Many cross-border e-commerce giants have suspended their IPOs! Is the end of cross-border e-commerce a listing?

▶ Video account attention cross-border navigation

In 2020, with the outbreak of the epidemic, the online shopping penetration rate of global consumers increased rapidly. The huge market consumer demand accelerated the digital transformation of trade, and cross-border e-commerce ushered in a period of explosive growth.

With the huge potential dividends of the cross-border e-commerce industry, cross-border enterprises have been favored by capital, and "financing" and "listing" have become keywords in cross-border enterprise information.

It is understood that since the beginning of 2022, many cross-border e-commerce companies have applied for IPO plans, but the results of the applications are very different.

Shenzhen Huabao New Energy's IPO was approved

It is learned that on March 29, the announcement of the 16th review meeting of the Shenzhen Stock Exchange's Growth Enterprise Market Listing Committee in 2022 showed that the initial public offering of Shenzhen Huabao New Energy Co., Ltd. (hereinafter referred to as "Huabao New Energy") was approved.

It is learned that this is not the first time that Huabao New Energy has applied for listing. As early as June 2021, Huabao New Energy submitted a prospectus, but at that time, the Shenzhen Stock Exchange suspended the listing review because the IPO application materials had expired and needed to be supplemented. At the meeting on March 29 this year, Huabao New Energy finally officially passed the IPO.

As the leader of portable energy storage brand companies in the industry, Huabao New Energy, founded in 2011, specializes in the research and development, production and sales of lithium battery energy storage products and their supporting products. Its main industries are portable energy storage products and power banks, as well as solar panels and related accessories that can be used with portable energy storage products.

In recent years, riding on the rise of the portable energy storage market, Huabao New Energy, which attaches great importance to research and development, has achieved rapid revenue growth and an astonishing increase in net profit. Its annual revenue in 2021 reached 2.315 billion yuan.

Recently, Huabao New Energy also announced its expected revenue for the first quarter of 2022: operating income from January to March 2022 was 504 million to 616 million yuan, a year-on-year increase of 25.21% to 53.04%.

Although Huabao New Energy still has operational risks such as reliance on third-party platforms such as Amazon and a relatively single product structure, overall, Huabao New Energy's prospects are positive.

In comparison, the listing process of other big sellers is full of difficulties and obstacles.

SolarVision, Ou Santai and other major sellers suspend IPO

It is learned that as of the end of March 2022, the IPO plans of many cross-border e-commerce companies, including major cross-border sellers such as Silvio Technologies Co., Ltd., Zhiou Home Furnishing Co., Ltd., and Shenzhen Santai E-Commerce Co., Ltd., have been blocked.

It is learned that the reasons for the suspension of listing are that the financial information recorded in the IPO application documents of Saiwei Times and Zhiou Technology has expired and needs to be supplemented . And Santai Shares has "actively applied to suspend the issuance and listing review procedures because the issuer and the sponsor updated the financial information."

In general, it is similar to the situation where Huabao New Energy was suspended from listing due to "application materials have expired and need to be supplemented and submitted", and both companies need to update the financial information and resubmit it.

But this is not the first time these big sellers have submitted prospectuses. As early as 2020, SRVC submitted an IPO application, and the review inquiry letter issued by San Tai Shares this time is already the third round.

Looking at the listing process of major cross-border sellers, it can be said that there are twists and turns and many obstacles. However, the cross-border sellers have not given up on launching new challenges to impact IPO.

So, what is the reason why cross-border sellers never give up on their efforts to go public despite repeated setbacks?

Why are cross-border e-commerce giants rushing to go public?

The current cross-border e-commerce has entered a period of industry reshuffle. The era of making money by simply distributing goods has long passed. Branding and refined operations have become the inevitable trend for the subsequent development of cross-border sellers.

Affected by multiple factors such as the epidemic lockdown, tightening platform policies, and rising freight rates, sellers' inventory turnover rate declined in 2021, and the low profit cycle became a major feature of cross-border e-commerce in 2021. Many sellers were eager for quick results and cleared their inventory at low prices, resulting in the formation of a low-price spiral in the cross-border e-commerce industry.

In order to avoid falling into industry difficulties, many leading cross-border companies have begun to consider putting on the agenda aspects such as integrating the supply chain and building overseas warehouses that can reduce the impact of the market environment, and more and more funds need to be invested.

Once a cross-border e-commerce enterprise is able to pass its listing application, it will be able to improve its capital ratio and risk resistance, enhance its development potential, and attract the attention of the business community, investors and consumers.

Therefore, going for an IPO and gaining the wealth effect of a listing has become a shortcut that many big sellers prioritize.

In addition, there are other benefits for cross-border e-commerce companies to go public, such as promoting companies to improve their corporate governance structure, enhance their corporate image, attract talent, motivate employees, and facilitate corporate mergers and acquisitions and asset restructuring.

Taking the above factors into consideration, from a corporate perspective, many cross-border e-commerce giants will choose to go public. However, as to whether going public is the end point for cross-border e-commerce giants, we are not yet able to draw a conclusion.

What do you want to say about this? Feel free to leave a message in the comment area~