CEO Leo Ou Chen about Jumei (JMEI) Stock on Possible Privatization letter full privatisation
Dear JUMEI colleague:
I believe you have seen the JUMEI privatisation. Although rumors about JUMEI privatisation, all from the middle of last year, after careful consideration, based on the judgment of the current business environment and capital environment, we made the decision. I firmly believe that at this moment the privatisation of decision making, for the company, for each one of us, all have the strategic significance of milestone:
1. In the present stock market, we were severely underestimated. Although every the privatisation of the company emphasized that he was the market underestimated, this sounds cliche, but for JUMEI, this is an indisputable fact. In capital crazy, countless electricity crazy burn, huge losses of severe competition environment, JUMEI can still maintain rapid growth while maintaining good profitability. In since listing, we also in highway in tire, just a quarter changed to cross-border electricity transformation, as China’s first cross-border electrical contractor. Our financial data and business data to prove our excellent execution, we share price did not reflect the reasonable value of the company, and even lower than some far behind on the scale and profitability of our company.
2. Privatization is beneficial to the company in the transitional period is more flexible, more long-term decision, can let the company better response to the transformation and competition. This year level economic strategy in appearance, there is no doubt that we need to have more investment in the company’s long-term development. As a private company, we can better focused to do the right things, rather than by stock price and earnings distraction.
3. Privatization means the company once again into the entrepreneurial process, also can bring better returns to colleagues of the company. After privatization, we can be more flexible to inspire the company outstanding colleagues, let more people enjoy it brings financial returns.
JUMEI starting business, with only $13 million in financing, will be able to fight it out in the bad electricity competition, profitability and completes the company listed in four years time, created a miracle. The privatization, no doubt, the company is the beginning of a new milestone, we also value regression and run to the next important moments of business miracle.
New Year, the battle has begun, hope you and I all together, infinite passion to meet on March 1, 6 anniversary promotion ceremony. Infinite expectation JUMEI new lines of business on March 1, right prize together come on!