How To Go From Pet To Bankruptcy Reorganization Of Yiguo Shengxian?

The bankruptcy reorganization of yiguosheng is still in progress, waiting for the final decision of the court. For investors from all sides, the process can only wait.

"Bankruptcy reorganization and bankruptcy liquidation are two completely different concepts. Bankruptcy liquidation is bankruptcy, and bankruptcy reorganization is equivalent to Nirvana rebirth." On October 24, Xue Yuning, CEO of Shengdao investment, made it clear in an exclusive interview with 21st century economic reporter that, as an old shareholder, the founding team who had a good eye on Yiguo was actively cooperating in the restructuring. He hoped that through bankruptcy reorganization, the enterprise would be revitalized and could start again.

According to the public data, Yiguo fresh food was established in 2005, and obtained several tens of millions of US dollars of round a strategic investment from Alibaba in 2013; in 2014, Alibaba united with Yunfeng for round B investment, and then obtained the exclusive operation right of tmall fresh food zone; in 2016, after obtaining the $260 million round C financing from Alibaba and KKR, the company obtained Suning yunshang, Shengdao investment and Credit Suisse at the end of the same year C + round financing of institutions. Its final round D financing stayed in August 2017, and tmall invested $300 million. The highest value of Alibaba's shares was over US $3.8 billion.

As an investor who entered the company at the end of 2016, in the past four years, Xue yunning believes that the main reason is the strategic adjustment of major shareholders, resulting in a run on the partners and the upstream and downstream related parties, resulting in a shortage of funds. Since then, the financing plan has to be suspended because a shareholder is not willing to reduce the valuation by one vote. However, the existing b-end business of Yiguo is growing rapidly. If the bankruptcy reorganization scheme is unanimously approved by the court, creditors and shareholders, the possibility of reversal will be greatly increased. "We are still very optimistic about the fresh food industry, including the cold chain logistics and supply chain businesses that Yiguo is now transforming to do."

Restructuring is in progress

"As shareholders, we often communicate with each other. It is a pity that we have come to this stage. After all, it is the first company in China to do fresh e-commerce. It has a reputation in terms of brand and scale. We will continue to operate this industry. " Xue yunning did not hide his regret.

Jin Guanglei, co-founder of Yiguo group, once disclosed that in 2017, the Gmv of Yiguo group reached 10 billion yuan, an increase of 178% compared with the 3.6 billion yuan disclosed in fiscal year 2016, and it is expected to make a profit in 2018. According to the data in 2017, 90% of the orders of fresh fruits from tmall supermarket, showing a high degree of dependence. In addition, e-fruit realizes the omni-channel coverage of wholesale, distribution, retail, online and offline catering. According to the 21st century economic report in December 2018, orders from Alibaba account for 50% of the group's revenue.

The turning point also happened in December 2018. Alibaba's organizational structure was adjusted, transferring the fresh operation of tmall supermarket, which was in charge of Yiguo, to HEMA fresh food, and deepened cooperation with HEMA to further open up online and offline, accelerate the construction and upgrading of fresh food supply chain system, and promote the whole chain capacity of Ali fresh food.

"As a result of Ali's strategic adjustment, TOC business itself will be directly affected, but this is not a big problem. Because before Ali did not make this decision, Yiguo had already transformed into a supply chain and a cold chain logistics. But the more troublesome problem is that Ali's actions lead to some chain reactions. For example, some creditors will ask for repayment in advance, or they will not renew the loan for you, or the suppliers will worry about the problems after the absence of Ali, so there will be a run, so the company is forced to this step. " Xue Yuning further revealed that the b-end revenue of Yiguo fresh food has accounted for more than 50%.

Therefore, the current bankruptcy reorganization can be said to be a very critical node. Zhu Xiaosu, partner of Shanghai Huacheng law firm and deputy director of the bankruptcy and non performing Assets Business Research Committee of Shanghai Lawyers Association, believes that China's enterprise bankruptcy law provides three different bankruptcy systems: bankruptcy liquidation, bankruptcy reorganization and bankruptcy reconciliation.

"Generally speaking, there are two ways after bankruptcy, one is bankruptcy reorganization, the other is bankruptcy liquidation. Only bankruptcy and liquidation can show that there is no need and prospect for continued operation. After closing down or liquidation or selling at a discount. " First of all, the general manager of the Asia Pacific region who is in charge of the restructuring of the company should continue to be interviewed by the general manager of the Asia Pacific region.

