Another one! East China Big Selling Rings the Bell Today

It is just the end of March, and there are already news that two major car companies have successfully listed. After Greebo was successfully listed on the Shenzhen Stock Exchange's Growth Enterprise Market on February 8, today (March 21), Huadong major car company Taotao Automobile successfully landed on the Shenzhen Stock Exchange's Growth Enterprise Market.

Zhejiang Taotao Vehicle Co., Ltd. (hereinafter referred to as "Taotao Vehicle") has had a bumpy road to listing. Since its listing application was accepted in 2020, it has been suspended more than once due to "expiration of financial information". Now the clouds have finally cleared and the moon has appeared.

It was listed on the Shenzhen Stock Exchange's Growth Enterprise Market today, with an issue price of 73.45 yuan per share

According to the announcement of the exchange, Taotao Automobile was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange today (stock code 301345), with an issue price of 73.45 yuan per share.

Taotao Vehicle Industry is a high-tech enterprise focusing on the research, development, production and sales of motor vehicles, electric vehicles and their accessories and supplies for outdoor leisure and entertainment and short-distance transportation . Its products include all-terrain vehicles, electric scooters, electric balance bikes, electric bicycles, etc.

At present, all-terrain vehicles and motorcycles have formed independent brands "TAO MOTOR" and "RIVAL", and electric scooters and electric balance bikes have formed independent brands "GOTRAX" and "FLUXX".

The prospectus shows that part of the funds raised from its listing will be used for the construction of a project to produce 1 million smart electric vehicles annually and an all-terrain vehicle smart manufacturing improvement project.

It can be seen that Taotao Vehicle Industry's products are mainly used in leisure sports, smart travel, etc., meeting consumers' requirements for leisure and entertainment, outdoor sports, smart travel, etc., and at the same time conforming to the development trend of the "oil to electricity" era .

The prospectus shows that during the reporting period, Taotao Automobile's operating income was RMB 752 million, RMB 1.386 billion, RMB 2.018 billion and RMB 774 million, respectively . It shows a rapid growth trend . It is predicted that the revenue in the first three quarters of 2022 is expected to be between RMB 1.182 billion and RMB 1.195 billion , and the net profit attributable to the parent company after deducting non-recurring items is expected to be between RMB 135 million and RMB 150 million .

During the reporting period, Taotao Auto's overseas sales accounted for more than 98% of its operating income , of which the vast majority of online revenue came from its own website and Amazon, with a small amount coming from Newegg, eBay, Walmart and other platforms. For example, in 2021, its own website sales were 139 million yuan, Amazon sales were 198 million yuan, but the revenue from other websites was only 17.8279 million yuan.

The main export destinations for the products include dozens of countries and regions such as the United States, Canada, Mexico, and Southeast Asia. During the reporting period, the sales amount in North America, especially the United States, was relatively high, of which the sales revenue in the United States accounted for more than 60% of the main business revenue .

In terms of product gross profit margin, online is significantly higher than offline. Among them, online, during the reporting period, the gross profit margin of electric balance bikes showed a clear upward trend, which were 53.24%, 60.12%, 65.92% and 82.88% respectively. In the first half of this year, the gross profit margin has been more than 20 percentage points higher than that of all-terrain vehicles, motorcycles and electric scooters.

Amazon sales continue to rise, and the product has been BSed many times

As for Amazon, Taotao Automotive mainly sells its products on three sites: the United States, Canada, and Japan. Due to the continuous improvement of cross-border e-commerce marketing channels, its sales on Amazon have continued to rise. From 2019 to the first half of 2022, its revenue was 36.5414 million yuan, 53.6751 million yuan, 198 million yuan, and 115 million yuan , respectively .   

The financial report shows that Amazon's sales suddenly soared in 2021, and the sales share increased. The main reason is that it has formed a team (Shenzhen Baike Cross-border E-commerce Team) to be responsible for the operation of Amazon. Among them, the Amazon Canada site contributed the most, with sales of 123 million yuan, followed by the seller's main market, the United States site ( 60.2581 million yuan), and the third is the Japanese site ( 7.9580 million yuan).

Taotao Motors' sales on Amazon can be traced back to 2017. In 2018, the sales of its electric scooters on the US site increased significantly, so it was targeted by Amazon. In early 2019, the two sides began to explore the possibility of buyout sales. After careful consideration, it began to cooperate with Amazon's US site in buyout sales in July of the same year. After the change in sales model, sales revenue showed an upward trend.

It is worth noting that after the model conversion, Amazon US did not require it to close its SC account (Amazon's platform sales), but while adopting VC sales (buyout sales), it allowed it to follow-sell the same product at the same price.

In addition, although some models of electric scooters have been changed to buyout sales on Amazon's US site, with the continuous enrichment of product variety, Taotao Vehicle's revenue from direct sales through Amazon's US site has continued to increase from 2020 to the first half of 2022 .

So now Taotao Automotive is engaging in both buyout sales and direct sales on Amazon.

Taotao Motors' products have a good brand effect and market recognition on Amazon. Its own brand " GOTRAX " has been selected into Amazon's " Amazon Best Seller " and " Amazon 's Choice " best - selling products list for many times .

Among them, among a children's electric scooter that received nearly 7,000 reviews, 75% of the people gave it five-star reviews. It is well-made, has a durable battery, and is easy to assemble and use, and is widely praised.

Own 14 websites, with annual revenue exceeding RMB 100 million

From 2019 to 2021, Taotao Automobile's own website revenue exceeded 100 million yuan each year. The prospectus shows that during the reporting period, Taotao Automobile used a total of 14 self-owned websites, including 4 e-commerce sales websites of its overseas subsidiary VELOZ and 3 e-commerce sales websites of GOLABS .

In 2019 and 2020, sales from VELOZ and GOLABS' own websites once accounted for more than 70% of Taotao Vehicle's online sales. After a significant increase in sales on Amazon and other online platforms in 2021, the sales volume fell to 39.06%. By the first half of 2022, the proportion was less than 30%.

However, in terms of per capita consumption, VELOZ's own websites are not inferior to Amazon, and some are even much higher. In the first half of 2022 , the per capita consumption of VELOZ's own websites reached 9,075.21 yuan, while Amazon's US site was only 2,013.17 yuan.

Moreover , the net profits from sales on VELOZ and GOLABS' own websites are not small. During the reporting period, VELOZ's net profits were RMB 14.4971 million, RMB 26.869 million, RMB 11.7499 million, and RMB 5.8648 million respectively. GOLABS' net profits were RMB 7.0648 million, RMB 24.5054 million, RMB 32.7508 million, RMB 9.14 million, and RMB 780,000 respectively. At the same time, the net profit margins were all over 20%.

The main products sold on Taotao Vehicles' own website are gas-powered ATVs, gas-powered motorcycles, electric scooters, and electric balance scooters. Among them, electric scooters account for the largest sales share and the most revenue. For example, in the first half of 2022, the share was 43.89 % and the sales amount was 22.6592 million yuan. It is currently the product with the highest sales volume on its own website.

The main ways to promote the company's own website are to place advertisements on mainstream American search engines and social networking sites such as Google, Microsoft and Facebook, and to hire a third party to design and promote the company's products and websites.

Overall, Taotao Automobile Industry is more dependent on Google advertising. During the reporting period, its spending on it was RMB 7.6976 million, RMB 7.0872 million, RMB 12.0356 million and RMB 5.4268 million, respectively. In comparison, its spending on Microsoft and Facebook advertising was much less, which were RMB 976,500, RMB 421,100, RMB 399,900 and RMB 1,005,100, respectively.

Taotao Car Industry