——Insufficient “Lucky Value” balance
In the two years of business circles, who doesn’t know the small blue cup-Ruixing Coffee?
The glory of domestic products, the shame of the nation, the capitalist wool machine, the ruthless voucher robot … Since its establishment in 2017, Ruixing has been controversial, but this does not prevent it from being full of vitality. Founded 18 months ago, just
The historical record of listed Chinese stocks.
However, this crazy myth seems to have come to an end.
Just last Friday (May 15), Nasdaq finally started to Ruixing, issued a notice, and decided to delist the Ruixing.
Although within 30 to 45 days after receiving the notice, Ruixing can still hold a hearing and make a level-by-level appeal, this period of time still maintains the listing qualification, but it is almost impossible to turn the tide.
Because the root of Ruixing’s myth bubble lies in real financial fraud, it is not a storytelling that can be used to fool the past.
The fuse of the incident is that on January 31 this year, the international short-selling agency Muddy Water issued a short report against Ruixing, pointing directly to Ruixing’s large-scale fraud on financial and operational data. However, this report once became a “dumb thunder”, Ruixing’s share price quickly returned to the short position, until April 2 when it exposed the fact that it had committed fraud of 2.2 billion yuan.
Listed company financial fraud is placed in any capital market, any time period is a violation of laws and regulations. Nasdaq’s two “crimes” of Luckin listed in the notice-making false accounts and failing to publicly disclose valid information, both speak for themselves. Therefore, Ruixing received the notice of delisting and delisting after counterfeiting the real hammer, and was not wronged.
The problem is that the once lightning expansion, called the board
, Touch porcelain hi tea, let people call the Ruixing coffee that has subverted the coffee and tea industry, why do we need to go to the stage of financial fraud?
2. Lucky, full of vitality, blindfolded game
At the end of 2017, Ruixing opened its first store in Beijing, and then started the expansion “blitzkrieg”.
Within one year, Ruixing stores exceeded 2,000, and in two years, more than 4,500 stores, surpassing Starbucks stores and becoming China’s largest coffee chain brand. Compared with Starbucks’ entry into the Chinese market for 20 years, the average number of store openings is about 200 a year, which makes many people feel that Ruixing is really terrible.
In fact, in the eyes of many people, coffee is inherently a slow business. One is in China. It takes more time for consumers to develop their coffee drinking habits. The other is that coffee is in the impression of many people. Lazy afternoon and slow life mood are strongly related.
Therefore, the pace of Starbucks store opening is not slow, but since its birth, Ruixing has tried to subvert many people’s imagination of the coffee industry with the image of being unbreakable.
The story Rui Xing wants to tell is this:
Ø The coffee consumption of Chinese people is far lower than the world average. Drinking coffee does not necessarily have to be carried. Ruixing will definitely make Chinese people addicted to coffee and make drinking coffee as common as drinking cola;
Ø China’s shopping malls and CBD offices are limited, Ruixing needs to go all the way, and be a generous coupon issuing machine to break the consumer’s defense from the physical and psychological distance;
Ø With innovations such as self-drawn coffee mode, digital technology and unmanned retail, it is a matter of minutes to subvert the coffee industry;
Ø Although Ruixing has been in a state of loss since its inception, it is only temporary. Only with money to continue to support expansion, Ruixing can survive the loss period and occupy the blue ocean of China’s coffee consumer market. The future is bright.
This story has successfully impressed many investors, and Ruixing has also been able to raise funds, go public, and use money-burning subsidies to attract users to register and consume.
In fact, this story of burning money first to subsidize and then occupy the market is not new.
According to media statistics, “2019 China’s Top Ten Losing New Economy Companies”,
The car ranked first, with a loss of 8.6 billion yuan in the first three quarters of 2019, Ruixing Coffee ranked fifth, and a loss of 1.8 billion yuan in the first three quarters of 2019. Other companies on the list are familiar to us.
However, the reason for Ruixing’s downfall to financial fraud and being ordered to be delisted is probably because the business model building built by Ruixing is unstable from the foundation.
3. The business foundation is not stable, and lies and dolls come on the court
The logic of Ruixing ’s burning money is that when the brand scale explodes to a critical point, it can gain absolute dominance in the market.
Why is Ruixing Coffee so faked?