Wang Sicong does not need to live food xiang? Monster charging is the peak of the listing, and the operation has turned from profit to loss year-on-year

Remember the story of Wang Sicong's live broadcast of Eating Xiang?

In 2017, when Chen Ou, the founder of Jumei Premium, believed that there was a market of tens of billions of yuan in shared charging treasures and invested 300 million yuan in street power projects, Wang Sicong learned about it and immediately issued a sharp remark.

In response to the shared charging treasure invested by Chen Ou, Wang Sicong said in his circle of friends: "If the shared charging treasure can become my food, the post is proof." ”

Finally, on April 1, 2021, with the official landing of Monster Charging on the NASDAQ listing, "when will Principal Wang's live broadcast of eating xiang be arranged" has become a joke.

There is no doubt that this is indeed a rather funny topic, but is it too early to evaluate the success or failure of the shared charging treasure based only on the listing as the criterion?

The operation is in a deadlock

When it comes to monster charging, listing seems to be its peak.

Recently, Monster Charging released its financial results for the fourth quarter and full year of 2021 as of December 31. Although this is the first annual report since its listing, the results given by Monster Charging are poor.

In the fourth quarter, the company's revenue was about 836 million yuan, down 9.7% from the fourth quarter of 2020, while the company's net loss was about 68.5 million yuan. Combing found that Monster Charging has suffered operating losses for two consecutive quarters.

With such a look, the performance of the monster charging for a whole year is naturally difficult to hide.

For the whole year of 2021, monster charging revenue was 3.6 billion yuan, an increase of 27.6% over 2020. However, in the same period, the operating loss was a loss, with a net loss of 125 million yuan for the current period.

What is this concept?

It should be known that from 2019 to 2020, Monster Charging has maintained a profitable state, with profits of 160 million yuan and 75.43 million yuan respectively, and the unexpected loss in 2021 means that Monster Charging has ushered in a retrogressive era from profit to loss.

Monster Charging said that due to the impact of the new crown epidemic, the business in the third and fourth quarters has been challenged. Not only in areas where the epidemic has recurred, but also in other areas of the country, the flow of people in various scenarios has also decreased significantly, and the demand for shared charging treasures has also decreased.

At first glance, monster charging seems to make sense, after all, last year's epidemic was indeed capricious.

But looking back and thinking about it, if the performance is caused by the impact of the epidemic, then why can Monster Charging still achieve profitability during the outbreak of the epidemic in 2020?

After the successful listing, the performance immediately changed its face, and the capital market naturally could not charge the monster to look good.

Less than a year after the listing, the stock price of Monster Charging has fallen from the highest 10 yuan / share to 0.89 yuan / share, the company's stock price has fallen by more than 90%, and the total market value is only about 200 million US dollars.

One can't help but wonder, where did that billion unicorn go?

The "monster" created by capital

Monster charging is actually a sharing economy king built by many capital blessings.

It is said that on a winter day many years ago, Cai Guangyuan, the founder of Monster Charging, finished his official business somewhere in Shanghai, and when he thought of taking out his mobile phone to take a taxi home, he found that the mobile phone was turned off because there was no power.

To this end, Cai Guangyuan found a number of merchants and pleaded with each other to help recharge, but he did not expect to be rejected one by one.

Fortunately, there is still love in the world, just when Cai Guangyuan was desperate, finally at a beauty counter in Jiuguang Department Store, a salesman was willing to help him recharge, and finally Cai Guangyuan was able to go home as he wished.

At this time, Mobike, Ofo and other shared bicycles are frantically running in the field, one huge amount of financing after another has emerged, and the cheers of the sharing economy have reached a climax.

So Cai Guangyuan instantly came up with the method of entrepreneurship.

In the spring of 2017, a new smart shared charging treasure product Monster Charging was born, because its founder team covered well-known Internet companies such as Uber, Meituan-Dianping, Alibaba and Baidu, and Monster Charging was dazzling for a while.

With a luxurious entrepreneurial team, as well as the explosion of the sharing economy, Monster Charging has also quickly gained the favor of many capitals.

In April 2017, the newly established Monster Charge received tens of millions of yuan of angel round financing from Xiaomi Technology, Qingliu Capital, Shunwei Capital, Hillhouse Capital and other institutions.

In the past three months alone, at the end of July, Monster Charging immediately obtained more than 100 million yuan of A-round financing from Hillhouse Capital, Lanchi Venture Capital, Guangfa Xinde and other institutions.

Then, at the end of November of that year, the company quickly completed nearly 200 million yuan of B round financing.

