Fun sleeping technology sprint ipo: over 60%of the income comes from the Xiaomi platform, the research and development cost and gross profit margin are lower than the same value

Picture source: Oriental IC

Recently, the CSRC approved the first public issuance application for the first public offering of shares in Chengdu Qudi Sleeping Technology Co., Ltd. (hereinafter referred to as "Fun Sleeping Technology"). In July two years ago, the company's IPO application submitted by the Shenzhen Stock Exchange was accepted.

As Xiaomi's ecological chain enterprise, Fun Sleeping Technology is inseparable from Xiaomi Group in all aspects such as equity structure, product procurement, and sales. The relationship between the two has also become the focus Doubted.

At the same time, the products of Fun Sleeping Technology depend on foundry, and their R & D cost and gross profit margin are lower than their peers.

Many people in the industry said that consumers are very related to the willingness to buy home products and brand effects. Whether Fun Sleeping Technology can effectively break through the siege and enhance the brand awareness after listing.

Shunwei Investment is the second shareholder, and the Xiaomi series platform revenue accounts for over 60%

The information of Tianyancha shows that Fun Sleeping Technology is a company focusing on sleep technology and bedding products. It is committed to becoming a provider of sleeping products and sleep improvement plans. The main product is 8H mattress.

Since its establishment, Fun Sleeping Technology has completed a total of 8 rounds of financing. The reporter noticed that in 2015, the Xiaomi Shunwei Capital and Xiaomi Group participated in the Angel Wheel of Fun Sleeping Technology and the Pre-A round of financing.

Fun Sleeping Technology stated in the prospectus that it belongs to the ecological chain company of Xiaomi Group. It can be said that Fun Sleeping Technology and Xiaomi Group are deeply bound, and the relationship between the two has also become the focus of inquiry in the process of the fun of sleeping technology.

As of the date of signing the prospectus, Xiaomi Group's affiliated parties hold 10.2064%of the equity of interesting sleeping technology. Equity, of which Shun is the investment as the second shareholder.

At the same time, the current director of Fun Sleeping Technology, Cheng Tian Department, is recommended by Yoshunwei Investment. Therefore, Xiaomi Group’s affiliated parties are investing and Tianjin Jinmi. It has a certain impact and governance.

In addition to having independent brand 8H products, Fun Sleeping Technology is also a supplier of Xiaomi Home Furnishing products to provide Mijia brand products for Xiaomi Mall. In terms of product procurement and production, Xiaomi Group has a certain influence on the company. In addition, in terms of sales channels and platform cooperation, Xiaomi Group also has a certain impact on Fun Sleeping Technology.

As one of the earliest brands that cooperate with Xiaomi series platforms, Fun Sleeping Technology has been working with Xiaomi Group to sell products directly to Xiaomi Group and sell independently on the opening of the e -commerce platform "Xiaomi Youpin". During the reporting period (2019-2021), the company's revenue from the Xiaomi series platforms was 418 million yuan, 327 million yuan, and 290 million yuan, respectively, and the revenue accounted for 75.69%, 68.43%and 61.41%, respectively.

Although the proportion of sales through the Xiaomi series platform has declined, its main sales channels are still the Xiaomi series platform at this stage, and the channel structure is relatively single.

During the reporting period, Xiaomi Group is the largest sales customer of Fun Sleeping Technology. Fun Sleeping Technology ’s sales amount of Xiaomi Group accounted for more than 20%of the company's operating income. In 2020 and 2021, Xiaomi Group is also one of the top five suppliers of Fun Sleeping Technology. The proportion of purchasing the total purchase amount from Xiaomi Group is more than 5%.

R & D cost rate is lower than peers, product production depends on foundry

Fun Sleeping Technology stated in the prospectus that since its establishment, it has taken the "technology of technology" as the vision, adhering to the concept of scientific and technological innovation, actively compliance with the trend of changes in consumer demand, continuously strengthened product research and development, and integrates scientific and technological elements. The company stated that cutting -edge materials, structural development, and technology applications were integrated into products, actively explored and launched innovative products, incorporated scientific and technological innovation elements in product research and development, and emphasized the technological attributes of products.

