Jumei.Com'S Share Price Hit A New Low Since Its Listing

On December 10th, Johnson & Weaver.LLP, a shareholder rights law firm in the US, announced on Tuesday that it is investigating jumei.com (NYSE securities code: JMEI) and some of its executives whether they violate the US federal securities law.

Jumei.com is an online cosmetics retailer in mainland China.

The Johnson & Weaver survey aims to determine whether jumei.com's statement on the company's business, prospects and suppliers is false and misleading.

In May 16, 2014, jumei.com opened its stock price at $27.25. The company issued 11 million 100 thousand US depositary receipts on the same day in the initial public offering, with a maximum stock price of $28.28.

But just a few months after the initial public offering, the company released the third quarter earnings that disappointed the market in the year to September 30, 2014.

The total turnover in the quarter increased by only 31.4%, to $273 million, the slowest quarter of the company's record growth.

By the end of August, the company's share price had reached its highest value of $34, and by December 9, 2014, jumei.com's share price had dropped to $15.08.

Johnson & Weaver expresses hope and jumei.com

Work together to investigate this matter, so as to safeguard their legitimate rights and interests.

Jumei.com

Tuesday fell $0.90 in regular trading in the NYSE, down 5.63% from the previous session and closing at $15.08.

In the past 52 weeks, jumei.com's lowest stock price was $14.69, with a maximum price of $39.45.

The company's share price reached a low level of $14.69 on Tuesday, the lowest since its listing.

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According to the US Securities Regulatory Commission's disclosure, it can be seen that after the lifting of the ban, the United States related parties, executives and VC did not sell shares. Accordingly, it was deduced that the decline should be caused by the retail investors and institutions in the two tier market.

And the performance of jumei.com from the past half a year can also be seen.

In 2014, it was destined to be the ups and downs of jumei.com, a cosmetics business platform.

In May this year, after 4 years of cultivation, jumei.com was successfully listed in the New York Stock Exchange, and its market value was more than $4 billion.

Chen Yu, 30, became the youngest Chinese CEO in the NYSE.

For a time, jumei.com quickly succeeded and made rich become a myth in the electricity supplier industry.

However, because cosmetics are always sensitive products, consumers are more concerned about quality and empowerment than other categories.

The continuous storm of public opinion, which affected jumei.com's brand naturally, frustrated its share price.

And by September, Ali's listed capital chucks affected jumei.com's share price again.

Finally, the disclosure of the latest performance has become the biggest weapon against jumei.com's stock price.

In August, jumei.com's second quarter earnings report showed that its total net revenue in the second quarter was $154 million 400 thousand, an increase of 41.9% compared with the same period last year. Operating profit reached US $21 million 100 thousand, up 7.9% over the same period last year. Net profit was $15 million 400 thousand, an increase of 53.6% over the previous year and a decrease of 7% over the same period.

Since then, jumei.com's share price has ended its upward trend.

By the end of November this year, jumei.com's third quarter earnings report showed that its total net revenue in the third quarter was $157 million 700 thousand, an increase of 28% over the same period, increasing by 0 in the 2 quarter, less than analysts expected.

Its revenue growth momentum is not as good as the Jingdong, even after Dangdang.

In the third quarter, jumei.com's gross profit accounted for 38% of net revenue, less than 43.7% of the same period last year, and gross profit accounted for 22% of total net pactions, down from 25.9% in the same period last year.

Operating profit dropped by 6% compared to the same period last year.

The ratio fell by 3%.