To Europe Technology IPO, the word "Technology" is not realistic

Produced ｜ Company Research Room IPO Group

Text ｜ Cooky

To Europe, a Chinese home brand that Chinese is not familiar with will be listed on the GEM. Recently, cross -border e -commerce has caused the European Technology GEM, becoming the second cross -border e -commerce enterprise for the IPO meeting during the year.

From the performance of European Technology in the past three and a half years, it can be seen that some common problems facing domestic cross -border e -commerce companies, such as high shipping costs, rising costs, and backlogs of inventory.

As for European technology, the revenue from Amazon channels accounted for nearly 80%, and its dependence on Amazon was significantly high, and the main sales channels were too single. In addition, in recent years, European Technology's R & D costs have been less than 0.5%. For a company with a selling point with design and appearance, the scientific and technological attributes are not obvious, and the word "technology" is quite famous.

01. Excessive dependence on Amazon

To the EU Technology was established in 2010, mainly engaged in the research and development, design and sales of home products. It sells products to Europe and North America through overseas e -commerce platforms such as Amazon and EBAY.

From 2019 to 2021, European technology revenue was 2.322 billion, 3.968 billion, and 5.959 billion, respectively, and the revenue growth rates in 2020 and 2021 were 70.89%and 50.18%, respectively.

The sales model of European Technology can be divided into two types of B2C and B2B. In the past three years, B2C's revenue accounted for more than 80%. The company's products were mainly sold to end personal consumers through e -commerce platforms.

But whether it is B2C or B2B, the most important sales channel for European technology is the Amazon platform.

From 2019 to 2021, the revenue (B2C+B2B) obtained through the Amazon channel was 2.079 billion, 3.1084 billion, and 4.602 billion, respectively, and the proportion of revenue was 90%, 80%, and 77%, respectively.

Since the second quarter of 2021, the Amazon platform "title" has appeared in the cross -border e -commerce industry, and Amazon has strengthened the control of Chinese sellers.

Taking the A -share listed company Tianze Information as an example, in the announcement in July 2021, it stated that its cross -border e -commerce subsidiaries have a tree for violation of Amazon's platform rules, and they have been blocked or sealed 7 months before 2021. The number of frozen stations was about 340, accounting for about 30%of the average number of monthly sales revenue on the Amazon platform in the first five months of 2021. Due to the impact of Amazon's title, in 2021, a tree revenue decreased by 66.55%year -on -year and a loss of 1.67 billion.

Nearly 80%of European Technology's income comes from Amazon channels, and its dependence on single e -commerce is obviously too high. If Europe is also a large -scale name of Amazon, the company's performance will be greatly affected.

02, increasing income in 2012 without increasing benefits

In the past three years, Europe's income has been in a high growth trend, but the gross profit margin has been declining. From 2019 to 2021, Ou Mao's interest rates were 55.80%, 37.92%, and 32.64%, respectively.

As a company that focuses on foreign trade exports, the rise in shipping costs since 2020 has a great impact, but after the impact of freight, from 2019 to 2021, the gross profit margin of Europe has declined year by year, respectively, 55.80%, 54.76%, and 49.61 %.

In 2020, the cross -border e -commerce industry is good, attracting many new sellers to enter the bureau, and some foreign trade factories and domestic e -commerce have also moved to overseas markets. FINBOLD data shows that Amazon added 295,500 new sellers from January to March 2021.

In the past two years, some of the influencing factor in the decline in the gross profit margin of European technology is that after new domestic players entered the cross -border e -commerce market, in order to seize the market to use a low -cost strategy, European Technology also added a price war to maintain scale, and some products conducted some products to conduct some products. Price sales.

Taking the 51%home furnishing series as an example, the average sales price of home products in 2021 was 409.36 yuan/piece, a year -on -year decrease of 1.66%, and the sales cost of 224.07 yuan/piece, an increase of 8.20%year -on -year 4.99 percentage points.

From 2019 to 2021, the net profit of European technology was 108 million, 380 million, and 240 million, respectively, and the non -net profit was 164 million, 459 million, and 207 million, respectively. In 2021, the net profit of European technology fell 36.84%year -on -year, and the non -net profit fell 54.90%year -on -year.

