Another Shenzhen blockbuster successfully listed!

Another cross-border blockbuster will be successfully listed.

On December 18, 2020, the IPO application of Suntech Power was accepted. After inquiries, passing the listing committee meeting, submitting for registration, and the registration results taking effect, Suntech Power finally arrived at the moment of listing.

The latest news shows that on July 12, 2023, which is tomorrow, Suntech Power Holdings Co., Ltd.’s shares will be listed on the Shenzhen Stock Exchange’s ChiNext board.

Savi's annual sales are close to 5 billion! The total market value is about 8.182 billion yuan

On July 3, 2023, Savitech (301381.SZ) opened subscription on the Shenzhen Stock Exchange ChiNext. The IPO price was 20.45 yuan per share, and a total of 40.10 million shares were issued. The funds raised were 820 million yuan, which were mainly invested in the construction of the fashion industry supply chain and operation center system, logistics and warehousing upgrade construction projects, brand building and channel promotion projects. Savitech's operating income in 2022 was 490,911.85 million yuan; the net profit attributable to the parent company's owners after deducting non-recurring gains and losses was 172.5999 million yuan; based on the issue price of 20.45 yuan per share, the total market value of the issuer after the issue is approximately 8.182 billion yuan.

As one of the "Four Young Masters of South China City" in cross-border e-commerce , Savi's main business includes commodity sales and logistics services. Commodity sales include four major categories: clothing accessories, department stores and home furnishings, sports and entertainment, and digital automobiles and motorcycles. Combined with the market environment and the company's current operating conditions, Savi expects that the performance in the first quarter of 2023 will be significantly improved compared with the same period in 2022, and it is expected to continue the current trend of improving profitability.

From 2020 to 2022, Suntech achieved operating income of RMB 525,301.10 million, RMB 556,467.23 million and RMB 490,911.85 million, respectively, with a compound growth rate of -3.33% from 2020 to 2022.

From 2020 to 2022, the net profit attributable to the owners of the parent company was RMB 450.8809 million, RMB 347.7242 million and RMB 185.1406 million respectively. After deducting non-recurring gains and losses, the net profit attributable to the owners of the parent company was RMB 437.8159 million, RMB 321.1793 million and RMB 172.5999 million respectively.

It can be seen that Suntech's operating income in 2022 decreased by RMB 655.5538 million compared with 2021, a decrease of 11.78%; the net profit attributable to the parent company's shareholders after deducting non-recurring gains and losses in 2022 decreased by RMB 148.5794 million compared with 2021, a decrease of 46.26%.

In this regard, Savi stated that the performance changes were mainly affected by common factors in the industry: weak consumer demand caused by US inflation, multiple increases in international logistics costs represented by FBA delivery fees, and rising prices of consumer electronics products. These unfavorable factors put pressure on performance in 2022; at the same time, shipping costs gradually declined, bringing about a partial recovery in performance.

Clothing accessories are the main category of Savi's revenue. In 2022 , Savi 's clothing accessories category sales gross profit was 245,300.37 million yuan, an increase of 16,448.97 million yuan compared with the previous year, mainly due to the increase in sales revenue scale and gross profit margin. In 2022, the company's clothing accessories category sales revenue was 330,145.77 million yuan, an increase of 10,873.94 million yuan compared with the previous year; in 2022, the company's clothing accessories category sales gross profit margin was 74.30%, an increase of 2.62 percentage points compared with the previous year.

From 2020 to 2022, the gross profit margin of LDK's main business by product category and the proportion of main business income are listed as follows:

Like many of its peers, Suntech's main markets are North America and Europe, with North America accounting for 77.70%, Europe accounting for 17.24%, Asia accounting for 0.66%, and other regions accounting for 0.20% .

Amazon accounts for nearly 90% of its revenue. Is Savi too dependent on a single platform?

Amazon is the largest platform for Savi's revenue. According to the latest data, Savi's sales on the Amazon platform account for nearly 90%.

In detail, from 2020 to 2022, the sales revenue of Savi on the Amazon platform (including the Vendor Central model) was RMB 368,183.62 million, RMB 475,903.47 million and RMB 440,153.85 million, respectively, accounting for 70.12%, 85.55% and 89.86% of the main business revenue, respectively. The corresponding average single-store revenue was RMB 4,735,700, RMB 7,482,700 and RMB 7,888,900, respectively.

With the development of the industry, it is becoming increasingly difficult to achieve the goal of increasing sales by blindly expanding stores. Savi is obviously aware of this problem and has taken the initiative to reduce the number of Amazon stores. From 2020 to the end of 2022, the number of Amazon stores will be 661, 611 and 505 respectively. At this stage, Savi believes that the growth of operating performance does not depend on the expansion of the number of stores, and the reduction in the number of stores has not had a negative impact on the company's operating performance and sustainable operating capacity.

In addition, as we all know, the risk of relying solely on one platform is huge. Regarding the issue that Amazon platform is the largest source of revenue, Savi said that it is not a simple dependence relationship with Amazon, but based on the market position, development prospects, major consumer groups, platform policies and their implementation, as well as the company's own business strategy and development stage of the third-party e-commerce platform, it selects the most suitable third-party e-commerce platform and sales channels for the company, thereby ensuring the company's stable and sustainable operating ability. It is not a result that is forced to be accepted due to certain factors (such as limited channels, insufficient operating ability and experience, product category restrictions, etc.).

In order to improve its competitiveness in the industry and on the Amazon platform, Savi has made drastic reforms in branding. In the second half of 2020, it began to switch the domestic direct mail postal parcel mode to the direct mail 9610 mode. With the steady progress of various branding initiatives including the direct mail switch, the number of SPUs has dropped significantly, the average sales of SPUs has increased significantly, and the business has focused more on branded products. In terms of brand influence, as of February 2023, many products from brands such as Avidlove, Ekouaer, Coofandy, and ANCHEER are among the top five Amazon Best Sellers in the sub-category.

Based on the adjustment of its branding strategy, Savi is also gradually optimizing its business structure on platforms other than Amazon, focusing on the continuous expansion of categories that are conducive to long-term development. It currently operates on direct-operated websites, eBay, Wish and other platforms.

Data shows that from 2020 to 2022, Savi's operating revenues on Wish, eBay, Walmart and other e-commerce platforms were 468 million yuan, 262 million yuan and 202 million yuan, respectively, with cumulative revenues of nearly 1 billion yuan; at the same time, the cumulative operating revenue of its own websites during the aforementioned period also exceeded 1.2 billion yuan; the cumulative revenue of the two exceeded 2 billion yuan.

In terms of self-operated websites, since 2021, Savi has closed several self-operated website stores with poor operating results. The head effect of self-operated websites is obvious. In 2021 and 2022, the order amount of the top ten self-operated websites in terms of order amount accounted for 64.79% and 77.92% respectively. In 2022, the sales indicators achieved by self-operated websites are as follows:

As can be seen from the figure, in 2022, the average sales amount per customer of Savi's self-operated website was 595.00 yuan/unit, which showed an upward trend compared with 2021. The main brands of self-operated websites such as SHESHOW and Retro Stage maintained stable development in 2022. However, operating income, number of orders and number of customers decreased.

In summary, as a Shenzhen seller, Savi has achieved far more on Amazon than on other platforms. In order to get rid of its dependence on a single platform, Savi is also continuously promoting its branding process, while developing sales channels such as independent stations to enhance its risk resistance. From the perspective of independent station operating income in 2022, Savi's listing is not the end. In terms of how to promote the development of other channels, Savi still needs to explore a lot in the future.

Amazon Platform