Core Insights - Shanghai Yiduo Network Technology Co., Ltd. (Yiduo E-commerce) has entered bankruptcy liquidation, highlighting the financial struggles within the beauty TP (Taobao Partner) industry despite previous rapid growth [1][19][27] - The company, founded in 2014, was once a leading service provider in the beauty sector, but has faced significant operational and financial challenges, including employee salary arrears and multiple legal disputes [2][10][13] Company Overview - Yiduo E-commerce was established in 2014 with a registered capital of 7.6151 million yuan, focusing on providing comprehensive solutions for health brands, including marketing and supply chain services [2][19] - The company gained recognition in the beauty industry, ranking first in the personal care and household cleaning sector on Douyin's service provider list in May-June 2023 [1][7] Financial Struggles - Reports indicate that Yiduo E-commerce has been unable to pay salaries, with a total of 610,307.45 yuan owed to 36 employees, leading to a bankruptcy application by a former employee [13][16] - The company has faced multiple legal actions due to unpaid debts, including a 5 million yuan loan from a bank that remains largely unpaid [13][19] Industry Context - The rapid decline of Yiduo E-commerce from a top performer to bankruptcy within 19 months reflects broader challenges in the beauty TP industry, characterized by high costs and low profit margins [22][27] - The industry is undergoing significant transformation, with many companies facing revenue declines and operational pressures, while a few are managing to grow by diversifying their offerings and enhancing brand capabilities [26][27] Market Dynamics - The beauty TP sector is experiencing a deep reshuffle, with many firms, including well-known operators, facing similar financial difficulties, indicating a systemic issue within the industry [26][27] - The reliance on high GMV (Gross Merchandise Volume) as a success metric has been criticized, as it does not necessarily correlate with sustainable profitability [22][27]

Group 1 - The performance of e-commerce operation companies is diverging, with a common trend of seeking new growth avenues through transformation [2][3] - RuYuchen (若羽臣) has emerged as a growth representative in the industry, achieving a revenue of 1.319 billion yuan in the first half of the year, a year-on-year increase of 67.55%, with net profit growing by 85.60% [2] - LiRenLiZhuang (丽人丽妆) is facing significant losses, reporting a revenue of 831 million yuan, a decrease of 13.98%, and a net loss of 32.76 million yuan, marking its worst mid-term performance since listing [2][3] Group 2 - The industry is collectively encountering growth challenges due to increasing costs and fragmented traffic, with companies needing to enhance cross-platform operational capabilities [3][4] - LiRenLiZhuang's revenue from Tmall platforms accounts for over 60% of total revenue, indicating a heavy reliance on a single platform [3] - RuYuchen's report shows that Douyin has become its largest sales channel, accounting for 37.24% of revenue [3] Group 3 - The rise of content e-commerce platforms like Douyin and Kuaishou has disrupted the traditional e-commerce landscape, posing challenges for companies lacking multi-channel operational capabilities [4] - Baozun (宝尊电商) has announced the acquisition of a leading service provider in the Douyin apparel category to strengthen its live e-commerce capabilities [4][6] - Major beauty brands are increasingly opting to build their own e-commerce teams, leading to a risk of customer attrition for operation companies [4][5] Group 4 - Baozun is implementing a three-pronged strategy focusing on e-commerce, brand management, and international expansion, with brand management showing a revenue increase of 29.11% [6] - Despite the growth in brand management, Baozun's overall profitability is still under pressure, with a net loss of 97 million yuan [6][7] - RuYuchen is focusing on cultivating its own brands, with self-owned brands generating 603 million yuan in revenue, a year-on-year increase of 242.42% [7][8] Group 5 - RuYuchen's sales expenses have surged to 599 million yuan, a year-on-year increase of 124.22%, driven by brand management and expansion efforts [8] - LiRenLiZhuang is also venturing into self-owned brands, launching new products, although its operation still heavily relies on its agency business [8][9] - The core advantage of operation companies lies in channel management, but they face challenges in product research and supply chain management [9]

Core Viewpoint - Baozun E-commerce is undergoing a transformation by acquiring international footwear and apparel brands' operational rights in China, aiming to overcome performance challenges, yet it has not achieved profitability as of Q1 this year [2][4]. Group 1: Financial Performance - Baozun E-commerce has seen a significant decline in its stock price, with its Hong Kong shares dropping from 148 HKD to around 7 HKD, resulting in a market value loss of over 90% [2]. - The company reported a net loss of 1.85 billion CNY in 2024, accumulating total losses exceeding 1.3 billion CNY from 2021 to 2024 [4]. - The e-commerce business revenue for Baozun from 2022 to 2024 was 8.401 billion CNY, 7.621 billion CNY, and 8.070 billion CNY, with profits remaining stagnant [10]. Group 2: Strategic Acquisitions - Recently, Baozun acquired the China operations of the UK high-end yoga apparel brand Sweaty Betty, which is currently hiring for various positions [3]. - The company previously acquired GAP's China operations in 2022, leading to a substantial loss of 653 million CNY that year, and also acquired Hunter's China operations in 2023 [4][6]. - Sweaty Betty's global performance has been declining, with a revenue drop of 490 million USD in 2024 and 710 million USD in Q1 2025, impacting the parent company, Wolverine World Wide [5]. Group 3: Market Challenges - The e-commerce industry faces growth limitations due to low entry barriers and intense competition, with major brands preferring to establish direct sales channels [8]. - Baozun's brand management segment, while showing potential, has not yet turned profitable, with a net loss of 1.69 billion CNY in 2024 despite a revenue increase of 15.97% [9]. - The company is expanding its offline presence, with GAP planning to open 50 new stores by 2025, indicating a shift in strategy to counteract online growth challenges [11].

Core Viewpoint - Shanghai Kaijie E-commerce Co., Ltd. is transitioning to the Hong Kong Stock Exchange for its IPO after facing challenges in the A-share market, with a history of declining performance and a need to regain market confidence [2][3][12]. Company Overview - Founded in 2010 by former Procter & Gamble executive Xu Hao, Shanghai Kaijie provides comprehensive e-commerce services to major brands like Mondelez, KFC, and Pepsi [3][5]. - The company has attracted investments from 18 notable investors, including major securities firms [5][7]. Financial Performance - The company has experienced a "three consecutive declines" in performance, with revenues of RMB 18.29 billion, RMB 17.23 billion, and RMB 16.99 billion from 2022 to 2024, respectively [18]. - Net profits have also decreased from RMB 86.47 million in 2022 to RMB 60.43 million in 2024 [18]. - The gross profit margin has declined from 24.0% in 2022 to 21.8% in 2024, indicating pressure on profitability [20]. Client and Revenue Dynamics - The number of brand partners has increased from 80 in 2022 to 113 in 2024, but revenue from the largest client has grown, indicating increased dependency on major clients [16][17]. - The company has faced challenges with client renewals, leading to significant revenue losses from key partnerships in the pet and beauty sectors [21]. Market Environment - The e-commerce market is becoming increasingly competitive, with many companies struggling to maintain profitability. For instance, competitors like Baozun and Liren Lizhuang have reported mixed financial results [24][25]. - The industry is witnessing a shift where companies are transitioning from being service providers to building their own brands, which Shanghai Kaijie has yet to adopt [25]. Future Outlook - The company is now seeking to establish itself in the Hong Kong market after unsuccessful attempts to list on the New Third Board and the Shenzhen Stock Exchange [12][13]. - The ongoing challenges in the e-commerce sector, including rising operational costs and pressure from brand partners, may hinder Shanghai Kaijie's growth unless it diversifies its business model [21][24].