Delma IPO: There are not many trademark authorization business in R & D investment in home appliances research and development companies account for nearly 40 %

Delma's main business is greatly affected by authorization business and has more inventory. And "heavy marketing and light research and development" does not have high investment in patents.

On June 2nd, Guangdong Delma Technology Co., Ltd. (hereinafter referred to as: Delma) passed it on the GEM of the Shenzhen Stock Exchange and was used as a sponsor.

The prospectus shows that Delma's public offering of not more than 92.3125 million shares this time, accounting for 20%of the company's total share capital after the issuance. It is expected to raise funds of 1.464 billion yuan, of which 1.238 billion yuan is used for smart home appliance manufacturing base projects; 127 million yuan for R & D product control center construction projects; 100 million yuan for information construction projects.

By inquiring the prospectus, the Delma trademark authorized business was close to 40 % of the operating income, and the online sales model accounted for a large proportion and a large inventory. In addition, Delma, as a home appliance R & D company, has less R & D. In response to the above situation, it was found that the network sent an interview letter to Delma's public mailbox to request a question. As of press time, Delma did not give a reasonable explanation.

Nearly 40 % of trademark authorization business income

Public information shows that Delma was established in 2011. The company's main business is the research and development, production and sales of home appliances such as home environment, water health, personal health, and living bathrooms.

From 2019 to 2021, Delma's operating income was 1.517 billion yuan, 2.228 billion yuan, and 3.038 billion yuan, respectively, and the net profit attributable to the mother was 111 million yuan, 173 million yuan and 170 million yuan, respectively.

Picture source: Wind (Delma)

It is worth noting that nearly 40 % of the operating income of Delma is a trademark -authorized product income from "Philips" and "Vantage".

Public information shows that before the establishment of Delma, its founder Cai Tieqiang set up a flying fish advertising company in Beiyi, Foshan, Guangdong Province in 2007, and then founded Flying Fish E -commerce and Flying Fish Marketing. The main e -commerce operation.

In 2018, Delma used the CITIC Industry Fund's 500 million yuan investment to obtain the "Philips" trademark authorization cooperation. Subsequently, Delma cooperated with brands such as Vantage and nature successively to win the license of the trademark of multiple home appliance brands, which also made Delma's performance rapidly developing. Among the four main brands in Delma, only "Delma" and "Weixin" are their own brands under Delma, and "Philips" and "Vantage" are authorized brands.

From 2019 to 2021, the sales revenue of Delma's own brand "Delma" was 833 million yuan, 950 million yuan, and 1.087 billion yuan, respectively, accounting for the main business revenue ratio from 55.05%in 2019 to 35.83 in 2021 in 2021 %; Brand -authorized products "Philips" 's sales revenue was 309 million yuan, 697 million yuan and 981 million yuan, respectively, accounting for 20.38%, 31.35%and 32.34%of operating income, with a compound annual growth rate of 72.67%.

Prospectus (Delma)

Regarding this kind of sales, Delma also expressed their concerns in the prospectus. During the period, there are no specific situations such as the terms of the trademark license agreement on a major aspect, and if the remedy is not remedied as required, there is a risk of a trademark license.

Regarding the model of brand authorization business, industry insiders said that Delma's operations depend on the existence of authorized products. If the cooperation between the two parties will not change in the future, or the partner's choice will not renew the contract, it will adversely affect Delma's operating performance. Essence

In addition, the prospectus shows that Delma products are mainly sold through e -commerce platforms, online direct sales and online distribution methods. From 2019 to 2021, Delma's online sales revenue was 1.084 billion yuan, 1.372 billion yuan, and 1.507 billion yuan, respectively, accounting for 71.58%, 6168%, and 49.68%of the main business revenue, respectively.

Delma conducts online direct sales on platforms such as Tmall, Taobao, Douyin and Xiaomi Youpin. The sales are 250 million yuan, 465 million yuan and 580 million yuan, accounting for 23.1%, 33.87%, and 38.49%of online sales, respectively ; Sales of e -commerce platforms such as JD.com, Vipshop and other e -commerce platforms are 649 million yuan, 685 million yuan, and 577 million yuan, accounting for 59.9%, 49.98%and 38.30%of online sales; online sales sales are 1.84 100 million yuan, 222 million yuan and 350 million yuan, accounting for 17.01%, 16.15%, and 23.21%, respectively.

