There is new progress in Huadong’s preparation for overseas listing!

The capitalization track is booming, and many cross-border e-commerce companies have joined the team to prepare for "listing". The veteran big seller Bu Yu submitted his application to the Hong Kong Stock Exchange again, and Huabao New Energy was listed on the Growth Enterprise Market. Of course, there are also some new upstarts such as Minbao Optoelectronics.

As the domestic capitalization track heats up, some sellers have begun to turn their attention overseas.

New progress! Giant Star Technology's GDR application has been accepted

Recently, Hangzhou Giant Star Technology Co., Ltd. (hereinafter referred to as "Gigastar Technology") announced that its GDR application has been accepted by the China Securities Regulatory Commission . The China Securities Regulatory Commission reviewed the application materials submitted by the company for the proposed issuance of Global Depository Receipts ("GDR") and listing on the Swiss Stock Exchange, and considered that all the materials were complete, and decided to accept the application for administrative approval.

Giant Star Technology stated that the issuance and listing still needs to be approved, authorized or filed by domestic and foreign competent authorities such as the China Securities Regulatory Commission and the Swiss Stock Exchange. There is uncertainty as to whether it can obtain the above-mentioned approval, authorized or filed and finally implemented.

The global depositary receipts mentioned in the announcement refer to the fact that listed companies can deposit their company shares in foreign banks according to the deposit agreement, and the foreign banks will issue documents as proof of deposit. In other words, it is "overseas listing". In early July this year, Giant Star Technology issued an announcement that it had started the preparation work for the overseas issuance of global depositary receipts and listing on the Swiss or London Stock Exchange, which attracted the attention of many industry insiders at the time.

Judging from the current progress of some of Giant Star Technology’s overseas businesses, its business foundation and preparatory work for planning overseas listings are being further improved.

The current market value of Giant Star Technology is as high as 21.7 billion yuan, and its performance in the first half of this year was even more impressive. Its revenue exceeded 6.2 billion yuan and its net profit exceeded 640 million yuan. More than 90% of its business income came from overseas, including nearly 3.7 billion yuan from the Americas and 1.8 billion yuan from Europe.

In terms of facilities and personnel ratio, Giant Star Technology currently has 10 factories outside China and thousands of foreign employees, and the number of overseas subsidiaries and offices exceeds 35. This provides local resources for it to further open up overseas markets.

As we all know, Giant Star Technology has been developing its main business around the global tool consumption field, and has made breakthroughs in power tool business and non-tool products, such as the field of household energy storage in Europe and the United States. Some of the company's main products, including hand tools and storage cabinets, power tools and laser measuring instruments, are also very popular among consumers overseas.

If Giant Star Technology issues global depositary receipts overseas and is approved for overseas listing, its financing channels will not only be further broadened, but the volume of overseas business orders will also increase.

Energy storage products have made new breakthroughs, and Giant Star Technology has received a large order

In terms of overseas product categories, Giant Star Technology focuses on power tools and non-tool products. In 2021, the company restarted its power tool product line. In the first half of 2022, its power tools and laser measuring instruments increased by more than 145 % year-on-year , accounting for 21.71% of total revenue , successfully creating a new second growth curve for its business.

At the same time, Giant Star Technology's main energy storage product series this year has also made new progress. Not long ago, Giant Star Technology received a purchase order of no less than 20 million US dollars per year, using mobile energy storage and household energy storage products as the purchase target, with a purchase validity period of two years.

It is understood that the purchase order came from a large retail company. Although the specific information of the retail company was not disclosed, Giant Star Technology said that the purchaser is currently ranked among the top 500 in the world and has a long-term business cooperation relationship with it.

Since the beginning of this year, Giant Star Technology has made energy storage tools its main product line for power tools. The mobile energy storage products in this order have been sold continuously since 2021, while household energy storage products are still new products. Giant Star Technology said that they will be put on sale in the purchaser's stores in stages . After the start of sales, the sales of related products will also help the company to further develop its business in the future.

At present, in order to further improve its own production capacity layout, Giant Star Technology also plans to set up a subsidiary to meet the needs of European and American consumers for its household energy storage products and other power tool products, and further enhance its comprehensive competitiveness, with a registered capital of US$15 million . It is reported that the first phase of the production base of this foreign investment has a planned production capacity of 1Gwh household energy storage products and its supporting products , which will be adjusted in the future according to the industry and order volume.

From the purchase order and the establishment of a new company, it can be seen that Giant Star Technology has the intention to "show its strength" in the field of energy storage products. However, it must be admitted that products in the field of energy storage have indeed attracted more and more attention from the market in recent years.

Whether it is household energy storage products, mobile products, or portable energy storage products, their sales and market size are growing rapidly. Data shows that by 2025, the global power storage market alone will reach tens of billions of dollars, the portable energy storage market will reach six billion dollars, and household energy storage products are expected to reach 26.4 billion dollars in 2027.

The huge market space is obviously a business opportunity that Giant Star Technology cannot miss. However, in the overseas market, the company's flagship products are still the winning magic weapon to consolidate its foundation.

Focus on core business and optimize industrial layout

In order to continue to consolidate its product advantages, Giant Star Technology has gradually optimized its production capacity layout. In 2021, Giant Star Technology completed the production capacity layout and optimization of electric vacuum cleaners, resumed product sales in North America, and then resumed the production capacity and orders of power nail guns in the European market.

After restarting the power tool business, the company also received the power tool purchase confirmation from a large retail company for the first time, breaking the ceiling of the power tool business growth. Continuously innovating the power tool product line through online channels has become an important channel for its power tool business. In addition, the major breakthrough in home energy storage products this time is expected to increase its business growth point.

This year, Giant Star Technology continued to develop its own brand and expand its own brand product line. Its cross-border e-commerce business also continued to grow rapidly. Judging from market feedback, its independently developed new products have received good responses. While attaching importance to the construction of its own brand, Giant Star Technology also acquired well-known overseas tool brands to accelerate its global layout.

Currently, it owns brands such as Sheffield, WORKPRO, ARROW, PONY&JORGENSEN, and BeASK. In addition to China, it has production bases in Europe, the United States, and Southeast Asia, which provides the company with an advantage in penetrating into overseas local markets.

The optimization of production capacity layout and new breakthroughs in the main business have increased Giant Star Technology's leading edge in the industry. As Giant Star Technology's preparations for listing overseas have made new progress, its overseas orders and potential customer groups are expected to increase again.

Giant Star Technology

Overseas listing