Products dominate Amazon's multiple sites, Shenzhen 3C sales bring in 1.8 billion yuan in half a year

As a long-lasting category, consumer electronics products frequently appear in buyers' shopping carts, and sales continue to rise. Some sellers who started to engage in 3C categories early on made a lot of money during the peak period of the bonus.

However, as the consumer electronics industry matures , buyers have higher requirements for the quality and performance of consumer electronics products . Quality, branding, and high-tech content have become the development trend. Competition in the industry has become increasingly fierce, but there are still some leaders.

GreenLink Technology earned 1.8 billion yuan in half a year

UGREEN Technology is located in Shenzhen, a major gathering place for cross-border sellers. Initially, the products it sold were mainly data cables, and in the following years, it gradually expanded to multiple categories including transmission, charging, audio and video. In June this year, UGREEN Technology also submitted a prospectus to the Shenzhen Stock Exchange, which attracted the attention of many industry insiders.

In the recently updated prospectus, GreenLink Technology revealed its overall performance in the first half of 2022. In the first half of this year, GreenLink Technology's half-year revenue was 1.803 billion yuan, with an average annual compound growth rate of nearly 30% in the first three years, and a net profit of 130 million yuan.

It is not difficult to find that its performance growth is inseparable from the increase in sales of its five main products and overseas platforms. Several major products are ranked at the top of the mainstream platform list and are well-known overseas. Benefiting from this, the company's total overseas revenue in the first half of 2022 was 840 million yuan, and online revenue accounted for more than 84%, which was 706 million yuan.

Its main third-party platforms for overseas sales are Amazon, AliExpress, Shopee, Lazada, etc. As more companies gradually transform from "manufacturing overseas" to "branding overseas", UGREEN's own brand "UGREEN" has successively entered Amazon's multi-country sites, and its main products continue to be selected as the best-selling products on the Amazon platform.

Currently, UGREEN Technology's main overseas online sales platform is Amazon, and its main sales sites include sites in Europe and North America. From January to June this year, the specific sales amount of each platform has increased. Its main business revenue on Amazon platform sales reached 580 million yuan, accounting for 33% of online platform revenue. The average sales on AliExpress, Lazada, and Shopee exceeded 37 million yuan.

As for the German and American sites, the product market share and ranking have also increased. As of December 31, 2021, its audio cable products, docking station products, and mobile phone charger products accounted for 6, 6, and 5 of the 50 best-selling products in the German Amazon site, with the highest ranking between second and seventh.

On the US Amazon site, its card reader products and hard drive enclosure products account for 5 and 4 products respectively among the top 50 best-selling products, with the highest ranking being between fifth and eighth.

Combined with relevant data, in the first half of this year, the largest proportion of GreenLink Technology's sales was still transmission products, accounting for 35.47% of the main business income, with half-year sales of 638 million yuan. Charging and audio and video products ranked second and third, with 433 million yuan and 429 million yuan respectively, accounting for 24.04% and 23.85% of the main business income. Mobile peripheral products were 189 million yuan, accounting for 10.52%. Storage products accounted for the smallest proportion, at 4.73%, with half-year sales of 85.11 million yuan.

After opening the relevant platforms where it sells, you will find that the overall evaluation of its products is good, and the performance, appearance and use of the products are the focus of praise. The overseas market ranking and brand influence of GreenLink Technology's products have contributed to the core competitiveness of GreenLink Technology. On this basis, the company's sales revenue has gradually increased. If the current growth rate is maintained, many data of GreenLink Technology will have new breakthroughs this year. However, the consumer electronics industry in which GreenLink Technology is located has gathered many powerful sellers.

3C products continue to rise, and powerful sellers gather

In recent years, the pace of innovation of global consumer electronics products has accelerated, and the penetration rate has continued to increase. The consumer electronics industry has developed rapidly and has formed a huge industrial scale. In overseas markets, the high-end consumer electronics market is mainly concentrated in developed countries and regions such as Europe and the United States. Emerging markets such as Southeast Asia and Africa are also following closely.

According to relevant statistics, the global consumer electronics industry market size reached US$931.5 billion in 2014. It has been growing steadily since 2015, reaching US$1.1 trillion last year. Based on this growth rate, it is expected to grow to US$1.2 trillion in 2027. The market continues to release dividends.

However, UGREEN Technology has many strong competitors among 3C sellers in the industry , such as Anker Innovations, a leading seller in cross-border e-commerce, as well as established companies such as Haineng Industrial, Pisen Electronics, and Belkin. The main products involved are chargers, mobile power supplies, headphones, wireless audio, etc., and the products of these companies are all well-known in overseas markets.

Comparing the data of several companies in the first half of this year, Anker Innovations' leading advantage is still prominent, and it occupies a relatively stable market share on platforms such as Amazon. From January to June 2022, Anker Innovations' revenue was 5.887 billion yuan and its net profit was 576 million yuan. Another old company, Haineng Industrial, had a revenue of 1.22 billion yuan and a net profit of 187 million yuan . The performance of several companies is very impressive.

In addition to sales capabilities, R&D capabilities are also the main competitive point in the current 3C category industry. In the first half of this year, Anker Innovations had the highest R&D expense rate of 7.61%, followed by Haineng Industrial at 4.78% and UGREEN Technology at 4.62%. Although UGREEN Technology's R&D expense rate is lower than Anker, it is not difficult to find out from the company's data in recent years that its R&D capabilities are also leading in the industry.

Based on the data of the past three years, the expenses of GreenLink Technology are on the rise, with R&D expenses increasing from 64.89 million yuan in 2019 to 160 million yuan in 2021. The R&D expenses in the first half of 2022 reached 83.22 million yuan , and the number of R&D personnel exceeded 560, accounting for one-fifth of the company's total employees. The technology of various categories is also becoming more mature, and the dual increase of talent and technology has become an important guarantee for its performance growth.

It is worth noting that due to changes in market demand, GreenLink Technology has recently focused more on higher-end products, such as portable mobile power banks, thereby moderately reducing investment in new product molds for other categories of products. On a certain recruitment platform, GreenLink Technology is recruiting energy storage power engineers, which shows that the company's "shift" to key products is gradually progressing. The shift to higher-end products will add new impetus to the company's subsequent performance growth.

In addition to its performance, the company's listing progress has also attracted the attention of industry insiders. As we all know, with the hot capitalization track, many companies are queuing up for listing, and GreenLink Technology has also seized this opportunity. Currently, GreenLink Technology is in the "inquiry" status of the Shenzhen Stock Exchange, and the Shenzhen Stock Exchange has issued a second round of review inquiry letters. If it is successfully listed in the future, it may open up another world in the overseas market.

Greenlink Technology

Half-year results