Shenzhen Suntech's IPO was suspended, with sales of 2.3 billion in half a year

In Shenzhen, Sunway is known as one of the "Four Heavenly Kings of South China City" by the industry, along with Aoji, Youkeshu and Tongtuo. In order to plan for long-term development, Sunway terminated its listing on the New Third Board in 2018, and its application for an IPO on the Growth Enterprise Market was accepted in December last year. According to the latest news in April, Sunway's IPO details show "suspended".

SRVC IPO suspended

On December 18, the GEM IPO application of Suntech Power Technology Co., Ltd. was accepted. The industry predicts that if nothing unexpected happens, Suntech will be listed on the GEM soon.

Suntech plans to issue no more than 40.1 million shares in this public offering , and all the funds raised will be used for its main business and related projects such as the construction of the fashion industry supply chain and operation center system, logistics and warehousing upgrades.

At present, the Shenzhen Stock Exchange IPO details show that its latest status is "suspended".

( Picture from the official website of Shenzhen Stock Exchange )

Disclosure information shows that on April 1, Silvio Technologies Co., Ltd. needed to submit additional financial information in its IPO application documents because the documents had expired. According to relevant regulations, the Shenzhen Stock Exchange suspended its listing review.

This reminds people of another of the "Four Heavenly Kings of South China City".

In 2015, Aoji landed on the New Third Board, becoming the first cross-border e-commerce company to be directly listed in China. In April 2019, Aoji terminated its stock listing and submitted a prospectus in September of the same year to pass the IPO on the Science and Technology Innovation Board.

During this period, Aoji's application for the Science and Technology Innovation Board was suspended because the financial information recorded in the application documents for issuance and listing had expired and needed to be supplemented. On April 30, 2020, Aoji submitted a report, proactively requested to terminate the review and withdraw the application documents, and submitted the consent to terminate the review; a week before that, Aoji was sued by FISI for patent infringement in the United States District Court for the Eastern District of Texas.

Superior military power, Savi sold 2.3 billion in half a year

Through platforms such as Amazon, Wish, eBay, Walmart and vertical category self-operated websites, Savi sells its products to the United States, Germany, the United Kingdom and other places. During the reporting period of the prospectus, Savi's sales through the Amazon platform accounted for 53.92%, 60.50%, 68.33% and 64.04% respectively.

As a top seller, Savi has a high military value. After consecutive losses in 2017 and 2018, Savi turned losses into profits in 2019, and its performance has soared since then. In the first half of last year alone, its revenue reached 2.29 billion and its net profit reached 236 million.

During the reporting period , Savi incubated 28 private brands with revenues exceeding 10 million yuan, accounting for 66.4% of the company's merchandise sales revenue. Among them, 14 brands including homewear brand Ekouaer, menswear brand Coofandy, underwear brand Avidlove, and sports equipment brand ANCHEER had revenues exceeding 100 million yuan during the period, accounting for 60.4% of the company's merchandise sales revenue . The main brands with revenues exceeding 100 million yuan are as follows :

The main brands and product information of Savi on the platform are as follows:

Clothing accessories

The company's apparel and accessories brands include Ekouaer, Avidlove, Coofandy, Zeagoo, Hotouch, Arshiner, SHESHOW, Retro Stage, ADOME, etc., covering home wear, women's wear, men's wear, functional wear and other categories.

Department Store Home

The company's department store home brands include Homdox, Coocheer, ACEVIVI, etc., mainly selling high-pressure cleaners, electric foot baths, popcorn machines, dried fruit machines, refrigerators and other products .

Sports and Entertainment

The company's sports and entertainment brands include ANCHEER, Hikole, etc., mainly selling bicycles, scooters, treadmills, fitness equipment and other products.

Digital Auto & Motorcycle

The company's digital automotive and motorcycle brands include Coocheer, Sailnovo, etc., and it mainly sells 3D printers, automotive and motorcycle accessories and other products.

The gross profit margin of the main business exceeded 60% for three consecutive years

The gross profit margin of the main business can be used to judge the company's competitiveness and profitability. From 2017 to the first half of 2020, the gross profit margin of LDK's main business was 61.62%, 65.70%, 66.21% and 68.61% respectively, maintaining a growing trend.

