Last week, Tokyo
the Olympics
Women's soccer Asian qualifying play-offs, China
women's soccer
At home against South Korea
women's soccer
The game was a fierce battle. Once trailing 0-2, China
women's soccer
The team fought back from a desperate situation and eventually drew 2-2 and eliminated South Korea 4-3 on aggregate, staging a stunning comeback to advance to the Olympic main draw!
And it's not just China that's turning against the wind.
women's soccer
, and then there's Rexall Coffee. Yes, that's the same Rexall Coffee that blew the whistle on financial fraud last year.
Who would have thought that since 2021, in the anticipation of many old users "grabbing coupons to drink coffee", Ruixing Coffee has turned against the wind and become the favorite of capital and the market again.
Ruixing first released a statement that it had reached a restructuring support agreement with important creditors, which triggered renewed media attention; then on April 15, it announced that it had reached a new round of financing agreement totaling $250 million with the company's shareholders, Dagane Capital and Pleasure Capital, which shook the industry; and then on April 18, it once again staged a hat-trick, investing a total of $210 million in the construction of the country's first fully automated Fujian Intelligent baking base.
Recently, Ruixing Coffee and its partners have completed the procurement of 1,000 tons of Yunnan boutique coffee beans for the new production season of 2020/2021, accelerating the promotion of boutique coffee strategy.
Sure enough, Ruixing's popularity has also now opened a big turnaround. Last year at this time, we searched for Ruixing in microblogging, what we saw were some comments such as "cut leeks", "liar", and so on, and today all parties have used the "divine turnaround", "Against the trend of financing" to express the amazing review of Ruixing, 36 Krypton even use the title of capital again trust Ruixing to treat Ruixing.
So, what makes the Rejuvenate Coffee gig a classic flop case? This topic is very interesting, let's explore it today.
When Rexall's fundamentals are stable, capital and markets are stable
Regarding the reason for Ruixing's Jedi rebirth, in fact, many of my friends have been discussing it in the past few days, and I've raised a point: "When the fundamentals of the form and the product are stabilized, the capital and the market are stabilized, and Ruixing has re-entered the development track of a virtuous cycle."
Some friends say that my views are horse hindsight, and this kind of hindsight analysis has little meaning. In fact, it really is not, as early as the end of last year, Ruixing coffee payment of 180 million dollars and sec wide and at the time, I accepted a number of media interviews, from the fundamental level of analysis, expressed the capital and the industry on Ruixing bullish reasons, and now it seems that Ruixing's development basically coincides with the predictions of my analysis at that time.
Now I'm posting the original Xiaoxiang Morning Post report from that time.
Internet analyst Ding Daoshi said, "The penalty of $180 million is not a large amount of money for a public company, and Ruixing should be able to afford it relatively well."
Internet analyst Ding Daoshi told the Xiaoxiang Morning Post that reaching a leniency would allow Ruixing Coffee's business to proceed normally. "In fact, Ruixing Coffee has had big financial problems this year, but the impact of its affairs will not be great. The Ruixing Coffee on the streets of the city are all operating normally now too, and the service has not been discounted." Ding Daoshi said that a company's financial problems and product service problems, to be viewed and dealt with separately, you can see that the United States there also think that Ruixing's problem is only a financial problem, and there are no other serious harm to the customer's other problems. It shows that the market is still more recognized Ruixing coffee brand form and later stability.
During the Spring Festival this year, Guo Zhanyi, the head of Ruixing, released an internal letter, mentioning that Ruixing will further build a perfect form of operation around products, stores and users. Through the internal letter can be seen, Ruixing further strengthened the value of the user in the operational structure, through product upgrades, technology iteration, private marketing form of innovation and other operations, so that every customer can easily enjoy a cup of good coffee to drink, drink value.
According to the internal letter, in January 2021, the number of new stores opened by Ruixing was more than 120, and during the Spring Festival holiday in 2021, Ruixing Coffee opened about more than 1,900 stores across the country, with the number of cups of ready-to-drink beverages nearly five times that of the same period last year, and the revenue nearly seven times that of the same period last year.
Now, all of us should realize that the substantial reason for Ruixing to become the capital's favorite again also lies in the stability of Ruixing's fundamentals. Many of Ruixing's recent actions lie in the consolidation of fundamentals, for example, at the product level, Ruixing recently completed the purchase of 1,000 tons of Yunnan boutique coffee beans, which mainly come from the two major producing areas of Baoshan and Pu'er in Yunnan, and in order to ensure the quality and flavor, Ruixing has selected coffee beans with a score of 80 or above in the cultivation area at an altitude of more than 1,300 meters above sea level. Last year, Ruixing launched a high-end product line "small black cup - soe Yega Xuefei", as well as out of the circle of the explosive product line "thick milk", is also a fundamental input work.
