Tomorrow, Shenzhen's best-selling supplier will be officially listed!

Today is the Mid-Autumn Festival. My friends, happy Mid-Autumn Festival!

Cross-border e-commerce has been in a period of rapid development in recent years. With the support of capital, major brands such as Anker Innovations, Zhiou, and JMET have successfully listed in the past two years. In addition, this year, many overseas brands have announced that they have obtained financing.

Cross-border e-commerce has repeatedly become a "giant", and excellent operating models account for part of it, but the suppliers behind it also contribute greatly. As a supplier of 3C products, Shenzhen Xianying Technology has also achieved good revenue in recent years, and its tortuous road to listing has finally succeeded!

Tomorrow, Shenzhen Xianying Technology will be officially listed on the Growth Enterprise Market

Yien.com learned that the Shenzhen Stock Exchange issued an announcement on September 16, announcing that the RMB common stock of Shenzhen Xianying Technology Co., Ltd. will be listed on the Growth Enterprise Market of the Exchange on September 22, 2021. The stock is referred to as "Xianying Technology" and the stock code is "301067". The total number of the company's RMB common shares is 54,020,000 shares, of which 13,510,000 shares will be listed and traded from the date of listing.

That is to say, tomorrow, Shenzhen Xianying Technology will be successfully listed on the Growth Enterprise Market.

However, this is not the first time that Xianying Technology has attempted to go public. In March 2017, Xianying Technology was listed on the National Equities Exchange and Quotations for public transfer, and in July 2019, it was delisted from the National Equities Exchange and Quotations.

After delisting from the New Third Board, Xianying Technology once again sought an IPO. On July 7, 2020, the Shenzhen Stock Exchange accepted Xianying Technology's IPO. A year later, Xianying Technology was successfully listed.

According to public information, Xianying Technology is a professional ODM supplier of computer, communication and consumer electronics (3C) peripheral products and components, mainly engaged in the research and development, production and sales of signal conversion expansion products. As early as 2015, the company proactively launched Type-C signal conversion expansion products. The completeness, process maturity and product stability of the company's Type-C product series are widely recognized by customers. Major customers include world-renowned 3C peripheral brands Belkin, StarTech.com, Green Link Technology, Cropmark, etc.

According to information, Xianying Technology's products are mainly exported, mainly to North America (the United States, Canada), Europe (Germany, France, Italy, the Netherlands, Switzerland, Sweden, Denmark, Finland, etc.), Asia (South Korea, Japan), etc.

Xianying Technology 's top five new customers in 2018 were Cropmark, in 2019 they were Mojie International and Belkin, and in 2020 they were DJI Innovations. The company has good cooperation with the above customers, no major disputes have occurred, and the orders with the above customers are continuous and sustainable.

Summarizing several major customers of Xianying Technology, we can find that DJI, UGREEN and Belkin are all well-known sellers. It seems that big sellers are awesome, and their suppliers are no less impressive.

Xianying Technology's revenue in 2020 was 530 million, a year-on-year increase of 26%

Xianying Technology disclosed in its prospectus that its operating income in 2020 was 530.5127 million yuan, a year-on-year increase of 26.00%; the net profit attributable to the parent company's shareholders after deducting non-recurring gains and losses was 64.9115 million yuan, a year-on-year increase of 27.82%.

The reasons driving the growth of Xianying Technology's operating income in 2020 are as follows↓

The rapid popularization of Type-C interfaces has led to mismatches between input and output device interfaces, and the demand for interface conversion has grown rapidly;

The trend of thinner and lighter laptops has brought more demands for interface conversion and expansion;

Rapid growth in sales revenue to well-known brand customers such as Mojie International, Belkin and DJI Innovations.

Due to market demand and the rapid development of customers, Xianying Technology's revenue and net profit have both increased. In addition, Xianying Technology also disclosed its performance forecast for the first half of this year. Revenue in the first half of the year is expected to be 228 million to 250 million, with operating income increasing by 5% to 15%, but net profit is expected to decrease by 10%.

Xianying Technology also disclosed the main reasons for the net profit loss:

1. The appreciation of the RMB since the second half of 2020 may lead to a decrease in the gross profit margin of export sales and an increase in exchange losses;

2. The rise in commodity prices since 2021 has led to an overall increase in raw material prices;

3. Since 2021, there has been a shortage of chips, making it difficult to deliver some products in a timely manner.

The rising prices of raw materials and the shortage of chips this year have indeed had a certain impact on many 3C sellers, but this is also an uncontrollable factor, and such risks cannot be avoided...

7.96 million signal converters sold in 2020, with revenue of 250 million

As a supplier of 3C sellers, Xianying Technology 's sales data is also very impressive. The following is the sales data of various products of the company.

According to the data in the prospectus, Xianying Technology's revenue from signal converter products in 2020 was 252 million yuan, with a total of 7.9661 million units sold.

In 2018, 2019 and 2020, the average unit price of Xianying Technology's signal converter products was RMB 29.09/piece, RMB 30.59/piece and RMB 31.75/piece, respectively. The year-on-year increase in unit price was mainly due to the increase in sales share of high-priced Type-C interface signal converters year by year.

In 2020, Xianying Technology's revenue from various digital signal expansion dock products was 193 million yuan, with a total shipment of 1.3367 million units.

In 2018, 2019, and 2020, the unit price of Xianying Technology's digital signal expansion dock products was RMB 155.53/unit , RMB 152.88/unit, and RMB 144.53/unit, respectively. In 2020, the company's digital signal expansion dock products with less than six ports were streamlined in design and cost-cutting optimization, reducing the average unit price from RMB 91.68/unit in 2019 to RMB 78.05/unit, which in turn reduced the unit price of digital signal expansion dock products in 2020 compared with 2019.

In 2020, Xianying Technology's revenue from molds and precision structural parts products was 81.596 million yuan, with a total shipment of 88.0628 million units.

In 2018, 2019, and 2020 , the average unit price of Xianying Technology's molds and precision structural parts products was RMB 0.98/piece, RMB 0.70/piece, and RMB 0.93/piece, respectively. In 2019, as the sales volume of small-volume products such as e-cigarette devices in the company's precision structural parts products increased, the unit price decreased; in 2020, as the sales volume of higher-priced DJI products increased, the unit price of molds and precision structural parts products increased.

R&D investment increases year by year, Xianying Technology insists on technological innovation

In recent years, branding has become a major trend. Most companies are increasing their investment in research and development, and the country is also introducing corresponding policies to encourage companies to increase research and development.

According to the data in the prospectus, Xianying Technology 's R&D investment in 2018, 2019 and 2020 was RMB 14.6806 million, RMB 18.3941 million and RMB 19.9619 million, respectively, maintaining a rapid growth momentum; as of December 31, 2020, the company has obtained 121 authorized patents, including 4 invention patents and 63 utility models.

Xianying Technology said: "Signal conversion and expansion products are peripheral products of 3C electronic products. The 3C electronic products industry has the characteristics of fast technology and product update cycles. The company needs to continue to develop new technologies and new products. The company insists on technological innovation and continues to invest in research and development to ensure the company's continuous development."

According to the prospectus data, as of December 31, 2020, Xianying Technology had a total of 100 R&D personnel, accounting for 10.32% of the company's total number of employees.

In fact, in addition to Xianying Technology, big sellers such as Anker Innovations and Levo have also always emphasized the importance of R&D, hoping that small and medium-sized sellers can learn from the success of big sellers and gain overseas experience.

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