Annual revenue exceeds 3 billion yuan! Anker's strong rival is about to go public!

It is learned that market research reports show that Amazon will surpass Walmart to become the largest retailer in the United States in 2024. Between 2021 and 2026, Amazon will increase sales in the United States by more than $294 billion.

The report states that third-party sellers’ sales on Amazon’s platform are one of the main drivers of its sales growth. It is also predicted that within five years, the proportion of Amazon’s third-party sales to total sales will increase from 60% to 67%, which shows the importance of third-party sellers to Amazon.

It is learned that recently, UGREEN Technology, which was well-known in the overseas market for seizing the opportunity of Amazon's overseas expansion in 2014, also submitted an application for listing to the Shenzhen Stock Exchange.

Annual revenue exceeds 3 billion yuan! GreenLink Technology is about to go public

Recently, according to the Shenzhen Stock Exchange, Shenzhen 3C big seller Greenlink Technology submitted a prospectus to the Shenzhen Stock Exchange, intending to IPO on the Growth Enterprise Market and raise 1.504 billion yuan. Previously, Greenlink Technology had introduced external capital twice, including two rounds of investment from Hillhouse Capital, totaling 550 million yuan.

Data from the prospectus shows that from 2019 to 2021, UGREEN Technology's operating income reached 2.045 billion yuan , 2.738 billion yuan , and 3.446 billion yuan , respectively, and the net profit attributable to the parent company's owners was 225 million yuan, 298 million yuan, and 296 million yuan , respectively .

▲ The picture comes from the prospectus of GreenLink Technology

Up to now, the proportion of domestic and overseas sales of UGREEN Technology is relatively balanced . During the reporting period, the company's overseas sales revenue accounted for approximately 43.49%, 47.38% and 46.09% of the current operating income respectively.

The fact that UGREEN Technology submitted an IPO application undoubtedly reflects its confidence in the company's development prospects.

So, why does UGREEN Technology have such confidence?

Taking the express train to go overseas, there will be a battle with Anker Innovations

It is learned that UGREEN was founded in 2012 and is a 3C consumer electronics company integrating R&D, design, production and sales. Based on the purpose, UGREEN's products can be divided into five major series: transmission products, audio and video products, charging products, mobile peripheral products and storage products.

Among them, transmission products are the company's largest product category. During the reporting period, the company's sales revenue of transmission products was RMB 736 million, RMB 1.005 billion and RMB 1.235 billion , respectively, accounting for 36.05%, 36.79% and 35.93% of the company's main business revenue, respectively, and the revenue share was relatively stable.

▲ The picture comes from the prospectus of GreenLink Technology

Since its inception, UGREEN Technology has adopted an independent brand strategy , relying on the "UGREEN" brand to layout domestic and overseas markets, and has achieved comprehensive coverage of mainstream e-commerce platforms such as Amazon, AliExpress, Shopee, Lazada, Tmall, and JD.com.

In addition, we also learned that in addition to deepening its own brand, UGREEN Technology's ability to expand its scale is also closely related to catching up with the trend of overseas e-commerce. Since 2014, UGREEN Technology has begun to enter the overseas market through platforms such as Amazon.

Data from the prospectus shows that for three consecutive years from 2019 to 2021, Amazon has been the e-commerce platform that contributed the most to UGREEN Technology's revenue, reaching 31.39%, 35.83% and 33.41% respectively .

▲ The picture comes from the prospectus of GreenLink Technology  

It is worth noting that in the Amazon Seller Rating ranking, UGREEN Technology's main store Ugreen is ranked at the same level as Anker Innovations, which currently ranks first in overall ranking, in almost every site. Even in some European sites, such as the French site, Ugreen's ranking is higher than Anker.

It can be seen that although the listing time is different, as cross-border best-sellers of consumer electronics brands, UGREEN Technology and Anker Innovations are destined to have a "battle" in the end.

However, according to the data disclosed by UGREEN Technology, although the company's revenue has been steadily increasing, its profit growth has encountered certain bottlenecks . In 2021, its net profit even showed a downward trend.

▲ The picture comes from the prospectus of GreenLink Technology

From the prospectus, we know that there are two main reasons for the decline in Greenlink Technology's profits:

In its prospectus, UGREEN Technology also stated that the company faces the risk of an increase in industry competitors and intensified market competition. If the company cannot maintain its advantages in its own brand, R&D technology, product quality, and channel expansion, it may lead to a slowdown in the company's performance growth, shrinking profit margins, and weakening of its competitive advantage.

Therefore, the 1.5 billion yuan raised by GreenLink Technology's IPO will be largely used for multiple projects such as product research and development and industrialization construction.

So far, despite some "pessimistic voices" in the industry, Amazon is still the world's largest e-commerce company, and its online retail business remains unrivaled. Amazon's top sellers in various categories have frequently embarked on the path of listing. It can be seen that Amazon is still the preferred sales channel for most cross-border sellers.

We would also like to remind all sellers that Amazon still has huge potential for making money, but if you want to gain a foothold on Amazon for a long time, compliance operations are essential. This was also reflected in the latest announcement released by Huakai Yibai, the parent company of Yibai Network, a cross-border seller.

Yibai Network cleans up third-party online stores, perhaps to avoid risks

It is learned that recently, Huakai Yibai issued an announcement on the management system of online stores and store companies for cross-border export e-commerce business , in order to further strengthen the management of online stores and store companies, standardize the business behavior of Yibai Network and its subsidiaries, and effectively control risks.

▲ Video account focuses on cross-border navigation

The new regulations stipulate that online stores and store companies under Yibai Network will be centrally managed by Yibai Network, which will have five major departments: Sales Department, Account Management Department, Finance Department, Technology Department, and Legal Department. These departments will be responsible for the daily management of all online stores and store companies under Yibai Network.

▲ The picture comes from Huakai Yibai’s announcement

In addition, Yibai Network currently has online stores under the name of third parties, which refers to online stores that the company has opened and actually controlled and operated after obtaining employee or third-party information through the signing of an "Information Use Authorization Agreement". After the new regulations are officially implemented, Yibai Network shall not operate online stores under the name of third parties, and shall gradually complete the cleanup of online stores under the name of third parties.

It is learned that last year, Yibai Network had 678 stores operating normally, but some stores were closed due to account blocking. The implementation of the new store rules this time is likely to avoid the risk of violations.

Recently, due to various unfavorable factors such as the repeated outbreaks of the COVID-19 epidemic, the complex international situation, and the slowdown in economic growth, new expectations are gradually forming in the volatile market.

If cross-border sellers want to maintain their place or even break out in this turbulent market situation, operating in compliance must be the top priority for Amazon sellers.

What do you think about this? Welcome to discuss in the comment area~