Another cross-border company successfully listed!

After more than ten years of deep cultivation in vertical categories, another cross-border company successfully went public!

On February 8 , Greebo (Jiangsu) Co., Ltd. (hereinafter referred to as "Greebo") was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange, becoming the first stock of new energy garden machinery!

It is understood that Greebo has been engaged in the research and development, design, production and sales of new energy garden machinery since 2007, and has been deeply involved in the vertical category for more than ten years. It is now one of the leading companies in the global new energy garden machinery industry , with an annual revenue of over 5 billion yuan, ranking among the top three brands in the European and American industry, and is expected to continue to maintain its growth trend .

It is worth noting that about 99% of Greebo's revenue comes from overseas. In recent years, the sales revenue and proportion through its own brand official website and third-party online platform channels have continued to grow rapidly. Its greenworks brand lawn mowers, hair dryers and many other products have been among the "Best Sellers" on the Amazon platform for many years.

Another cross-border company successfully listed! Operating revenue is expected to reach 5.5 billion in 2022

For overseas consumers in Europe and the United States, "tending" the lawns in front of and behind their houses is a very necessary thing. This has also kept the global market demand for garden machinery products at a high level for a long time. Many companies have grown and developed in this trend. Greebo, headquartered in Jiangsu, is a typical representative.

On February 8, Greebo, the "first stock of new energy garden machinery", successfully made its debut on the ChiNext board. The opening price was 37 yuan, up 19.9% ​​from the issue price; the closing price was 38.3 yuan, up 24% from the issue price; based on the closing price, the market value was as high as 18.6 billion yuan.

Based on the current operating conditions and market environment, Greebo has preliminarily estimated that its operating income in 2022 is expected to reach up to 5.5 billion, a year-on-year increase of 5.92% to 9.91%, and its net profit attributable to the parent company's owners is expected to be up to 310 million, a year-on-year increase of 7.24% to 10.82%. After deducting non-recurring gains and losses, the net profit attributable to the parent company's owners is expected to increase by 9.99% to 14.22% year-on-year.

Greebo said that the fourth quarter is the company's traditional peak sales season, and the company's sales revenue will maintain steady growth. At the same time, since the second half of 2022, the RMB exchange rate has continued to depreciate significantly, and shipping costs and prices of major raw materials have fallen significantly. The above factors have led to the company's profitability in 2022 being expected to be stronger than in 2021.

The garden machinery industry is undergoing a revolutionary transformation from fuel power to new energy power, and the new energy garden machinery market has great room for development; according to TraQline statistics, in the field of outdoor power equipment (OPE) in North America, the market share of new energy garden machinery has increased from 13% in 2010 to 36% in 2021. Benefiting from industrial substitution, Greebo's operating performance has grown rapidly in recent years. In 2019, 2020 and 2021, the sales revenue was 3.725 billion yuan, 4.291 billion yuan and 5.004 billion yuan respectively, with a compound growth rate of 15.90%.

Since 2005, Greebo has successively established subsidiaries in the United States, Canada, Europe and other regions. After more than 10 years of market expansion and customer accumulation, it has established a sales model covering all online and offline channels of "supermarkets + e-commerce + dealers".

In terms of e-commerce channels, Greebo mainly sells its products worldwide through mainstream third-party e-commerce platforms in Europe and the United States, such as Amazon.com, Lowes.com, Costco.com, and Walmart.com . It also sells its products through its official website . As can be seen from the figure below, its sales revenue and proportion on its own brand official website and third-party online platforms continue to grow rapidly.

It is understood that Greebo started opening stores on platforms such as Tmall in 2019, and began to build B2C sites for overseas shopping websites in 2020. The B2C site opened on Amazon in Europe has gradually started operations and achieved revenue of 652,400 yuan in the fourth quarter of 2020, 14.6803 million yuan in 2021, and 12.1213 million yuan in January-June 2022. This revenue can almost be described as "explosive growth."

Greebo attaches great importance to the construction and cultivation of its own brands. Since 2009, it has successively established brands such as greenworks and POWERWORKS. In 2020, 2021 and January-June 2022, the omni-channel sales revenue of its own-brand products accounted for 54.05%, 56.97% and 65.53% respectively, and has become the main component of the company's business revenue. The greenworks brand has a high reputation and reputation in North America and Europe. Greenworks brand lawn mowers, hair dryers and other products are always among the "Best Sellers" on the Amazon platform.

Greebo's products can be divided into new energy garden machinery and AC garden machinery by power type, of which new energy garden machinery is the main product, accounting for about 70% of revenue. New energy garden machinery covers a full range of handheld, push-type, ride-on and intelligent products, mainly including lawn mowers, grass trimmers, hair dryers, pruning machines, chain saws, intelligent lawn mowing robots, intelligent ride-on lawn mowers and matching battery packs; AC garden machinery mainly includes cleaning machines and lawn mowers, and other products are mainly air compressors, power tools and accessories.

The global market size of garden machinery products continues to grow

It is understood that the vertically integrated intelligent manufacturing system and advanced product R&D and design capabilities are important components of Greebo's core competitiveness. The company continues to invest a lot of R&D resources in the field of new energy garden machinery, and has R&D centers in China, North America, and Europe. In 2020, 2021, and January-June 2022, the company's R&D expenses reached 186.8097 million yuan, 208.2506 million yuan, and 107.1587 million yuan, respectively, accounting for 4.35%, 4.16%, and 3.37% of operating income, respectively; as of the end of the reporting period, the company had more than 1,000 R&D and technical personnel, 1,463 domestic and foreign patents, including 125 invention patents, and accumulated a series of core technologies in the field of new energy garden machinery.

Greebo’s rapid development is inseparable from its own strength, but it is also inseparable from the promotion of the macro market.

The global market demand base for garden machinery products is large. Driven by factors such as world economic development, popularization of gardening culture, and promotion of new products, the demand and market capacity for garden machinery products are constantly increasing in the international market.

According to statistics from Global Market Insights, the global lawn and garden equipment market size was $28.3 billion in 2018 and is expected to exceed $45 billion by 2025, with a CAGR of nearly 7.0%. The market has a broad space. In addition, Global Market Insights predicts that by 2025, as the efficiency and technology of garden machinery products improve, the market size of electric garden machinery products will grow at an average annual compound growth rate of 8%. New energy garden machinery products are increasingly favored by consumers because of their advantages such as environmental protection, zero emissions, low noise, low vibration, and simple maintenance.

The future development prospects of garden machinery products are still broad. First, North America and Europe are still the main markets for electric garden machinery. Garden machinery products are essential daily necessities in families in developed countries such as Europe and the United States. With the development of the global economy and the improvement of people's living standards, the demand for a healthy and good living environment and green life is increasing. In the future, the main market for electric garden machinery will still be Europe and the United States. Second, as developing countries gradually pay more attention to greening, they have increased their investment in municipal gardens and highway greening construction, which has increased the demand for garden machinery products. Emerging markets in the Asia-Pacific region are also gradually emerging.

In addition, the updating and iteration of garden machinery itself will also bring development opportunities to related cross-border companies. It is understood that new energy and automation, intelligence, networking and platformization will become the new direction of technological development in the garden machinery industry. It is foreseeable that with the rapid development and "self-optimization" of the global garden machinery industry, more excellent sellers will stand out in the future.

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