ways rivals, such as supermarkets, natural food stores, large-scale discount retailers, warehouse-style membership stores, lines the retailers and specialty stores.
Obviously, because of the pressure from all sides to bring these competitors, and live music is difficult to substantial price increases in the case of rising costs, resulting in lower profits. Broadwood Clearly, if the number of price increases and price increases, business strategy choice is very challenging, but under the pressure of fierce competition, not only raise prices, a slight price increase, or even lower prices in order to maintain a better Competitiveness.
In addition to profits, the competition also affected the live music on the cost of the investment. According to the prospectus, 2019H1, Broadwood sales and marketing expenses were $ 11.6 million, an 2018H1 US $ 1.02 million, up 13.7%.
Broadwood competition to the negative impact brought about, perhaps already begun. Can be seen in the first half of 2018, 2016,2017 and live music data in the three new board from disclosure, since 2016, Broadwood's income is rising, but the gross margin and net profit margin has declined, which means music Although the harvesting of living more markets and consumers, but did not earn more money.
For now, the pressure of fierce competition to bring live music, is likely to have caused more ugly financial data. Since 2019 Broadwood did not disclose in the prospectus the second quarter (April-June) 2019 and the third quarter (July-September) of financial data, and normally live music should provide the latest financial data prior to listing, but Broadwood did not choose to do so, it has not been disclosed in conjunction with the 2018 earnings this information, does not inevitably appeals to the imagination.
2, economic and trade environment
Broadwood suppliers, 95% came from abroad, which determines the Broadwood is a typical import-oriented enterprises. Different countries involved in cross-border trade tariffs, currency exchange rate, industrial policy, for live music, the environment and changes in the economic and trade policies would have a positive or negative influence.
As mentioned earlier, Broadwood's net profit fell mainly due to a rise in the purchase price of imported fruit. From a financial point of view published data Broadwood, tariff changes brought about product costs, a major disadvantage Broadwood currently face, and force majeure.
According to the prospectus, 2018 fiscal year, Broadwood revenue cost of $ 071 million, up 2017 fiscal year of $ 0.49 billion, up 44.9% on the 2019 first-half Broadwood revenue cost of $ 039 million, up on the 2018 first-half year 026 million US dollars, an increase of 50%.
For the sharp rise in the cost of revenue, Broadwood interpreted as "With most of the unit purchase price of fruit products to enhance sales lift." Simply put, fruit purchase price and sales have led to a sharp rise in revenue to enhance the cost.
Increase on the purchase price of fruit, live music and did not explain in detail, but the whole point of view of imported commodities, changes in tariff policy is the core cause of changes in commodity prices. In the prospectus, Broadwood classified for this type of risk in the Risk Disclosure international chapter, such as local economic conditions change, the introduction of restrictive policies and so on.
From the development trend of revenue perspective, economic and trade environment of volatility and uncertainty did not have a significant negative impact on the sales end of live music, in contrast to strong demand of Chinese consumers, LOHAS on revenue also achieved good results. But it does live music on margins caused a lot of compression.
For now, the change in the economic and trade environment, live music can only do one thing: stable or reduce costs from other controllable aspects, so as to resist or undermine external cost pressures caused by a bad environment. In the long run, the import business of live music, must maintain a high level of vigilance in this regard.
In urgent need of a lot of money
Live good business does not necessarily need to IPO, but the company needs an IPO is likely to live not good enough. Broadwood belong to the latter. Broadwood The US IPO financing plan up to approximately $ 37.6 million, in the case of three new board suspended for a long time, Broadwood obviously need more money because more and more local music utilize the money.
1, super-intelligent micro
March 2018, Broadwood integrate multiple technologies, announced the launch of super-intelligent micro-projects. In the same year in July, the first batch of super-intelligent micro began to fall online. In October, fresh produce Broadwood start running in the smart micro super. The reason for the introduction of super-intelligent micro, Broadwood explanation is in order to solve the problem of the "last 100 meters distribution", while the ultra-intelligent micro-retailing but also reduce part costs, to provide consumers with more choices.
In fact, the super-intelligent micro essentially no vending machines, but more in the category of the vertical, and the high frequency bias in fresh daily consumer goods. Although the idea is old, but live music is very intelligent micro-valued super intelligent terminal products for the consumer community.
Last year, when the smart micro ultra landing more than a month, live music has proposed a goal for the next three years laid over one million units of super-intelligent micro, has over the past year, super-intelligent micro target completion progress is worrying. According to data provided by its prospectus, the current super-intelligent micro running a total of about 300 units.
According to finance external reference statistics, live music super intelligent micro-eight cities in the country currently has been put in, which is the focus of Shenzhen and Guangzhou, the number of rare other cities, presumably still in the experimental stage.
More than a year just put down hundreds, apparently from Broadwood one million micro super goal is still very far away. But live music is given in the prospectus his new goal: By the end of 2021, put about 3,000 micro super intelligent, although the target reduced a lot, but if you want live music to fulfill his ambitions within the specified time, in the next two in still require high capital investment, as well as super-fast delivery speed.
