The e-commerce platform has grown to be a listed company.
How much can you go after the listing of Xiaoxiong, which is from the brand?
It was learned that on August 23, the Internet home appliance brand “Xiaoxiong Electric” was listed on the Shenzhen Stock Exchange. The stock was referred to as “Little Bear Shares”, the stock code was “002959”, and 30 million shares were issued. The issue price was 34.25 yuan/share. Became another recently listed Internet native brand after three squirrels. The total market value of the first day of listing reached 5.918 billion yuan.
The listing announcement shows that Xiaoxiong Electric was established in 2006, mainly engaged in research, development, design, production and sales of creative small household appliances. It is a company that integrates product sales channels with the Internet. In 2009, Xiaoxiong Electric entered the Tmall and seized the dividend from the e-commerce platform to carry out differentiated competition. When Midea, Gree and other major home appliances brands are in full swing, Xiaoxiong Electric Appliances started with a yogurt machine, targeting the target users to young people, light, convenient and easy to carry, and became the product label of Xiaoxiong Electric.
The prospectus shows that online is currently its main sales channel. In 2016-2018, Xiaoxiong’s online sales revenue was 960 million yuan, 1.509 billion yuan, and 1.833 billion yuan, accounting for 91.60%, 91.93%, and 90.41% of the main business income.
In January-March 2019,
The company’s revenue from Jingdong platform, company direct stores and Suning cloud merchants increased by 9,566.15 respectively over the same period.
10,000 yuan, 25,083,900 yuan and 22,653,100 yuan, an increase of 74.47%, 60.43% and 372.60%, respectively, Jingdong is its main sales channel.
Over-reliance on Jingdong and other online channels is also one of the hidden concerns of Xiaoxiong Electric. Once Xiaoxiong can’t maintain good cooperation with E-commerce platform such as Jingdong, Tmall, Suning, etc., or the above-mentioned e-commerce platform’s commission rate, etc. The increase, or the company’s operating conditions on the above e-commerce platform is less than expected, and failure to expand other emerging sales channels in a timely manner will have an adverse impact on the company’s operating results.
In addition, another worrying issue is that there is a gap between the R&D investment of Xiaoxiong Electric and its peers. In 2017, Xiaoxiong’s research and development expenses accounted for 1.52% of the current operating income, compared with 2.88% for Supor and 2.95% for Jiuyang, which is lower than the industry average.
However, it was found that the prospectus mentioned that Xiaoxiong Electric will invest about 1 billion yuan to build three intelligent factories. Among them, the bear can only invest 300 million yuan in the small appliance manufacturing base. The three major factories originally planned to invest 998 million yuan, 87.7% of the funds raised will be used for this project, about 875 million yuan, and the amount invested in the R&D center is 37 million yuan. It is worth mentioning that these projects will be completed within 24 months.
Supported by the e-commerce platform and catalyzed by channel dividendsSmall home appliance brands, how far can go after going public, but also look at the comprehensive brand capabilities.