With a net profit of over 200 million in the third quarter, the hidden champion has become popular!

Under the multiple influences of the epidemic and the trade war, some cross-border enterprises have fallen into the situation of losses and bankruptcy, but as the saying goes, "the true colors are left after the lead fades away, and the gold is revealed after the great waves wash away the sand." After experiencing the trade war, there are still many companies like Qisheng Technology that stand out with their solid foundation. During this year's Beijing Winter Olympics, when popular products emerged one after another, a product under Qisheng Technology also became popular on domestic and foreign social networking sites due to the unintentional display of athletes.

With a net profit of 251 million in the third quarter , Qisheng Technology has become popular

Many people may not have heard of Qisheng Technology, but it is actually a typical hidden champion company. Its annual production of smart beds reaches 2 million, and its global sales exceed 8 million , accounting for nearly one-third of the smart bed market in the United States. Today, Qisheng Technology has become the world's largest smart bed manufacturer.

During the Winter Olympics, in addition to the mascots Bing Dwen Dwen and Shue Rhon Rhon, Qisheng Technology 's Winter Olympics-specific smart bed also became popular. With its intelligent and automated features, the smart bed has captured the love of a large number of consumers and has been reported by more than 100 domestic and foreign media, with more than 100 million exposures. Its related topics have dominated the hot search lists of multiple social platforms. At the same time, the sales of Qisheng Technology's smart bed products also reached a peak, with its online order sales increasing by 800% year-on-year .

Before the Winter Olympics, Qisheng Technology's performance was also very impressive. According to the data for the first three quarters of 2021, its operating income was 2.178 billion yuan, of which the net profit attributable to shareholders of listed companies was 251 million yuan . Compared with the same period last year, its revenue and net profit increased by more than 30%.

Founded in 2005, Qisheng Technology is one of the largest suppliers of smart electric beds in China. It is mainly engaged in the research and development, design, production and sales of smart electric beds and their supporting products . In addition to being sold through platforms such as Amazon and OVERSTOCK, its products are also sold to more than 50 countries around the world through OEM . It has established long-term and stable ODM model cooperation relationships with brands such as Serta Simmons and Tempur Sealy. At the same time, its products retain their own brand trademarks and logos such as "Powered by Ergomotion".

It is understood that Qisheng Technology's revenue mainly comes from overseas markets. The financial report shows that in 2019, 2020 and January-June 2021, the company's overseas main business revenue was 2.373 billion yuan, 2.078 billion yuan and 1.226 billion yuan, respectively, accounting for 96.07%, 94.69% and 95.73% of the main business revenue in the same period. Smart electric beds are the company's main business, accounting for 86% of total operating income in the first half of 2021.

As the company has maintained a cooperative relationship with major customers such as Serta Simmons and Tempur Sealy for more than 10 years and has signed long-term supply agreements, the cooperative relationship is relatively stable. Driven by the success of becoming a major supplier of Tempur Sealy and the increase in purchases from Serta Simmons, the company's operating income has rapidly increased from 295 million yuan in 2017 to 900 million yuan in 2018 , a significant year-on-year increase of 72%. The company's performance has achieved rapid development.

The three driving forces of Qisheng Technology: technology, cooperation, and market

Overall, the success of Qisheng Technology's smart bed is inseparable from three major driving forces: technology research and development, cooperation, and control of market demand .

Qisheng Technology has been planning to innovate and achieve breakthroughs in technology 17 years ago. In 2005, Qisheng Technology's main model was to sell smart electric beds overseas through the ODM model. It was also from this year that Qisheng Technology continued to increase its investment in talent and funds to achieve higher technological breakthroughs.

Maintaining an annual 5% R&D investment and continuously expanding the development of smart bed research and application fields is one of the actions that Qisheng Technology has insisted on for many years. According to relevant data, Qisheng Technology currently has 3 independent R&D teams in China and the United States , and 21 cooperative R&D teams around the world.

It is precisely because of the huge investment in R&D that the company's products have achieved corresponding results in the field of smart beds . There are more than 125 invention patents , and nearly 750 patents in this field, ranking first in the world. In addition, Qisheng Technology pays great attention to "intelligence" and has currently collected more than 14 million human body data to improve intelligence and comfort.

Today, Qisheng Technology has truly realized the three major "digitalizations" of digital manufacturing, digital products and digital services , and each technological achievement is the key to Qisheng Technology's continued provision of products to consumers.

In addition to achieving "digitalization", adjusting products according to market demand is also something that Qisheng Technology attaches great importance to.

The Shufude smart bed on the market can provide consumers with comfortable sleep and solve sleep pain points . The target group is the younger generation or office workers who are troubled by work and life. A series of digital functions including one-click sleep aid, one-click relaxation, movie watching, reading, etc. can meet consumers' multiple needs for stress relief, relaxation and entertainment.

Smart beds with a "sense of technology" are indeed attractive to young consumers. The addition of this group of customers has also increased the penetration rate of smart beds, and the age group of people accepting them is also gradually increasing.

If controlling market demand and focusing on technological innovation are the manifestations of Qisheng Technology's "internal improvement", then cooperating with major customers is the top priority on Qisheng Technology's road to "external development".

At present, a few relatively developed countries and regions such as Europe and the United States are the main target markets for smart beds. In North America, only two giants , Serta Simmons ( SSB) and Tempur Sealy ( TSI) , have occupied 70% of the market. It is precisely based on this that Qisheng Technology regards large customers as its main sales target.

It is reported that Qisheng Technology has reached long-term cooperation with many well-known brands such as Serta, Sealy, Simmons , etc. When choosing a partner, Qisheng Technology pays the most attention to the other party's "comprehensive strength", including R&D capabilities, production technology, supply chain and cost , etc.

Qisheng Technology cooperates with giants, but it does not rely on them unilaterally. The cooperation model between the two parties is mutual dependence. Since Qisheng Technology has always attached great importance to product research and development and innovation, and has made efforts in this regard, it definitely has certain core competitiveness. Among them, the company's smart electric beds created an excellent data of nearly 1.1 million beds in 2020.

Qisheng Technology is a representative company in the industry and still has unlimited potential in the future. According to relevant data, the market size of China's sleep industry in 2020 is more than 400 billion yuan, and this figure may reach 1 trillion yuan by 2030. In other words, in the next decade or so, this market segment still has huge potential, and manufacturers with the same technical strength as Qisheng Technology will also usher in new development opportunities.

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