In 2019, the company achieved a comprehensive gross profit of 1.906 billion, a compound growth rate of 26.08% compared with 2017, which is consistent with the trend of revenue growth rate. From January to June 2020, the company's comprehensive gross profit margin was 68.61%, an increase of 2.4 percentage points from 2019.

The gross profit margins of the company under different business models vary greatly. The gross profit margin of B2C business is higher, and the main business during the reporting period is

The proportion of B2B business and logistics service revenue is over 90%, while the proportion of B2B business and logistics service revenue is relatively small.

The gross profit margin composition of the company's main business by different sales platforms is as follows:

As for the main products, clothing and accessories have obvious personalized characteristics, and many clothing and accessories categories have a certain degree of popularity.

From January to June 2020, the company's apparel and accessories gross profit margin increased by 3.51 percentage points compared with 2019; the overall gross profit margin of department stores, home furnishings, and sports and entertainment categories increased steadily.

Compared with the big sellers in the same industry such as Anker, Cross-border Communication, and Aoji, Suntech's main business gross profit margin is higher than that of companies in the same industry. However, it is mentioned that this is mainly due to differences in product structure, brand premium, operating capabilities, platform layout, etc. among different companies.

From the perspective of product structure, Savi's product layout structure is somewhat different from that of companies in the same industry. The proportion of technology consumer products such as digital electronics and mobile communications is low, and the product structure is more biased towards categories with high gross profit margins such as clothing accessories, department stores and home furnishings. In terms of platform layout , based on the brand operation strategy, it develops self-operated website sales , and the gross profit margin of self-operated websites is relatively high, which drives the company's overall gross profit margin level to continue to increase.

Advertising and promotion costs are high, and the operating costs and sales expenses of big sellers account for more than 90%

Compared with big sellers in the same industry such as Anker and Aigo, the total operating costs and sales expenses of Suntech were higher from 2017 to 2019, and were lower than its peers in the first half of 2020.

The differences in the average proportions of the total operating costs and sales expenses to operating income between the company and its peers were 6.83%, 7.05%, 1.89% and -1.99% respectively, and the difference rate is narrowing year by year.

As the company's business develops, it incurs a considerable amount of sales expenses, which mainly include logistics expenses, sales platform fees, business promotion fees and employee salaries.

From 2017 to the first half of 2020, the company's sales expenses were 1.074 billion, 1.358 billion, 1.661 billion and 1.179 billion, respectively, maintaining steady growth for three years.

Among them, the logistics costs of big sellers were 421 million, 548 million, 630 million and 432 million respectively, accounting for 21.62%, 24.39%, 21.90% and 18.86% of the operating income respectively.

Suntech contributes a lot of commissions to the platform every year. During the reporting period, its sales platform fee expenditures were 321 million, 396 million, 454 million and 310 million, respectively, accounting for 16.45%, 17.62%, 15.79% and 13.54% of the operating income in each period.

Savi is also clear about business promotion, and its advertising promotion expenses on sites such as Amazon CPC and Facebook account for a large proportion. During the reporting period, its business promotion expenses were 106 million, 154 million, 303 million and 271 million respectively, accounting for 5.45%, 6.85%, 10.51% and 11.83% of the operating income in each period respectively.

Savi's sales expense ratio is higher than that of comparable companies in the same industry, such as Anker and Aoki. It mentioned that the main reason is that the business promotion expenses are high, and the promotion expenses on Amazon and its own websites are high, so the overall sales expense ratio is high.

During the reporting period, the operating costs and sales expenses of LDK accounted for 93.55%, 94.90%, 91.50% and 82.82% of its operating income respectively.

Changes in gross profit margin and sales expense ratio have a significant impact on net profit. From 2017 to the first half of 2020, the company's net profit was -65.98 million, -6.63 million, 54.10 million and 236 million respectively. Negative net profit means busy and lonely! Fortunately, the net profit has gradually improved in 2020.

As a cross-border seller, there are always worries about inventory pressure, and Savi is no exception. At the end of each reporting period, the book value of the company's inventory was 503 million, 396 million, 466 million and 497 million respectively.

If the company's products cannot continue to keep up with changes in market demand in the future, resulting in poor inventory turnover and a decline in turnover, there may be a risk of inventory depreciation. In addition to the inventory stored in the FBA warehouse, the company's inventory stored in overseas warehouses, domestic warehouses, or other in-transit inventory, if poorly managed, will cause loss or damage, which will cause direct loss of the company's property and adversely affect operating performance.