Last year’s net profit was over 100 million, and another Amazon blockbuster is about to be launched!

Last year’s net profit was over 100 million, and another Amazon blockbuster is about to be launched!


The cross-border e-commerce listing boom continues. This year, as the epidemic has swept the world, cross-border exports have ushered in a period of development dividends, and the cross-border e-commerce industry has frequently received good news about corporate financing and listings.


On September 29, the Henan Securities Regulatory Bureau issued an announcement that the cross-border seller "Zhengzhou Zhiou" (Zhengzhou Zhiou Network Technology Co., Ltd.) intends to issue shares for the first time and go public on the A-share market. It is currently receiving guidance from GF Securities Co., Ltd. and has filed for guidance with the Henan Securities Regulatory Bureau on September 29, 2020. In 2019, Zhengzhou Zhiou 's net profit was 165 million.



Last year, Anker Innovations completed a round B financing of nearly 100 million yuan, and is the second largest shareholder




Public information shows that Zhengzhou Zhiou, headquartered in Erqi District, Zhengzhou City, Henan Province, was first established in 2007. It started its cross-border e-commerce export business with eBay Germany as the starting point. The SONGMICS brand was launched in 2012. After entering North America in 2014, its performance successfully exceeded 100 million.


Currently, the company mainly sells home furnishings, furniture, pets and outdoor products on platforms such as Amazon, eBay, Alibaba and the company's own website, and owns independent brands such as SONGMICS, VASAGLE and FEANDREA.


According to Tianyancha information, Anker Innovations Technology Co., Ltd. currently holds 9.78% of the shares and is the second largest shareholder of Zhengzhou Zhiou .


Anker Innovations stated in its prospectus that the company increased its investment in Zhengzhou Zhiou by RMB 20 million and RMB 45.48 million in January 2018 and May 2018, respectively. The reason for the investment is that Zhengzhou Zhiou is one of the largest Amazon sellers in the home furnishing category among domestic cross-border e-commerce companies, and Anker Innovations is optimistic about the future development and growth potential of Zhengzhou Zhiou.

Net profit reached 165 million in 2019, Zhengzhou Zhiou's road to fame




Anker Innovations also disclosed the financial data of Zhengzhou Zhiou in 2019 in its listing prospectus. The data showed that Zhengzhou Zhiou's total assets in 2019 were 662 million, net assets were 446 million, and net profit was 165 million . This data can be said to be much better than many big sellers.



According to a report by Henan Daily in 2019, Zhengzhou Zhiou's sales on Black Friday in 2019 were about 3 million US dollars, an increase of 67% year-on-year. On the eve of Black Friday, the company's orders for 3% of its products increased by about 10-40 times compared with normal times, and the orders for the remaining 97% of its products also increased by about 1-5 times compared with normal times.


At the 2019 Amazon Global Selling Cross-border Summit Awards Ceremony, Zhengzhou Zhiou Network Technology Co., Ltd. was awarded Amazon's Most Popular Brand Seller of the Year 2019!


The home furnishing category continues to explode, driving multiple big sales




Affected by the epidemic this year, many companies are on the verge of bankruptcy, but Zhengzhou Zhiou has found business opportunities, and online sales channels have become a new growth point. The relevant person in charge of Zhengzhou Zhiou said that the company's overall sales performance increased by more than 40% in the first half of the year. The eye-catching performance of home furnishings and decorations during the epidemic has attracted a high degree of attention from sellers.

It can also be seen from the semi-annual reports of major companies such as Henglin Holdings, Aosen E-Commerce, Lejia Holdings, and Tongtuo Technology that the sales volume of home furnishing products has boosted the growth of these companies' export business.

The reason why Zhengzhou Zhiou has the confidence to prepare for listing on the A-share market is not only because it has seized the bonus period when cross-border e-commerce was just beginning to develop, but also because of its persistence in deeply cultivating furniture products.

According to CSIL estimates, the global office furniture market size in 2019 was approximately US$51.4 billion. According to the "China Daily Consumer Goods Foreign Trade Report 2019", the total global furniture import and export trade in 2019 was approximately US$334.492 billion, of which the total global furniture exports were approximately US$171.877 billion . The largest exporting countries are China, Germany, Poland, Italy, and Mexico, accounting for 31.97%, 7.58%, 7.03%, 6.48%, and 4.35% of the total global furniture exports, respectively.


In 2019, the total value of global furniture imports was approximately US$162.615 billion, of which the largest importing countries were the United States, Germany, France, the United Kingdom, and Canada, accounting for 29.15%, 8.87%, 5.30%, 5.21%, and 4.13% of the global furniture imports, respectively. In addition, in 2019, the 27 EU countries (foreign trade) imported furniture worth US$21.484 billion, accounting for 13.21% of the global furniture imports, an increase of 3.53% year-on-year .

Main demands of overseas consumers for furniture and home furnishing products




According to the editor, the overseas epidemic has rebounded in the past two months, and the demand for home office supplies and furniture in the overseas market continues to grow. The main demands of overseas consumers for furniture and home products include:




1. Price: Cost performance comes first. The budget for different furniture will be different.

2. Functionality: whether it is suitable for multiple scenarios, whether it has additional storage function, whether it is easy to store and move, etc.

3. Appearance design: color, appearance, texture, and whether it matches the existing decoration style.

4. Durability: Whether the material structure is firm and stable, able to bear weight, easy to maintain or not prone to aging, and can be used for a relatively long time.

5. Quality: materials, hardware, paint, fabrics, fillings and other materials and craftsmanship, load-bearing capacity, fire resistance, waterproofness, environmental protection, etc.

6. Logistics speed: Compared with other categories, the requirements for logistics speed are not strict.



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