In his view, bankruptcy reorganization can be successful or unsuccessful, and there are still opportunities for enterprises in trouble. In addition, the process of bankruptcy reorganization can be long or short, ranging from half a year to several years. It mainly depends on the willingness of new investors to participate.

What is the value of Yiguo?

After 15 years of entrepreneurship, Yiguo has been growing and trying and making mistakes. From the beloved of the industry, to the important chess pieces of the giants, and then to the helpless abandoned ones, their fate is closely linked with the capital and industry changes behind.

In December 2018, Alibaba's organizational structure was adjusted, and Yiguo Shengxian transferred the operation of Maochao Shengxian to HEMA Xiansheng. Yiguo fresh food began to turn to the B end, strengthening the positioning of digital driven fresh food industry chain cooperation platform, giving full play to the advantages of supply chain and cold chain logistics, so as to further open up the online and offline, promote the whole fresh food chain capacity of Ali, and provide support in supply chain and cold chain logistics for HEMA, RT mart, tmall supermarket fresh food, hungry Mo, etc.

In the throes of transformation, Yiguo Shengxian is in a dilemma.

However, Yiguo fresh management team did not want to give up, but insisted on restructuring. After all, there is still room for profit in the b-end business of fresh e-commerce.

"E-fruit fresh food was transformed from 2018, and by 2019, the b-end has been much larger than the C-end. If the financing can be carried out smoothly, it will be more stable if it comes a little bit. After this transformation period, it will become a company at the B end of the supply chain. " Another person familiar with the matter disclosed to reporters that the difficulty in the financing process lies in how to calculate the valuation? Everyone's positioning of e-fruit fresh is an e-commerce company mainly based on C-end of Ali. Now you have become a b-end company. However, the valuation in the past has been very high. If it is recalculated, there will be too many problems involved. The valuation of at least $2 billion is not recognized.

"At that time, when Ali had an accident, our idea was to restructure the company, reduce the company's valuation again, and get a sum of money? When you buy stocks, it doesn't matter if the company's valuation drops. But it didn't work. " Xue also expressed regret.

To some extent, bankruptcy reorganization is a good solution. All participants refinance according to a valuation after bankruptcy reorganization.

Will continue to focus on B end

At present, in addition to the C-end business related to Alibaba in a stagnant state, other businesses of yiguoshengxian are still in normal progress.

"Yiguo began to transform from C-end to b-end supply chain in the second half of 2017. Unlike the rapid outbreak of C-end retail mode, the supply chain needs long-term accumulation and precipitation. However, at the end of 2018, when the b-end transformation just started to improve, the transformation was greatly affected. Now we can only expect the restructuring to be completed as soon as possible to carry on the blocked supply chain transformation business. " Xue yunning's confidence is that Alibaba is already a small customer in the b-end business of Yiguo, and does not need to rely too much on it.

"From my point of view, Yiguo is right to give up C-end business. In the C-end market of the whole fresh e-commerce, it is not clear when the burning of money will end. Unless there are super giants willing to continue subsidies, coupled with the scale effect, it is difficult to sustain Xue yunning judged that in the case of no flow entrance, the independent e-commerce platform will face great pressure to make fresh food.

He disclosed that after the completion of bankruptcy reorganization, Yiguo Shengxian's three business development routes have been very clear, and the C-end business will be done in a different mode, rather than in the way of burning money and subsidies. As a result, B will continue to make profits. In addition, the cold chain logistics will continue to be invested.

It is reported that e-commerce company limited has applied to Shanghai Intermediate Court for reorganization on March 3, 2020. Since July 30, the court has begun to accept bankruptcy reorganization.

On Saturday (October 24), the managers of e-fruit electronics, anxida logistics and Yunxiang supply chain of Yiguo group had issued an announcement to recruit investors. We hope to recruit investors to comprehensively optimize and restructure the asset structure, debt structure, capital structure and business structure of e-fruit electronics, anxida logistics and Yunxiang supply chain, so as to resolve the debt risk and improve the sustainable profitability of debtors.

As for the result, the whole team is still waiting and suffering. Whether yiguosheng can reverse the trend still depends on the court's decision on the bankruptcy reorganization plan.