A small town has a big seller on Amazon!

Another big exporter is preparing to go public on the Hong Kong stock market!

Some time ago, the news that Shenzhen's largest exporter Aoqi was successfully listed on the Hong Kong Stock Exchange triggered heated discussions in the cross-border circle. Recently, there was news that another major exporter was preparing to go public on the Hong Kong stock market.

The official website of the Hong Kong Stock Exchange shows that Hubei Xiangjiang Electric Co., Ltd. ( "Xiangjiang Electric") has submitted an IPO application. This small home appliance exporter started out as a traditional enterprise and is famous for OEM for major customers such as Walmart and Philips. In recent years, its brand bloodline has awakened and it has created a well-known brand overseas. Many of its products have been on Amazon's best-selling list.

Many items are hot-selling, and a small county has emerged as an export hot seller!

Founded in 2012 and headquartered in Qichun County, Huanggang City, Hubei Province, Xiangjiang Electric recently formally submitted an IPO application to the Hong Kong Stock Exchange.

Xiangjiang Electric is a typical representative of OEM companies. Its customer base includes world-renowned brands such as Walmart, Telebrands, SEB, Sensio, Hamilton Beach and Philips. The cooperation period with some brands has even exceeded 10 years.

It is understood that Xiangjiang electrical appliances cover two categories: electrical appliances and non-electrical appliances. Electrical household products are divided into three categories, namely ( i) electric heating appliances, such as electric ovens, air fryers and electric kettles; (ii) electric appliances, such as blenders, egg beaters and can openers; and (iii) electronic appliances, such as electronic scales, humidifiers and laser lights. Non-electrical household products mainly include garden hoses and pots.

Xiangjiang Electric is particularly successful in small kitchen appliances, and has been listed as one of the "Top Ten Small Kitchen Appliance Exporters" by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products in 2022 and 2023. According to the Frost & Sullivan report, based on the export volume in 2023, it has successfully become one of the top ten companies in China's small kitchen appliance industry↓↓↓

Based on the export volume from China to the United States and Canada in 2023, electric kettles accounted for approximately 21.4% and 32.3% of the market share respectively in the relevant categories defined by the General Administration of Customs of China.

Based on the export volume from China to the United States in 2023, electric products such as egg beaters accounted for approximately 6.7% of the market share in the relevant categories defined by the General Administration of Customs of China.  

In the first half of 2024, Xiangjiang Electric's revenue was 614 million yuan and its profit was 60.54 million yuan. In 2021, 2022 and 2023, its revenue was 1.48 billion yuan, 1.097 billion yuan and 1.188 billion yuan respectively; its net profit was 71.8 million yuan, 80.26 million yuan and 121 million yuan respectively. In terms of sales destinations, its products are exported to more than 70 countries and regions on six continents, with most of its sales coming from North America.

Focusing on Amazon! Xiangjiang Electric vigorously cultivates its own brand

It is worth noting that this is not the first time that Xiangjiang Electric has ventured into the capital market. In 2017, Xiangjiang Electric signed an IPO coaching agreement with Dongguan Securities, and the two parties terminated their cooperation in 2020. In January 2021, Xiangjiang Electric chose Industrial Securities as its coaching institution, but in less than three months, the cooperation between the two parties was terminated again.

After that, Xiangjiang Electric switched to the Shenzhen Stock Exchange for listing. On March 1, 2023, Xiangjiang Electric's application for listing on the Shenzhen Stock Exchange was accepted, but the listing process lasted only more than a year before it was terminated. On May 22 , 2024 , the Shenzhen Stock Exchange stated that because Hubei Xiangjiang Electric Co., Ltd. and the sponsor withdrew their application for issuance and listing, according to Article 62 of the "Shenzhen Stock Exchange Stock Issuance and Listing Review Rules (Revised in 2024)", the Exchange decided to terminate its issuance and listing review.

The road to listing for Xiangjiang Electric was long and bumpy, but the company never gave up, and the same was true for its cultivation of its own brands.

Since 2016, Xiangjiang Electric has started to develop OBM business and cultivated three self-owned brands, namely "Weimaisi", "Accuteck" and "Aigeli". In terms of e-commerce platform sales, it adheres to the dual-track strategy of domestic and foreign e-commerce platforms, and has currently opened stores on multiple e-commerce platforms such as Amazon, JD.com, Tmall and Pinduoduo.

At present, the revenue share of Xiangjiang Electric's own brand is not high, but it is worth noting that Xiangjiang Electric has achieved remarkable results on Amazon, the largest e-commerce platform in the United States. As of August 30, 2024, the company has more than 10 ODM/OEM products on Amazon's "Best-Sellers" list in relevant categories, among which steamers, rice cookers, electric ovens and electric frying pans are among the top 10 on Amazon's "Best-Sellers" list in relevant categories.

Since 2023, the garden hose has also been among the top 50 best-selling products on Amazon. It is understood that Xiangjiang Electric's garden hose is equipped with an automatic extension function, can withstand extremely high temperatures, explosion-proof and pressure-resistant, and can be used in extreme temperatures from -40 degrees Celsius to 60 degrees Celsius. The research and development work has been widely recognized and has been commercialized and achieved results in Europe and North America.

Searching for related products on Amazon reveals that the "Weighmax" and "Accuteck" electronic scale series are hot-selling, with many items selling over a thousand units per month.

Small home appliance market has broad prospects

In addition to Xiangjiang Electric, many big brands have emerged in the field of home appliances, including Supor, Xinbao Electric, Carrot, Midea, Supor, Joyoung, Bear Electric, Morphy, Xiaomi, etc. The market prospects are obvious.

According to Frost & Sullivan, the global household goods industry will have a market size of US$1,055.4 billion in 2023, calculated by retail sales. The global household goods industry can be divided into three categories, namely large appliances, small appliances, and non-electrical household goods. The global small appliance industry has grown strongly in recent years, with retail sales reaching US$175.9 billion in 2023 .

( 1) Kitchen appliances account for the largest share of the global small appliance industry, with retail sales reaching US$71.6 billion in 2023 , a compound annual growth rate of 3.2% . As the industry moves forward, kitchen appliances are expected to maintain their dominance, with retail sales increasing from US$74.2 billion in 2024 to US$87.5 billion in 2028, a compound annual growth rate of 4.2%.

( 2) Retail sales of small household appliances for home living and environment will increase from US$56.4 billion in 2019 to US$65.9 billion in 2023, with a compound annual growth rate of 4.0%.

( 3) At the same time, due to the increasing attention paid to personal health and beauty trends and the application of smart portable personal care technologies, personal care small appliances have experienced rapid growth in the past few years, with their retail sales increasing from US$31.2 billion in 2019 to US$38.4 billion in 2023, with a compound annual growth rate of 5.3%.

With continued technological advancement and environmental innovation, the global small household appliance industry is expected to maintain steady growth, increasing from US$184 billion in 2024 to US$220.3 billion in 2028, with a compound annual growth rate of 4.6%.

After years of development, China's small household appliance industry has evolved from simple assembly to lean production, becoming one of the world's leading production bases. In 2023, China's small kitchen appliance exports will reach approximately RMB 130.7 billion. In terms of export value in 2023, the top ten companies will account for a total market share of 32.9%.

Old-brand home appliances continue to sell well around the world, while new players are also constantly emerging. As evergreen hot-selling products, home appliances continue to cultivate batches of excellent players.

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