It is worth noting, live music venues still prospectus disclosed the cost of the super-intelligent micro, a roughly 150 yuan / month, the number 300 is doing about 45,000 yuan / month. If you really laying 3,000, intelligent micro-light ultra-monthly rental of premises have spent 450,000 yuan / month, plus other costs, Broadwood financial pressure is still not small.
Not to mention how smart micro super ability to make money, but it certainly is the main money-burning, but it also seems to provide ample justification for the LOHAS market. Smart micro ultra-so burn, Broadwood not find the money, it is impossible to continue the successful expansion, also mentioning the dream of millions.
Just more than a year before the laying of hundreds of super-intelligent micro, we had to look at the capital market real idea of live music again. Broadwood I really want to go towards one million, and that live music is to fight it, but funds are not supported, powerless live music, live music, if slowly and dry, people will feel less confident.
This super-smart micro ambitious dream, is making Broadwood become a dilemma.
2, supply chain
Over the past six years, live music has been trying to create a uniquely powerful supply chain system, as in the case of removing the middlemen, live music F2B2C mode requires more technical support in order to have a cost and efficiency relative to other competitors Advantage.
Technology, live music put more manpower and R & D costs to develop the block chain traceability system, temperature control systems and other software technologies. Although not in the prospectus disclosure of detailed cost data, but also cost increase reflects. The first half of fiscal year 2019, sales and marketing expenses Broadwood cost of $ 1.16 million, an increase of 13.8%; general and administrative expenses were $ 1.408 million, an increase of 168.7%.
In addition, there are a lot of live music data in three new board disclosed in the earnings report. Starting from 2016, Broadwood in sales and management of investment increased significantly, according to Broadwood disclosed semi-annual report, the first half of 2016, Broadwood administrative expenses 2.4727 million yuan, to achieve a hundredfold increase year on year, cost of sales was 341,500 yuan year on year to achieve the number has increased tenfold. From the 2016H1 2018H1, live music marketing costs and administrative expenses also achieved more than about 50% growth.
The reasons for the growth, according to Broadwood explained in the Annual Report 2016 can be divided into three: First, increased due to business expansion brought about by staff and salaries, the second is to increase commodity circulation costs, the third is to increase marketing investment.
Technology research and development, investment Broadwood also quite stingy. To 2015H1 2018H1, amazing live music R & D investment growth in 2017 invested 1.58 million yuan, an increase of 773.5%.
Broadwood advertised himself as a technology-driven company, which means that you must live music with iterative techniques and innovative technology, has been to ensure the efficiency and cost advantages of the supply chain. For live music, it has established a supply chain resources and ecology of its unique "moat", but in the increasingly fierce competition, live music must remain bold investment attitude, the key technologies, vendors, and other commodities link to form a stronger barrier.
In any case, to maintain the existing supply chain and technological advantages, Broadwood must do to prepare long-term investment, Broadwood's pocketbook drum up not only need, but also has been bulging.
best time
2019, there is such a style piece Forecast: 2019, may be the worst year of the past decade, more likely to be among the best year for the next decade.
Fresh track in 2019, seems to have verified the first phrase. Nobody knows the last part, but all the players fresh for the track, it really should plan ahead and prepare for the long winter.
In Broadwood, despite increasing competition in the industry environment is not conducive to their own, more and more financing environment is not ideal, but enlarged to five years, or even decades, perhaps now is the best time to market.
On the one hand, net profit fell warns LOHAS, LOHAS integrated pressure to the negative effects of being constantly enlarged, the future of some of the core data, may be getting worse. So, the sooner the market, the greater the opportunity to better financial data presented to capital market investors, to minimize risk.
On the other hand, in the current strategic goals, live music is at a critical period of concentrated force, whether it is a new micro-super-smart project, or to maintain the supply chain advantage, and now the successful financing, probably will be able to achieve as a live music large blood, so that the development of better use to market a springboard.
Of course, the impact of live music selected by the end of 2019 the Nasdaq, which in fact represents, I think live music in the beginning of 2020 is perhaps the best time to market financing, or for some time most conducive to market their own development financing time.
Written in the last
For six years, Broadwood be regarded as a fresh alternative on the track, do not rely on financing from the potential frequent, did not earn much fame, but the living is not bad, it is in line with the "small is beautiful" standards.
But from the series of operations of the capital market point of view, live music and shows a surprising ambition, although the road is not smooth. Prior not out of the arms of three new board, Broadwood haste want to put under the capital surrounded by the ocean for themselves let off steam, and perhaps also for the fresh electricity providers have to let off steam.
Whether the environmental impact, or their own development, Broadwood choose this time to withstand the storms outside to cross-border listings, are deeply reflects a helpless and passive. After all, the most important of live music now, is money, not the name.
Perhaps from the moment contact with live music capital markets to grow up, it is learned that this track cold and cruel, but also understand the dangers and pitfalls of the track, if it a little unhappy, not a little hard, probably 2020 perishable will board the electricity supplier list died.
Although everything is yet to be given a number, although I do not know how its fate after the live music market, but has been unable to manage live music so much, it must be perceived to be responsible for its deep sense of crisis, as much as possible to live better, longer. So, are eligible to "let the world music alive."
Wen / Liu Kuang public number, ID: liukuang110
