Zebao’s annual sales on Amazon are 4.5 billion, and its 3C products are selling really well!

In 2020, small and medium-sized sellers had their ups and downs, and the financial reports of big sellers were also mixed. After Anker Innovations, Giant Star Technology, ZeShang Technology, Jihong Holdings and others released their financial reports, Amazon big seller Zebao’s 2020 financial report also came out.

It can be seen from the data released by Xinghui Precision that Zebao achieved a net profit of RMB 246.9912 million after tax attributable to the parent company's ordinary shareholders in 2020, completing 130% of the promised net profit for this year.

It is worth noting that in 2020, Zebao’s operating income in North America reached 3.376 billion yuan, and its cumulative R&D investment in three years exceeded 200 million yuan.

In addition, Zebao has received the capital increase payment from investors. After the change, Xinghui Precision holds 88.452% of the shares of Zebao Technology.

Zebao's revenue in 2020 was 4.774 billion yuan and its net profit was 247 million yuan

ZEBO holds a leading market share in the industry on large overseas e-commerce platforms such as Amazon . Its three major international brands , VAVA, TaoTronics, and RAVPower, enjoy high visibility and reputation.

The report shows that in 2020 , Zebao Technology achieved operating income of 4.774 billion yuan, an increase of 68.57% compared with the same period last year; and achieved net profit attributable to shareholders of listed companies of 247 million yuan.

ZEBO mainly sells its own brand of consumer electronics products such as power supplies, Bluetooth audio, small appliances, computer and mobile phone peripherals, personal care and health products through the Amazon platform. In 2020, ZEBO's sales on the Amazon platform exceeded 4.5 billion yuan. At the Amazon Global Summit, ZEBO was also awarded the honorary title of "Amazon Global Layout Seller of the Year 2020".

In terms of main business: In 2020, Zebao's main business revenue grew rapidly, among which small household appliances and computer and mobile phone peripheral products grew beyond expectations .

In 2020, Zebao's small household appliances products achieved revenue of 1.796 billion, an increase of 192% over the previous year; computer and mobile phone peripheral products achieved revenue of 525 million, an increase of 138.8% over the previous year, among which the company's independently developed laser TVs , driving recorders, BABYMONITORs, baby monitors and other products achieved sales of 290 million.

Online and offline sales in 2020 : Zebao mainly sells its products online through third-party platforms (such as Amazon, S hopee, Lazada and other well-known domestic and foreign online B2C platforms) and its own platforms, and online sales account for 95.81% of its main business income .

It is understood that while developing its online business on Amazon, Zebao is also continuing to expand its offline customers in the United States, Japan, the Middle East and Australia. At the same time, in order to increase its development in the Middle East and North African markets, it plans to set up a subsidiary in the Middle East to carry out localized operations. During the reporting period, the company's offline sales accounted for 4.19% of its main business income .

Revenue by region in 2020 : All kinds of products of Zebao Technology are exported to major countries and regions around the world, including North America, Europe, Japan and the Middle East. In 2020, we actively consolidated the North American market and achieved a substantial growth of 110.91%.

As can be seen from the figure, in 2020, Zebao's operating income in North America reached 3.376 billion yuan , and its income in other regions was 1.398 billion yuan. That is to say, the North American market is still the main source of Zebao's revenue.

Zebao increased its capital and expanded its shares, and the parent company's net profit in the first quarter of 2021 increased by 328%

In its first quarter financial report of 2021, Xinghui Precision stated that in the first three months of the year , the company achieved operating income of 130,695.53 million yuan, a year-on-year increase of 56.43%; net profit attributable to shareholders of listed companies was 36.0823 million yuan, a year-on-year increase of 328.41%; the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 31.5089 million yuan, a year-on-year increase of 439.63%.

Since Zebao has completed the three-year bet, the company will also implement equity incentive measures to strengthen the company's corporate culture and care for its employees. At the same time, it will absorb and introduce outstanding cross-border e-commerce R&D, sales and management talents from the whole society to promote the healthy and rapid development of the company's business .

