Amazing! Another Shenzhen big seller is aiming for A-share listing!

Cross-border e-commerce is in Guangdong, and cross-border e-commerce in Guangdong is in Shenzhen. In this city where cross-border e-commerce sellers are highly concentrated, in addition to well-known big sellers such as Anker, Youkeshu, and Tongtuo that have been successfully listed, there are also many low-key and powerful sellers hidden.

Shenzhen Santai E-Commerce Co., Ltd. (hereinafter referred to as "Santai Co., Ltd.") is one of them.

The latest news shows that this big seller, which was listed on the New Third Board in 2014 and delisted in 2018 , has entered the guidance stage and is striving for listing on the A-share market.

Santai shares plans to "change route" to A-share IPO

Since last year, there have been constant reports of cross-border e-commerce companies planning to go public and raise funds, from the low-key Qian'an Technology and Eskimo to the highly anticipated super-sellers Aojie and Aosen E-Commerce, all of which have received good news. This time the good news comes from a Shenzhen company with dual main businesses of "e-commerce + logistics" - Santai Co., Ltd., whose main business is cross-border e-commerce.

The story of Santai Shares' listing on the New Third Board dates back to 2015. At that time, the New Third Board-listed company Bozhi Gaoyuan issued a major asset restructuring report, announcing that it would acquire four cross-border e-commerce companies, including Santai Express, Rongwei Supply Chain, Pengzhan Wanguo, and Si Rui Trading, through major asset replacements, issuance of shares, and payment of cash.

Public data shows that in the acquisition at that time, Bozhi Gaoyuan acquired 100% equity of Pengzhan Wanguo, Santai Express, Sirui Commerce and Rongwei Supply Chain . After the transaction is completed, Santai Express shareholder Ziwu Kangcheng will hold 556 million shares of the company , and the shareholding ratio will increase to 83.08%, making him the company's largest shareholder, and Xu Yi will become the actual controller.

However, Santai shares did not stay on the New Third Board for long. In December 2018, it terminated its listing on the New Third Board. But good news came out. In November 2020, Santai shares planned to be listed on the A-share market. It had accepted the guidance of CITIC Securities Co., Ltd. and filed for guidance with the Shenzhen Securities Regulatory Bureau on November 12, 2020.

Gross profit margin remains stable at over 53%

From the time of its backdoor listing to its delisting, Santai shares' revenue performance has been excellent, starting with the last financial report before delisting.

In the third quarter of 2018, San Tai's revenue was 310 million yuan , up 27.51% from the same period last year ; net profit was 54.51 million yuan, up 76% year-on-year. In the first three quarters, San Tai's operating income was as high as 866 million yuan, up 24.64% from the same period last year, and net profit was 131 million yuan, up 51.04% from the same period last year.

The 2018 semi-annual report showed that the company had revenue of 540 million yuan and a net profit of 77.14 million yuan. Interestingly, the gross profit margin for the first half of 2018 was 59.43%, compared to 55% in the same period last year.

When it comes to the gross profit margin of San Tai Shares, it has always been very interesting. The gross profit margin was 56.6% in 2017 and 53.9% in 2016. From listing on the New Third Board to delisting, it has never been lower than 53%, and it has been rising year by year. As a seller in the same period, Anker's gross profit margin in 2017 was only stable at more than 50%. Of course, there is always a mountain to climb. In 2017, Aoji E-commerce's gross profit margin was 60.81%. However, compared with its peers, San Tai Shares has maintained a gross profit margin of 53%, which is already very good.

As a company dominated by dual business models, it can be seen from the financial reports of 2016-2017 that Santai shares are increasingly leaning towards e-commerce business. In 2017, e-commerce business accounted for 66% of Santai shares' revenue, and logistics business accounted for 33% of revenue. It should be noted that in 2014, e-commerce business accounted for only nearly 40%.

Over the years, there have been many big sellers that have "changed course" from the New Third Board to the A-share market, from Anker to Aosen E-Commerce, to the growing Santai Holdings. The trend of big sellers shows the development strength of the industry.

Strong synergy between e-commerce business and self-operated logistics business

Unlike other listed big sellers, Santai Holdings not only has the identity of a seller, but also has its own logistics business, and the two businesses have a strong synergistic relationship that complements each other.

According to the official website of Santai Shares, the company's core competitiveness lies in the efficient coordination of cross-border e-commerce business and cross-border logistics business, the high degree of informatization of e-commerce and the systematic management of process. The two major business sectors rely on and promote each other, becoming the dual engines of the company's take-off.

