Net profit has exceeded 100 million! Another Shenzhen hot-selling listing!

As of 2023, although the cross-border e-commerce industry is undergoing constant changes and reshuffles, its market potential remains huge and the listing boom has not faded.

Recently, after big sellers such as Suntech Power, Zhiou Home Furnishing, and Kangliyuan passed their IPOs, Shenzhen Santai E-Commerce Co., Ltd. (hereinafter referred to as "Santai Co., Ltd.") also announced the good news of its listing.

It is learned that on September 11, Santai Co., Ltd. issued a reminder announcement stating that the company's application for initial public offering and listing on the Growth Enterprise Market has been reviewed and approved by the Shenzhen Stock Exchange Growth Enterprise Market Listing Committee, and has been approved for registration by the China Securities Commission.

▲ The picture comes from the announcement of Santai Shares

This time, 118,460,000 new shares will be issued to the public . On September 19, San Tai Co., Ltd. officially opened subscription, with an issue price of 7.33 yuan per share, an issue price-earnings ratio of 45.19 times, and a subscription limit of 22,500 shares.

It is understood that Santai Co., Ltd. was established in 2008 and is mainly engaged in cross-border e-commerce export business. It sells through overseas mainstream e-commerce platforms such as eBay, Amazon, AliExpress, Wish, Lazada, Shopee, etc. Its revenue mainly comes from commodity sales business and logistics service business.

According to the latest prospectus data, from 2020 to 2022, Santai Co., Ltd. achieved operating income of 1.993 billion yuan, 2.266 billion yuan and 1.588 billion yuan, respectively, and net profit of 214 million yuan, 156 million yuan and 104.6 million yuan, respectively. Compared with 2021, the company's operating performance has been negatively impacted to a certain extent, with operating income down 29.92% year-on-year and net profit attributable to shareholders after deducting non-recurring items down 12.26% year-on-year.

▲ The picture comes from the prospectus of San Tai Shares

From the above, it can be seen that due to the impact of external unexpected factors and the weakening of overseas demand, Santai’s operating performance has fluctuated.

Industry insiders analyzed that considering that gaining attention from the capital market through the listing application can to a certain extent improve the company's risk resistance and enhance its development potential , after the listing application is approved, Santai shares may usher in further development.

According to the performance forecast of Santai Shares, from January to September 2023, the company's net profit attributable to the parent company's owners before deducting non-recurring items was approximately RMB 106.6195 million to RMB 118.6898 million, an increase of 0.78% to 12.19% compared with the same period last year. It can be seen that the net profit of Santai Shares has begun to resume growth.

With the wealth effect boosted by the listing, the dawn of Santai Shares' rise seems to be not far away.

However, it is worth mentioning that although Santai shares has successfully passed the listing application, its road to listing has been full of ups and downs before that.

It is learned that since Santai Co., Ltd.'s IPO application was accepted on June 30, 2021, it has gone through three rounds of inquiries and three suspensions of review . It was not until June 21, 2023 that the registration application for the initial public offering was officially approved. The road to listing can be described as a roller coaster ride, with twists and turns.

▲ The picture comes from Juchao Information Network

In the process of submitting its listing application, in addition to factors such as the expiration of financial information, high-risk vulnerabilities in the system during the reporting period, and the impact of the e-commerce platform account blocking incident, Santai shares were also questioned for its "questionable core competitiveness."

It is understood that because Santai’s business model does not involve independent production, but rather purchasing products from commodity suppliers and selling them through online stores operated by the company , some skeptical voices believe that compared to the retail industry, Santai is more like a "middleman" that "earns the difference."

It is observed that Santai shares is indeed different from other cross-border e-commerce companies that focus on the research and development of independent brand products. Instead, it focuses on the research of cross-border retail efficiency. However, compared with other companies in the industry, it still has the following core competitive advantages:

1. Continuously iterate and upgrade intelligent information systems and data assets accumulated over the years;

2. The asset-light, multi-category, and multi-regional refined operation model brings risk resistance advantages;

3. Export cross-border e-commerce retail and export cross-border e-commerce logistics have long relied on each other and developed in a coordinated manner.

At present, Santai Co., Ltd. mainly uses data intelligence and IT technology to screen more high-quality products. It currently has about 830,000 SKUs on sale and nearly 100 subcategories . Its sales channels include more than 30 major global and regional e-commerce platforms, covering consumers in more than 200 countries.

Judging from the fact that the funds raised from this issuance will be used to invest in cross-border e-commerce system intelligent upgrade construction projects, warehousing intelligent upgrade and service system construction projects and to supplement working capital, Santai shares seems to intend to go down this path to the end.

However, in the general trend of avoiding product homogeneity and transforming into branding, it remains to be seen whether Santai Co., Ltd.'s development direction, which seems to be "taking a different approach", can find its own strong growth path in the increasingly competitive cross-border e-commerce industry.

What do you think of this? Welcome to discuss in the comments section~