Another best-seller on the market, with a single product generating revenue of 20 million for two consecutive years!

It is understood that UGREEN Technology was founded in 2012. It initially focused on selling data cables, and later gradually expanded to multiple categories such as transmission, charging, and audio. Many of its SKUs have been ranked among the top ten in Amazon sales for many years. On average, each SKU can contribute 15 million yuan in revenue to the company each year.

In June last year , GreenLink Technology started its IPO journey and has now passed the listing committee meeting and is about to knock on the door of the Shenzhen Stock Exchange's Growth Enterprise Market. It is worth noting that GreenLink Technology recently updated a series of sales data, which covers sales data of popular SKUs in multiple channels.

GreenLink Technology has achieved revenue of 150 million yuan from 10 SKUs for two consecutive years

The popularity of the 3C category is visible to the naked eye, with high average order value and high popularity. The pursuit of overseas consumption has allowed many sellers who have been deeply involved in this category to shine.

Relying on the "UGREEN" brand, UGREEN Technology has expanded into domestic and overseas markets, with products on sale in the United States, the United Kingdom, Germany and other countries and regions. Currently, its products have covered mainstream e-commerce platforms such as Amazon, AliExpress, Shopee, Lazada, and the company's main brands and products are ranked at the top of the mainstream platform lists.

Amazon is UGREEN's largest sales channel. In the past two years, UGREEN has achieved remarkable results on the platform. Many of its products are ranked in the top ten on the Amazon platform, covering a variety of products including charging, transmission, audio and video categories, with cumulative revenue exceeding 150 million yuan. On average, each SKU can contribute 15 million yuan in revenue each year. At the same time, many products continue to be selected as Best Sellers and Amazon's Choice on the Amazon platform.

When broken down into three levels of categories, products such as docking stations, travel chargers/desk chargers, shared switches, hubs, wired network cards, card readers, and Bluetooth headsets are very popular, especially the docking station, which ranks first in SKU ranking.

It is worth noting that the average customer price of many products of GreenLink Technology has increased compared with 2021. For example, the docking station product with SKU code "70410" had an average customer price of 143.48 yuan in 2021 and 158.29 yuan in 2022. At the same time, the annual revenue of this product also increased from 19.76 million yuan in 2021 to 23.29 million yuan in 2022.

In addition to the expansion dock, the average order value of products such as shared switches, travel chargers /desk chargers, and wired network cards have increased to varying degrees, but the average order value of Bluetooth headsets, which are located in the blood sea area, has decreased from 168.79 yuan in 2021 to 142.49 yuan in 2022.

At present, transmission products are still the largest product category of UGREEN Technology , and expansion docks, hubs, network cards, network data cables, keyboards, etc. are all products in this category. According to data from 2019 to the first half of 2022, the sales revenue brought by this category was 736 million yuan, 1.005 billion yuan, 1.235 billion yuan and 638 million yuan respectively, which is an upward trend overall.

Audio products are also one of the core businesses of UGREEN Technology . High-definition cables, audio cables, headphones, etc. are all products in this category. The sales revenue from 2019 to the first half of 2022 was 578 million yuan, 769 million yuan, 873 million yuan and 429 million yuan respectively. The overall trend is good, but the proportion of this category in the company's main business has declined.

UGREEN Technology also has a layout of charging products that big sellers are competing to deploy. Charging cables, chargers and mobile charging sources are products in this category. The sales revenue from 2019 to the first half of 2022 was 428 million yuan, 561 million yuan, 788 million yuan and 433 million yuan respectively, and the proportion of the company's main business revenue has also increased year by year, from 20.96% in 2019 to 24.04% in the first half of 2022.

Judging from the current product sales and rankings on Amazon, UGREEN's business is still improving. However, during the process of UGREEN's application for listing, issues such as multiple product failures in random inspections have been questioned.

UGREEN is questioned for low R&D investment and non-compliant product inspections

In the 3C category, Anker is recognized by many peers as the biggest competitor. Due to the high degree of product overlap between UGREEN Technology and Anker, many industry insiders believe that Anker is the biggest competitor of UGREEN Technology.

However, Anker's current better performance is in charging products, while wireless audio and innovative products have weaker growth; while UGREEN Technology's better performance is in transmission, followed by audio and charging.

In terms of R&D expenditure, Anker 's expenditure in the first three quarters of 2022 alone reached 699 million yuan. In contrast, we found that UGREEN's R&D expenditure was pitifully small. From 2019 to the first half of 2022, UGREEN's R&D expenses were 65 million yuan, 95 million yuan, 157 million yuan and 83 million yuan respectively, and its R&D expense rate was lower than the average of its peers. In general, Anker's R&D expenditure in the first three quarters of 2022 exceeded UGREEN's total R&D expenditure in the past three years.

The editor checked the prospectus and found that during the period from 2019 to the first half of 2022, Green Link Technology's sales expenses reached 1.968 billion yuan, but its R&D expenses during this period were only 400 million yuan.

As of the signing date of the new prospectus, UGREEN Technology owns 774 domestic patents and 561 foreign patents, of which 1,109 are mainly appearance patents and only 12 are invention patents. Anker currently has 64 invention patents worldwide.

Due to factors such as the fierce competition in electronic consumer products and the speed of product updates, UGREEN Technology's R&D capabilities have been questioned, and the Shenzhen Stock Exchange has also inquired about this.

It is understood that GreenLink's products are usually purchased through outsourcing on the basis of independent research and development, and the amount of products produced under this model accounts for more than 70%, which is enough to show that GreenLink is highly dependent on upstream suppliers. Since the company is dominated by outsourcing production, GreenLink's product quality control and other issues also have hidden dangers.

It is reported that GreenLink's products have been found to be non-compliant in multiple random inspections. From 2019 to March 2022, GreenLink had five cases of non-compliant products. After the products were removed from the shelves, some were rectified and put back on the shelves, while some were directly sealed and isolated after being removed from the shelves.

Among them, the product that had problems in 2019 was the PB132 UGREEN mobile power supply (20000mAh). Because the product did not meet the national mandatory standards (GB31241-2014), this batch of products was eventually sealed and isolated, and UGREEN Technology was administratively fined 93,800 yuan.

In August 2021, UGREEN Technology products had problems again. The distance from the pin to the edge of a USB charger sold by the company (product number CD21880368) did not meet the requirements. The Shandong Provincial Market Supervision Administration defined it as unqualified during a random inspection. In the end, the batch of products was removed from the shelves and sealed and isolated.

Judging from the current sales investment, R&D investment and patents of GreenLink Technology, the company needs to improve its innovation capabilities if it wants to develop further. It will take time to verify how the company will develop in the future.

Greenlink Technology

Amazon

Anker