The first IPO in the Year of the Snake passed the review, and Hangzhou will make huge profits with big sales

Zhongce Rubber's initial public offering application was approved, and after the successful listing, Giant Star Technology will make a fortune again. Giant Star Technology's profitability has always been obvious to all in the cross-border circle. In addition to its strong business capabilities, its investment capabilities are also first-class.

Zhongce Rubber IPO approved

Recently, Giant Star Technology released an announcement that the IPO of its shareholding company Zhongce Rubber Group Co., Ltd. (hereinafter referred to as "Zhongce Rubber") was approved.

Zhongce Rubber's initial public offering application was successfully approved, and it plans to raise 4.85 billion yuan , becoming the first company to pass the review in the Year of the Snake. The review process was particularly smooth, with only one round of inquiries. The efficient review process stems from the company's impressive financial data.

From 2021 to the first half of 2024, Zhongce Rubber's revenue was RMB 30.601 billion, RMB 31.888 billion, RMB 35.252 billion and RMB 18.518 billion respectively. Its net profit was RMB 1.374 billion, RMB 1.224 billion, RMB 2.637 billion and RMB 2.539 billion respectively. Among them, the net profit in 2023 doubled year-on-year , and the net profit in the first half of 2024 is close to the full year of 2023. It is expected that the net profit for the whole year of 2024 will increase by more than 40% year-on-year.

Another key factor for the smooth approval was the cutting of the 2.85 billion yuan supplementary working capital project. The prospectus submitted by Zhongce Rubber in 2023 planned to raise 7 billion yuan . That is to say, Zhongce Rubber's fundraising amount was reduced by 2.15 billion yuan, a 30% reduction, including the cutting of the 2.85 billion yuan supplementary working capital project and the addition of 850 million yuan to increase capital for the construction of a high-performance radial tire project in Thailand.

Obviously, the company tried to avoid the problem of large cash dividends by cutting 2.85 billion yuan of cash flow replenishment projects.

From 2020 to the first half of 2024, the company's large cash dividends were 1.1 billion yuan, 300 million yuan, 250 million yuan, 450 million yuan, and 700 million yuan, respectively, with a total dividend of 2.8 billion yuan in five years. This dividend amount is roughly equivalent to the company's original cash replenishment amount. If the cash replenishment project is not cancelled, it will be a naked act for investors to pay for the company's huge dividends.

Zhongce Rubber is mainly engaged in the research, production and sales of all-steel tires, semi-steel tires, bias tires and car tires. It is one of the largest tire manufacturers in China and abroad. Its brands such as "Chaoyang", "Good Luck" and "Weishi" cover the global market. It has been ranked first among Chinese tire companies for many years and ranked among the top ten in the world.

In the first half of 2024, Zhongce Rubber's revenue from overseas accounted for 48.05%, showing a trend of continued rise. The company has established a number of overseas subsidiaries and plans to invest in the construction of new overseas production bases.

Giant Star Technology will make a lot of money

If Zhongce Rubber is successfully listed on the Shanghai Stock Exchange, then Giant Star Technology will make a lot of money. It is understood that Giant Star Technology not only indirectly holds 11.44% of Zhongce Rubber's shares, but also the actual controller of Giant Star Technology, Qiu Jianping, and his daughter Qiu Fei, are also the actual controllers of Zhongce Rubber.

In 2019, Qiu Jianping acquired the platform "Zhongce Haichao" and acquired 46.95% of Zhongce Rubber's equity for 5.798 billion yuan. Of the nearly 5.8 billion yuan in acquisition funds, 4 billion yuan came from the own funds of the giant star companies, and 1.8 billion yuan was raised through bank merger and acquisition loans, with a total interest repayment of 427 million yuan. The merger and acquisition loans need to rely on Zhongce Rubber's future dividends to repay, which may be the reason why Zhongce Rubber began to pay large dividends in 2020.

However, after spending nearly 5.8 billion yuan, the actual controllers of Zhongce Rubber became Qiu Jianping and his daughter Qiu Fei.

Qiu Jianping, the helmsman of the " Juxing Group ", is also the actual controller of Juxing Technology, Hangcha Group, and Xinchai Co., Ltd. As of February 12, the total market value of the three listed companies reached 67.02 billion yuan. If Zhongce Rubber is successfully listed, it will become Qiu Jianping's "fourth child" in the capital market.

