Selling out! Shenzhen's biggest seller made 150 million yuan on Amazon with 10 SKUs

In recent years, the 3C consumer electronics market has experienced rapid development, and many domestic big sellers have become Amazon's top sellers by virtue of their own product advantages.

UGREEN Technology, a leading domestic 3C seller, recently announced data on the SKU sales of its products on the Amazon platform.

Data shows that in 2021, the total sales revenue of UGREEN Technology's top ten SKUs on Amazon reached 158 million yuan.

Among them, charging products ranked first in SKU ranking , with sales revenue reaching 23.2452 million yuan. Other products included docking stations, sharing switches, audio cables /component cables, Bluetooth headsets, card readers, wired network cards, and hubs, which are basically popular products in the category of 3C consumer electronics.

It is understood that Shenzhen Green Link Technology Co., Ltd. (hereinafter referred to as "Green Link Technology") was established in 2012. It is a company mainly engaged in the research and development, design, production and sales of 3C consumer electronic products. Its main products cover five major series: transmission, audio and video, charging, mobile peripherals, and storage.

UGREEN Technology initially started out on Tmall and JD.com, and began expanding its business overseas in 2014.

UGREEN Technology's overseas online sales are mainly in the online B2C model, and its overseas sales channels mainly include Amazon, AliExpress, Shopee, Lazada, etc. In 2021, its overseas online sales revenue was 1.414 billion yuan, a year-on-year increase of 17.4%. During the reporting period, UGREEN's overseas online sales revenue showed a year-on-year growth trend.

Judging from the major sales platforms of UGREEN Technology, Amazon is the company's largest sales channel. In the past two years, UGREEN Technology's revenue on the Amazon platform has continued to grow. In 2021, UGREEN Technology's sales revenue on Amazon was 1.149 billion yuan, a year-on-year increase of 17.36% (979 million yuan in 2020), accounting for 33.41% of its total online platform revenue.

UGREEN's products have very high sales on the Amazon platform and are consistently selected as Amazon's Best Seller and Amazon's Choice.

Currently, transmission products are the main source of income for UGREEN Technology. In the past three years, the sales of UGREEN Technology's transmission products have continued to soar, from 736 million yuan in 2019 to 1.005 billion yuan in 2020, and then to 1.235 billion yuan in 2021. They accounted for 36.05%, 36.79% and 35.93% of the current operating income respectively.

GreenLink Technology has earned 1.8 billion yuan in the first half of the year and plans to go public on the Growth Enterprise Market

In June this year , GreenLink Technology started its IPO journey. Its GEM IPO application was accepted by the Shenzhen Stock Exchange, and the funds to be raised from this GEM listing are 1.504 billion yuan.

The GEM Listing Committee issued the first round of inquiry letters to GreenLink Technology on July 1, 2022. Subsequently, in mid-August, GreenLink Technology IPO responded to the first round of inquiries. At present, the GEM Listing Committee has issued the second round of review inquiry letters to GreenLink Technology.

In its prospectus, UGREEN Technology revealed the company's overall performance in the first half of 2022.

In the first half of this year, UGREEN Technology's revenue reached 1.803 billion yuan, an increase of 15.64% compared with the same period last year. The company's total overseas revenue in the first half of the year was 840 million yuan, and online revenue was 706 million yuan, accounting for more than 84%. Its third-party platforms for overseas sales include Amazon, AliExpress, Shopee, Lazada, etc.

UGREEN's main online sales platform outside of China is Amazon, and its main sales locations are in Europe and North America.

In the first half of this year, UGREEN Technology's sales on various platforms showed an upward trend. Its main business sales on the Amazon platform reached 580 million yuan, accounting for 33.41% of the total revenue of the online platform.

It is worth mentioning that UGREEN Technology has completed two rounds of financing, one of which was 200 million yuan in 2021 and the other was 300 million yuan in June 2022. Before completing the last round of financing last year, UGREEN Technology's pre-investment valuation had exceeded 5 billion yuan.

In the past two years, domestic 3C brands have been scrambling to raise funds and go public.

In August 2021 , Anker Innovations was listed on the A-share market, and its market value once reached 80 billion yuan after its listing.

At the beginning of 2022 , 3C digital brand company Pisen also started its A-share listing plan. On January 13 of this year, CITIC Securities signed a coaching agreement with Pisen. At present, CITIC Securities' listing coaching work for Pisen Electronics is still in progress, and there may be new progress in the near future. However, this is not the first time that Pisen has been exposed to the capital market. Before this, Pisen was listed on the New Third Board in 2015, but it was delisted in 2017.

UGREEN can't compete with Anker? There are both dangers and opportunities amidst the difficulties

As far as the entire 3C market is concerned, UGREEN Technology's biggest competitor is none other than Anker.

The overlap between UGREEN Technology's products and Anker's products is very high. Their main businesses are charging products and Bluetooth audio products, and both are technology companies that focus on research and development.

It is understood that from 2019 to 2021, the R&D investment of UGREEN Technology was RMB 64.8853 million, RMB 95.1270 million and RMB 157 million respectively, accounting for 3.17%, 3.47% and 4.54% of the company's operating income respectively, and the R&D investment is continuing to increase.

In order to meet market demand, UGREEN Technology has accelerated the technological innovation of various product series, such as increasing the innovation and development of private cloud storage, wireless headphones, gallium nitride chargers and other products and technologies. From the results of its R&D and innovation, the company has obtained 11 invention patents, 176 utility model patents and 1,017 design patents, and the relevant technical achievements are widely used in products. In addition, the company has 565 R&D technicians, accounting for 22.57% of its total number of employees, and its R&D and innovation advantages are further highlighted.

Judging from the R&D results, there is still a certain gap between UGREEN's R&D patent level and Anker's.

Anker Innovations currently has a total of 64 invention patents, 298 utility model patents, and 459 appearance patents worldwide , of which its invention patents and utility model patents far exceed those of UGREEN Technology.

Moreover, Anker Innovations' R&D and innovation efforts have been steadily increasing in the first three quarters. In the first three quarters of this year, Anker's R&D investment was close to 700 million yuan, a year-on-year increase of more than 40%. It accounted for 7.33% of its operating income. In the third quarter, the R&D investment exceeded 200 million yuan, and its R&D staff continued to increase.

It should be noted that GreenLink Technology's products are generally purchased based on independent research and development, with outsourced finished product procurement accounting for more than 70% of the company's total production amount, and the company is very dependent on upstream suppliers.

Moreover, in terms of raw material procurement, the unit prices of chips, male connectors and wire products continued to rise in 2021. The rate of increase far exceeded the increase in the company's product sales, so it will reduce profits to a certain extent.

As GreenLink increases its R&D investment, the risks it faces are increasing. The company 's inventory book value in 2021 was 406 million yuan, 543 million yuan, and 726 million yuan, and the costs of its e-commerce platform are also increasing. It can be seen that GreenLink's future development will also face many uncertainties.

In the current market environment, UGREEN Technology still faces many challenges and will need to work harder on its products in the future to achieve longer-term development.

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Electronics