Although Zebao’s revenue situation in the first quarter of 2021 was not disclosed, it is foreseeable that Zebao’s report card will not be bad.

From past data, we can see that as the backbone of Xinghui Precision, Zebao accounts for a very large proportion of the company's annual revenue, and most of the company's revenue comes from Zebao. In a recent announcement, Xinghui Precision disclosed that Zebao has received the capital increase from investors ...

Xinghui Precision stated in the announcement that the company held the seventh meeting of the fourth board of directors on September 8, 2020, and reviewed and approved the "Proposal on the Capital Increase and Share Expansion of the Subsidiary and the Company's Waiver of the Right of Priority Subscription". Taicang Ningheng Enterprise Management Center, Shenzhen Langri Industrial Development Co., Ltd., Lin Yongqin, Zhong Zhaonan, Jiang Xuyin and Yao Zetong jointly increased the capital of the subsidiary Zebao Innovation Technology Co., Ltd., with an investment amount ranging from 270 million to 320 million yuan . The company agreed to the above capital increase and waived its right of priority subscription.

After negotiation, the company and relevant parties signed the "Supplementary Agreement on the Capital Increase Agreement of Shenzhen Zebao Innovation Technology Co., Ltd.". The capital increase amount of Taicang Ningheng was adjusted to 20 million yuan , the capital increase amount of Jiang Xuyin was adjusted to 130 million yuan, and the capital increase amount of other investors remained unchanged.

At present, Zebao Technology has received all the capital increase funds from investors, and recently completed the industrial and commercial registration change procedures for the above-mentioned capital increase and share expansion related matters, and obtained the "Business License" issued by the Shenzhen Market Supervision Administration. The specific change information is as follows ↓

The company type was changed to a limited liability company (invested or controlled by natural persons) , and the registered capital was changed from RMB 11 million to RMB 12.4363 million.

After the change, Zebao's equity structure is as follows ↓

As can be seen from the above table, after the change, Xinghui Precision holds 88.452% of the shares of Zebao Technology and is still the largest shareholder of Zebao.

In the announcement, Xinghui Precision stated that after this change, the company will still be the controlling shareholder of Zebao Technology and will continue to maintain actual control over Zebao Technology, and the scope of the company's consolidated financial statements will not be changed.

What successful experiences of Zebao are worth learning from for sellers?

There must be something special about ZEBO that makes it a bestseller. So what successful experiences of ZEBO are worth learning from? We might as well look for the answer from its supply chain management and R&D.

Zebao said that it has established in-depth cooperative relationships with the industry's top suppliers , and ensures product quality and experience by deeply participating in product definition, industrial design, technology research and development, production and manufacturing, quality control and other processes.

In terms of warehousing, the company leases warehouses in China and in the main sales areas of the United States, Germany, and Japan, and is responsible for domestic and international allocation of inventory, shipment and other businesses.

In terms of logistics management, the company has established cooperative relationships with domestic and foreign logistics service providers to meet the company's logistics service needs . The company has established an information management model that integrates planning, procurement, sales, logistics and warehouses, realizing efficient full-process management from planning, procurement warehousing to delivery and receipt.

In addition, Zebao Technology attaches great importance to product research and development, and the focus of product research and development is on audio, video, imaging and intelligence . Since the establishment of the R&D center, it has continued to increase its R&D investment, with cumulative R&D investment exceeding 200 million yuan in three years.

As of the end of 2020, ZEBO has obtained more than 800 technical patents and appearance patents in China, the United States, Europe, the United Kingdom and other countries . ZEBO has also established multiple departments such as ID Design Department , Product R&D Department , Engineering Department , Testing Department , IOT R&D Department , Software Development Department, etc., to build a multi-dimensional R&D system, with R&D personnel accounting for nearly 30% of the total number of employees in the company .

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