Today, Aoji was successfully listed

As expected, Aoji successfully entered the capital market!

In the cross-border circle, Aojie, which has the title of one of the "Four Young Masters of South China City" in Shenzhen, is relatively low-key and mysterious. A closer look reveals that its performance is super impressive, with revenue rising almost every year, and annual sales in 2023 approaching 9 billion yuan.

As a typical representative of Chinese brands going global, Aoji has started to venture into the capital market in recent years. On April 2 this year, Aoji submitted its prospectus to the main board of the Hong Kong Stock Exchange, with Huatai International as its exclusive sponsor. After about 7 months, Aoji successfully landed on the main board of the Hong Kong Stock Exchange today, and its wish to go public was finally realized, smoothly starting a new journey of capital market development.

Sales in 2023 will be close to 9 billion! Aoji was successfully listed today

On November 8, Shenzhen cross-border retailer Aojie Holdings (Aojie for short) was officially listed on the main board of the Hong Kong Stock Exchange with the stock code "02519".

On October 31, Aoji disclosed its prospectus and started the offering work, with the expected pricing date being November 6. It is reported that the number of shares offered in Aoji's global offering this time is 29,894,700 H shares (depending on whether the offering volume adjustment right and over-allotment right are exercised), and the offering price is no more than HK$15.60 per H share.

The prospectus shows that in the first four months of this year, Aokkey's revenue reached 2.833 billion yuan, a year-on-year increase of 16.9%, and its net profit reached 189 million yuan, an increase of 96.9%.

From 2021 to 2023, Aokee's operating income will be RMB 9.071 billion, RMB 7.1 billion, and RMB 8.683 billion, respectively; the annual profit/loss will be RMB -590 million, RMB 223 million, and RMB 520 million, respectively.

Aoji's main products include furniture and home furnishing, power tools, home appliances, consumer electronics, sports and health and other series of brand products. Among them, furniture and home furnishing products account for the highest revenue share. In 2022, the revenue generated by the furniture and home furnishing B2C e-commerce market exceeded RMB 4 billion, and in 2023, the revenue exceeded RMB 5 billion.

After years of hard work, Aoji has created popular proprietary brands of furniture and home products such as ALLEWIE, IRONCK, LIKIMIO, SHA CERLIN, HOSTACK and FOTOSOK. According to Frost & Sullivan's data↓↓↓

Based on GMV in 2023, Aoki ranks first in the B2C overseas e-commerce market for furniture and home products among Chinese sellers ;

Based on GMV in 2023, Aukway ranks fifth in the global B2C e-commerce market for furniture and home products .

Multi-platform layout! Aoji continues to improve its operation strategy

Amazon is one of the main channels for Aoki's revenue. In 2023, the GMV of Aoki's 11 brands exceeded RMB 100 million, according to Frost & Sullivan's data↓↓↓

In terms of GMV, six of Aukkey's product categories (including bed frames, food cabinets, dressing tables and dressing stools, bookcases, dining cabinets and sideboards, and refrigerators) rank first on Amazon's US website.

Based on GMV in 2023, the market share of 10 product categories of Aukey (i.e. bed frames, beds, refrigerators, wardrobes and drawers, food cabinets, bookcases, dressing tables and dressing stools, dining cabinets and sideboards, electric screwdrivers and high-pressure washer hose reels) on Amazon's US website will reach more than 10%.

However, in recent years, while operating the Amazon platform, Aokky has also established stable relationships with e-commerce platforms such as Walmart and Wayfair. The proportion of revenue from the Amazon platform has decreased relatively, while the proportion of revenue from other platforms has continued to increase.

Data shows that in 2021, Aoki's revenue on the Amazon platform reached 7.611 billion yuan, accounting for nearly 84% of sales. In 2022 and 2023, the revenue on the Amazon platform was 4.5 billion and 4.67 billion respectively, and the sales share dropped all the way to 53.8%. At the same time, in 2023, Aoki's revenue on Walmart and Wayfair increased significantly to 850 million and 870 million. The effect of multi-platform layout is very significant.

Aoki products are mainly sold to countries and regions with high consumer demand and developed economies, such as North America, Europe, and the Middle East, and have been highly recognized in overseas markets. According to Frost & Sullivan's data, in 2023, Aoki products had an average return rate of less than 3.5% on all third-party e-commerce platforms , which is one of the lowest in the industry.

While selling goods , Aojie also engages in logistics business . In addition to providing logistics for its own e-commerce business through Shenzhen Xiyou Zhicang ( a subsidiary of Aojie ), it also mainly provides efficient logistics solutions to e-commerce sellers ( including domestic consolidation in China, first-leg international freight services, overseas transshipment, overseas warehousing and order delivery , etc. ) .

Aoji has provided logistics solutions to a total of more than 700 e-commerce companies. According to Frost & Sullivan, in terms of revenue generated by B2C export e-commerce logistics solutions using the overseas warehouse model in 2023, Shenzhen Xiyou Zhicang ranks fourth among all B2C export e-commerce logistics solution providers in China, with a market share of approximately 1.2%, and ranks first among all B2C export e-commerce logistics solution providers focusing on medium and large items.

In the first four months of this year , Aokkey's logistics business revenue reached 583 million yuan, accounting for more than 20% of the total revenue.

Transformation and upgrading! The first generation of big sellers keeps up with the development of the times and "does not fall behind"

For many senior cross-border players, Aojie is very famous. As the first-generation best-seller, it successfully became one of the "Four Young Masters of South China City". With the development of the times, the cross-border circle has frequent replacements of old and new players, and batches of veteran players have been continuously cleaned out. However, Aojie has been able to keep up with the development of the times and "not fall behind". Its revenue performance is impressive, and it has successfully gone public and rung the bell. There are multiple factors behind this.

Aoji was founded in 2010. In fact, as early as 2005, the founder registered a company in Germany and transformed from traditional foreign trade to foreign trade e-commerce . After that, he returned to China to set up a team in Shenzhen and won the first place in annual sales in eBay China, with an annual transaction volume of nearly 100 million yuan. At that time, cross-border e-commerce was in the "wild growth" stage. Aoji seized the development dividend period and grew into a super seller in the cross-border circle, quickly becoming one of the largest market participants in China's B2C e-commerce market. In November 2015, Aoji was successfully listed on the New Third Board.

The outside world may think that AUKEY succeeded because it caught the trend. In fact, in the era when distribution was king, AUKEY had already realized the importance of brand. As early as 2014, AUKEY established its own brand AUKEY and started the road of brand transformation very early. Years of accumulation have paved the way for the current revenue.

After that, Aoji entered the logistics business, successfully alleviating the logistics pain points of furniture and home furnishings, and thus adding another revenue channel. Aoji's multi-platform layout strategy has overcome the "Amazon addiction". At the same time, Aoji's strong digital supply chain management capabilities support efficient operations , market-oriented product development and continuous innovation to empower diversified products, and other advantages also support Aoji's continuous upward development.

China's cross-border e-commerce exports are developing rapidly. As a hot-selling "evergreen", the furniture and home furnishing category has spawned many cross-border sellers. As one of the outstanding representatives among them, Aoji's successful listing today may bring more confidence to the industry.

Aoji