Dominating BSR, Amazon's big seller passed IPO registration!

With climate change and social and economic development, the global energy consumption structure is also changing. Consumers' demand for green portable electricity is increasing, and the portable energy storage industry is gradually emerging.

With the promising development prospects of the industry, Huabao New Energy has experienced rapid development in recent years, with revenue reaching 2.315 billion yuan in 2021. Recently, Huabao New Energy has received good news again.

Huabao New Energy's GEM IPO registration takes effect

On July 27, the China Securities Regulatory Commission issued an announcement stating that it had received the review opinion and registration application documents submitted by the Shenzhen Stock Exchange regarding Huabao New Energy's initial public offering and listing on the Growth Enterprise Market.

According to relevant regulations , after reviewing the Shenzhen Stock Exchange's review opinion and Huabao New Energy's registration application documents, the China Securities Regulatory Commission approved Huabao New Energy's registration application for the initial public offering of shares. Currently, Huabao New Energy's review status on the Shenzhen Stock Exchange's Growth Enterprise Market has been changed to registration effective.

As a well-known energy storage company in the cross-border circle, Huabao New Energy is committed to the research, development, production and sales of lithium battery energy storage products and their supporting products. Its main products include portable energy storage products, power banks, solar panels and related accessories.

Huabao New Energy's products are sold both at home and abroad, but its main business income mainly comes from overseas. From 2019 to 2021, Huabao New Energy's overseas sales accounted for 87.27%, 90.09% and 92.55% respectively. Overseas customers mainly come from economically developed countries and regions such as the United States, Japan, Canada, Europe, and Australia.

In terms of sales model, Huabao New Energy is actively developing diversified sales channels for its own brands. Its online channels have fully covered Amazon, Rakuten Japan, Yahoo Japan, Tmall, JD.com and other mainstream online sales platforms in the United States, Japan and China.

Amazon is still one of Huabao New Energy's main sales channels. From 2019 to 2021, the Amazon platform accounted for 55.62%, 54.75% and 51.81% of its main business revenue respectively.

On the Amazon platform, Huabao New Energy's self-owned brand "Jackery" created for overseas consumers has already gained a high market reputation, and even many of its products have dominated the Amazon Best Sellers list.

For example, in the Outdoor Generators list, there are four "Jackery" products in the top 12 , and two of them occupy the first and second places on the list with more than 10,000 reviews and high scores.

In terms of brand building, Huabao New Energy attaches great importance to independent brand building and marketing promotion. Data shows that Huabao New Energy's marketing expenses continue to grow rapidly, with an average annual compound growth rate of 221.09% in the past three years.

Based on continuous investment in marketing and promotion , the popularity and influence of Huabao New Energy's two independent brands "Jackery" and "Dian Xiaoer" continue to increase, which also drives the rapid growth of the company's portable energy storage product sales.

Under this circumstance, Huabao New Energy's revenue performance in recent years has also been very good. In 2021, Huabao New Energy achieved operating income of 2.315 billion yuan, an increase of 116.38% over the same period last year; net profit was 279 million yuan, an increase of 19.46% over the same period last year.

In the first quarter of 2022, Huabao New Energy achieved operating income of 612 million yuan, an increase of 52.08% compared with the same period last year; net profit was 73.36 million yuan, a slight decrease compared with the same period last year.

Huabao New Energy said that the decline in net profit in the first quarter was mainly due to the combined impact of the company's decline in overall gross profit margin due to increases in material costs, manufacturing and processing expenses, and transportation costs, as well as increased asset impairment losses.

The main business revenue increased by 56.36% year-on-year, mainly due to the growth in sales of portable energy storage products and solar panels.

Thanks to the continuous iteration and upgrading of portable energy storage products and the significant growth in revenue in the European market, Huabao New Energy's sales revenue of portable energy storage products in the first quarter increased by 42.21% year-on-year to 458 million yuan, accounting for 74.93% of its main business revenue.

The revenue from solar panels was 143 million yuan , a year-on-year increase of 119.85%, accounting for 23.34% of the main business income . The main reason for the sharp increase in solar panel revenue is the continuous improvement in customer penetration. In the first quarter of 2022, a total of 103,900 solar panels were sold, with a sales increase of 143.48%.

It can be said that the rapid development of Huabao New Energy in recent years is inseparable from the development prospects of the energy storage industry in which it is located, in addition to the correct business strategy. Huabao New Energy is also increasing the research and development and production of portable energy storage products.

Plans to raise 676 million yuan to expand the production scale of energy storage products

In the prospectus, Huabao New Energy revealed that it plans to raise 676 million yuan in its initial public offering. After deducting issuance expenses, the funds will be mainly used for four projects: "expansion of portable energy storage products", "construction of a research and development center", "construction of a brand data center", and "supplementation of working capital".

Although the portable energy storage industry is still in its early stages of development , with the vigorous development of a new round of scientific and technological revolution and industrial transformation, the energy consumption structure is undergoing profound changes, the demand for the portable energy storage market is also increasing, and the industry has good development prospects.

Data from the China Chemical and Physical Power Sources Industry Association shows that the global portable energy storage industry's market size has an average annual compound growth rate of 190.28%, and the market size is expected to reach 88.23 billion yuan in 2026.

Huabao New Energy said it hopes to solve the capacity problem by raising funds to build a portable energy storage product expansion project, so as to provide the market with more specifications of portable energy storage products with more stable quality and more advanced technology.

In addition, Huabao New Energy is actively developing new home energy storage businesses. It will use the raised funds to set up a new R&D team to develop new products with larger capacity and power for the application scenario of home life, so as to open up the home energy storage market and expand the company's product line and business scope.

According to the original plan, the funds raised this time are mainly used for the construction of a brand data center, which shows that Huabao New Energy attaches great importance to brand building . The brand data center project can greatly improve the information level of Huabao New Energy's business, provide data support for the company's decision-making, and further enhance the company's brand awareness and market share.

At present, the portable energy storage industry at home and abroad is in a stage of rapid development, and the effectiveness of the GEM IPO registration has ushered in a new stage of development for Huabao New Energy.

When talking about future development plans, Huabao New Energy said that it will accelerate the integration of green energy into the lives of people around the world by starting from product expansion, product upgrades and technology research and development, digital information technology upgrades, market expansion and the introduction of talents.

In addition, the expansion of production, research and development, brand building and replenishment of working capital through fundraising and investment projects will help Huabao New Energy further expand its production scale, develop diversified sales channels and accelerate the progress of its global brand strategy.

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