Another big sale successfully passed the review!

Affected by the epidemic, people have become more aware of the importance of health, and a fitness craze has swept the world. The global leisure sports and fitness equipment market has also ushered in huge development opportunities.

Especially in Europe and the United States, where fitness culture is prevalent, with the substantial increase in the number of people doing fitness, the market demand for fitness equipment has also increased. Some domestic sellers in this field have experienced rapid development, and some companies have started the IPO road.

With revenue of nearly 700 million yuan in half a year, the "Trampoline King" successfully passed the review!

Recently, the review results of the 81st meeting of the 18th Issuance and Examination Committee of the China Securities Regulatory Commission in 2022 showed that Qingdao Sanboshuo Health Technology Co., Ltd. (initial public offering) was approved and will soon be listed on the Shenzhen Stock Exchange Main Board.

Sanboshuo is an enterprise focusing on the research and development, design, production and sales of sports and fitness products. Its main products include two categories: leisure sports equipment and fitness equipment. Leisure sports equipment mainly includes various types of trampolines , and fitness equipment includes treadmills, elliptical machines, exercise bikes, comprehensive training machines and barbell racks .

Among them, trampolines account for half of Sanbo Shuo's main business , and Sanbo Shuo is therefore known as the "King of Trampolines" in the industry. From January to June 2021, Sanbo Shuo sold a total of 704,900 trampolines, with sales of 413 million yuan, accounting for 58.95% of its main business revenue .

In addition, the sales volume of fitness equipment reached 662,200 units in the first half of 2021, but because its average unit price was less than half of that of trampoline products, fitness equipment achieved sales revenue of 159 million yuan in the first half of 2021, accounting for 22.63% of the main business revenue.

Other sports equipment , accessories and spare parts and other products accounted for 8.83% and 9.60% of the main business income respectively .

Sanboshuo can be regarded as a solid foreign trade enterprise, and its products are mainly sold to North America, Europe and other places. From 2019 to the first half of 2021, its overseas sales accounted for 95.38%, 96.24% and 96.24% respectively, showing an increasing trend year by year.

In terms of sales, Sanboshuo adopts the ODM/OEM model to produce leisure sports and fitness equipment products for brands such as Decathlon and Aikon. From 2019 to the first half of 2021, Sanboshuo's ODM/OEM business sales revenue was 567 million yuan , 579 million yuan and 460 million yuan , respectively, accounting for 99.21%, 61.01% and 65.59% of the main business revenue, respectively.

In addition, Sanboshuo also promotes the sales of its own brand products through cross-border e-commerce platforms such as Amazon and Walmart. Among them, SKYWALKER, a trampoline brand under Sanboshuo, has many products on the Amazon leisure trampoline best-selling product list, and the feedback from consumers is also very good.

In the prospectus, Sanbo Shuo revealed that its top five customers are Decathlon, Walmart, Amazon, iKang and Dutch Toys. In the first half of 2021, Sanbo Shuo's sales to the above customers were 275 million yuan, 138 million yuan, 49.69 million yuan, 42.73 million yuan and 41.93 million yuan, respectively.

Sanboshuo also attaches great importance to product R&D investment, and upgrades and iterates its products in line with the changing trends of consumer demand. In the first half of 2021, Sanboshuo invested 16.56 million yuan in R&D expenses, accounting for 2.35% of its operating income. In recent years, the proportion of R&D expenses to operating income has remained above 2%.

Thanks to the prospects of the industry and stable cooperative customers, Sanboshuo's operating income has also achieved rapid growth in recent years. From January to September 2021, Sanboshuo's operating income was 997 million yuan , a year-on-year increase of 47.98%, and its net profit after deducting non-recurring gains and losses was 119 million yuan , a year-on-year increase of 17.13% .

Sanboshuo said that the rapid growth in revenue was mainly due to the significant increase in market demand for products , while the growth rate of net profit was lower than the growth rate of operating income, mainly because factors such as rising raw material prices in 2021 reduced profit margins.

Based on the company's operating conditions, Sanboshuo expects to achieve operating income of 1.15 billion to 1.3 billion yuan and a net profit of 140 million to 150 million yuan in 2021. The specific revenue data has not yet been announced.

The industry outlook is positive, and it plans to invest 1.063 billion yuan to expand production

The rapid development of Sanboshuo is closely related to the good market prospects of the sports and fitness industry it is in. With the development of the global economy and the improvement of national fitness awareness, the demand for leisure sports equipment and sports and fitness equipment is constantly increasing.

Data compiled and released by the Forward-looking Industry Research Institute show that the global training and fitness equipment market size showed an overall upward trend from 2016 to 2018. It is estimated that by 2025, the global training and fitness equipment market size will reach US$14.8 billion, an increase of 45.10% over 2016.

The global market demand for trampoline products, which Sanboshuo specializes in, is also increasing. According to a report released by QYResearch, the global trampoline market is expected to grow to US$546 million by 2025, a 36.01% increase from 2020.

As market demand grows steadily, Sanboshuo's order volume is also increasing. From 2019 to the first half of 2021, Sanboshuo's capacity utilization rate was 114.16%, 161.28% and 149.81% respectively, and its capacity was oversaturated.

San Boshuo revealed that the company's production capacity has been in short supply, and the existing production capacity can no longer meet the order volume demand. The part exceeding its own production capacity needs to be produced by outsourced manufacturers . The current insufficient production capacity has become an important factor restricting the company's further development.

Faced with this situation, Sanboshuo stated that it plans to invest 1.063 billion yuan to maintain the company's subsequent development . The funds raised from this issuance will be invested in five major projects: "automation upgrade and construction of trampoline production lines", "leisure sports and health equipment production base", "marketing network and brand promotion construction", "R&D center", and "supplementary working capital".

After the completion and production of the trampoline production line and the health care equipment production base, the two major projects can significantly improve Sanboshuo's product capacity and production quality and efficiency, meet the incremental demand of the sports equipment market, and improve profitability; the construction of the R&D center project will help Sanboshuo accelerate the research and development of new products.

With the help of marketing network and brand promotion construction projects, the company can better shape its brand image and enhance its market influence. Overall, Sanboshuo's fundraising and investment projects can enhance the company's comprehensive competitiveness and lay the foundation for future business development.

However, in its current development, Sanboshuo is still facing a series of risk factors, such as over-reliance on foreign sales, high customer concentration, promotion of its own brands, exchange rate fluctuations, and international trade frictions. If the laws and regulations of overseas markets and trade policies change in the future, or international trade frictions escalate, it will have a certain negative impact on Sanboshuo's operations.

To maintain long-term sound development, Sanboshuo still needs to solve the above problems and potential risks. Sanboshuo also stated that in the future, it will expand and extend its main business, improve its product system, enhance the company's core competitiveness, follow market development trends, and strive to become a world-renowned provider of leisure fitness and health care service solutions.

Big Sell

After a meeting

IPO