Bo Ling Electric IPO is suspended: Excessive income relies on large customers and independent brands.

Picture source: Oriental IC

Recently, the Shenzhen Stock Exchange's GEM listing audit information disclosure website shows that the IPO status of Ningbo Boling Electric Co., Ltd. (hereinafter referred to as "Boling Electric") has been changed to "suspending". The specific reasons have not been disclosed.

In 2020, the economic influence of the residential economic impact on the epidemic has made Bo Ling Appliances with the main business of kitchen appliances on the development fast track. Data show that the revenue and net profit of Boling Electric in 2020 were 1.696 billion yuan and 107 million yuan, respectively, a year -on -year increase of 94.9%and 66.5%, respectively. Due to the dazzling financial reports, the company announced the breakthrough GEM.

However, by 2021, consumers have gradually become rational, and the consumption demand for small home appliances in the kitchen continues to be under pressure, and the industry shows overall negative growth.

"In the background of the overall market market, Boling Electric's main business income may be impacted. At the same time, the market share of its self -developed products is very low, which shows that the company fails to accelerate channel reform and product structure adjustment under the change of the industry and the adjustment of product structure adjustment. Wait, the level of profit in the future may be restricted. "Some analysts pointed out.

The largest customer has contributed more than half of the income for a long time, and the customer concentration is high

Public information shows that Boling Electric's main business is the research and development, design, production and sales of small home appliances in kitchen appliances. The main products include food processing and mixer, fried barbecue, coffee machines, air fried pots and oven and other kitchen appliances products Essence

It is reported that kitchen small home appliance companies can be divided into brand vendors and manufacturers. The brand owner has independent brands, mainly participating in product R & D design, brand operation, channel development and maintenance, marketing and other links. The brand has a great influence in the market; manufacturers mainly participate in manufacturing, supplier management and other links. Some manufacturers with R & D, design and technical capabilities also participate in product innovation and R & D design.

Bo Ling Electric is a small home appliance manufacturer, which is mainly exported. It mainly provides research and development, design and manufacturing capabilities for Capital Brands, BSH (Bosh) and other internationally renowned small home appliance brands. Sales on the channel.

Since 2012, Boling Electric has established cooperative relationships with Capital Brands and has become the core supplier of small home appliance products such as food processing machines and mixers. The two parties maintain a stable cooperative relationship. On July 28, 2018 The "Third Supplementary Agreement" renewed the four -year framework agreement. The contract to July 27, 2022, can be terminated in advance in accordance with the provisions of the agreement.

The prospectus shows that from 2019 to 2021, and the first quarter of 2022 (hereinafter referred to as the "reporting period"), Boling Electric's sales revenue to the largest customer Capital Brands accounted for 68.39%of the company's total revenue, respectively. 66.91%, 49.62%and 51.70%. It can be seen that the largest customer has long contributed the company's more than half of the revenue, and the customer concentrates high risks.

Bo Ling Electric stated that if the cooperation between the two parties has undergone major adverse changes, such as the company's supplier for other suppliers, the number of customers to increase the traditional product, or the contract expires cannot be renewed, and the termination of the contract may be The stability has a significant adverse effect.

The gross profit margin has declined sharply, and multinational operations have multiple risks

According to the prospectus, during the reporting period, Boling Electric's revenue was 870 million yuan, 1.696 billion yuan, 1.973 billion yuan, and 346 million yuan, respectively; net profit was 64.525 million yuan, 107 billion yuan, 83.73 million yuan, 6.681 million yuan, 66.81 million yuan Yuan.

Among them, the company's air -frying pot, oven, and drip coffee machines were exported to the United States with a total of 112 million yuan, 46.8018 million yuan, 115 million yuan, and 24.588 million yuan, accounting for 1.29%, 2.76%, and 2.76%, respectively. 5.82%and 7.11%.

The revenue of food processing and mixers exported to the United States was 407 million yuan, 903 million yuan, 757 million yuan, and 138 million yuan, respectively, accounting for 46.79%, 53.24%, 38.34%, and 39.8%.

The total revenue of the two categories of the company's exports to the United States accounted for more than 40 % of the total revenue, which means that if exchange rate fluctuations and tariffs increase, they will have a great impact on the company's operations.