Giant Star Technology and Zhongce Rubber have a close relationship. From 2021 to the first half of 2024, Zhongce Rubber has strong profits, with a total cash dividend of 1.7 billion yuan, of which Giant Star Technology received about 194 million yuan. According to Giant Star Technology's equity accounting of Zhongce Rubber , in 2023, Giant Star Technology's equity accounting of long-term equity investment income was 342 million yuan.

Giant Star Technology has gained a huge return on investment from Zhongce Rubber. In fact, being good at investing and gaining returns from it is also an important source of profit for Giant Star Technology.

Data shows that since its listing in 2010, Giant Technology has accumulated profits of more than 13 billion yuan , of which investment income also accounts for a place.

In 2018 , Giant Star Technology's net investment income was only 6 million yuan. Starting from 2019, the company's net investment income increased significantly. From 2019 to 2023, it was 75 million yuan, 297 million yuan, 370 million yuan, 177 million yuan, and 241 million yuan respectively, and reached 463 million yuan in the first three quarters of 2024. From 2019 to the first three quarters of 2024, the company's net investment income totaled 1.623 billion yuan.

Qiu Jianping is doing very well in the capital market ! In the 2024 Zhejiang Merchants Capital Control List released in June 2024, Qiu Jianping ranked 7th.

The profit king of the cross-border circle

In addition to investment returns, it cannot be ignored that Giant Star Technology has super strong profitability, and its comprehensive profits are far ahead in the cross-border circle.

According to the previously released " 2023-2024 Cross-border E-commerce Listed Companies Performance Ranking List", Giant Star Technology earned 100 million more than Anker in the first quarter of 2024 and ranked first.

Some time ago, Giant Star Technology was the first to disclose its 2024 performance forecast, with an estimated full-year profit of 2.284 billion yuan to 2.537 billion yuan, a year-on-year increase of 35% to 50%, and a net profit attributable to shareholders of 2.292 billion yuan to 2.546 billion yuan, a year-on-year increase of 35% to 50%. The company also expects that its full-year revenue will increase by more than 35% year-on-year, which is also the fastest growth in recent years.

From 2022 to 2024, the company's net profit attributable to shareholders of the parent company increased by 11.78%, 19.14% and 35%+ respectively, and the net profit achieved three years of continuous leap-forward growth.

Located in Hangzhou, Zhejiang, Giant Star Technology is the largest hand tool manufacturer in Asia and the second largest in the world. The company has a strong industry position and brand influence in the field of hand tools , and has deeply cultivated the global market, with overseas markets such as the Americas and Europe accounting for more than 90% of its revenue.

In 2015, Giant Star Technology began to expand its presence on Amazon . Later, the company sold its products through multiple third-party e-commerce platforms such as eBay and AliExpress , and increased the proportion of its DTC business through direct cross-border e-commerce, acquisition of independent sites, and establishment of European and American distribution channels and Asia-Pacific distribution channels.

The company is also deeply tied to large supermarket chains such as Home Depot and Lowes in the United States, Kingfisher in Europe, and CTC in Canada. Its products cover more than 20,000 supermarket chains, making it one of the largest suppliers of tools and storage cabinets.

The company started out as an OEM, helping some big brands and supermarkets with processing business. After ten years of development, the company has gradually established a complete product system, covering multiple categories such as hand tools, power tools, lamps and outdoor products. Focusing on product research and development and quality control, the company has established a research and development center, formed a professional product development team , and gradually embarked on the road of branding .

Today, its brand matrix has achieved diversification. In addition to its own brands WORKPRO, DURATECH, OLEI, EverBrite, and SHEFFIELD, the company has completed the mergers and acquisitions of major brands such as ARROW, BeA, SK, and Goldblatt, covering categories such as home furnishings, fashion, and outdoor. It has built a global supply chain management system with China as the core, which can respond to market demand and complete order delivery in a timely manner, and has a certain brand influence in the international market.

Zhongce Rubber, in which Giant Star Technology has a stake , has successfully passed the review . Giant Star-related manufacturing companies are expected to accelerate their global breakthrough with the support of capital.

Giant Star Technology

Zhongce Rubber