Another happy event? A big seller signs a multi-million dollar deal!

As a leading seller in the cross-border e-commerce industry, Giant Star Technology's recent performance has been outstanding. First, its annual revenue exceeded the 10 billion yuan mark for the first time, and then it signed a 40 million US dollar procurement agreement. Its development prospects are very bright.

Giant Star Technology wins $40 million order

Recently, Giant Star Technology announced that it has signed a supplier procurement agreement with a large retail company in the United States . The estimated procurement amount is no less than US$40 million per year, and the agreement is valid for five years.

Giant Star Technology stated that it expects the sales amount involved in this purchase agreement in 2022 to not exceed US$50 million, which is less than 3.5% of the company's audited operating income in 2021 and will have little impact on the company's performance in 2022.

In view of the confidentiality agreement between the two parties and the specific content involving commercial secrets, the name of the counterparty of this order and the detailed amount have not been disclosed. However, the announcement shows that the counterparty is mainly engaged in retail business, is a company ranked high among the Fortune 500, and has maintained a long-term business cooperation relationship with Giant Star Technology, ranking among the top five customers of Giant Star Technology .

Giant Star Technology has always focused on hand tool products. In 2021, its hand tool business sales revenue was 6.553 billion yuan, a year-on-year increase of 14.52%. In addition, Giant Star Technology's main businesses also include power tools, laser measuring instruments , and storage cabinet businesses, all of which achieved rapid growth in 2021.

The counterparty of this transaction purchased non-tool household products , which is an important business breakthrough for Giant Star Technology. It is reported that Giant Star Technology has started preliminary sales of such products in 2021 and achieved good results. The two parties signed a purchase agreement to continue to strengthen cooperation .

The non-tool household products business is a consumer product . Giant Star Technology revealed that the sales of its products may be affected by various factors such as laws and regulations, macroeconomic environment, exchange rate , industry development, market competition, etc., and there is a certain degree of uncertainty . However, Giant Star Technology has the corresponding technical strength and mass production capacity for non-tool household products, and there is no risk of performance.

Giant Star Technology stated that it will continue to expand its non-tool consumer products business in the future , leverage the company's global sales channels and supply chains, and continue to work hard on product innovation . The non-tool consumer products business is expected to become a new important growth point for the company.

Through the expansion of new business areas , Giant Star Technology's product lineup is constantly enriching. In its annual report released earlier, Giant Star Technology also stated that it will continue to increase investment in the research and development of new products in the future, especially non-hand tool products will become the focus of research and development. In 2021, Giant Star Technology's R&D investment amounted to 310 million, an increase of 26.24% over the same period last year, and it is expected that the amount of R&D investment will continue to grow in the future.

Continuous research and development of new products and expansion of product categories is a major reason why Giant Star Technology maintains its competitive advantage in the industry, and can also ensure the stable growth of the company's business.

Analysis of Giant Star Technology's Core Competitiveness

In today's society, whether a company is engaged in domestic or cross-border business, it is generally difficult to achieve long-term development without outstanding competitive advantages. As for Giant Star Technology, its core competitiveness is mainly reflected in the following aspects.

Brand Advantages

Brand is the most effective guarantee for a company to provide products and services to consumers in the long term . Giant Star Technology has been committed to building and developing its own brand.

Giant Technology has successively acquired professional-grade power fastening tool brand BeA and high-end auto repair tool brand SK ; at the same time, its own brands, especially e-commerce brands, are also growing continuously . The sales revenue of brands such as WORKPRO, PONY JORGENSE, DURATECH, and SWISSTECH has increased significantly year-on-year. In 2021 , the sales revenue of its own brands reached 3.8 billion yuan for the first time .

Innovation Advantages

Innovation is the soul of corporate development. During the reporting period, Giant Star Technology invested RMB 310 million in R&D , designed 1,838 new products, and applied for and obtained more than 300 patents. It has innovatively developed a variety of products including multi-functional pipe cutters, reversible 216-tooth ratchet wrenches , and dual-speed extrusion guns, and has received good market feedback .

Channel Advantages

Stable sales channels and customer trust are the guarantee for the continuous development of the enterprise . Giant Star Technology is one of the largest tool and locker suppliers for many large supermarket chains such as Home Depot , Walmart , LOWES in the United States , Kingfisher in Europe , and CTC in Canada .

At the same time, Giant Star Technology is also promoting cross-border e-commerce sales channels. As an effective supplement to traditional sales , this channel not only opens up a new market, but also better exerts its innovation advantages, forming a positive cycle of product development -online verification-secondary development-offline hits.

In addition to brand, innovation and channel advantages, after decades of development, Giant Star Technology has established a global supply chain management system with China as the core, which also provides it with a sufficiently strong supply chain advantage. In addition, Giant Star's global manufacturing division of labor and bureaus has given it international advantages and production capacity flexibility.

Tool and Storage Box Industry Outlook

In North America and Europe, there are many independent buildings and the per capita area is large, which makes the repair and maintenance costly and time-consuming. Coupled with the relatively high labor costs, local residents are more willing to carry out the repair and maintenance of houses and their outbuildings by themselves, thus giving rise to the famous European and American DIY culture.

At the same time, due to the high car penetration rate in Europe and the United States, daily car repair and maintenance is also an important part of their DIY culture. As a necessity for repair and maintenance, various tool products are in great demand in the North American and European markets. Therefore, North America and Europe have become the most important and largest markets in the global tool industry.

Between 2015 and 2019, the global tool market grew steadily , reaching a size of more than $80 billion. Since the outbreak of the coronavirus at the end of 2019 , the economies of Europe and North America have declined, and the global tool market has also experienced a brief fluctuation . After that , the economies of Europe and North America gradually rebounded, and the local construction industry ushered in a significant growth in 2021 .

Benefiting from the growth of the construction industry, the global tool market industry demand was very strong in 2021, with the growth rate reaching a record high in nearly a decade and the scale exceeding US$90 billion for the first time. According to the Frost & Sullivan report , driven by the continued urbanization of emerging economies and the economic recovery of developed countries, the global tool market is expected to maintain an annual growth rate of about 5% in the next five years .

With the promising industry development prospects and the strong demand in the global tool market, Giant Star Technology has received non-tool orders of no less than 40 million US dollars per year. This is a huge breakthrough and a new development opportunity for Giant Star Technology. Its product layout may be more extensive in the future.

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Giant Star Technology