Aosen E-Commerce is striving to be listed on the A-share market, with sales of 2.4 billion yuan in the third quarter of last year!

In the third quarter of last year, the company had revenue of 2.4 billion yuan and net profit soared by 1936.4%. Ningbo Daimao Aosen E-Commerce, which mainly deals in home furnishings and outdoor products and is listed on the New Third Board, is now preparing to be listed on the A-share market!

Aosen E-commerce plans to list on the A-share market

A few days ago, the news that Shenzhen Damai Qian'an Technology was planning to go public on the A-share market was just reported. Yesterday, there was another good news in the capital circle. Ningbo Damai Aosen E-Commerce (Aosen E-Commerce Co., Ltd.) plans to issue shares for the first time and go public . It has now accepted the guidance of China International Financial Co., Ltd. and has received the confirmation letter issued by the Ningbo Regulatory Bureau, confirming that the registration date for guidance is April 6, 2021.

As one of the major sellers in East China, Aosen E-Commerce was founded in 2013 and was listed on the New Third Board in November 2018. 2018 was once called the "capital winter", but Aosen still went against the current, and the vision and execution behind it are evident. Aosen E-Commerce's revenue in recent years has also been "amazing", ushering in an explosion, and also ushering in the good news of its impact on the A-share market.

Aosom's main business is cross-border e-commerce export business. The products sold are mainly divided into outdoor series, home series, health and leisure series , etc. The business covers more than 20 European and American countries , and has its own brands Aosom, Homcom, etc. The end customers of the company's products are individual consumers in Europe and the United States, and the sales payment is mainly collected through third-party platforms and payment tools. The company's sales model is divided into direct sales and indirect sales.

An increase of 1936%! Sales of 2.4 billion yuan in the third quarter of last year

As a leader in East China, Aosen E-Commerce has seen its revenue soar since 2018. Its exports in the first two months of this year have reached 71.22 million yuan. The following is its operating status in recent years.

In the first three quarters of 2020 , the company achieved revenue of 2.42 billion yuan, an increase of 94.71% over the same period last year; and achieved net profit attributable to shareholders of the parent company of 248.6 million yuan, an increase of 1936.4% over the same period last year .

In 2019, the revenue was 1.64 billion yuan, a year-on-year increase of 29.88%; the net profit was 22.41 million yuan , a year-on-year increase of 123.93%.

In 2018 , the company's revenue was 1.26 billion yuan, a year-on-year increase of 29.75%, and its net profit was 10.01 million yuan.

(Photo source: Qichacha)

The above figure is a curve chart of Aosen’s revenue and net profit in recent years. It can be seen that 2020 is a year of "big leap" and the momentum of "gold rush" cannot be stopped at all. According to Ningbo government news, Aosen E-commerce’s exports in the first two months of 2021 reached 71.22 million yuan, a year-on-year increase of 227%.

Aosen E-commerce’s headquarters is in Ningbo, and it has also registered branches in Shenzhen and Hunan. Because it mainly deals in bulk goods, it also has 7 branches overseas , located in the United States, Canada, the United Kingdom, Germany, France, Italy, and Spain, and has built 9 overseas warehouses.

Aosen's home furnishing categories also benefit from Zhejiang's supply chain advantages. In Zhejiang, the supply chain resources for home furnishing and outdoor products are very rich. On the other hand, large and heavy home furnishing products require the support of overseas warehouses. With the cooperation of overseas warehouses and supply chains, Aosen has a greater advantage in selling home furnishing products.

Aosen also stated that the overseas warehouse layout added 7 overseas warehouses in October last year , and starting from November, 7 new overseas warehouses will be built in preparation for next year.

Yan Guangyao , chairman of Aosen , who graduated from Shanghai Jiao Tong University's Antai Economics and Management EMBA , was also very impressed by the growth of cross-border e-commerce. In an interview, he said: "Cross-border e-commerce was originally called a dinosaur egg in our industry. It looks like an egg, but what comes out is a dinosaur!"

Hatching a dinosaur from an egg takes a lot of time and effort, and this hit also ushered in the stage of take-off.

Aosen launched an equity incentive plan, benefiting more than 100 employees

Employee stock ownership plans are another big move that major retailers have made in recent years. Competition in the cross-border e-commerce industry is becoming increasingly fierce. Employee stock ownership plans can bind the core employees of the company in terms of interests. The alignment of interests among shareholders, companies and employees can fully mobilize the enthusiasm and creativity of employees and achieve sustainable development of the company.

Based on this, in recent years, some well-known big sellers in the industry such as ZEBO, K-Tone, and Anker have all adopted this approach without exception.

Now, before switching to the A-share market, Aosen has also launched an equity incentive plan.

In February, Aosen E-Commerce officially issued the "Legality and Compliance Opinion on the First Employee Stock Ownership Plan (Draft)", which mainly clarified that the total number of participants in the company's employee stock ownership plan will not exceed 102 people, including 3 directors (excluding independent directors), supervisors, and senior management participating in this employee stock ownership plan.

The number of shares issued this time will not exceed 9.4987 million shares, with an issue price of 10 yuan per share, and the total amount of funds raised is expected to be no more than 94.987 million yuan. It should be noted here that as of December 31, 2019, the audited net asset value per share of Aosen E-Commerce attributable to the shareholders of the listed company was 2.09 yuan.

The issue price of 10 yuan per share is higher than the net asset value per share at the end of the most recent regular reporting period. However, based on the company's long-term development, the issue price was agreed upon by both parties after negotiation. Employees who participate in the employee stock ownership plan indirectly hold company shares by directly holding the partnership shares of the shareholding platform.

Home and outdoor products are selling well in Europe

Currently, Aosen’s business has covered 20 countries in Europe and the United States, with the majority of sales coming mainly from Europe.

According to the 2019 financial report, its operating income in Europe accounted for 56.12% of its total operating income , with revenue reaching 921 million yuan. Among them, Western European countries with concentrated sellers such as the United Kingdom and France are also the main battlefields of Aosen, with operating income accounting for 41.73% of its total operating income .

Aosen has also set up overseas subsidiaries in its main European markets, including the UK, Germany, France, Italy and Spain, to be responsible for sales . Among them, in the 2019 ranking of all 280,000 sellers on Amazon UK, Aosen 's UK company defeated a competitor and won the 112th place.

Although Aosen's products cover multiple categories including outdoor leisure, household goods, sports and health, and pet supplies, the core is still home and outdoor products.

The 2019 financial report shows that the operating income of its outdoor series and home series accounted for as much as 74.83% of the total operating income , with revenue of 1.229 billion yuan.

The editor observed that in the above two series of products, Aosen mainly focuses on "big goods" such as sofas, coffee tables, outdoor tents, etc. This is also its competitive advantage. Cross-border e-commerce sellers know that this category has high requirements for funds and supply chains. Without strong strength, it is difficult to continue.

First of all, from the perspective of the products that sellers are most concerned about, that is, the supply chain, Zhejiang, where Aosen is located, is a traditionally major foreign trade province with abundant supply chain resources for high-quality home and outdoor products that are in line with the habits of overseas consumers.

In terms of capital, Aosen's parent company Ningbo Mengheng Group ( MH) has an operating scale of over 10 billion yuan . It has been selected as one of the top 500 service companies in China and the top 50 export companies in Ningbo many times . It has now become a leader in the same industry nationwide.

In addition, by the end of April this year , Aosun had established 9 overseas warehouses in 7 branches in Europe and the United States . This is undoubtedly an important link for "large goods" products , because large and heavy products themselves require warehousing capabilities, otherwise it will be difficult to ensure gross profit margins if the cost of logistics is not controlled.