Why can’t siku.com tell the profit story after receiving the privatization offer?

On January 11, siku.com announced that the board of directors of the company had received a non binding preliminary proposal from Li rixue, the founder, chairman and CEO of the company, on January 10, 2021, but had not made any decision on the company’s response to the proposed transaction. Affected by the news, Siku shares rose 20% before trading. < / P > < p > the proposal proposes to purchase all the issued class a common shares of siku.com, which are not owned by Li rixue and his subsidiaries, with cash of US $3.27 per American Depository Share (equivalent to US $6.54 per class a share). < / P > < p > if the deal is completed, Siku will delist from the NASDAQ Global Market and become a private holding company. It is understood that the board of directors of the company has set up a special committee composed of independent directors Jun Wang and Jian Wang to evaluate and consider the proposed privatization transaction. < / P > < p > according to the data, siku.com was established in July 2008 and has a complete high-end business ecology, including Siku business, finance, Siku intelligence and Siku community. Its main business involves online sales of luxury goods, luxury physical experience club, luxury identification, maintenance services and other main businesses. < / P > < p > as the first share of luxury e-commerce in China, the platform traffic of Siku network is reaching the ceiling. According to the financial report, in the four quarters of 2019, the year-on-year growth rates of active users of Siku were 89.5%, 67.7%, 58.7% and 50.9% respectively. In the financial report of the first quarter of 2020, the figure fell sharply to 11.5%. < / P > < p > under the influence of the epidemic, faced with Prada, Cartier, Dior and other brands settled in Alibaba, Jingdong and other giant e-commerce platforms, the competition in the luxury e-commerce industry is becoming increasingly fierce. The most significant data is that the financial report of siku.com in the first quarter of 2020 shows that the total revenue is 1.005 billion yuan, a year-on-year decrease of 14.5%; the net loss is 43 million yuan, a year-on-year increase of 168.75%. < / 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. It is an important window for China to carry out international communication and information exchange.