Going public against the trend, Shenzhen Amazon Energy Storage sells well and its A-share IPO is accepted!

Amazon’s iron-blooded ban on accounts over the past few months has caused unrest in the entire industry. Many people say that this will affect investors’ confidence in cross-border e-commerce.

The sellers' concerns are not without reason, because at the same time as the news of the account suspension came, news such as investors withdrawing their investments, the company going bankrupt, and the IPO plan failing to materialize had already followed.

Now, the news that a big-selling IPO has been accepted has undoubtedly injected a ray of sunshine into the haze that has lasted for months. At the same time, it also gives cross-border people a little more confidence in the future.

Huabao New Energy's IPO was accepted, with a net profit of nearly 100 million yuan in the first quarter

Recently, the editor learned that the A-share IPO application of Shenzhen Huabao New Energy Co., Ltd. (hereinafter referred to as: Huabao New Energy) has been accepted by the Shenzhen Stock Exchange.

Speaking of Huabao New Energy, many sellers may be unfamiliar with it. But if you mention Amazon's well-known energy storage brand "Jackrey", I believe you have heard of it to some extent. Jackrey is one of the brands under Huabao New Energy.

Huabao New Energy was established in 2011, listed on the New Third Board in 2017, and then terminated its listing in 2019. From its establishment to the acceptance of its A-share IPO application, Huabao New Energy has spent ten years sharpening its sword.

Qichacha data shows that in 2014, Huabao New Energy's revenue was only 135 million yuan and its net profit was only 5.4624 million yuan, but by 2020, its revenue reached 1.07 billion yuan and its net profit soared to 203 million yuan.

Not only that, even though the growth rate of major sales performance has slowed down this year compared with last year, Huabao New Energy's performance is still very encouraging.

The prospectus shows that in January-March 2021, Huabao New Energy's operating income was 402.518 million yuan , a year-on-year increase of 252.97% from January-March 2020, and the net profit attributable to the parent company's owners was 82.2574 million yuan, a year-on-year increase of 451.10% from January-March 2020. The net profit attributable to the parent company's owners after deducting non-recurring gains and losses was 81.7518 million yuan, a year-on-year increase of 470.70% from January-March 2020.

It is reported that when Huabao New Energy was first established, it mainly engaged in the international ODM business of power banks . In 2015, it began to develop lithium battery portable energy storage products with greater technical difficulty and higher added value. Currently, it has two major independent brands: "Jackery" (for overseas markets) and "Dianxiaoer" (for domestic markets).

Although Huabao New Energy sells its products both at home and abroad, overseas sales revenue is still the main source of its operating income and profits. The prospectus shows that during the reporting period of 2018-2020, Huabao New Energy's overseas sales accounted for 91.53%, 87.27% and 90.09% of its main business income respectively.

Amazon is the leader, and multiple platforms are combined

Although Huabao New Energy adopts an online + offline sales model, online sales have become its main sales channel. The prospectus shows that during the reporting period of 2018-2020, the company's sales revenue achieved through third-party platforms increased year by year, accounting for 35.04%, 67.83% and 75.99% of the main business revenue respectively .

Like many big sellers, Amazon is also Huabao New Energy's largest online sales platform. In addition, the sales revenue from the Amazon platform has shown a year-on-year growth trend during the reporting period, accounting for 54.75% of the main business revenue in 2020.

In 2020, Huabao New Energy's portable energy storage products were consecutively selected as the best-selling products (Best Seller) and Amazon's Choice on the Amazon platform .

Through Amazon search, the editor found that the products of Jackery, a portable energy storage brand of Huabao New Energy , are very popular. A product ranked first in the outdoor generator category has accumulated 8,481 reviews and an average star rating of 4.8.

A seller from the United States commented: " I used it on a camping trip . It is very light and easy to carry . I highly recommend this product for camping or as an emergency backup power supply in case of a power outage at home . "

Not only that, among the top ten Best Sellers in the above categories , Jackery’s products account for 4.

It is worth noting that in addition to Amazon, Huabao New Energy has also established presence on online platforms such as Rakuten Japan and Yahoo Japan. In addition, it also attaches great importance to the development of brand official websites ( independent websites ) . The prospectus shows that Huabao New Energy has successfully opened and operated brand official websites in the United States and Japan , and will gradually achieve a global layout in the future. In 2020, its brand official websites in the United States and Japan began to accept orders independently. In 2020, the sales revenue of brand official websites accounted for 7.53% of the main business revenue, becoming a new growth point in its B2C business.

Like most big sellers, Huabao New Energy's main market is also in the United States. During the reporting period, the main business income in the US market accounted for 43.22%, 45.69% and 42.62% respectively . At the same time, its products are also exported to many countries around the world, including Japan, the United Kingdom, Germany, and Canada.

The market size is 11 billion US dollars, and the prospects for portable energy storage products are promising

Huabao New Energy clearly pointed out in its prospectus that due to the change in its product structure from mainly selling power banks to selling portable energy storage products, the unit price of its products has gradually increased.

In addition, the prospectus shows that in 2019 and 2020, Huabao New Energy's operating income increased by 55.23% and 235.44% year-on-year respectively, and its net profit increased by 936.09% and 509.77% year-on-year, with net profit growing simultaneously with operating income. The growth rate of net profit was significantly faster than that of operating income, mainly due to the rapid growth of the company's portable energy storage products with higher profit margins.

Portable energy storage power supplies and outdoor power supplies are also called portable lithium-ion battery energy storage power supplies ( PES). The two most common uses of this type of product are outdoor travel and earthquake prevention and disaster prevention. In terms of outdoor travel applications, with the increase in self-driving enthusiasts and outdoor travel teams, the demand for portable energy storage power supplies has increased sharply. In terms of earthquake prevention and disaster relief, its importance is particularly prominent in the face of natural disasters such as earthquakes and hurricanes.

Portable energy storage power products cater to the consumption culture of overseas consumers who like outdoor entertainment, and the international market prospects are very broad. According to research data from GlobalData , the global battery energy storage market will reach US$11.04 billion in 2025, and the market size will increase by nearly US$5 billion.

As the epidemic spreads around the world, people are staying at home for longer periods of time. Coupled with the unstable energy supply and environmental protection factors in some countries, the demand for portable energy storage products is growing rapidly.

According to the latest customs statistics, in the first five months of 2021, Shenzhen exported RMB 10.75 billion worth of lithium-ion batteries, an increase of 61.7% over the same period last year and 47.6% over the first five months of 2019 before the COVID-19 outbreak.

It is reported that this type of product is in short supply and ranks first in sales and popularity on Amazon. However, before sellers enter the market, the editor needs to remind you that the internal components of this type of product are lithium batteries, which are dangerous goods. The export of products requires the application of dangerous goods packaging use identification to the customs.

These big sellers have also quietly laid out this track

With the broad market prospects for portable power products and the gradual stabilization of the mobile power market, product profits are constantly being squeezed, and some old mobile power companies have begun to transform to the emerging outdoor power market.

Many of these companies that have entered the outdoor power supply market are also big sellers on cross-border e-commerce platforms.

For example , Anker launched two outdoor power products at CES200. There is also Baseus . In 2020, Baseus began to get involved in the outdoor power industry. Its first product is called Baseus Energy Portable PES Car Starter Outdoor Power Supply. The product is easy to carry and mainly features two functions: emergency ignition and energy storage charging .

In the face of the emerging outdoor energy storage power supply market, PISEN has also launched a portable energy storage product that can directly power car refrigerators, electric fans and other products, and can be used to charge mobile phones.