Green Lianlian IPO: Eat dividends, it is difficult to hide anxiety

Author | Karong

Edit | Tang Fei

The "Data Line" company, which started Yu Huaqiangbei, also has to impact the IPO.

According to the official website of the Shenzhen Stock Exchange, on June 2, 2022, Shenzhen Greenlord Technology Co., Ltd. (hereinafter referred to as "Green Lian") GEM IPO has been accepted.

Photo source: Green Union Prospectus

The prospectus shows that from 2019 to 2021, the Green Union's revenue was 2.045 billion yuan, 2.738 billion yuan, and 3.446 billion yuan, respectively, with an average annual compound growth rate of 29.80%. The proud revenue growth has not only attracted the attention of Gao Yan Capital and other institutions, but also brought the confidence to the Green Federation's impact on the IPO.

However, unlike the dazzling revenue data, from 2019 to 2021, the net profit of Green Lianlian was 227 million yuan, 306 million yuan, and 305 million yuan, respectively, with a year-on-year growth rate of 34.8%and -0.3%, respectively. It can be seen that the growth rate of the net profit of Green Lianlian not only fell the cliff, but the net profit in 2021 decreased year -on -year.

Why is the Green Lianfang falling into the strange circle of "increasing income and not increasing benefits"? From the prospectus, the increase in instability of overseas markets may be one of the main reasons.

1. Overseas contribution half of revenue

Unlike most Chinese consumer electronics brands, unlike the local market, Green Union can be called a "international brand".

The prospectus shows that from 2019 to 2021, the overseas sales of the main business of the Green Lianlian's main business accounted for 43.49%, 47.38%, and 46.09%, respectively. It can be said that the overseas market almost contributed the company's income.

Relevant sources revealed that the products of Green Lianlian are mainly pure hardware. They do not involve too many data and algorithms. Compared with the software products that enterprises go to sea, they have a certain "review" advantage.

However, the main reason why Green Union succeeded in "going to the sea" was because of the Chinese supply chain bonus and the outlet of overseas e -commerce.

After the millennium, due to the addition of the WTO, China was able to exchange capital through the development of labor -intensive industries. Due to Linhai and logistics advantages, coupled with relevant policy support, Shenzhen has become an important electronic product industry belt in China. In this context, Zhang Qingsen founded Green Lianlian Technology in Dalang, Longhua District, Shenzhen.

In September 2021, He Mengxin, general manager of Green Lianhe, said: "There are many Longhua Dalang factories, with multiple layered labor resources, and the geographical location is close to Dongguan. The reflection of the time, geographical interest, people. "

In addition to enjoying China's supply chain, another key factor in the overseas market is also the key factor in overseas markets is to closely grasp the outlet of overseas e -commerce.

In 2014, Amazon China ’s transformation strategy, which was defeated in the field of e -commerce in China, no longer focused on Chinese buyers, but focused on Chinese sellers to help Chinese sellers export business. For example, in June 2014, the Amazon "Global Store" project opened Japanese and Canadian sites to Chinese sellers, and then opened six regions and countries. At this point, Chinese sellers can sell products through Amazon's e -commerce system to sell products. Go abroad.

The Green Union, who smelled the business opportunity, quickly hugged Amazon's "thighs". According to Zhang Qingsen, only for half a year in Amazon, the Green Federation "achieved more than 20,000 US dollars per day and continued to grow at a high speed."

Photo source: Green Union Prospectus

In fact, even today, Amazon is one of the main sales channels of the Green Union. The prospectus shows that from 2019 to 2021, the revenue of the Green Federation from Ya Ma Yun was 641 million yuan, 978 million yuan, and 1.149 billion yuan, respectively, accounting for 3139%, 35.83%, and 33.41%of the revenue, respectively.

In 2015, Amazon launched the "enterprise purchase" business for the enterprise procurement market. Green Lianlian once again seized this excellent opportunity, opened the business as soon as possible, and quickly expanded consumer electronics from C -side users to B -side enterprise procurement. user.

"In the consumer electronics industry, the company's procurement market business has long accounted for 30%-50%of the entire market. Since the opening of Amazon enterprise purchases, the Green Lianhe has achieved rapid growth in the enterprise procurement market business. Taking April 2020 as an example, from the coming of as an example, from the from, from it as an example, from the from, from the example, from the example, from April 2020, it was from April 2020. The number of orders on the corporate side reached nearly 8,000 orders, a significant increase year -on -year. "Lei Jie, the director of operation of Green Lianlian, said in an interview.

The "gorgeous turn" of the Green Lianlian is the epitome of the transformation of traditional Chinese manufacturing industry, and it is also a model for Chinese manufacturing companies to upgrade from bottom to top in the global trade chain.

But it is worth noting that in the ranking of Amazon Seller Rating, UGREEN, the main shop of Green Lianlian Technology, is the same level as the currently ranked first -ranking Anke Innovation (Anker).

Anke Innovation is also a leader in the field of overseas in China. It was listed on the GEM of the Shenzhen Stock Exchange in August 2020. Although the listing time is different, the same consumer electronics industry is also known for its cross -border business. In the future, Green Lianxian Technology and Anke Innovation may be destined to have a "World War I".

2. Uncertainty of overseas markets

Although in the past few years, Green Lianlian has been mixed in the overseas market with a "scissors poor". However, with the changes in overseas markets, the business model of Green Lianhe actually has certain risks.

