According to China’s Enforcement Information Disclosure Website, Missfresh, a leading local fresh grocery platform, was listed as a judgment debtor by the Chaoyang District People’s Court of Beijing, obliging it to pay about 5,329,500 yuan ($799,325) in fines. This is the second time this year that Missfresh has been fined.
Missfresh’s share price is falling. As of the close of May 27, Missfresh’s stock was trading at $0.157 apiece – a sharp contrast to its opening price of $13.0. However, a source close to Missfresh revealed that the company will take actions to save the stock price in the near future.
In 2020, online fresh grocery retailers have grown rapidly with the help of capital investment. In June 2021, Missfresh became the the first listed online fresh grocery retailer, but it collapsed on the first day of listing. Its share price has been declining ever since then. This April, its share price fell below $1.0, facing the risk of delisting.
Since that time, Missfresh has received a warning letter from the Nasdaq Listing Qualification Department because it failed to disclose on time its 2021 annual report for the fiscal year ending December 31, indicating that the company is not in compliance with Nasdaq listing criteria.
Missfresh replied that it will continue to work hard to complete the review of the 2021 annual report and will submit it to the US Securities and Exchange Commission as soon as possible. According to the above source, Missfresh will submit the annual report and disclose important information soon.
Missfresh is expected to lose between 3.737 billion yuan and 3.767 billion yuan in 2021. This loss amount will once again break its loss record. From 2018 to 2020, the company’s loss was 2.298 billion yuan, 3.096 billion yuan and 1.656 billion yuan respectively.