On August 4, Daily Fresh announced that it has signed two equity mergers and acquisitions agreements with investors. The other party plans to invest 27 million US dollars (about 194 million yuan) to purchase 5.4 billion shares of Daily Fresh Class B common shares, accounting for 88.1% of the total number of shares issued by Daily Fresh.
At the same time, the company wholly acquired the digital marketing company Mejoy Infinite Limited at a cash price of 12 million US dollars (approximately RMB 86.31 million).
Influenced by this favorable news, the stock price of Youxianmei instantly skyrocketed every day and was interrupted several times during the session.
According to public information, Mejoy Infinite Limited is a digital marketing solution provider incorporated in Hong Kong. It was founded in 2018 and focuses on overseas advertisers such as service tools, games, and cross-border e-commerce. It provides overseas performance advertising and marketing services such as promotion plans, purchase volume placement, material and creative production, and data services for domestic performance advertisers.
In another announcement, Daily Fresh stated that in March 2023, Daily Fresh made further business adjustments, terminated the smart fresh food market business and retail cloud business, and focused on the retail business of private brand products launched in January 2023.
Since its establishment, Daily Fresh has been repeatedly favored by capital. Prior to listing, Daily Premium received ten rounds of financing in the private equity market. Investors included well-known institutions such as Goldman Sachs, CICC, and Tencent, which raised a total of about 11 billion yuan. On June 25, 2021, Daily Premium successfully rang the bell and went public on the NASDAQ, winning the title of “First Fresh E-commerce Stock”.
However, Daily Fresh has never been profitable. In July 2022, Daily Fresh was revealed to be in a business crisis, and the Express Delivery business was shut down in the same month. The business contributed about 90% of the company's net revenue in 2021.
On August 4, Daily Fresh also announced its 2022 financial report. The data showed that Daily Fresh's 2022 revenue fell 60.3% year-on-year to 2.76 billion yuan. A year ago, that figure was 6.95 billion yuan.
This time, the investment in Mejoy Infinite Limited shows that Daily Fresh may shift to a digital marketing circuit, and the company may survive, but it will be difficult for the fresh e-commerce front-end warehouse model to recover. (Produced by Thinking Finance) ■