After the three -wheeled inquiry of European Technology, IPOs have been conference: R & D cost rate is 0.4%, and more than 60%of the income rely on Amazon

Picture source: Oriental IC

A few days ago, the results of the 41st review meeting of the GEM of the Shenzhen Stock Exchange in 2022 showed that it was approved by Ou Ou Home Furnishing Technology Co., Ltd. (hereinafter referred to as "To Europe Technology"), becoming the second IPO of this year Links e -commerce enterprises.

According to the data disclosed by the prospectus, European Technology has increased steadily in the past three years, but more than 60 % of the revenue comes from the Amazon B2C platform, which has a higher dependence on a single channel. The "inverted V" trend of net profit in the past three years also shows that its profitability is unstable to a certain extent.

From submitting a listing application for the first time, to the first issuance, it will take about one year, and the course of impacting the IPO can be described as twists and turns, and now there is only the last door. In the end, whether it can successfully go through the threshold for listing the GEM still needs to be observed further.

The listing process is three % off. After three rounds of inquiry

To the Eurasian Technology was established on January 8, 2010, mainly engaged in the research and development, design and sales of its own brand home products. The products mainly include furniture series, home series, courtyard series, pet series and other categories. In recent years, European Technology has mainly sold its products to Europe, North America and Japan and other places through overseas e -commerce platforms such as Amazon, CDISCOUNT, Manomano, EBAY.

At present, European Technology has three its own brands: SONGMICS, VASAGLE, and Feandrea. Among them, SONGMICS is positioned as a furniture category, VASAGLE as furniture category, and Feandrea as pet home products.

According to the prospectus, the listing plan of European Technology has not exceeded 40.15 million new shares, and it is planned to raise 1.486 billion yuan. The funds are used for "R & D and design center construction", "warehousing and logistics system expansion", and "Zhengzhou Headquarters Operation Management Center Construction". Wait three major projects and supplementary funds.

Looking back at the listing process of European Technology, it can be described as twists and turns. Before this launch was passed, European Technology submitted the first application for listing in the GEM in June 2021, but in September of the same year, it was suspended due to the expiration of financial information. In December of the same year, the company restarted the IPO process after updating its financial data, but after a month, it took the initiative to stop the audit process in January this year.

In February this year, the European technology application resumed the listing and listed review, but was suspended due to financial information expired again a month later. Until April this year, European Technology broke through the IPO again. After the financial information was updated again, the Shenzhen Stock Exchange restored the company's issuance and listing review.

Before the meeting, the European Technology was also inquired by the Shenzhen Stock Exchange. Among them, the first round of inquiry involves the market position and competitive advantage of European technology, warehousing logistics and product quality, operating income, online sales, and other 24 questions. The second round of inquiry involves the company's GEM positioning and operations The model, overseas company, income and profits, and costs have 16 issues. The third round of inquiry is concentrated on its core competitiveness, fundraising projects and listing necessity, performance decline, tax risk, and share payment.

R & D expense rate is about 0.4%far -sooe industry average, and the GEM attributes are questioned

As an enterprise engaged in cross -border export brand home products, European Technology has positioned itself as global Internet home brands, which has aroused the discussion and doubts of its GEM attributes.

The reporter noticed that the Shenzhen Stock Exchange's inquiry letter and opinion implementation letter issued by the Shenzhen Stock Exchange paid attention to this. GEM positioning, etc.

In this regard, European Technology has repeatedly emphasized in the prospectus that its main business model is cross -border e -commerce. From the perspective of its industries, it belongs to the declared industry. At the same time, European Technology spent dozens of pages in the prospectus to introduce the company's "innovation", "creation" and "creative" characteristics to fit the "three innovations and four news" emphasized by GEM positioning.

From the perspective of R & D investment, the prospectus shows that during the reporting period, the company's independent research and development income accounted for 17.35%, 26.19%, and 28.37%of the total revenue. It is growing year by year.

During the reporting period, the R & D expenses of European Technology were 10.4295 million yuan, 12.7693 million yuan, and 24.5104 million yuan, respectively, and the total investment in research and development in three years was only 47.7 million yuan. Although its R & D annual annual growth rate reached 53.3%, the proportion of the total revenue was always low, and its R & D expenses during the reporting period were 0.45%, 0.32%and 0.41%, respectively.

