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After being silent for a while, Aoki reappeared and released a powerful product: annual revenue of nearly 9 billion yuan, and it may be listed in Hong Kong!
It is learned that on April 2, Aokia Technology Co., Ltd. (hereinafter referred to as "Aokia Technology") submitted a prospectus to the Main Board of the Hong Kong Stock Exchange, intending to be listed on the Main Board of Hong Kong , and Huatai International is its exclusive sponsor. The prospectus shows that from 2021 to 2023, Aoktech Technology achieved revenue of 9.071 billion yuan, 7.1 billion yuan, and 8.683 billion yuan respectively; gross profit margins were 20.9%, 34.9%, and 34.5% respectively; and annual profits were -590 million yuan, 223 million yuan, and 520 million yuan respectively. In terms of net profit, according to the prospectus, affected by the Amazon incident, Aoktech's performance fell into losses in 2021. But in 2022, by optimizing the online store layout and improving the brand strategy, Aoktech's performance quickly turned losses into profits, achieving an annual profit of 223 million yuan, and further increased its profit to 520 million yuan in 2023. It is understood that Aokia Technology was founded in 2010 and mainly provides products to overseas consumers through third-party e-commerce platforms such as Amazon and Walmart. It was once known as the "Four Young Masters of South China City" together with Tongtuo, Savi, and Youkeshu. Looking back at Aoki Technology's IPO journey so far, it can be said to be full of ups and downs: In November 2015, Aoji Technology was listed on the New Third Board and began to enter the capital market; In April 2019, Aoji Technology was delisted from the New Third Board and officially launched its A-share IPO plan. In August of the same year, it submitted IPO application materials to the Shanghai Stock Exchange Science and Technology Innovation Board, but ultimately withdrew the application due to "differences in core business and market positioning"; In May 2021, Aoktech Technology submitted an A-share listing application to the Shenzhen Stock Exchange's ChiNext, but later withdrew the application again due to the "Amazon incident."
Now in 2024, Aoktech has once again made an attempt at an IPO and submitted a prospectus to the main board of the Hong Kong Stock Exchange. At present, it is still unknown whether it can successfully go public in Hong Kong, but whether it is the changes in performance or the twists and turns on the IPO road, there seems to be an indissoluble bond between Aoktech and Amazon hidden behind it.
The story of Aoji Technology began in the early 21st century, when its founder, Lu Haichuan, accidentally came across eBay while shopping while studying in Germany. After realizing the potential for e-commerce development, he started his e-commerce career with Sino-German trade wholesale and eBay business as a starting point: he first opened an eBay online store, and then established Aoji International. In 2008, the main account ranked among the top 10 sellers on eBay Germany. In 2007, in order to better realize the idea of introducing "Made in China" into the international market, Lu Haichuan chose to return to China to start a business and set up a cross-border B2C team in Shenzhen. In 2009, he achieved the first place in annual sales in eBay China, which was the "first key" for Aoji Technology to open the cross-border e-commerce platform market . In 2010, Lu Haichuan no longer focused on eBay, but began to shift his focus to his own B2C website and explore other cross-border e-commerce platforms such as Amazon, which were not yet mature in China at that time. Shenzhen Aoji E-Commerce Co., Ltd. was also officially registered and established in the same year. Since then, Aoktech has had an indissoluble bond with Amazon. In 2014, Aukey Technology launched its own brand "Aukey", and started its brand transformation early, but at the same time it also started cooperation with Amazon. In other words, Aukey Technology's early brand transformation was based on relying on Amazon as a sales channel. Judging from the financial data, Aokia Technology's performance since then has indeed achieved remarkable growth: from 2016 to 2018, Aokia Technology's sales revenue was 2.196 billion yuan, 3.712 billion yuan, and 5.109 billion yuan, respectively, and its net profit was 104 million yuan, 191 million yuan, and 199 million yuan , respectively, which is closely related to Amazon's rapid development during this period. Based on this, Aoktech's "dependence" on Amazon has gradually increased. In 2020, its Amazon channel revenue accounted for more than 70% , and a large amount of inventory was placed in Amazon warehouses, posing a hidden danger for subsequent inventory redundancy. In May 2021, with the advent of the "Amazon incident", the situation took a sharp turn for the worse. Aokia Technology's products on multiple Amazon sites were shown to be