As of the end of 2021, the total number of R & D of Fun sleeping technology was 43, accounting for 27.74%of the total number of employees. As of the end of 2021, the company had been authorized 194 patents, including 144 practical new patents, 50 appearance design patents, and 77 newly authorized patents in 2021. At the same time, as of the end of February 2022, the company applied for 49 patents, including 11 invention patents. The invention patents in the 11 applications were in the stage of waiting for the real review proposal.

Despite the large number of patents disclosed by the prospectus, the industry's scientific and technological attributes of Fun Sleeping Technology are still doubtful, mainly because their R & D expense ratios and R & D personnel are lower than their peers.

As of the end of 2021, only 43 R & D personnel in Fun Sleeping Technology, accounting for 27.74%of the total number of companies, and the resignation rate in the past three years has exceeded 30%.

According to the prospectus, in the past three years, the research and development expenses of Fun Sleeping Technology have bottomed out in three main expenses (sales costs, management costs, R & D expenses). In 2021, its sales costs were 5.7 times that of R & D expenses.

Fun sleeping technology explained that the company's R & D cost rate is slightly lower than that of listed companies in the same industry. The main reason is that the research and development focus is reflected in the innovative design of products, such as functional design and structural design, which consumes less product materials. Due to the use of foundry production models, in the process of product development, the trial production of new products also commissioned outsourcing manufacturers to implement it, and the production costs are agreed separately. Therefore, there is no need to purchase the factory and equipment required for production. The fixed investment is less and the R & D cost is relatively low. The reporter noticed that in fact, the production of fun sleep technology products was completed through the production of suppliers. During the reporting period, the company's top 5 suppliers accounted for 62.71%, 52.22%, and 50.31%of the total procurement amount. The main suppliers include: Ningbo Mengshen Mattack Machinery Co., Ltd. , Xilinmen Furniture Co., Ltd., Xiaomi Group, Jingdong Group, etc.

Many people in the industry said that because of the production of foundry, Fun Sleeping Technology showed the situation of "heavy sales, light research and development" in data. On the other hand, it is difficult to control the production process of foundry production products. So products are prone to quality problems.

There are also multiple quality problems in the 8H mattress of Fun Sleeping Technology. On the black cat complaint platform, a number of users reported that the 8H mattress had unequal quality problems.

The scale of revenue and gross profit margin can be at the bottom of the comparison company

According to the prospectus, fun sleep technology products mainly include two categories: furniture and home textiles. The furniture category mainly includes software furniture and wooden furniture. The software furniture includes mattresses, sofas, soft beds and other products; wooden furniture includes solid wood beds, solid wood coffee tables, solid wood combination cabinets, solid wood dining tables and chairs, solid wood bedside cabinets and other products. Home textiles mainly include pillows, quilts, mattresses, four sets and other products.

Since the company's establishment, the main business has not changed significantly, and the main product category has expanded. During the reporting period, its furniture products accounted for more than 60%of each period. According to the specific products, the revenue of mattress products accounts for the highest proportion, and during the reporting period exceeds 44%.

However, from the perspective of market share, Fun Sleeping Technology's home products do not seem to have a high popularity. According to data from the China Business Intelligence Research Institute, the overall market of the Chinese mattress industry is decentralized and concentrated. The top four companies account for less than 20%of the overall market, of which Gujiajia, Xilinmen, Mu Si account for 4%, Mengli accounts for 1 %.

And Fun Sleeping Technology's mattress products are not in the ranks of major players. Many people in the industry told reporters that consumers have a great relationship with the purchase willingness of mattress products and brand effects.

It is worth noting that during the reporting period, the revenue of Fun Sleeping Technology was 552 million yuan, 479 million yuan, and 473 million yuan, respectively, showing a decline year by year. Compared with the same peers, Meng Lily and Gu family are equivalent to their peers, the revenue scale of Fun Sleeping Technology has always been at the bottom.

Not only that, during the reporting period, the gross profit margin of Fun Sleeping Technology is always at the bottom of the comparable company.

Fun Sleeping Technology explained that the gross profit margin is lower than the comparable company average in the same industry, mainly due to large differences between the operating model and the comparable company. All the products of the company adopt outsourcing production methods, which do not directly involve production links. The procurement is mainly purchased by the finished product, and at the same time, it is mainly based on Internet sales. The main customers are C -end consumers or e -commerce platforms. It also affects the gross profit margin level of each company.

In this case, whether Fun Sleeping Technology can effectively improve the consumption awareness of its brand after listing, it still needs to be observed further.

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