Fresh e-commerce first stock may be delisted: stock price drops by 99.8%, with 55 full-time employees remaining

Daily Youxian, known as the "first stock of fresh e-commerce", may be delisted from the US stock market. On June 14th, Beijing time, the stock price of Daily Fresh, which was about to delist on the Nasdaq overnight, suffered another heavy drop, closing down 9

Daily Youxian, known as the "first stock of fresh e-commerce", may be delisted from the US stock market. On June 14th, Beijing time, the stock price of Daily Fresh, which was about to delist on the Nasdaq overnight, suffered another heavy drop, closing down 9.68% at $0.56. Compared to the high stock price of $330.033 on the first day of listing, the daily Youxian stock price has dropped by 99.8%.

On June 13th, Daily Fresh announced that the company had received a notice from the Nasdaq Stock Market Listing Qualification Department on June 6th. The Nasdaq Listing Qualification Department has decided to delist Daily Fresh's American Depositary Stock (ADS) from the Nasdaq unless the company promptly requests a hearing to be held by the Nasdaq hearing panel. At present, the Daily Fresh Plan requires the expert group to hold a hearing in a timely manner and suspend any action until the final conclusion of the hearing process.

According to data, Daily Youxian was established in 2014 and has received support from star investment institutions such as Tencent, Tiger, Goldman Sachs, CICC, Lenovo, and Yuanjing Capital.

In June 2021, Daily Fresh went public in the United States, becoming the "first stock of fresh e-commerce" in China. At that time, the daily IPO fundraising of Youxian was about $300 million, with an IPO market value of $3.2 billion. On the first day of listing, the stock price briefly reached $330.033, and since then, the stock price has continued to decline. As of the close of the US stock market on June 13th (Eastern Time), the company's stock price was at $0.56, far below the issuance price.

Based on the highest and latest closing prices on the first day of listing, the daily stock price of Youxian has dropped by 99.8%.

According to the annual report, the daily operating revenue of Youxian in 2019, 2020, and 2021 was 6 billion yuan, 6.13 billion yuan, and 6.952 billion yuan, respectively; The net losses were 2.909 billion yuan, 1.649 billion yuan, and 3.85 billion yuan, respectively.

According to the 2021 annual report, as of December 31, 2019, 2020, and 2021, Youxian had 1771, 1335, and 1925 employees per day, respectively. The employees were mainly from the Jisuda business. As of December 31, 2021, the Jisuda business had 1472 employees.

However, on the day Youxian submitted its 2021 annual report, the company had only 55 full-time employees.

In July 2022, the Daily Fresh Survival Crisis broke out, and Daily Fresh took a series of adjustment measures, including closing the on demand DMW retail business. At that time, Daily Fresh also dismissed most of its employees.

The daily layoffs of Youxian have also sparked labor disputes with laid-off employees, mainly focusing on unpaid wages and unpaid social security and provident fund, which has also led to a large number of suppliers being unable to recover their final payments.

According to Tianyan's data, recently, Changshu Daily Youxian E-Commerce Co., Ltd. added several pieces of information about the person to be executed. The execution courts were Changshu People's Court, Chaoyang District People's Court in Beijing, and Xihu District People's Court in Hangzhou, with a total amount of more than 130 million yuan. In addition, Changshu Daily Fresh Company also has multiple executed persons and consumption restriction orders, legal proceedings, and information on the final case.

The inability to submit financial reports and a market value of less than $10 million are the core reasons why Daily Fresh is currently facing delisting.

Upstream News Comprehensive China Securities News, Shanghai Securities Journal, etc

Editor: Yang Sihai

Editor in Chief: Zhou Shangdou

Reviewed by: Feng Fei

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