unsaleable, and many of its brands were impacted, causing its revenue to drop 21.7% directly from 9.071 billion yuan in 2021 to 7.1 billion yuan in 2022, and its net loss in 2021 reached about 580 million yuan. This incident not only resulted in the failure of Aoktech's second attempt at an IPO, but was also an important reason for Aoktech to accelerate its brand transformation. In order to reduce the impact of the Amazon incident and to cure "Amazon addiction", Aokkey Technology, on the one hand, focuses on furniture and home products, investing a lot of time and resources to cultivate a diversified brand and product portfolio; on the other hand, it actively promotes multi-platform layout to increase the influence and sales of other leading e-commerce platforms such as Walmart and Wayfair. Unlike the other "Three Young Masters in South China", Aokie Technology itself has a foundation of high-quality products. The above measures quickly turned its performance from loss to profit: revenue increased by 22.3% from 7.1 billion yuan in 2022 to 8.683 billion yuan in 2023, and net profit in 2023 further increased to 520 million yuan, with a gross profit margin of 34.5%. At the same time, from 2021 to 2023, the proportion of revenue generated by Aoktech Technology through sales on Amazon to its total revenue in the same year is declining year by year, which are: 83.9%, 63.8% and 53.8% respectively. It can be seen that Aoktech's dependence on Amazon is gradually decreasing, and it has achieved considerable results in brand transformation.
It is learned that since 2021, when Aoktech accelerated its brand transformation, it strategically positioned its core product line in the furniture and home furnishing industry. The prospectus shows that from 2021 to 2023, Aoktech's revenue from the sale of furniture and home furnishing products was 3.516 billion yuan, 4.187 billion yuan and 5.337 billion yuan, respectively, accounting for 41.0%, 66.2% and 75.9% of the commodity sales revenue in the same year. Currently, Aukit Technology's product portfolio includes power tools, home appliances, consumer electronics, and sports and health products, and it owns home furnishing brands such as ALLEWIE, IRONCK, LIKIMIO, SHA CERLINHOSTACK and FOTOSOK. Thanks to large investments during the transformation phase, market-oriented product development and strong digital supply chain management capabilities , the market share of the Aokia Technology brand has increased significantly, and several brands have broken through and occupied a dominant position in Amazon's furniture and home categories. According to the prospectus, the GMV of the global B2C e-commerce market for furniture and home furnishing products will be US$325.8 billion in 2023, and Aokkey Technology ranks fifth in the global B2C e-commerce market for furniture and home furnishing products , and its GMV ranks first in the similar B2C overseas e-commerce market for Chinese sellers. At the same time, by 2023, Auke Technology will have 11 brands with GMV exceeding 100 million yuan . Six product categories, including bed frames, food cabinets, and bookcases, rank first on Amazon's US site. Ten product categories, including bed frames, beds, refrigerators, wardrobes, and drawers, have a market share of more than 10% on Amazon's US site. It can be said that Aoktech's brand transformation has been very effective, and has also laid a certain business foundation and confidence for its third IPO. It is worth mentioning that before this, Zhiou Technology, which has a very similar experience to Auke Technology, has successfully attempted IPO three times: it also started selling products on eBay Germany, also seized the early dividends of Amazon, has "Amazon addiction", and is also focused on the transformation of cross-border home furnishing brands. Comparing the financial data of the two, in terms of revenue scale, Auke Technology's 7.1 billion yuan in 2022 is nearly 1.6 times that of Zhiou Technology's 5.455 billion yuan, but in terms of net profit, Auke Technology's 223 million yuan is slightly lower than Zhiou Technology's 250 million yuan. However, benefiting from the brand transformation, in the past two years, Auke Technology's net profit margin has increased significantly , from 3.3% in 2022 to 6% in 2023, resulting in its net profit of 520 million yuan in 2023, surpassing Zhiou Technology's estimated net profit of approximately 420 million yuan in 2023. This data also once again verifies the phased success of Aokkey Technology's focus on branding transformation in the furniture and home furnishing industry. Of course, under the industry trend, brand transformation is the general trend, but there is no definite answer on how to do it. The four young men in South China who once created the "myth of getting rich quickly" are now constantly exploring the right path for development. What do you think about this? Welcome to discuss in the comment area~
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