That is to say, from the angel round financing to the B round of financing, the monster charging took less than a year, which can be described as the limelight.

Combing found that from the angel round of financing in 2017 to the IPO listing, Monster Charging received a total of 7 rounds of financing. Among them, there are many investors such as Alibaba, SoftBank Asia, Hillhouse Capital and so on.

As of the disclosure date of the prospectus, Alibaba holds 16.5% of the shares, which is the largest institutional shareholder of Monster Charging. In addition, Hillhouse Capital holds 11.7%, Shunwei Capital holds 8.8%, SoftBank Asia holds 7.7% and so on.

In terms of capital and speed, only four years after its establishment, it has reached its long-cherished IPO wish, and how many companies in the market can compete with monster charging?

Cai Guangyuan even said at the listing site that the company's development is inseparable from the support of many great investors, so that the company has laid a solid foundation in cash, strategy and resources. In the future, we want to use our charging network to fully charge everyone.

Obviously, it is capital that makes the crazy growth of the monster.

But can capital alone create a sustainable future?

Lack of bargaining power for merchants and users

As a new industry, how to continue to develop sharing charging treasure? Where to go? And how to break through the fierce competition?

This is a question worth pondering about monster charging.

For the shared charging treasure industry, its industry ceiling is now looming.

According to iresearch data, from 2017 to 2020, the total user scale of shared charging treasures was 0.8 billion people, 160 million people, 250 million people and 290 million people, with a growth rate of 104.9%, 56.1% and 15.6% respectively, and the growth rate was slowing down significantly.

Watching the market slide, but what I never expected was that the industry suddenly killed a "Cheng bite gold".

In May 2020, Meituan announced the restart of the shared charging treasure project and pushed it vigorously, pulling up the Battle of 100 Cities. At the same time, meituan launched a crazy recruitment, hoping to quickly achieve the offline coverage of the meituan's shared charging treasure through the tactics of the sea of people.

With the disruption of the giant Meituan, the shared charging treasure market will undoubtedly become more crowded.

Generally speaking, to obtain a greater market share of shared charging treasures, the most important thing is to occupy more points to reach more users. In this regard, monster charging naturally does not dare to work less in the face of powerful competitors.

According to the financial report, the sales and marketing expenses of Monster Charging in 2021 were 3 billion yuan, an increase of 39.1% year-on-year, accounting for 83.3% of the overall revenue. In 2019 and 2020, the company's sales and marketing expenses accounted for 67% and 76% of the revenue, respectively, and the overall upward trend was obvious.

As for this part of the fee, it is mainly used for the expansion of the point and the incentive for partners.

According to media reports, due to the scarcity of high-quality points, merchants have a strong independent pricing power, and the current sharing fee rate between charging treasure enterprises and merchants has changed from the initial 50% to 60% to 70%, and even higher than 70%.

However, due to the lack of technical barriers, in order to enhance the market position, it can only compromise on the share of merchants, and even led to operating losses in the financial report, and it seems that it is not too much to say that the monster charging is making wedding clothes for merchants.

Since the merchant has cut the leeks, the company will naturally think of cutting the user's leeks to fill this black hole.

Nowadays, it is not difficult to find from the market that the shared charging treasure that once only cost 1 yuan has completely bid farewell to the one-dollar era. Some companies have risen to 3 to 4 yuan per hour, and some locations such as scenic spots and movie theaters have even soared to 6 to 10 yuan.

It seems that the price increase is indeed a good way, but will the market always allow this weed to grow wildly?

As early as last June, the State Administration for Market Regulation had asked monsters, small electricity and other brands to rectify. After the adjustment, the average price of each brand began to remain at 2.2 to 3.3 yuan / hour, and the cabinet with a list price of 3 yuan or less per hour accounted for 69% to 96%.

It is worth noting that there are also problems in the commercial logic of sharing the price increase of the charging treasure, after all, the high price can be charged for a few hours to buy a charging treasure, and the high cost can easily lead to the loss of users.

According to the financial report, as of the fiscal year 2021, the source of monster charging revenue is mainly from the mobile device charging business, which increased by 27.4% to 3.5 billion yuan in that year, accounting for 97% of revenue.

However, in the face of a single business model, and fierce competition among peers, it is also difficult to form a bargaining power for merchants and users, so can the shared charging treasure really be a good business?

END

Editor 丨Jian Xiaobian

Source 丨 Flower Finance

Welcome to click on the video number of Easy Jane Finance to watch the latest video~