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In the unpredictable year of 2024, the cross-border e-commerce listing boom continues, with many cross-border giants such as Meijin Co., Ltd., GreenLink Technology, and Aok Technology competing for IPO.
Recently, Shenzhen Green Link Technology Co., Ltd. (hereinafter referred to as "Green Link Technology"), which took the lead in breaking through, announced the good news of its listing. It is learned that on July 25, the listing announcement disclosed by Green Link Technology stated that after review and approval by the Shenzhen Stock Exchange, the company's issued RMB common stock will be listed on the Shenzhen Stock Exchange ChiNext on July 26, 2024. On July 26, UGREEN Technology officially landed on the Shenzhen Growth Enterprise Market, publicly offering 41.5 million shares and opening 88% higher on the first day of listing. It is reported that the total amount of funds raised by Greenlink Technology is about 880 million yuan . The previous prospectus showed that these funds will be used for four major purposes, including product research and development and industrialization construction projects, intelligent warehousing and logistics construction projects, headquarters operation center and brand construction projects. It is understood that UGREEN Technology was established in 2012 and is mainly engaged in the research and development, design, production and sales of consumer electronic products. Its products mainly cover five major series: transmission, audio and video, charging, mobile peripherals and storage. From the perspective of the IPO process, UGREEN Technology submitted its prospectus in June 2022, was approved by the Listing Committee in January 2023, submitted its registration application in February 2024, and successfully listed at the end of July of the same year. Compared with other cross-border companies in the industry that have experienced many twists and turns in their IPOs, UGREEN Technology's IPO road seems to be relatively smooth. In this regard, the industry believes that this is inseparable from its stable growth in performance. According to the data in the prospectus, from 2021 to 2023, the operating income of UGREEN Technology was 3.446 billion yuan, 3.839 billion yuan and 4.803 billion yuan respectively, with an average annual compound growth rate of 18.05% ; the net profit was 305 million yuan, 330 million yuan and 394 million yuan respectively. As can be seen from the above, in recent years, UGREEN Technology's revenue and profits have achieved sustained growth, and its ability to resist risks has been significantly enhanced. When delving deeper into the reasons behind the steady growth of UGREEN's performance, some industry insiders believe that it is mainly because: riding on the trend of rapid development of e-commerce, UGREEN has differentiated itself in the fiercely competitive 3C track by deeply cultivating niche markets. The story of UGREEN Technology begins with “a data cable”. Back in 2012, when e-commerce was on the rise and smartphones and high-definition televisions were becoming more popular, 3C accessories were experiencing a period of rapid development driven by rising demand, and a large number of sellers rushed in. At that time, Zhang Qingsen, the founder of UGREEN Technology, also began to join the 3C accessories entrepreneurial wave with his experience in foreign trade. After discovering that most manufacturers on the market only provide 1.8-meter TV data cables and 1-meter mobile phone data cables, Zhang Qingsen quickly realized the gap in this market demand and quickly launched TV data cables and mobile phone data cables in more specifications such as 0.5 meters, 1 meter, 1.5 meters, and 2 meters. These seemingly inconspicuous, low-tech products have become the key to the rapid rise of UGREEN Technology. In an environment where public models are rampant and brand awareness is lacking, UGREEN Technology has awakened its brand genes and made its products into competitive barriers. It quickly stood out from its peers in the midst of rampant homogeneous competition and became one of the top brands on major domestic e-commerce platforms. Today, after years of product line extension, UGREEN Technology has expanded from the original "one data cable" to five major categories: transmission, audio and video, charging, mobile peripherals, and storage, including UGREEN mobile power bank, UGREEN wireless charger, UGREEN Apple Watch magnetic charger, UGREEN HDMI cable and many other products. Of course, as a cross-border seller in the 3C track, UGREEN Technology is often compared with Anker Innovations in the industry due to its similar main categories and branding paths, and its products were even once called "Anker alternatives." In order to build a product technology moat and get rid of this label, GreenLink Technology has been increasing its R&D investment in recent years. According to the prospectus data, from 2021 to 2023, the company's R&D investment will be 157 million yuan, 183 million yuan and 216 million yuan respectively , accounting for 4.54%, 4.78% and 4.50% of operating income respectively, and the investment in R&D expenses is relatively large. In the 3C track with short iteration cycles and strong substitutability, strong technological barriers are undoubtedly the most effective way to resist market risks, and UGREEN Technology, which has already gone public, is still working hard to this end. For the funds raised this time, UGREEN Technology also stated that it will invest part of the funds into product research and development and industrialization construction projects. In addition, according to Kickstarter's official website data, in March 2024, UGREEN Technology's new product NASync series was first launched on the crowdfunding platform Kickstarter, and won the first place in the first half of the year's technology projects with an amount of US$6.67 million. The prospectus shows that after years of accumulation, GreenLink Technology has developed many core technologies such as high-strength wire forming, millimeter wave video transmission, intelligent voltage doubling control, intelligent terminal management system, embedded private cloud storage system, etc., laying a solid technical foundation for its product innovation. However, as market competition in the global consumer electronics industry intensifies and the pace of technological updates and product iterations accelerates, it remains to be seen whether UGREEN Technology's R&D investment in new technologies and new products can achieve the expected results.
From "a data cable" to a top 3C brand, and then to an IPO, UGREEN Technology, which has just entered the capital market, is facing an unknown world full of challenges. Only time will tell whether it can successfully transform into the "next Anker" after listing.
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