Bo Ling Electric said that export sales are mainly USD settlement, and the US dollar against the RMB exchange rate decreases. In the case of the unchanged sales price of the US dollar, the sales revenue converted by RMB will be reduced and the gross profit margin of the product will be reduced. It will affect the price competitiveness of export products and weaken the price advantage of the company's products to a certain extent. Due to a certain account period, the exchange rate decline to the corresponding receivables will increase the exchange loss.

On the other hand, due to the friction of Sino -US trade, the United States has increased tariffs on China. Among them, the tariff rate of air frying pots and ovens is 25%, and the tariff rate of coffee machines is 7.5%. If the company's small home appliances exported to the United States are further improving tariffs, it will cause increased export purchase costs, which may lead to a decline in customer orders or decline in order profit margins, and at the same time affect the pioneering power of the North American market.

This influence has reflected on financial data. In the past two years, Bo Ling's gross profit margin has fallen sharply. During the reporting period, the company's main business gross profit margin was 22.86%, 21.01%, 16.06%, and 16.65%. Bo Ling Electric explained that as the price of commodities continued to rise since 2021, the US dollar against the RMB exchange rate continued to hover at the low level at the end of 2020, and the increase in labor costs continued to increase, and the gross profit margin declined in 2021. Subsequently, the company negotiated with major customers to regulate prices and take corresponding cost reduction measures.

However, if the above -mentioned unfavorable factors continue to deteriorate and the company fails to negotiate price increases with downstream customers in time and take effective cost reduction measures, the gross profit margin will continue to decline, which will have a greater impact on the company's profitability.

The independent brand has not made a scale, and the kitchen appliance market is profitable or restricted under the sluggish market

"With the continuous improvement of R & D level, the company has gradually begun to operate independent brands by manufacturing products for global small home appliance brands. At present, the independent operation of independent brand ThIMAX Sanmei, Goie Gei, Naturewell Lai Cuiwei, ICUCINA.

When replying to the inquiry letter of the Shenzhen Stock Exchange, Boling Electric deliberately disclosed the above indicators in the announcement, intending to show that the company has the expansion capabilities in the new business field and the expansion capabilities of new customers.

It said that the company is steadily promoting the construction of independent brands. It has set up official flagship stores on e -commerce platforms such as Tmall, JD.com, Pinduoduo, Xiaohongshu, and Douyin. Sales such as Daiba goods, and establish an online marketing network.

During the reporting period, the revenue of the independent brands of Boling Electric was 23.77 million yuan, 12.851 million yuan, 13.286 million yuan, and 1.712 million yuan, respectively. The company revealed that it will vigorously develop independent brand business, and increase its own brand sales share through products, channels, and marketing methods.

It can be seen that although the company has increased its research and development and investment in independent brands, so far, the business has not yet formed a certain scale, and it is not strong in the industry.

Since 2021, consumers have gradually become rational to buy psychology. It has higher requirements for the core product technology and quality of the core product of kitchen appliances. It is also more sensitive to the problem of segmentation. For pressure, the industry shows overall negative growth.

According to the general data of Ovi Cloud Network omni -channel, in 2021, 12 categories of kitchen home appliances (rice cookers, induction cookers, electric pressure cookers, soy milk machines, wall breaking machines, mixers, juicers, electric kettles, fried grills, health care, health care A total of 51.4 billion yuan in retail sales of pots, electric steamed steamed pots, and desktop single -function ovens, a year -on -year decrease of 14.1%.

In the first half of this year, the retail sales of small household appliances in the kitchen were 26.38 billion yuan, a year -on -year decrease of 4.9%; the retail volume was 111.36 million units, a year -on -year decrease of 13.2%. Among them, online retail sales were 19.37 billion yuan, a year -on -year decrease of 2.7%.

Judging from the performance of various categories, just need categories such as rice cookers, electric pressure cookers, electric kettles and other performances; Western -style baked small home appliances such as desktop single -function ovens, wall -breaking machines, and fried grill categories appear in 2020 It has fallen sharply, and this category is exactly the main business scope of Boling Electric.

"Under the background of the overall market market of small home appliances in the kitchen, Boling Electric's main business income may be impacted. At the same time, the market share of its own research products is very low, which shows that the company's failure to accelerate channel reform and Product structure adjustment, etc., the future profit level may be restricted. "Some analysts pointed out.

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