Products are on Amazon's BS list, and best-selling suppliers are producing hot products frequently!

Benefiting from the new US tariff exemption policy, the cross-border e-commerce sector continued to rise. Last week, many cross-border big sellers hit their daily limit. Shenzhen big seller Weike Technology was no exception. Its air purifiers and other Amazon best-sellers were also on the exemption list.

Continue to create Amazon hits? Weike Technology is awesome

In the new exemption policy recently announced by the United States, air purifiers, water purifiers and small appliances under Weike Technology are among them. Under the exemption of tariffs on some US goods, the burden on US importers is reduced, and more goods will be imported, which will have a certain positive impact on the company's new customers and new product development. However, earlier, the company's precision injection molds, injection molded products, air purifiers and other products exported to the United States were subject to a 25% tariff.

It is understood that the "levoit" air purifiers developed by Weike Technology and Chenbei Group through ODM production have become popular products sold on websites such as Amazon. Currently, many air purifiers have become popular products on websites such as Amazon, and many products have won awards such as the "China Design Red Star Award".

As a local Xiamen enterprise founded in 2005, Weike Technology is mainly engaged in the research and development, design, manufacturing and sales of precision injection molds, injection molded parts and health products. The company's downstream health products, including air purifiers, instant water dispensers and glass cleaners, are organized through a combination of ODM and OEM, and then sold to Europe, the United States and other regions.

The performance forecast recently released by Weike Technology shows that, based on the current orders and expected orders, it is expected to achieve operating income of 1.09 billion yuan to 1.245 billion yuan from January to December 2021, a change of 19.70% to 36.72% over the same period last year , and achieve net profit attributable to parent company shareholders of 191 million yuan to 218 million yuan, a change of 18.93% to 35.69% over the same period last year.

With years of accumulated product experience and customer resources, Weike Technology's performance has also achieved steady growth. According to earlier financial report data, from 2018 to the first half of 2021, the company's main business income was 635 million yuan, 690 million yuan, 893 million yuan and 588 million yuan , accounting for 98.97%, 98.61%, 98.04% and 98.67% of operating income respectively .

Looking at the products in detail, from January to June 2021, the company's injection molded parts accounted for the largest revenue, accounting for 53.73%, reaching 316 million yuan ; followed by health products accounting for 30.31%, reaching 178 million yuan; precision injection molds accounted for the lowest proportion of 15.96%, reaching 93.8695 million yuan.

In addition, during the epidemic, the epidemic situation abroad was severe and the demand for antibacterial and antivirus products increased sharply. Weike Technology kept up with market demand and developed two air purifiers with UV-C (ultraviolet) sterilization lamps, which were very popular among overseas consumers.

In addition, the company has also established production bases in Xiamen, Shanghai, Tianjin and other places, as well as factories in Germany. Combined with its innovative R&D capabilities, it focuses on the field of healthy home appliances and adopts a "follow-up strategy", that is, after the market hits the product, it quickly upgrades and iterates, while solving the pain points of existing products, relying on the advantages of industrial chain integration to quickly implement and enhance its ability to continue to create hit products.

Continuously expand product lines! Suppliers’ “role switching”

The fact that its products cover multiple fields is the "trump card" of Weike Technology , and the broad sales market is also one of the key points for Weike Technology.

The prospectus shows that from 2018 to the first half of 2021, Weike Technology's overseas sales revenue was RMB 340,047,200, RMB 371,771,100, RMB 559,086,100 and RMB 394,068,500, respectively, accounting for 53.57%, 53.91%, 62.63% and 67.00% of its main business revenue, respectively. Countries and regions such as Germany, the Czech Republic, Spain, Denmark in Europe, Hong Kong, China, Macau, China in Asia , and the United States in North America are the main export destinations for Weike Technology's products.

At the same time, Weike Technology pointed out in its prospectus that, except for the additional tariffs imposed by the United States on my country's imported products, other major exporting countries and regions do not have trade protection policies such as setting up trade barriers, increasing tariffs, or conducting anti-dumping and anti-subsidy investigations. The lifting of tariffs on some US goods is undoubtedly beneficial to Weike Technology, providing more possibilities for the sale of its products in overseas markets.

Today, the precision injection molds and injection molded parts of Weike Technology are used in many fields, including automobiles, electronics, home furnishings, and medical treatments, and have entered the world's top customer supplier system. In the automotive field, Weike Technology's main customers include Alfmeier Group and Dr. Schneider Group ; in the electronics field, the company's main customers include CommScope Group, Inqu Technology, and Fudiwei Group ; in the home furnishing field, the company's main customers include IKEA Group, Feng Group, and Velux Group .

In terms of R&D and innovation, Weike Technology is also not to be outdone. As a national high-tech enterprise, Weike Technology has continuously increased its technology R&D over the years to improve its technical equipment and scientific research conditions.

From 2018 to the first half of 2021, the company's R&D expenses reached RMB 25.9013 million, RMB 33.8223 million, RMB 32.6081 million and RMB 19.9655 million, respectively, accounting for 4.04%, 4.84%, 3.58% and 3.35% of operating income, with a high and stable overall investment level. It has a total of 338 authorized patents, 20 of which are invention patents. In addition, Weike Technology has mastered the core key technologies of precision injection mold design, manufacturing and injection molding.

In 2019, Weike Technology increased its investment in R&D expenses. According to the prospectus data, its R&D expense rate is higher than that of other comparable companies in the same industry. Weike Technology stated that technological innovation is the company's main advantage in gaining a foothold in the market. Even in the future, the company will continue to increase its investment in R&D innovation and keep this data at a high level.

In terms of expanding its product line, Weike Technology has never stopped. After years of exploration, Weike Technology has successfully extended its business to injection molding parts and health products, leveraging the synergy between various businesses to meet the multi-faceted needs of customers. According to relevant reports, Weike Technology has currently developed medical products such as medical laryngeal masks, medical oxygen masks, and medical breathing balls, and there is great room for future development.

In early March, when an investor asked "whether the company's future development includes the elderly health industry", Weike Technology mentioned in its reply that the company's products designed for the elderly include hearing aids, bed drivers, oxygen masks, laryngeal masks, breathing balls, etc., and also stated that it will continue to innovate and expand its product line in the future.

Speaking of the future, Zhuang Huiyang, chairman of Weike Technology, once said that Weike Technology will continue to leverage the synergy among its multiple businesses, strive towards the direction of high-value, high-quality products, and become a provider of popular fashionable and healthy home appliances.

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