In the fiscal years of 2019 and 2020, the revenue of mingchuang Youpin dropped from 9.390 billion yuan to 8.980 billion yuan, and the net loss attributable to shareholders also reached – 294 million yuan and – 261 million yuan respectively, with a loss of 555 million yuan in just two years. < p > < p > on October 15, this year, “shiyuandian” successfully landed on the New York Stock Exchange on behalf of the enterprise mingchuang Youpin (MnSO. N). However, on the first day of listing, the performance of mingchuang Youpin was average. On that day, although the company’s opening share price rose by nearly 20% to $24 compared with the issue price of $20, at the close of the day, its share price rise narrowed to 4.40%, the closing share price was only $20.88, and the company’s market value also fell to $6.3 billion. < / P > < p > in fact, from the company’s fundamental point of view, the performance of mingchuang Youpin is not good in recent years. In fiscal years 2019 (July 2018 to June 2019) and 2020 (July 2019 to June 2020), the company’s revenue dropped from 9.390 billion yuan to 8.980 billion yuan, and the net loss attributable to shareholders reached – 294 million yuan and – 261 million yuan respectively, with a loss of 555 million yuan in just two years. < / P > < p > recently, the company has begun to launch an impact on the trendy game market, trying to seize the new consumer market like “blind box player” bubble mart, but whether the new business can help the company turn around losses is still unknown. < / P > < p > the famous and excellent products, which were born in 2013, have developed rapidly. In the year of its establishment, the company established 27 stores. A year later, the number of new stores increased by more than 10 times to 373. By 2015, its number of stores has exceeded 1000, reaching 1075. In the same year, mingchuang Youpin also set foot on the road of international market development. Up to now, the company has been stationed in more than 80 countries and regions, including the United States, Canada, Russia, Australia and Germany. It has more than 4200 stores in the world, including more than 2500 in China and more than 1680 in overseas markets. < / P > < p > for the idea of rapid expansion and seizing the retail market, ye Guofu, the founder of mingchuang Youpin, once suggested three elements: first, the head of the store should have ingenuity; second, the product is the first strategy of the enterprise; third, to create a high cost performance product. < / P > < p > however, although more and more stores are opened, the company’s operating performance continues to decline. The researcher of investment Times noted that in fiscal years 2019 and 2020, the operating revenue of famous creative products dropped from 9.390 billion yuan to 8.980 billion yuan, and the net loss attributable to shareholders was – 294 million yuan and – 261 million yuan respectively, with a loss of 555 million yuan in just two years. < / P > < p > on December 18, 2020, mingchuang Youpin released its unaudited results for the first quarter of the fiscal year 2021 up to September 30, 2020, which is also its first financial report after listing. According to the financial report, the company’s operating revenue from June to September this year was 2.072 billion yuan, an increase of 33.40% compared with the previous quarter, but a year-on-year decline of 30.70%. < / P > < p > it is worth noting that, with the number of stores increased by 108 to 4330 compared with the previous quarter, the continuous operation loss of mingchuang Youpin in the same period increased sharply to 1.667 billion yuan, far more than 75 million yuan in the previous quarter and 20 million yuan in the same period of the previous year. The adjusted net profit was 102 million yuan, down 74.60% from the same period of the previous year. < / P > < p > the researcher of investment Times noted that the income of stores is the main source of income of famous and excellent products. In the first quarter of fiscal year 2021, although the number of new stores of famous and excellent products is increasing, the expansion speed has obviously declined compared with before. Moreover, its average same store revenue in the first quarter of fiscal year 2021 also dropped from 759400 yuan in the same period of the previous year to 469900 yuan, a year-on-year decline of 38.12%. The above situation may be the main reason that the company’s operating revenue in the first quarter of fiscal 2021 fell by 30.70% year on year. < / P > < p > for the performance decline, mingchuangyou explained in the announcement that it was mainly caused by the negative impact of the epidemic situation on the company’s international business during the period. During the epidemic period, due to the temporary closure of stores, the reduction of store business hours, and the forced shutdown of logistics, the company’s revenue in the international market decreased by 70.50% < / P > < p > in addition to the decline in revenue and operating losses, the gross profit margin of mingchuang Youpin also declined in the first quarter of fiscal 2021, only 25.20%, 6.2 percentage points lower than that of 31.40% in the same period of the previous year. In this regard, the company explained in the financial report that it was mainly due to the negative impact of the epidemic and the low income contribution of the company’s overseas business. < / P > < p > researchers of investment times further sorted out their financial reports and found that the rise of cost expenditure may be an important reason for the decline of gross profit rate of famous creative products in the first quarter of fiscal year 2021. According to the financial report data, in the first quarter of fiscal 2021, the general and administrative expenses of the company increased by nearly 40 million yuan to 252 million yuan from 213 million yuan in the first quarter of fiscal 2019, with a year-on-year increase of 18.47%. < / P > < p > just on the day of the first financial report after the launch of the famous creative products, it released toptoy, a new independent fashion game brand. According to the data, the turnover of toptoy stores exceeds 200000 yuan within three hours of opening. Three days later, the passenger flow exceeded 30000 and the total turnover exceeded 1.08 million yuan. In this regard, toptoy CEO sun Yuanwen said, “if you mention blind box, you will think of bubble mart, then I hope you will think of toptoy when you mention trendy play in the future.” It can be seen that mingchuang Youpin will compete with bubble Mart in the new consumer market. < / P > < p > in this regard, some analysts believe that if the blind box business of mingchuang Youpin wants to compete with bubble Mart in the trendy game market, the biggest obstacle may come from its “cost-effective” impression in the minds of consumers in the early stage. Some consumers who pursue the ultimate experience of consumption may have some kind of consumption bias against the famous and excellent products. Although the famous and excellent products have tried their best to get rid of this kind of label, it will take a long time to reverse this kind of consumption bias. < / P > < p > some people think that the blind box has begun to go downhill. Compared with the playing method of blind box, what is really meaningful is the IP products behind it. The market is only keen on playing for a while, but the enthusiasm for hand-made dolls will continue. Famous and high-quality products need to turn from channel to IP design, not only focus on mode, designers are the breakthrough of fashion play. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. 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