Shenzhen's best sellers have already earned 4.3 billion this year

In the first nine months of this year, Shenzhen-based UGREEN Technology made 4.3 billion yuan in sales, and its performance after listing is still excellent. Looking back at the past 12 years, from the initial OEM, to relying on R&D to win the Apple and Huawei markets, and then targeting the new blue ocean of NAS, UGREEN does not act as a substitute, but relies on its own strength, increases R&D , and breaks through in the blue ocean market.

Revenue in the first nine months: 4.3 billion

At the end of October, GreenLink Technology disclosed its third quarter report for 2024. In the first three quarters of 2024, the company achieved operating income of 4.306 billion yuan, a year-on-year increase of 28.47%; net profit of 322 million yuan, a year-on-year increase of 28.94%.

In the third quarter , UGREEN continued the good growth trend in the first half of the year, achieving operating income of 1.563 billion yuan, a year-on-year increase of 27.01%; and achieving net profit of 115 million yuan, a year-on-year increase of 80.5%.

In the first half of 2024 , UGREEN's revenue reached 2.743 billion yuan, an increase of 29.31% compared with the same period in the first half of 2023 , and its net profit was 207 million yuan, an increase of 11.30% compared with the same period last year.

In the past three years, GreenLink's revenue has continued to grow, with an average annual compound growth rate of 18.05%, and cumulative revenue exceeding 12 billion yuan. Specifically, from 2021 to 2023, GreenLink's revenue continued to grow, reaching 3.446 billion yuan, 3.839 billion yuan and 4.803 billion yuan respectively.

The fourth quarter is traditionally the peak season. This year, UGREEN's revenue and profits are likely to exceed those of the same period last year, continuing the glorious streak of sustained growth and profit increase over the past three years.

With the support of its performance, UGREEN was successfully listed at the end of July this year. The listing raised 772 million yuan for it, successfully supplementing its working capital and carrying out brand and industrialization construction.

Today, UGREEN is no longer the "small factory" that relied on OEM, but has grown into a well-known consumer electronics brand, gaining a share of the global market .

No substitution

Founded in 2012, UGREEN Technology is a high-tech enterprise mainly engaged in the research and development, design, production and sales of 3C consumer electronic products.

After graduating from South China Agricultural University, the founder Zhang Qingsen worked in foreign trade at a Hong Kong-funded enterprise in Shenzhen. At that time, foreign trade was not easy to do , but Zhang Qingsen found that there were almost no large companies doing small businesses such as data cables. From a global perspective, this market scale is large and the business is easy to get started.

Zhang Qingsen started his business in data cables . He started out as an OEM and won a number of clients with his rich foreign trade experience , earning his first pot of gold. However, OEM is always associated with "copycats", so Zhang Qingsen decided to create his own brand "UGREEN".

With the rise of major consumer electronics companies such as Apple and Huawei , the demand for data cables has soared. Compared with Apple data cables that cost hundreds of yuan , Huaqiangbei's "substitute" products only cost tens or tens of yuan. However, after Apple released the iOS7 system , Huaqiang's various "substitutes" immediately became waste.

UGREEN founder Zhang Qingsen led his team to develop the earliest cooperative manufacturer in China to obtain Apple MFi certification, successfully winning the huge Apple market. The tenacity of not being a substitute led UGREEN to a new starting point. After that, UGREEN won Huawei again and became one of the first partners of Huawei's DFH plan, and was also authorized to produce peripheral products.

At the same time, the company continues to focus on cross-border e-commerce, relying on the "UGREEN" brand and entering multiple platforms such as Amazon, AliExpress, Shopee, and Lazada.

From 2021 to 2023, UGREEN's overseas online sales revenue accounted for 41.12%, 37.25% and 40.71% of its main business revenue respectively. In 2023, UGREEN's revenue on the Amazon platform exceeded 1.5 billion, and its sales on AliExpress, Lazada and Shopee were 107 million, 82.9 million and 120 million respectively.

In recent years, UGREEN has gradually formed a full-dimensional layout of "online + offline" and "domestic + overseas", and its products mainly cover five major series: transmission, audio and video, charging, mobile peripherals, and storage.

Backed by Apple and Huawei, and with its cross-border e-commerce revenue continuing to grow, UGREEN has been living a good life that others envy. However, the company's vision is not limited to this, and it is ambitiously entering the NAS market.

Layout of incremental NAS market

With the surge of streaming media in recent years, the "expansion" of Internet applications and the rapid growth of personal data, the NAS market has become an emerging blue ocean market. According to Market Research, the NAS market size is expected to reach US$51 billion in 2028. The explosive growth of global data volume has driven the continued growth of the NAS private cloud market size.

This blue ocean market has also attracted many players to join. Since 2020, traditional storage manufacturers, mobile phone manufacturers, and Internet companies have entered the market, and UGREEN is one of them.

In 2020 , UGREEN launched its first NAS product (UGREEN Private Cloud DH2000). In just four years, UGREEN's NAS business revenue in 2023 was ten times that of the first product .

In overseas markets, UGREEN's NAS is also very popular. At this year's Consumer Electronics Show (CES), UGREEN unveiled a number of UGREEN NAS models and officially launched them on the overseas crowdfunding platform Kickstarter in March. According to UGREEN statistics, the crowdfunding amount reached US$6.67 million, ranking first in the crowdfunding amount in the NAS category.

Obviously, UGREEN, which has made early arrangements in the NAS market, has already tasted the dividends of the continued growth of new product categories, and NAS has also become another important revenue point for UGREEN.

On October 26, the famous technology blogger "Mr. He" released a video titled "Getting Started with NAS in Half an Hour". The protagonist introduced was a NAS from UGREEN Technology. This machine not only bears the responsibility of storage at home, but also serves as a home data storage center, a file sharing server in the company, etc. UGREEN's products not only solve the storage problem, but also aim to make NAS a data center that understands users better.

The launch of these products is inseparable from UGREEN's continuous increase in investment in the research and development of storage products . As of October this year, the total number of UGREEN NAS private cloud software team is nearly 300, of which more than 240 are production and research technicians, accounting for more than 80% of the total.

Since 2024, UGREEN Technology has continued to expand its product boundaries and increased R&D investment on the basis of consolidating the technological advantages of existing products, focusing on increasing R&D efforts in product and technology fields such as NAS private cloud storage, headphone acoustics, and charging and endurance. It has made private cloud storage business an important focus of the company and a future growth engine.

While innovating its products, UGREEN also pays attention to security. In June this year, UGREEN NAS Private Cloud launched the new DXP series, which has reached international advanced levels in terms of privacy policy, data security, and user rights protection. The launch of this series of products can provide users with safe and reliable data storage services, accurately meet the needs of users in the new era for massive data management, and is expected to continue to achieve large-scale growth in the next few years.

In response to a recent institutional survey, UGREEN mentioned that the company has invested a lot of resources in the NAS category and plans to continue to delve into this field, expanding its NAS product line through technological innovation and service optimization to meet the needs of different user groups.

UGREEN has continued to deepen its presence in the new blue ocean market and has brought in considerable profits. Today, UGREEN has obvious advantages and its future growth is worth looking forward to.

Greenlink Technology