The suppliers behind the top-selling products are also striving to go public!

If sellers want to gain a foothold in the cross-border market, operations are one of the key factors, but the suppliers behind them also play an indispensable role. As suppliers of big sellers, their profit growth is closely related to that of big sellers.

Some suppliers have started to go public, and some Anker suppliers have seen a sharp increase in profits ...

Another major supplier is going public

Energy storage and new energy batteries are among the hottest-selling products in the world today. Many industry leaders are working hard in this field. Huabao New Energy's energy storage brand Jackrey, DeLan Minghai's BLUETTI, and new energy brand EcoFlow are all well-known brands on Amazon.

The company makes a fortune from selling its products, and suppliers follow suit. The company has now reached the stage of seeking to go public.

Dongguan Langtaitong Technology Co., Ltd. (hereinafter referred to as "Langtaitong Technology") was established in 2015. It is mainly engaged in the research and development, production and sales of lithium-ion batteries, nickel-metal hydride batteries and PACK battery packs. Its products are mainly used in the three downstream fields of energy storage, small power and consumer.

It is precisely these three categories that have enabled Langtaitong Technology to rely on cross-border big sellers, well-known brands and platform companies. In terms of segmentation, its customers in the energy storage field mainly include Delan Minghai, Powerplus, China Power, Clean Republic, Itechworld, etc.; its customers in the small power field include Zhongxing, Qiyiqi, Taibit, Ninebot, etc.; in the consumer field, its customers include Amazon, EBL, Wall, Sony, etc.

For Delan Minghai, a customer in the energy storage field, it is almost a miracle.

Only one year after going online on Amazon, its sales exceeded 100 million yuan; two years later, DeLan Minghai directly became the third in the world, and its BLUETTI consumer groups spread across Europe and the United States; in 2022, its sales revenue exceeded 2 billion yuan, and it is expected that its revenue will reach 5 billion in 2023.

With large sales volumes overseas, naturally, the demand for energy storage products is also great. In 2022 alone, DeLan Minghai's purchases from Langtaitong Technology reached 83.5 million yuan, accounting for 7.99% of its revenue; the purchase amount in the first half of 2023 reached 65.4216 million yuan, accounting for 10.69% of the period's revenue.

As the supply chain company behind the big seller, Langtaitong Technology naturally lived up to expectations. Its revenue and net profit have continued to grow since 2020. Revenue has increased from 730 million yuan in 2020 to 612 million yuan in the first half of 2023; net profit has also increased from 48.7973 million yuan to 45.2037 million yuan.

Looking at the products that Langtaitong Technology has been deeply engaged in, it is not difficult to find that they are very popular nowadays and the future development trend is also quite clear.

In the first half of this year, Shanghai and many other regions announced the export data of the new three products (electric passenger cars, lithium batteries, and solar cells). Among them, lithium batteries performed the best. In the first half of this year, Fujian Province exported 57.07 billion yuan of lithium batteries, a year-on-year increase of 110.7%; Shanghai exported 47.5 billion yuan of lithium batteries, a year-on-year increase of 60.9%.

In order to meet the increasing demand for overseas orders, a Guangdong energy storage battery manufacturer even hired twice as many workers as before. This is enough to show the popularity of this track, which is very consistent with the products that Langtaitong Technology has been deeply engaged in.

Anker's suppliers' profits tripled

It is not just the energy storage and new energy track. In fact, as a long-standing red ocean market, wearable devices are also a track that major leading companies are deeply involved in.

Especially headphones, although it is a small product and is in a niche market, it has a large market space. During the period 2026-2021, the global TWS headset shipments will have an annual compound growth rate of up to 101%, and the shipments in 2021 will reach 300 million units.

Tianjian Acoustic Co., Ltd. (hereinafter referred to as "Tianjian Acoustic"), a major 3C supplier, successfully landed on the Shenzhen Stock Exchange's Growth Enterprise Market in June this year. It mainly develops, manufactures and sells miniature electroacoustic components, consumer, industrial and automotive electroacoustic products, health acoustic products, etc.

The company's products mainly include various types of headphone products, such as headphones, TWS headphones, in-ear headphones, walkie-talkie accessories and car accessories, and acoustic components. Recently, the company has also expanded its products to healthy acoustic products such as hearing aids.

Most of Tianjian's main customers are top brands, such as Harman, Motorola, Anker Innovations, Nothing, Bosch, Logitech, etc. Among them, Anker is the second largest customer of Tianjian, with a purchase amount of up to 71.89 million yuan a year, a 13.49-fold increase compared with the same period last year.

The growth in demand from top customer groups is also driving the growth in both Tianjian Electroacoustic's revenue and profits.

According to data from the first three quarters of this year, Tianjian Electroacoustic's revenue reached 1.288 billion yuan, an increase of 61.43% compared with the same period last year; the net profit attributable to shareholders of listed companies reached 110 million yuan, an increase of 314.19% compared with the same period last year.

In this year when most sellers' profits have fallen, Tianjian Electronic Acoustics was able to achieve double growth. This shows that it has quite a few tricks.

In terms of details, headphones have always been an important source of revenue for the company, contributing about 1 billion in revenue to the company a year, and are the most important product line of Tianjian Electroacoustics. Judging from its sales data in the past two years, during 2020 and 2021, Tianjian Electroacoustics' annual headphone sales reached about 20 million units.

In order to consolidate its supply chain position, Tianjian Electroacoustic has also increased its supply chain layout in Southeast Asia, and has three manufacturing bases in Zhongshan, Ganzhou and Penang, Malaysia.

It is undeniable that, like Anker, Tianjian Electroacoustic has always attached great importance to R&D, and the proportion of R&D investment has increased year by year for many consecutive years. During the period from 2020 to 2022, its R&D investment was RMB 32.256 million, RMB 49.199 million and RMB 85.953 million respectively, and its proportion of the company's current revenue is also gradually increasing.

The funds raised from the IPO in June this year were also mainly used for research and development, which shows its future core competitiveness. As of the end of 2022, Tianjian Electroacoustics has 422 R&D personnel, accounting for 16.34% of the registered employees.

In fact, the situation where the big sellers and suppliers complement each other and both increase their revenue and profits is a relatively good situation. As the saying goes, if one prospers, all prosper; if one suffers, all suffer. The relationship between suppliers and sellers is more of a symbiotic relationship.

In the past, suppliers were the boss and whoever supplied the goods had the final say. However, during the bonus period of cross-border e-commerce development, the positions of the two have changed. Sellers have more channels to choose goods. At this time, sellers are mostly in a dominant position, and being able to maintain long-term cooperation with large sellers with large volumes is already the best result.

At that time, the payment period was also placed on the suppliers. Dashao would pay the suppliers after receiving the payment. Therefore, there were cases where suppliers such as Cooper went bankrupt after demanding payment from Dashao and were unable to get the payment.

At present, cross-border e-commerce is still in a stage of rapid development. There is no winner or loser between suppliers and sellers. What matters more is that they complement each other and coexist for a long time.

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