When compared with enterprises in the same industry, the research and development cost rate of European technology does not have an advantage, far lower than the industry average. According to its statistics, during the reporting period, the industry average R & D cost rate was 2.79%, 2.77%, and 3.66%.

Regarding the low rate of R & D cost, 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 for materials selection, 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.

The furniture series is a pillar of revenue, and over 60 % rely on Amazon

At the performance level, the prospectus shows that from 2019 to 2021 (hereinafter referred to as the "reporting period"), European technology achieved revenue of 2.326 billion yuan, 3.971 billion yuan, and 5.967 billion yuan. The growth rate was 60.19%. In terms of revenue composition, if divided by product categories, furniture series products are the main source of income from European technology. During the reporting period, the income of furniture series of product revenue accounted for 43.37 %, 49.62 %, and 51.9 % of the total revenue, and almost occupied half of the total revenue, and there was a steady growth trend.

According to the different sales channels, the sales model of European technology mainly includes two models: online B2C and cross -border export B2B. The prospectus shows that during the reporting period, the sales revenue achieved by the B2C channels on the European Technology Online was 2.02 billion yuan, 3.291 billion yuan and 4.815 billion yuan, respectively. %. Among them, sales revenue achieved through the Amazon B2C platform is the highest.

During the reporting period, the sales revenue achieved by European Technology through the Amazon B2C platform was 1.884 billion yuan, 2.849 billion yuan, and 4.044 billion yuan, respectively. The proportion of receipts was 81.13 %, 71.8 %, and 67.87 %, respectively. This is enough to show that European technology has a higher dependence on Amazon, and this will undoubtedly hide certain risks.

In this regard, in the prospectus, European Technology also frankly stated that if Amazon has greatly adjusted the platform policy and platform rates of third -party sellers, or the company's cooperation with the Amazon platform will have a major adverse change in the future, and the company's company and the company Failure to expand other sales channels in time and effectively will adversely affect the company's operating activities and financial conditions.

Zhu Qiocheng, a special researcher at the Internet Electronic Commerce Research Center and CEO of Ningbo New Oriental Industry and Trade Co., Ltd., said, "From the perspective of European categories, home and pets are the most stable 'house economy' category since the epidemic. The development of the platform is the mainstream, getting rid of the dependence on a single platform, and the development of independent stations should be a problem that should be considered in the next step. "

In 2021, the profit decreased by 30%, and the gross profit margin fell below 50% year by year

It is worth mentioning that when the scale of revenue increased year by year, the net profit of European Technology came out of the "inverted V" trend. Some opinions believe that this indicates that its profitability is unstable.

The prospectus shows that during the reporting period, the net profit attributable to shareholders of the parent company was 108 million yuan, 380 million yuan, and 240 million yuan, respectively, and the net profit after deduction was 164 million yuan, 459 million yuan, and 207 million yuan, respectively. Based on this calculation, in 2021, the net profit of European technology decreased by 36.84%year -on -year.

Regarding the reasons for increasing increasing increasing income in 2021, European Technology explained that this is mainly due to unfavorable factors such as the continued rise in maritime prices, euro and US dollars against RMB exchange rates.

When prompting risks, the company also stated that if international trade policies and industry policy changes, intensified market competition, decreased product sales price, increased product procurement or transportation service prices, the construction of fundraising projects will not reach expected or the company cannot continue to continue Maintaining competitive advantages and other situations, or adverse factors such as rising prices of shipping, and fluctuations in exchange rate fluctuations, the company will face the risk of declining operating performance.

At the same time, during the reporting period, the company's main business gross profit margin was 55.82%, 54.78%, and 49.64%, respectively, showing a decline year by year; of which in 2021, it fell significantly and fell below 50%.

In this regard, the reason for European Technology in the prospectus is that since 2021, it has been repeatedly affected by the global epidemic since 2021. The shipping cost has risen sharply. The corresponding increase in the company's main business cost has led to a decline in gross profit margin. However, the company emphasized that the impact of high maritime shipping factors caused by the epidemic has gradually decreased, and it is expected that the gross profit margin level will not continue to decline sharply in 2022.

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