“Baby” is bitter, Wang Huainan is difficult to plant “trees”


Text / Chen Kaile Editor / Ye Lili Recently, baby tree founder Wang Huainan opened a live release conference, responding to recent questions about the baby tree.It said: he has never sold the company’s stock, nor has he planned to leave the baby tree.Wang Huainan’s live video broadcast at the same time, Wang Huainan said that the brand’s appeal, user traffic, sufficient cash flow and twelve years of operational sensation, the long-term market value of the baby tree is expected.Earlier, some media reported that Wang Huainan and his wife sold 20 million shares, and the company is in the process of mass layoffs.Since the high-gloss moment after going public in 2018, it has been hailed as the “first vertical platform for domestic mothers and infants”. The market value has dropped from the listed HK$115.32 billion to the current HK$3.596 billion.For a time, the baby tree became the target of public criticism.The reason behind this is that the baby business of the baby tree has not improved, and the overall revenue decline.”Giant Baby” Baby Tree was established in 2007 as a vertical mother-infant brand baby tree, which has attracted a lot of attention since its birth.Since 2008, there have been investments including Jingwei China and Jumeiyou.Subsequently, there were more major investors such as Fosun International and Good Future, and there was no one in the limelight.On the eve of the listing in 2018, the baby tree that was funded by Alibaba, the market value soared to 14 billion people.Starting from the maternal and child community, after 12 years of growth, it has become a head enterprise in the field of maternal and child family services, and the baby tree has progressed quite smoothly.After 11 years of platform layout, Baby Tree has formed six business models including advertising, e-commerce, content payment, early education, great health and finance.The baby tree of the company, the hour light, the beautiful mother got a lot of users.Baby App’s App Analyst data shows that on the eve of the listing in November 2018, the number of independent visitors to the baby tree is as high as 12 million, accounting for one-third of the domestic online baby group under 6 years old.And the user is sticky, the average online time of the baby tree is more than 40 minutes.But the baby tree is not optimistic about business results.The baby tree started to enter the e-commerce very early, but eventually the e-commerce business of the baby tree was not done.According to its financial report, in the three business segments of e-commerce, advertising and knowledge payment, e-commerce dropped from 22.22% in the first half of last year to 8.10% in the first half of this year, while advertising business rose from 73.16% to 87.90%..The knowledge-paid business has not seen much improvement.Therefore, in the end, Baby Tree still relies on the single business model of advertising business to support the entire company.In August of this year, Baby Tree released its 2019 interim results report, revenue decreased by 40.95% year-on-year to 241 million yuan, and the adjusted net loss was 98.342 million yuan.The plunge in income may be the cause of the recent layoffs in the baby tree.The founders of the layoffs were passed down, and the days of employees were not good.It is reported that the interior of the baby tree has been turbulent and the layoffs have been frequent.According to media reports, the number of layoffs is close to 30% of the total number, the technical team has the highest layoffs of 50%, and the content operations team has the highest layoffs of 30%.Some employees even said to the media, “All the employees in our department have been laid off.” The layoffs have been raging, but Wang Huainan seems very calm, and talks about layoffs without hesitation. “We are constantly hiring while optimizing.We have introduced a large number of talents. These talents can’t say that they are better than the employees they are going, but at least they are more in line with the needs of the baby tree at this stage.” Later, Wang Huainan mentioned: “What I worry most is not that young people can’t improve.I am most worried that the middle-aged people are still resisting progress when they can’t progress.” At the same time, the former CEO of GE, Jack Welch, was quoted: When a person reaches middle age, he has not been informed of his weaknesses.It was the most unfair and the last thing to do because one day was cut off because of cost savings.And someone close to the baby tree told the media that it is currently a large number of layoffs, which began in September.Recently, some media reported that the buyer of Wang Huainan’s selling shares is Fosun International and its subsidiaries. Rehabilitation International has taken over the baby tree and airborne a number of executives in September, including the Fosun family mother and baby.Executives of the business unit.When talking about the rejuvenation of the international community, Wang Huainan bluntly reaffirmed that the strategic mission of the baby tree is 99% similar and is a particularly good strategic shareholder.The market value of the waist is another topic that cannot be avoided. It is the market value of the baby tree shrinking by nearly 70%.From the baby tree listed on the Hong Kong Stock Exchange in November 2018, the opening price was as high as HK$6.91 per share, and the total market value exceeded HK$11.5 billion.But in less than 10 months, its market value is only 3.596 billion Hong Kong dollars.Baby Tree’s stock price K-line chart talks about the stock market. Wang Huainan frankly does not regret listing, and cares about the stock price.And the long-term optimistic about the future development of the baby tree, the reasons are four points: first, the credibility and reputation of the mother and baby brand; second, the flow of funds and financial resources reached 2.6 billion yuan, sufficient cash flow; third, the platformAdequate traffic; fourth, 12 years of entrepreneurial experience brings a mature business operation feel.In 2018, Baibao New Media (before the upgrade, “Little Bags Ma Ma”) co-founder & CMO Shao Ying said in an interview with Zinc Finance, “Mother and baby industry will always have a market, it is one of the most important industries of mankind.”Always, the maternal and child industry has been favored by capital for its high unit price and rigid demand.According to the data of IT Orange, even in the winter of 2018, the financing of maternal and child e-commerce has reached 21, amounting to 3.43 billion yuan.According to iResearch data, the maternal and child e-commerce market will exceed 3 trillion yuan in 2020.At present, the maternal and child market is at the stage of the melee battle, and the baby tree is just in it.The baby tree that fought all the way to the head, whether it is an investor or a founding team, originally had a very high expectation for it. If Wang Huainan said that he would not leave the baby tree, then how to save the baby tree’s predicament is hisThe next big challenge to face.The following is Wang Huainan’s response to the recent rumor record, edited by Zinc Finance Editor: ask if there is a plan to leave the baby tree?Join other companies?Wang Huainan: I can give a relatively easy negative answer as to whether I faded out of the baby tree, but I want to answer it very positively and seriously – we can’t do it.Twelve years of entrepreneurship is long enough and hard, but we are starting a business for our baby, and we will not quit before users and investors get their satisfactory returns.Although this sentence sounds a bit strong, the baby tree core team is very aware of this matter.This is the voice that the core team of the company wants to make with everyone after the listing, whether the stock price is good or the stock price is some.Q. I have previously reported that you are selling stocks and how to respond to this news?Wang Huainan: Although I don’t think the founder can’t improve his life under any conditions, but the sale of baby tree stocks has not happened, and I have no plans to let it happen.I have not sold any stock of baby trees since the listing.If there is any change in equity, I will communicate with the public in a timely manner in accordance with the requirements of compliance..