A cross-border dark horse emerges from a niche market! Guangdong Dama is once again sprinting for IPO

With the continuous development of Internet technology , short video social media platforms have shown an explosive growth trend . More and more people have begun to invest in the shooting of social media content , and the demand for photography and video equipment has also soared.

Many sellers of related products seized the opportunity to go overseas, and sales soared. As a result, the companies also ushered in rapid development and began to actively rush to go public.

SIRUI Optics is heading for IPO

Latest news ! Guangdong SIRUI Optics Co., Ltd. (hereinafter referred to as "SIRUI Optics") plans to issue shares publicly and list on the Beijing Stock Exchange.

At present, under the guidance of Soochow Securities Co., Ltd., SIRUI Optics has passed the guidance and acceptance of the Guangdong Regulatory Bureau of the China Securities Regulatory Commission.

The Beijing Stock Exchange has officially accepted SIRUI Optics' application to publicly issue shares to unspecified qualified investors and list on the Beijing Stock Exchange.

SIRUI Optics plans to raise 272 million yuan this time, and plans to invest the funds in production expansion projects such as optical lenses and upgrading and renovation projects of the R&D center.

On November 28, 2022, SIRUI Optics was listed on the basic layer of the New Third Board.

In June 2023, SIRUI Optics successfully transferred to the Innovation Layer, and immediately announced that it had entered the listing guidance period of the Beijing Stock Exchange.

In October 2023 , SIRUI Optics released the progress report of the first phase of tutoring work .

Now, the progress towards listing has taken a step further.

According to public information, SIRUI Optics was founded in 2001. The company is headquartered in Zhongshan City, Guangdong Province. It is mainly engaged in the research and development, production and sales of photographic and video equipment . Its products include photographic and video support brackets, radio and television video equipment, optical lenses, photography bags, moisture-proof cabinets , etc.

SIRUI Optics ' business covers the whole country, and is mainly exported to more than 60 countries and regions including Germany, Japan, the United States, Canada, the Middle East, the European Union, and Southeast Asia . In addition, the company has established three wholly-owned subsidiaries overseas , namely SIRUI USA, SIRUI Germany, and SIRUI Japan. Its products are mainly sold to countries and regions such as the Americas, Europe, Japan, and South Korea.

In overseas markets, SIRUI Optics has entered mainstream e-commerce platforms such as Amazon and Walmart , established its own independent website , and expanded its business through crowdfunding platforms such as Indiegogo . In terms of offline channels, SIRUI Optics has entered well-known distribution and agency channels in the global photography and video field such as B&H and Focus Nordic AB , and quickly developed business in overseas markets.

Moreover, on the Amazon and Walmart platforms, the photographic equipment products under the Sirui brand of SIRUI Optics have performed very well in the market.

The success of SIRUI Optics did not happen overnight.

In the early days of the company, it has been engaged in the research and development, production and sales of non-optical photographic and video equipment such as tripods and pan heads .

In 2015, SIRUI Optics began to enter the field of imaging optical technology and focused on the research and development of photographic and video optical products .

In September 2019, SIRUI Optics successfully launched its first 1.33x anamorphic cine lens .

Today, SIRUI's interchangeable optical lens products have expanded to 6 series and 30 products , including vari-width movie lenses, movie lenses, and autofocus photography lenses . The end-user coverage is also wider, including photography and videography enthusiasts, professional teams, photography studios, and film and television studio directors.

It can also be seen that SIRUI Optics attaches great importance to R&D and innovation. It is understood that SIRUI Optics has mastered a number of patented technologies and non-patented technologies in the R&D, design, production and manufacturing of tripod heads, interchangeable optical lenses and optical lenses . As of the end of May 2024 , the company and its subsidiaries have a total of 236 domestic and foreign authorized patents , including 18 invention patents for optical lenses and 40 utility model and design patents.

In recent years, SIRUI Optics ' performance has maintained a steady growth trend.

From 2021 to 2023, SIRUI Optics ' operating income was RMB 189 million, RMB 183 million and RMB 261 million respectively , and the company's net profit was RMB 19 million, RMB 21 million and RMB 32 million respectively .

In the first quarter of 2023, SIRUI Optics' operating income was RMB 62.6188 million, up 22.57% from the same period last year. The company's net profit attributable to shareholders of the parent company was RMB 3.3220 million, up 80.39% from the same period last year. After deducting non-recurring gains and losses, the net profit attributable to shareholders of the parent company was RMB 3.5253 million, up 232.54% from the same period last year.

SIRUI Optics still faces multiple risk factors

Although SIRUI Optics ' performance has been growing steadily and its overseas business has continued to improve, prompting the company to actively choose to go public to accelerate the capitalization process , SIRUI Optics received a warning letter from the Guangdong Securities Regulatory Bureau during the listing process . The main reason was that the company had problems such as irregular use of raised funds, questionable financial data, and inaccurate information disclosure.

In terms of information disclosure, there are contradictions in SIRUI Optics' 2022 annual report and 2023 semi-annual report. Because the company did not subdivide the advertising expenses, e-commerce platform fees, and network promotion fees in sales expenses, the data disclosed in the 2022 annual report and the 2023 semi-annual report are inaccurate , which means that there is a high possibility of problems with the company's financial accounting.

At the same time, SIRUI Optics also had problems such as promotional rebates not being offset against current operating income, insufficient provision for inventory impairment, inaccurate accounting of research and development expenses, and capitalization of loan interest being inconsistent with accounting policies.

It is also worth noting that SIRUI Optics ’ sales expenses and debt-to-asset ratio have been rising year by year .

From 2021 to 2023, SIRUI Optics ' sales expenses were RMB 21.3156 million, RMB 27.2235 million and RMB 44.2220 million , respectively, and the sales expense rates were 11.30%, 14.86% and 16.89%, respectively, all showing an increasing trend year by year.

In this regard, SIRUI Optics stated that if the company cannot effectively control the sales expenses of various channels, resulting in the company's sales expense ratio continuing to rise, or the company's publicity and promotion strategy cannot effectively promote the growth of sales revenue, it may have an adverse impact on the company's performance.

From 2021 to 2023, the debt-to-asset ratio of SIRUI Optics was 43.46%, 53.44% and 60.14% respectively , showing an increasing trend year by year, and was significantly higher than the average of listed companies in the same industry , which were 28.95%, 29.80% and 24.01% respectively .

It should also be noted that in recent years, the proportion of SIRUI Optics ' overseas sales revenue has been too high.

From 2021 to 2023, SIRUI Optics ' overseas sales revenue was RMB 143 million, RMB 140 million and RMB 197 million, respectively, accounting for 76.24%, 77.10% and 76.27% of its main business revenue, respectively.

This has increased the operating risks of the company's reliance on overseas revenue , and a high proportion of overseas sales will also lead to exchange gains and losses . For example, in 2021, SIRUI Optics suffered an exchange rate loss of 2.2892 million yuan due to exchange rate fluctuations , accounting for 13.85% of the total profit in the same period .

Under the influence of multiple risk factors, whether SIRUI Optics can be successfully listed on the Beijing Stock Exchange , Ennet will continue to pay attention .

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