A listed company focusing on women’s business has a “fire in the backyard”.
In the past March 8, there was a heartbreaking tweet that led to a hot debate. In the afternoon of that day, the user named “Liren Beauty (27.85-7.35%,診股) Weng Shuhua” publicly posted an article “looking for” her husband and was forced to publicly call him “Home“. The “home”.
According to Weng Shuhua’s user profile, she was the 001st employee of Liren Beauty, who served as the company’s sales and administration director, and the person she was “looking for” was Huang Tao, chairman of A-share listed Liren Beauty (605136).
In the microblog, Weng Shuhua @ Hanley Capital Chairman Qian Xuefeng, Alibaba founder Ma Yun, Alibaba Board Chairman Zhang Yong, get App founder Luo Zhenyu, self media person papi sauce and other people, trying to seek help, hope that the microblog content to Huang Tao.
After the release of the microblog, Liren Beauty “husband hunting” incident continues to ferment, as of press Time, the microblog was retweeted nearly 20,000 times. The company’s shares were sold off after the opening of the market on March 9, with the stock price opening sharply lower and crashing to a halt, and by the end of the day, the stock price was still sealed to a halt.
As of press time, Liren Beauty and Huang Tao did not speak out on this, the reporter tried to Liren Beauty side for confirmation, has not yet received a reply.
The 10 billion listed company “backyard fire”, the chairman of the long-term night not home?
The company’s market value of 1.344 billion yuan was “smashed” by a microblog.
The company’s share price has been affected by the fermentation of the microblogging, and the company’s share price has been quickly smashed to a halt after the opening of the market on March 9, and the total market value of the company is 12 billion yuan, compared to the previous day evaporated 1.344 billion yuan.
From the recent news, there is no obvious shortcomings in Liren Beauty’s business and financial aspects. The only thing that triggered a public debate was a Weibo post on March 8 about Liren Beauty’s chairman “not going home”.
On the same day, Liren Beauty Chairman Huang Tao’s wife Weng Shuhua shouted on Weibo, saying that Huang Tao “play disappear”, never come home at night in the past few years, long-term disregard for the Family, while she as a full-time wife has been waiting for many years, and the children have been waiting for Huang Tao to come home.
Liren Beauty is a well-known Chinese online cosmetics marketing and retail service provider, founded in 2010, and now has reached a partnership with more than 60 brands such as Schwarzkopf, Lanzhi, Avène, Snowflake, Sagebrush, Fleur de Lis, Vaseline, etc., and successfully landed on the A-share main board in September 2020.
According to public information, Huang Tao graduated from Tsinghua University with a master’s degree in automation in 1998, and taught at Tsinghua University for the next two years. After two years as an executive in the United States General, in November 2002, Huang Tao started his own business, has founded Fito Infinity, Liren Beauty.
The former husband and wife store became a 10 billion market value listed company
In fact, Weng Shuhua is not the first time in the public eye, in the Liren Beauty listed process, in 2019, Weng Shuhua as Liren Beauty 001 employees and Huang Tao’s wife interviewed by the media, known as “virtuous entrepreneur”.
Weng Shuhua recalled her own and her husband’s entrepreneurial experience, said Huang Tao had acute diabetes in 2006 and began to go home to recuperate. At that time, when e-commerce was on the rise, Mr. and Mrs. Weng worked as a store assistant in Taobao to subsidize their family.
In 2008, Sagebrush became the first cosmetic brand operating as an agent of Liren Beauty, and then Liren Beauty’s business has taken off significantly. The following year, Huang Tao Weng Shuhua couple welcomed their second child, Weng Shuhua has said that in order to better support Huang Tao to manage Liren Beauty, ten months pregnant resolutely adhere to the post, the day before the delivery to hospital for delivery.
Later, Huang Tao will put most of his energy on the taking off Liren Beauty operation, and Weng Shuhua also slowly “retired to the second line”, became a full-time wife, take care of children.
In 2012, Liren Beauty ushered in the most critical turning point, the introduction of Alibaba as a strategic shareholder.
That year, Ali Ventures contributed 45 million yuan to take a 20% stake in Liren Beauty, when Liren Beauty was valued at 225 million yuan. Just three years later, the Ali system again, with a contribution of 114.7256 million yuan to buy 5.3% of Liren Beauty, the valuation of Liren Beauty rose to 2.165 billion yuan. In a series of financing process, Huang Tao through the transfer of equity, the cumulative cash of 142 million yuan.
After 2012, Liren Beauty has been ranked first in the Tmall cosmetics category for many years, and has taken the authorization of many international cosmetic brands such as Lancome, Avène, Maybelline, Lancel, Schwarzkopf, L’Oreal, etc. The business has grown bigger and bigger, and landed on the capital market in 2020.
According to the prospectus, from 2017-2019, more than 99% of Liren Beauty’s e-commerce retail business is realized on the Tmall platform, and almost all of the brand operation services are realized on the Tmall platform.
However, the prospectus for the listing of Liren Beauty in 2020 does not show the name of Shuhua Weng, who currently does not hold any position in the company and does not hold shares in Liren Beauty. And as of the end of the third quarter of 2020, Huang Tao holds 33.49% of the shares of the listed company, is the largest shareholder, with the latest closing price, its value has exceeded 4 billion yuan.
It is worth mentioning that Weng Shuhua’s Weibo profile has always been: Liren Beauty’s 001 employee.
Performance growth has stagnated, where will Liren Beauty go?
The first video patch ad was auctioned in Beijing in April 2016, with a starting price of 217,000 yuan, and was eventually won by Shanghai Liren Beauty for 22 million yuan, which was considered “the highest single video ad in human history. The highest record for a single video ad in the history of mankind”, so Liren Beauty earned a lot of eyeballs and traffic.
With the support of traffic, Liren Beauty’s performance grew rapidly, with operating income growth rates of 66% and 70% in 2016-2017, and net profit growth rates of 145% and 179%, respectively. But the high-speed growth did not last long, since 2018, Liren Beauty’s net profit growth rate continued to decline, net profit in the first three quarters of 2020 was 189 million yuan, down 2.1% year-on-year, the first negative growth in five years.
The threshold for brand agency operations is low, cosmetics competition is particularly fierce, and Liren is having a hard time, with high selling expenses, accounting for an average of more than 90% of period expenses and 25% of revenue, almost twice the industry average.
Nonetheless, the high investment of money like earth also failed to drive high revenue growth, Liren Beauty in the first year of listing will enter a bottleneck.
In fact, from the beauty of the beauty of the business model can be seen, although wearing the clothing of e-commerce, but its essence is a cosmetics distributor, early relying on the Internet e-commerce traffic dividend rapid rise, but with the gradual disappearance of online traffic dividend, online competition intensified, the traffic becomes increasingly high, if there is no exclusive brand, channel and technology advantages, such as beauty of the beauty of this online distributor’s days may be The days of online distributors such as Liren Beauty may become increasingly difficult if they do not have exclusive brand, channel and technology advantages.
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