Zhejiang Zhengte shares, which are sold by Amazon outdoors, have been successfully listed.
In today's complex and changeable international situation, the cross-border e-commerce industry can be described as turbulent, but there are still many cross-border big sellers breaking through the siege and hitting the market, and Zhejiang Zhengte is one of them. In its public information, performance, business categories, etc. are at a glance.
Focusing on the outdoors, Zhejiang Zhengte Co., Ltd. landed on the Shenzhen Main Board
On September 19, Zhejiang Zhengte Co., Ltd. (hereinafter referred to as "Zhejiang Zhengte") was listed on the main board of the Shenzhen Stock Exchange. The sponsor was Guotai Junan Securities. The issue price was 16.05 yuan per share, and the issue price-earnings ratio was 22.98 times. The funds raised in this IPO are mainly used for "annual production of 900,000 pieces of outdoor leisure products", "R&D testing and experience center construction projects", etc.
As a veteran seller in the outdoor furniture industry, Zhejiang Zhengte's predecessor , "Zhengte Co., Ltd.", was established in September 1996, and was mainly engaged in sun umbrellas and wooden products. In 2015, the company changed "Zhengte Co., Ltd." to "Zhengte Shares", and then began to introduce foreign capital. At present, Zhejiang Zhengte mainly focuses on two product lines: sunshade products and outdoor leisure furniture . Sunshade products mainly include awnings and umbrellas; outdoor leisure furniture mainly includes pet houses, outdoor furniture and drying appliances.
In the early days of its establishment, the company's products mainly entered the European market through foreign trade companies, and maintained close cooperation with large supermarkets such as Wal-Mart, Costco, and lucky Dog, and later changed to self-operated export. Since 2014, Zhejiang Zhengte has begun to deploy cross-border e-commerce. The company's own brands Abba Patio and Sorara related products have been sold in the United States and Europe through Amazon and other e-commerce platforms, and have achieved small achievements.
As far as brands are concerned, Abba Patio mainly operates on behalf of the company, while Sorara operates independently for the company and is currently the best-selling brand on Amazon. Among them, a parasol under the Abba Patio brand has accumulated over 10,000 ratings on Amazon. It is very popular and is very popular among consumers.
Sunshade products are also the company's main source of sales revenue. The sales revenue of this product line in the past three years has accounted for more than 70% of the company's main business revenue. Another folding awning belonging to sunshade products is mainly supplied to B-end customers. According to the data in 2021, Walmart purchased 325 million yuan of folding awnings that year.
In 2022, the company's revenue in the first half of the year was 882 million yuan, and the net profit attributable to the parent company was 63.7533 million yuan. Both revenue and profit were growing. The operating income from January to September is expected to be between 1.122 billion and 1.181 billion yuan; the net profit attributable to the company is expected to be between 84 million and 92 million yuan, and the net profit after deducting non-recurring gains and losses is 97 million yuan . to 105 million yuan. At the same time, the company's cash flow this year is much better than the same period last year.
The company's revenue growth is mainly due to two main reasons: the sales of new products including the star canopy have increased significantly; the company has maintained stable cooperation with major customers such as Walmart, among which the sales revenue brought by Walmart to the company has also increased from 210 million in the first half of last year. yuan increased to 258 million yuan in the first half of 2022.
Because the company attaches great importance to original design, the outdoor industry has a high level of research and development. The company has domestic invention patents, overseas invention patents and overseas design patents, and has won the "Red Dot Award" five times, which is known as the international Oscar in the design industry. ” , and has become one of the domestic outdoor leisure furniture and supplies industry that has won many awards in this award.
Outdoor tracks are in the ascendant, and these products are very popular
However, for the company, the profitability of the company has been affected due to multiple reasons such as the high proportion of raw materials and export sales. It is reported that the main production costs of the company's products are direct raw materials, such as steel, cloth and aluminum, but during the reporting period, the company's direct materials accounted for more than 70% of the company's main business costs, which means the company's profitability It will fluctuate with the fluctuation of raw material prices.
In addition, the company is highly dependent on foreign markets . During the period from 2019 to 2021, the company's export revenue accounted for 95.66%, 97.01% and 94.10% of its main business revenue, respectively, accounting for a relatively high proportion. At the same time, export products are priced in US dollars, and the risk of exchange rate fluctuations is also inevitable. During the reporting period, the company's net foreign exchange gains and losses were 5.8108 million yuan, -15.8211 million yuan and -9.8971 million yuan, accounting for 12.13%, -14.58% and -9.25% of the current operating profit, respectively.
Although the risks persist, it is undeniable that the outdoor furniture track is still hot.
With the development of the economy and the improvement of people's living standards, various forms of outdoor leisure life experience are also favored by people. Due to the epidemic at home, the advantages of outdoor space have also been magnified, and they have made a lot of investment in related decorative accessories, tables, chairs and carpets. According to the United Nations Commodity Trade Statistics, in 2020, the global import value of the main products of outdoor leisure furniture and supplies is about 37 billion US dollars.
North America is one of the main consumption areas of outdoor leisure furniture and supplies, among which the United States is the world's largest single country market for outdoor leisure furniture and supplies. Statistics from the United Nations Commodity Trade Statistics database show that in 2020, the import scale of the main products of outdoor furniture and supplies in the United States is 10.624 billion US dollars, accounting for nearly one-third of the global market share.
In the eyes of European and American consumers, the replacement cycle of outdoor leisure furniture and supplies is short, and the demand for stock replacement is stable. Generally, the replacement cycle of outdoor leisure furniture and supplies is 1-3 years, which means that in addition to the daily purchase of new products, they also need to regularly update outdoor products, which means that the market share will continue to grow.
In addition, a survey of American consumers by the International Leisure Furniture Association shows that nearly 90% of the respondents have outdoor living spaces such as porches and courtyards where they can relax, and they spend an average of more than 7 hours per week in outdoor spaces. . During this period, they organized the garden and purchased the corresponding outdoor furniture, including not only products such as lighting, lounge chairs and braziers, but also dining tables, umbrellas, sofas, pillows and rugs.
In the shopping list of Gen Z, the top choices of millennials when shopping online are dining table, chairs, outdoor lighting and rugs, while Gen X and baby boomers mainly buy outdoor umbrellas, and their budget for outdoor products generally does not exceed 1,000.
In the post-epidemic era, the U.S. outdoor products market has begun to show an explosive growth trend. China has long been the largest importer of U.S. furniture, exporting $9.127 billion worth of furniture to the U.S. market in 2021, an increase of 24% over the previous year, and it is still growing. For sellers, they can seize this opportunity and arrange related products on the premise of understanding the needs of overseas consumers.