A monthly loss of 200 million, Taoji is facing bankruptcy
Published on December 17, 2024 11:05AM EDT By Nancy Miller

At present, Taoji owes tens of thousands of merchants, affecting countless families, hoping that Taoji and related companies can be properly dealt with.

Amoy set is a social e-commerce platform for "county and village" users, launched in August 2018, the main low-cost, high-frequency goods, including daily goods, beauty makeup, clothing and shoes bag, home textile, and so on. At present, the proportion of users in first-tier cities on the platform is 4.46%, the proportion of users in second-tier cities is 32.95%, and the proportion of users in third-and fourth-tier cities and counties and villages is 62.68%, according to big data. Amoy set through the "don't play group play red envelopes" fission way to quickly expand the size of users,9 months MA. U has exceeded 40 million. Taoji set and pinduoduo users highly coincide, as of June 19, the coincidence rate has reached 55.0%. Taoji's monthly average DAU exceeded 4 million in June, up 273% from the previous quarter.

Since its inception, Taoji has appeared in the public eye as a "black horse"-2 million online sales in two weeks, 100 million registered users in six months, and less than 40 million monthly active users in nine months. Only a few months later, however, Taoji ushered in the survival crisis caused by rapid expansion. It is reported that the restructuring is being carried out in an orderly manner, Taoji set company up and down more than 700 employees are on duty. Zhang Zhengping said Taoji will not be laid off at the moment because the management has given the platform greater authority. At the same time, he also revealed that in order to help Taoji tide over the difficulties, he will also sell the rest of his name. Ecommerce platforms are used to repay debts. Zhang Zhengping has full confidence in the new partner model. In his view, this may be a new attempt outside the existing models, such as platform self-employment, third-party residence and so on, which can greatly improve the stickiness of merchants and platforms, and make both sides more inclined to safeguard common interests in order to achieve long-term development.

According to "Finance and Economics" magazine, this year so far, Amoy Ji has lost nearly 1.2 billion yuan, the first half of the net loss of 600 million yuan, net assets minus 600 million yuan, the current monthly loss of more than 200 million yuan.

After the company received financing, Taoji executives did not focus on the optimization of their own platform products, or focused on obtaining new users. The common problems of Chinese Internet enterprises, their own products have not been done well, thinking about how to raise money and how to go on the market, eager to achieve. Enterprises must first pay attention to the quality of their own products, quality up, naturally there is no shortage of users.

At 3: 00 a.m. on October 15, Zhang Zhengping, founder of Taoji, posted a "letter of apology to his partners" on Taoji's official Weibo. In the letter, he said that in July, due to a number of internal and external factors, the company's performance growth was greatly affected, sales stagnated. The direct result is the break of the capital chain, followed by the outside world from September 25, a large number of platform suppliers and agents gathered from all over the country to Taoji headquarters to ask for payment. In this context, Taoji announced on October 16 that the main business model was changed from business entry model to partner self-employment model. Taoji set Said that the existing major suppliers into Taoji shareholders partners, with Taoji set with honor and disgrace together advance and retreat.

Previously, the collection of the gold-washing set was due to the arrears of the goods, and its Shanghai office has gathered hundreds of merchants downstairs to protect the rights. According to the technology report of the Phoenix Net, on October 11, the newly-established merchant back-back processing group of the gold-washing set began to negotiate with the visiting merchants one by one, and issued an agreement for the "do not dare to sign" of the merchant. The agreement content shows that the panning set will repay 20% of the debt amount after receiving the purchase price paid by a large group company, and the remaining payment will not be repaid in the case of the equity pledge loan or the equity swap in the case of the post-reorganization to the market of $2 billion.

According to the Tianeye check data, Zhang Zhengping CEO, has actual control over 13 companies, including Shanghai Huanchang Industrial Co., Ltd., which is the main company of Taoji Collection, Shanghai Huanchang Industrial Co., Ltd., which was established in May 2017 with a registered capital of 10 million RMB. Its business scope includes building decoration materials, fitness equipment, hardware communications, daily use department stores, electronic products, knitting and textile products, etc. Among them, Zhang Zhengping owns 99% of the company.

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