The new products alone brought in nearly 400 million yuan in revenue! Shenzhen's sales soared last year

As we enter mid-April, the financial reports of the best-selling companies will be released one after another.

On April 15, Huabao New Energy, a big seller of portable energy storage, released its first annual report since its listing. Under the influence of multiple factors such as inflation, many big sellers in the industry did not perform well last year, but with the blessing of the European energy crisis and the camping craze, Huabao New Energy has achieved a brilliant report card. It has made huge profits and is very generous, taking out nearly 200 million in cash for dividends.

Last year's revenue was 3.2 billion, and the performance of the two major brands was "soaring"

After more than ten years of layout in the portable energy storage track, Huabao New Energy has now reached the top of the industry. Among the top five global portable energy storage companies in terms of shipment market share in 2021, four are Chinese companies, among which Huabao New Energy ranks first with excellent results. As of the end of 2022, the cumulative sales of portable energy storage and photovoltaic products have reached nearly 3 million units .

The past three years have been a period of rapid development for Huabao New Energy's performance, with a compound growth rate of operating income reaching 73.02% . Its outstanding performance ultimately helped it open the door to the capital market in 2022.

The first annual report released after the listing , the "2022 Annual Report", is very strong. The financial report shows that in 2022, the company's operating income was 3.203 billion yuan, a year-on-year increase of 38.35%, and the net profit attributable to shareholders of listed companies was 287 million yuan, a year-on-year increase of 2.64%.

Both of the two major brands , "Jackery Dianxiaoer" and "Geneverse", achieved rapid growth . Among them, "Jackery Dianxiaoer" portable energy storage and photovoltaic products achieved operating income of 3.058 billion yuan, a year-on-year increase of 36.64%; "Geneverse" household energy storage and photovoltaic products achieved operating income of 145 million yuan, a year-on-year increase of 88.04%.

From the product side, portable energy storage products still contributed the majority of revenue. During the reporting period, portable energy storage products achieved operating revenue of 2.467 billion yuan, a year-on-year increase of 34.44%; photovoltaic solar panel products achieved operating revenue of 704 million yuan, a year-on-year increase of 60.24%.

The vitality and competitive advantage of an enterprise come from product innovation. Huabao New Energy, which leads the portable energy storage track, is well aware of this. In 2022, it accelerated product iteration and innovation, and launched new products such as the solar charging and wall charging dual fast charging 800Pro, 1000Pro, and 2000Pro . While sellers were complaining about how difficult it was to "promote new products", it quietly earned 391 million yuan in revenue from new products , accounting for 15.84% of the operating income of portable energy storage .  

In addition to its own unremitting efforts, Huabao New Energy also seized external opportunities. In 2022 , it actively explored the European market. Coupled with the new user electricity demand generated by the European energy crisis, it achieved operating income of 691 million yuan in Europe , a year-on-year increase of 417.00%.

Good operating conditions give it the confidence to pay large dividends. In the annual report, Huabao New Energy proposed its first dividend plan since its listing, planning to pay a cash dividend of 20.83 yuan (including tax) for every 10 shares, with a total dividend of nearly 200 million yuan. At the same time, it will issue 3 additional shares for every 10 shares of all shareholders from the capital reserve fund .

8 independent websites were built, accounting for more than 20% of revenue

Unlike many cross-border e-commerce sellers, Huabao New Energy adopts an omni-channel model, but its main sales focus is still online. In addition to the official website, its current online channels also include third-party e-commerce platforms such as Amazon, Rakuten Japan, and Yahoo Japan.

By the end of 2022, it had completed the construction of 8 global brand official websites , achieving a 97.40% increase in operating income . During the reporting period, the operating income of Huabao New Energy 's brand official website independent station was 682 million yuan, accounting for 21.31% of the operating income, a year-on-year increase of 97.40%, and the operating income of the third-party e-commerce platform was 1.712 billion yuan, accounting for 53.45% of the operating income, a year-on-year increase of 3.69%.

Among third-party platforms, Amazon is the main sales channel , accounting for 51.81% of the main revenue in 2021. The product has been widely recognized by platform users and has been selected as the best seller and Amazon's Choice on the Amazon platform for many years .

Huabao New Energy is a frequent visitor in various lists of Amazon's portable energy storage category, and often ranks among the top. For example, in the outdoor power supply sales list officially released by Amazon in October last year , two products of " Jackery Electric Xiaoer " , Jackery Portable Power Station Explorer 300 and Jackery Portable Power Station Explorer 240, took the top two spots.

In addition, during Amazon's first autumn promotion in October last year, Jackery 's products also made it to the bestseller list in multiple categories, with sales increasing significantly. Among them, Jackery's solar generator SG2000 Pro was one of the best-selling products and entered the top ten bestseller list of similar products in the United States for the first time.

During the promotion, Jackery topped the bestseller list of outdoor generators in Amazon’s US market , surpassing Amazon’s traditional generators . More importantly, its average transaction amount among US consumers reached an all-time high .

Huabao New Energy has now expanded to multiple sites on Amazon, and in addition to major markets in Europe and the United States, it has also expanded to Middle Eastern countries. A domestic recruitment website shows that it has recruited Arabic-speaking Amazon operations in Shenzhen with a salary of 15-25k.14 . Job seekers not only need to have more than two years of sales experience on the Amazon platform, but also require Arabic majors and English level 4 or above.

The sales expenses were 800 million, a large sum of money to support brand building

Now many big sellers are accelerating brand building, and Huabao New Energy, which is ahead of the curve, dares not slack off. In order to further consolidate its brand leadership, it has increased its investment in marketing and brand building in stages , seized the minds of global users, and strengthened the global brand's recognition and reputation.

During the reporting period, its sales expenses reached 879 million yuan, accounting for 27.43% of its operating income, an increase of 55.47% year-on-year.

The investment was well received. According to the Nielsen 2022 Global Outdoor Power Brand Research Report, the unprompted first mention rate and total recognition rate of "Jackery" in China, the United States, Japan, and Germany were higher than other tested brands. The world-renowned business magazine Forbes praised the company's "Jackery" brand as the "Apple" of the portable energy storage industry.

However, the core of the brand lies in the product, so while Huabao New Energy has increased its investment in brand marketing, it has not neglected product research and development.

In 2022, its R&D expenditure reached 118 million yuan, a year-on-year increase of 82.25%. In the past three years , its R&D expenditure has an average annual compound growth rate of 124%. The number of R&D technicians reached 271, accounting for 19.85% of the company's total employees.

It can be seen that sales expenses and R&D expenses alone accounted for nearly one-third of Huabao New Energy's revenue last year.

It is predicted that in 2026, the global shipment volume and market size of portable energy storage will reach 31.1 million units and 88.23 billion yuan respectively . Obviously, the portable energy storage trend has arrived. The track benefits have been seen by more companies. In addition to Huabao New Energy, many companies in the industry, such as Anker Innovations, Aoji, Dibico, and Pisen, have begun to expand their outdoor power product lines. Huawei also released two outdoor mobile power supplies in the second half of 2021, 500Wh and 1000Wh.

Under such circumstances, competition is bound to intensify. If the "veterans" in the track do not want to be stepped on, they can only draw their swords and face the steel head-on. This may be one of the reasons why Huabao New Energy suddenly increased its investment in the above two expenses.

Huabao New Energy