In general, European Technology seemed to be very glorious in 2021, and the income remained high, but while the cost increased significantly, in order to maintain the market size and orders, the price reduction sales lost more than half of the deduction and non -profit, which belonged to it belonging to Typical "increasing income without increasing benefits".

03. The word "Technology" is famous

Although the name of European Technology is with the word "technology", it is essentially a company with home design and sales as the main business. The technology attributes are not strong and the research and development investment is low.

From 2019 to 2021, the research and development costs of European technology were only 110 million, 123 million, and 125 million, respectively, and the R & D costs were 0.45%, 0.32%, and 0.41%, respectively.

In the inquiry letter, the Shenzhen Stock Exchange asked about the low cost of research and development of European technology and the core technology barriers. It required it to explain whether the core technology had the risk of rapid iteration, replication, and transcendence.

In response to the low cost of R & D, European Technology explained that because the company does not involve the independent production link of furniture home products, R & D activities are mainly design and design and design and design and design of the product materials, functional renewal, appearance design, and visual image upgrade R & D, and the development of information systems, there is no need to invest a lot of research and development resources such as human resources, raw materials, instruments and equipment. In response to the core technology barriers, European Technology replied that furniture home is traditional consumer goods. The core technology or patent technology of their product design is mostly the appearance patent, the technical barriers are relatively low, and there is a risk of being copied and imitated. As of the end of 2021, European Technology has obtained a total of 360 patents, of which 7 practical new patents and 353 exterior patents.

To put it simply, the products of European Technology are mainly selling design and appearance, and these are easily imitated and plagiarized. If there are competitors with similar styles, similar quality, and to the European price war, the customers of Europe will cause the customers of Europe to do it. May be partially separated.

For European technology with low technology attributes, the word "technology" is quite suspected of "hanging sheep head selling dog meat".

04. Inventory surge in cash flow fluctuations

In the past three years, the high growth of European technology revenue has driven a significant increase in inventory.

From the end of 2019 to the end of 2021, the book value of European technology inventory was 253 million, 859 million, and 1.052 billion, respectively, accounting for 38.68%, 47.83%, and 30.70%of the total assets. Among them, the balance of inventory at the end of 2020 increased by 606 million yuan at the end of the previous year, an increase of 239.52 % year -on -year, a larger increase.

Higher -scale inventory levels have increased to a certain extent increased the company's inventory price risk and the pressure of capital occupation. From 2019 to 2021, the price loss of European technology inventory was 31.9271 million, 26.786 million, and 87.0537 million, respectively; the inventory turnover rate was 4.63, 3.17, and 3.09, respectively, for two consecutive years.

From 2019 to 2021, the net cash flow of European science and technology operating cash was 89 million, -207 million, and 265 million, respectively, and operating cash flow fluctuated large. To Europe said in the prospectus that the main reason for operating cash flow in 2020 was that the inventory increased by 611 million to increase cash outflow.

Entering 2022, the business of cross -border e -commerce is more difficult than the previous year.

To the European technology forecast, the company's operating income in the first half of 2022 was 2.73 billion to 2.83 billion, a year -on -year decrease of 14.68%to 11.55%; net profit of home mother was 106 million to 120 million, a year -on -year decrease of 24.51%to 14.54%; The profit was 101 million to 115 million, a year -on -year decrease of 19.57%to 8.42%.

Although European Technology is a company with an annual income of 50-60 billion, the company's products are sold to overseas markets and are not sold in the mainland. Although this makes it a Chinese brand, the Chinese people do not know much about it. This limitation may affect the performance after the listing of Europe.

At present, among the cross -border e -commerce companies that have been listed on A shares, the second shareholder of European Technology -Anke's innovative market value with consumer electronics is about 29 billion, and Huacai Yi, which is mainly used in home gardening, industrial and commercial supplies as its main business. The market value of Baibai is only 4. billion, and the market value of Tiaze's parent company Tianze is 3.8 billion.

With the further decline of performance in 2022, European Technology, which is based on traditional home furnishings, may be difficult to obtain too high valuations after listing.

- END -