At the same time, Ruixing has strengthened the construction of diversified consumption scenarios, breaking the constraints of geographic space, and gradually achieving the goal of letting coffee go to people, rather than letting people go to coffee. Recently, Ruixing's first roasting base was officially put into production in Fujian, China, with an annual roasting capacity of 15,000 tons of coffee beans, which also marks the completion of Ruixing Coffee's opening and extension of the whole industrial chain. It is believed that this form of layout of the whole coffee industry chain will also continue to lead the trend of coffee culture in the new period.
Ruixing Turnaround Apocalypse: Experiencing hardship is standard for tech companies
The "Ruixing divine turnaround" and "Ruixing Phoenix Nirvana" have been treated as classic cases by the media during this period of time, and are considered to be extremely rare scenes in the history of China's Internet and business history.
In fact, going through hardships is standard for all leading tech companies. I've been in the business for almost 20 years, and I've never seen a tech company that became an industry leader without going through all kinds of hardships, struggles, and problems.
Apple and Microsoft in the United States, China's bat, netease, sohu and so on have experienced the test of life and death or death, face the situation is even more serious than rui xing. Tencent has tens of millions of users in qq, the face of losses, and even plans to tencent packaged for sale were unsuccessful; netease after the listing of the stock price fell for a long time, and even fell to a dollar below the price of cabbage; now the top of the list of market capitalization of apple, the last century suffered a dark moment, in 1997, relying on microsoft's 150 million dollars in loans, only to have the possibility of living ......
Last year, Ruixing's financial scandal erupted and was criticized by thousands of people, and I indicated at that time that Ruixing's problem was not a matter of strategy and direction, much less a matter of product. Rather, it lies in the fact that Ruixing has taken too many steps, and has not carried out its business step by step, which has led to the situation getting out of control.
Today's new Ruixing is far from what it was in the past, and after experiencing supervision and criticism from all sides, its governance structure is more scientific and reasonable, and its operation is more transparent. Refined operation has become the norm, and the marketing level has changed from a large amount of advertising investment to a private marketing approach that pays more attention to user operation, giving users more discounts and at the same time starting to organize users to participate in offline interactive activities with Rexchip Coffee masters, which increases the user's sense of identity and satisfaction.
We have reason to expect that Ruixing, which has gone through hardships and restructuring, will further focus on building the fundamentals of the enterprise, and with reference to the recent good news, Ruixing will continue to seize the opportunities brought by consumer upgrading and achieve substantial and stable growth, just like the above-mentioned technology companies that have gone through hardships.
Where to next for the new Rexall: another U.S. stock, back to Hong Kong?
After the reorganization and this large $250 million financing, Daegan Capital will reportedly become the largest shareholder of Ruixing, with its stake rising to 17.2% and voting rights increasing to 45.2%.
These monotonous figures mean that Ruixing has entered the development stage of "New Ruixing", in which the form of operation and strict attitude towards products remain unchanged, but the organizational structure and capital structure have undergone drastic changes. This way, Ruixing can uphold the advantages and potentials accumulated before, and on the other hand, it can put down some of the historical baggage in the past, so that it can go into the battle with a lighter load.
As a result, another question arises, that is, after the rebirth of Ruixing, which capital market to embrace next, so that more organizations and individuals can enjoy the dividends brought by the development of the new Ruixing?
Let's first clarify that the current stock and market capitalization of Rexall, as shown by Fidelity Securities, is not a regular value, but is traded via adr and listed on the Pink Sheets market. As of this week, the market capitalization of Rexall, which is listed on the Pink Sheets market, is $2.1 billion.
This market value is more than five times more than when Ruixing was at its trough last year, and such an achievement is enough to show that all parties are optimistic about Ruixing. In fact, even though it suffered last year's crisis, Ruixing's operation has been very stable, according to the relevant data provided by Ruixing's temporary liquidator, in the first three quarters of last year, Ruixing Coffee's single-quarter revenues were 565 million, 980 million, and 1.145 billion, respectively, with a year-on-year growth of 18.1%, 49.9%, and 35.8%, and it is expected that the net income of the 2020 fiscal year will be between 3.8 billion and 4.2 billion yuan Between. By the end of 2020, the total number of Ruixing stores will be nearly 4,800 (most of which are self-operated), with a total of 77 new ready-to-drink products for the year, and total ready-to-drink sales of more than 300 million cups.
With the favorable operating level fundamentals, then Ruixing will have greater autonomy to choose whether to continue to return to the U.S. mainstream market or return to Hong Kong for a secondary listing in the future.