In its 2017 annual report , it was also mentioned in the core competitiveness analysis that the company's two business segments rely on each other and promote each other. The company's self-operated logistics model is more competitive in the industry, and has formed strong complementarity and synergy with the e-commerce business. In addition to effectively reducing the cost of e-commerce business, the overall delivery process of self-operated logistics has stronger control, informatization is in place, and each link is closely connected, making the entire delivery process fast, efficient and stable.

The importance of logistics. I believe that after experiencing last year’s logistics “melee”, sellers must have a deep understanding of this.

Today, in terms of cross-border export e-commerce business , the e-commerce companies acquired and invested by Santai Co., Ltd. sell more than 300,000 kinds of goods on e-commerce platforms in more than 80 countries around the world , such as Amazon and eBay, and on multiple self-operated websites , adopting a specialization strategy to focus on high-gross-profit long-tail products; in terms of cross-border logistics business , it currently covers Shenzhen, Shanghai, Yiwu, Hong Kong, Germany and the United States, and its business involves cross-border dedicated lines, express delivery and global warehousing and distribution business, forming a strong synergy with the e-commerce business.

Although Santai’s logistics and cross-border e-commerce businesses are now in full swing, its initial identity was not a seller or logistics provider. Software technology is Santai’s gene.

From the development history of Santai Co., Ltd., we can see that it started with software development business, but it is precisely this business that has greatly helped its logistics and e-commerce business.

Its core competitiveness analysis in the 2017 annual report shows that the company's self-developed e-commerce platform docking system, intelligent customer management system, supplier management system, warehouse management system, cross-border express management system, etc. have saved a lot of manpower, streamlined management processes, and kept the company's cost control at a relatively low level in the industry. The company has also carried out a lot of process sorting and integration, using automated equipment to replace manual operations, following the principle of "complex logic systematization, personnel operation simplification, and system commanding people", achieving high timeliness and low errors in operations. While the company's personnel have been streamlined, the service quality has been greatly improved.

A large number of positions are being recruited, with operations positions accounting for nearly 40% of the positions being recruited.

While planning for A-share listing, Santai shares is also recruiting a large number of people.

A domestic recruitment website shows that San Tai Co., Ltd. is recruiting for 121 positions , including international logistics business representatives, algorithm engineers, data analysts, Amazon boutique operations, etc. Among them, 48 operations positions account for 39% of the recruitment positions. (This also corresponds to the increasing proportion of cross-border e-commerce business mentioned above)

As we all know, this year's operations positions, especially Amazon operations positions, have attracted particular attention. Today, let's take a look at the salary packages offered by Santai Holdings to operations positions.

The above recruitment website shows that cross-border e-commerce operations specialists earn 4-7K, eBay operations specialists earn 6-8k.13, and Amazon boutique operations specialists earn 8-10K.

Management positions, such as independent website marketing director, are offered 25-40K, while Amazon operations managers are offered 10-25K.

Not only that, judging from the positions recruited by Santai Co., Ltd., its personnel structure is very complete. From another recruitment channel, we can see that in order to manage the company's personnel work, it also specially set up the position of "Organizational Development Specialist", who is responsible for the establishment and continuous optimization of systems, processes, and tools related to the cadre management system.

In addition, the editor believes that Santai’s achievements today and the formation of its current business model are inseparable from its founder.

Different from many domestic sellers who are grassroots in origin, ZHONGBIN SUN, the founder of San Tai, is actually a top student.

According to the information, ZHONGBIN SUN graduated with a bachelor's degree in physics from Huazhong University of Science and Technology in 1993 and a master's degree in computer science from Shanghai Jiao Tong University in 1996; the other founder graduated with a bachelor's degree in chemistry from Fudan University in 1997.

Master's degree. Graduated from Huazhong University of Science and Technology with a bachelor's degree in physics in 1993, Shanghai Jiaotong University with a master's degree in computer science in 1996, and China Europe International Business School with an EMBA in 2013. From 1996 to 1998, he served as the marketing manager of Shanghai Jigao Technology Co., Ltd. From 1999 to 2000, he served as a senior engineer of Canada CTI Solutions, from 2001 to 2013, he served as the CEO of Canada Suntek, from August 2007 to now, he served as the CEO of Jinpengzhan Wanguo E-commerce (Shenzhen) Co., Ltd., from September 2009 to November 2014, he served as the CEO of Shenzhen Santai Express Co., Ltd., from December 2014 to February 2016, he served as the CEO of Shenzhen Qianhai Santai Modern Logistics Co., Ltd.