First of all, from the perspective of the development trend of China's cross -border e -commerce industry, accompanied by factors such as China's intelligent manufacturing transformation, reduction of labor dividends, and epidemic prevention measures, it is difficult for cross -border e -commerce companies to rely on naturally relying on naturally existing two places. " "Poor" earning profits. According to data from the General Administration of Customs, in Q1 in 2022, the total export of cross -border e -commerce in China was 310.4 billion yuan, a year -on -year increase of only 2.6%, and there was no growth rate of more than 50%in previous years. Considering the impact of the epidemic on important import and export cities such as Shenzhen, Shanghai, the next time, the pressure of "green coupons" was not small.

Secondly, the rise in logistics costs also erodes profit margins to a certain extent. The prospectus shows that from 2019 to 2021, the logistics costs of Green Lianlian were 306 million yuan, 395 million yuan, and 436 million yuan, respectively, accounting for about 20%of the main business cost.

Regarding the rise in logistics costs, Green Lianxian said in the prospectus: "If the epidemic in the future is repeated or global shipping prices have increased due to macroeconomics, political changes, and fluctuations in fuel price fluctuations, it will further lead to an increase in transportation costs and the level of profitability to the company's profitability. It has adverse effects. "

Finally, the products of the Green Union's main data cables, chargers, and mobile phone brackets do not exist in isolation, but need to be attached to mature consumer electronics products. For example, the USB-C multifunctional docks focusing on the Green Union mainly serves products such as laptops and tablets.

Picture source: stackline

However, the so -called "skin that does not save hair will be attached", and the overall growth rate of consumer electronics in the past few years is not optimistic. The US e-commerce company's fastest growth and fastest decline in the US e-commerce growth in 2020-2021 released by the US retail investigation company Stackline shows that tablet accessories are the fastest category of decline, a year-on-year decrease of 67%.

From the growth rate of the revenue of the Green Federation overseas market, we can also see the slowdown in demand. The prospectus shows that from 2019 to 2021, the green federations from overseas revenue were 888 million yuan, 1.294 billion yuan, and 1.584 billion yuan, and the growth rate dropped from 45.72%to 22.41%.

In fact, the dilemma of the Green Union is also a challenge that most Chinese consumer electronics brands that focus on overseas markets need to face.

Taking Anke innovation, known as "Cross -border E -commerce Brother" as an example, the financial report shows that in 2021, Anke's innovative revenue growth rate decreased by 6 percentage points year -on -year, and the net profit growth rate also fell by 4 percentage points.

Anke innovative stock price. Picture source: Google

In the secondary market, Anke's innovative stock price performance also fluctuated. As of the closing of June 8, 2022, Anke's innovative stock price was only 64.94 yuan/share, a decrease of 61.8%compared to the high point of about 170 yuan/share a year ago.

3. Practice "internal power" steady feet

Faced with a series of uncertainty, the Green Union chose to start from the inside, hoping that through optimizing the cost structure and digging the new channel dividends to stabilize the foot.

First of all, the Green Lianal decided to change the "foundry model" to "self -built factory".

The prospectus shows that the production of green couplet products is mainly due to the production of cooperation outside the product, supplemented by independent production. From 2019 to 2021, the production proportion of the Green Union Foreign Association was 75.78%, 76.10%, and 75.62%, respectively.

Although the foreign associations can make high efficiency shipments, to a certain extent, the Green Federation's bargaining power has been reduced. Taking the charging finished product as an example, in 2020, the purchase unit price of Green Lianlian was 16.12 yuan. By 2021, the price rose to 19.52 yuan, an increase of 21.09%.

As a result, Green Union hopes to expand its own production capacity with the funds raised by the listing. The prospectus shows that 36.57%of the company's fundraising will be used for product research and development and industrialized construction projects.

In addition, Green Union also hopes to reduce the cost of logistics and plans to invest 110 million yuan for intelligent warehousing and logistics construction projects.

Secondly, the Green Union also actively "open source" to expand new sales channels.

The prospectus shows that from 2019 to 2021, the proportion of revenue of the overseas channels of Green Lianlian's overseas channels increased from 7.75%to 10.77%; the proportion of revenue of domestic offline channels increased from 25.16%to 31.34%.

According to the Green Union, according to the company's strategic planning, the company actively adjusted the layout of online and offline sales channels. Offline sales accounted for the proportion of main business income from 17.59%in 2019 to 21.86%of 2021, of which dealers were dealers Models are mainly based on direct sales.

It is true that adjusting the supply chain structure, reducing logistics costs, and pioneering new sales channels can alleviate the anxiety of the Green Union to a certain extent, but as a technology manufacturing company, the competitiveness of the product itself is the key to victory.

From 2019 to 2021, the company's R & D investment was 64.8853 million yuan, 95.127 million yuan, and 157 million yuan, respectively, and the R & D cost rates were 3.17%, 3.47%, and 4.54%, respectively, showing an increase year by year. Nevertheless, this ratio is lower than the average value of comparison companies.

As of the date of signing the prospectus, the Green Union and its subsidiaries have 698 domestic patents, most of which are exterior patents, with only 11 invention patents.Once the migration of the central -style consumer electronics platform is calculated (similar to a functional mobile phone to a smartphone), then it may be difficult to keep up with the rhythm of the times.In addition, Green Lianqi was punished by a number of administrative penalties.For example, on October 29, 2020, Greenlord Technology did not meet the national mandatory standards due to the production and sales of the PB132 Green Lianqian Mobile Power (20000mAh).The illegal income was 2099.16 yuan and a fine of 93,765 yuan.

*This article is based on public information, which is only used as information exchange, and does not constitute any investment suggestions

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