Picture source: prospectus (Delma)

Because online sales have a certain peak promotional peak period, such as Goddess Festival, 618, and Double Twelve, Delma will prepare for these periods of time. A large number of goods accumulated in the warehouse to facilitate the delivery of each platform, which also led to Delma's inventory.

The prospectus shows that from 2019 to 2021, Delma's book balance was 329 million yuan, 382 million yuan and 522 million yuan, respectively; of which the inventory goods were 133 million yuan, 217 million yuan, and 348 million yuan. Inventory accounted for 40.30%, 56.82%, and 66.77%, which increased year by year. Picture source: prospectus (Delma)

In addition, while the inventory rises, the backlog of inventory also leads to a large number of preparations for the inventory plan, which requires the company to prepare to prevent risks. During the reporting period, Delma's inventory price decline preparation amount was 300 million yuan, 27 million yuan, and 200 million yuan, respectively, accounting for 9.08%, 7.11%, and 3.78%of the balance of the inventory book. Although the amount of inventory price decline is constantly declining, a large amount of inventory has caused Delma to lose tens of millions of yuan in vain.

People in the industry said that inventory occupies operating funds. If the scale of inventory is too large, it will reduce the company's operating efficiency. If the company fails to accurately grasp the trend, leads to the slow sales of products and the risk of price decline, it will have a great adverse effect on the company's operating performance.

R & D expenses are lower than peer average

Public information shows that Delma's self -developed "Delma" floor -to -floor washing machine sewage receiving device, ground -washing base technology, floor -to -ground brush technology, and ground -to -ground electronic water sterilization technology Get a wide range of applications.

The prospectus shows that Delma and holding subsidiaries hold a total of 913 major domestic patents and 14 major overseas patents. The domestic patents include 7 invention patents, 509 practical new patents and 397 design patents. As a domestic home appliance independent R & D company, although there are many patents at the present, nearly one -third is the appearance design patent rather than a technical patent. In addition, Delma's investment in R & D is not obvious.

Picture source: prospectus (Delma)

From 2019 to 2021, Delma's R & D expenses were 54 million yuan, 75 million yuan and 110 million yuan, respectively, accounting for 3.59%, 3.36%, and 3.64%of operating income. They are 3.8%, 3.78%and 4.05%, respectively. Compared with their peers, the R & D cost rate is relatively low.

And in 2021, the R & D expenses of Delma increased significantly. It was caused by the increase in the company's operating scale, the adjustment of the salary of personnel, and the amortization of the motion -production mold from operating costs to R & D expenses. It is not under the development of new products or patents.

Picture source: prospectus (Delma)

It is worth mentioning that Delma's promotion and marketing costs and platform costs far exceed R & D expenses. From 2019 to 2021, Delma's sales costs were 257 million yuan, 343 million yuan and 454 million yuan, respectively, accounting for 16.92%, 15.41%, and 14.93%of operating income; The highest proportion of sales expenses, the proportion of promotional advertising expenses in 2020 accounted for 47.27%, and platform usage fees and commissions accounted for 21.07%.

Picture source: prospectus (Delma)

In response to the above situations, industry insiders said that Delma may have the problem of "heavy marketing and light development". Insufficient R & D investment is difficult to cultivate its own brand advantages. With the increasingly fierce competition in the home appliance industry and the continuous improvement of product design and technical standards, if Delma's products cannot grasp the market, user needs, and technological innovation capabilities, the company's core of the company's core Competitiveness will be weakened, which will adversely affect the company's business development, and will face the risk of being eliminated by other companies in the market. At the same time, the promotion and promotion of e -commerce platform merchants will become increasingly fierce, which will lead to increasing promotional promotion costs. If Delma does not adjust the structure of the optimized promotion model in time, which will cause considerable pressure on profit.

In addition, in terms of patent ownership, one case or arbitration case of Delma and its holding subsidiaries has not yet ended with one case (a single appeal amount of more than 1 million yuan). The amount is 1.5 million yuan.

Intellectual property disputes between Delma subsidiaries and Midea Water Manufacturing Co., Ltd. in Shunde District, Foshan City, the company commissioned Beijing Yuanda Zhuoyue Intellectual Property Agency Co., Ltd. to issue the "Patent Invalent Analysis Evaluation Opinions" and believe that the patent should be invalid. At present, the State Intellectual Property Office has accepted the subsidiary's invalidation request of the above -mentioned patent involvement, and Delma has not filed its expected liabilities on these litigation.

(Reporter Luo Xuefeng Financial Researcher Sui Zijian)

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