The two largest sellers in the north and south joined forces for the first time and invested in this project!

Zhiou Technology and Saiwei Times invested in a project at the same time.

In June and July this year , Zhiou Technology and Saiwei Times landed on the A-share market one after another. Zhiou Technology is located in Zhengzhou, Henan , and is a big seller in the home furnishing field, while Saiwei Times, located in Shenzhen, Guangdong, focuses on the clothing track. Although the two companies were listed at a similar time, they do not have much overlap in terms of business. However, what is unexpected is that one day they will focus on the same project. This move will broaden the industrial layout of Zhiou Technology and Saiwei Times and improve profitability.

The North and South sellers made their moves at the same time, investing a total of 60 million

On November 24 (last Friday), Zhiou Technology and Saiwei Times successively issued an investment announcement. It is not new for listed big sellers to invest overseas, but this time the two big sellers invested in the same project, which makes people curious.

According to the announcement, Zhiou Technology and Saiwei Times , as limited partners, used their own funds to jointly invest with the general partner and executive partner China Merchants Capital Management (Beijing) Co., Ltd. and other limited partners to establish Hainan Zhaofu Trade New Business Equity Investment Fund (Limited Partnership) (tentative name, hereinafter referred to as or "Partnership").

The target fundraising scale of the partnership is 500 million yuan . Among them, when Zhiou Technology and Saiwei Times subscribed, the fundraising scale of the partnership was 100 million yuan . China Merchants Capital (Beijing) subscribed 1 million yuan of capital with its own funds as a general partner. The two big sellers subscribed 30 million yuan each , and the shareholding ratio accounted for 30% of the partnership's capital contribution at the time of this subscription . The partnership is currently in the preparation and fundraising stage, and there is still uncertainty as to whether it can complete the fundraising plan in the future.

In the announcement, both Zhiou Technology and Suntech Power mentioned that their participation in the establishment of the above-mentioned partnership was to actively respond to national policies, promote high-quality development of trade, explore high-quality projects upstream and downstream of the industrial chain, improve the profitability and sustainable development capabilities of the company's main business segments, and broaden the company's industrial layout and strategic vision.

The partnership will screen and invest in projects in accordance with the market-oriented equity investment fund approach. Unlike previous sellers investing in mature projects, it will mainly invest in early-stage cross-border e-commerce companies while taking mature projects into consideration.

There are four main investment directions: First, cross-border e-commerce companies in the fields of consumer electronics, clothing and accessories, furniture and home furnishings, outdoor sports, home appliances, and personal care; second, e-commerce companies with the potential to go overseas and globalize in intelligent, digital products and potentially popular consumer categories or tracks; third, service providers that can provide technical support such as cross-border logistics, finance, marketing, and payment; fourth, technology research and development companies such as artificial intelligence, the Internet of Things, and cloud computing that can effectively empower cross-border brands.

Among them, the amount invested in service trade enterprises should not be less than 70% of the investable amount of the partnership , and the number of small and medium-sized service trade enterprises invested in should not be less than 80% of the total number of investment projects.

SHEIN and TikTok are both in the spotlight, and Zhiou Technology is making efforts on new platforms

On June 21 this year , Zhiou Technology was successfully listed on the Shenzhen Stock Exchange. Market information shows that as of press time, it was reported at 22.54 yuan per share , with a market value of 9.05 billion yuan.

As a big seller in the home furnishing sector, Zhiou Technology has performed well on Amazon. According to statistics from Marketplace, Zhiou Technology ranks first in Europe and third in the United States in the furniture and home furnishing category on the Amazon platform.

In addition to Amazon, Zhiou Technology has also entered channels such as ManoMano, eBay, and Wayfair, and with the rise of new platforms, it is also trying different possibilities.

1. Make efforts on social media. On the one hand, we select cooperating influencers based on product usage scenarios and influencer fan portraits. We have cooperated with influencers such as @paula_silvagni_interiors (560,000 followers on INS) and @maria_nordichouse (500,000 followers on INS). On the other hand, we have cooperated with influencers to sell products through live broadcasts on TikTok US .

2. Expanding into more platforms. We have already entered the US site of SHEIN platform and are carrying out related business.

In the first half of 2023, Amazon platform business revenue (including B2C and VC) accounted for 75.9% of Zhiou Technology's overall main business revenue , and other channel platform business revenue accounted for 24.1%. Compared with the past few years, the proportion of business revenue from other e-commerce platforms has increased significantly.

At the same time, Zhiou Technology has also been consolidating its own logistics foundation. Recently, Zhiou Technology stated on the investor interaction platform that it has always attached importance to the development of overseas warehouses and has built a warehousing and logistics system of "domestic and foreign self-operated warehouses + platform warehouses + third-party cooperative warehouses". The total area of ​​domestic and overseas self-operated warehouses in Germany, the United States, China, and the United Kingdom exceeds 280,000 square meters. After the products are transported to the overseas self-operated warehouses by sea transportation and other means, the overseas warehouses will provide subsequent warehousing and logistics services such as product storage, picking, distribution, customer returns and exchanges.

Through the overseas warehouse, we can achieve a quick response to overseas consumer orders and fast delivery. Most of the spontaneous delivery time in Europe has been achieved within 3-4 days , which greatly improves the online shopping experience of consumers. With the customer service team, we can intervene and intercept returns and exchanges caused by minor problems and defects such as missing parts, thereby reducing the return and exchange rate.

The brand development of Savitech is promising in the future

On July 12 this year , LDK successfully listed on the Shenzhen Stock Exchange. Market information shows that as of press time, it was trading at 33.41 yuan per share , with a market value of 13.367 billion yuan.

Since its listing, Savitech has attracted widespread attention both inside and outside the industry. Judging from the latest performance report, it did not disappoint.

The 2023 third quarter report shows that the main operating income of LDK was 4.374 billion yuan, a year-on-year increase of 30.27%; the net profit attributable to the parent was 223 million yuan, a year-on-year increase of 41.71%; the non-net profit was 208 million yuan, a year-on-year increase of 35.98%;

Among them , in the third quarter of 2023, Suntech Power's main operating revenue for the quarter was 1.601 billion yuan, a year-on-year increase of 37.58%; net profit attributable to shareholders was 72.1997 million yuan, a year-on-year increase of 97.84%; and non-net profit was 65.2707 million yuan, a year-on-year increase of 88.55%.

Unlike Zhiou Technology, Savitech has sufficient experience in brand incubation.

It is reported that Savitech has been promoting brand transformation since 2016. According to the prospectus, from 2018 to 2022, it has incubated 63 private brands with revenues exceeding 10 million, accounting for 88.07% of total sales revenue, of which 21 brands have revenues exceeding 100 million. Brands with cumulative sales exceeding 1.5 billion include Coofandy ( men's clothing brand ) , Ekouaer ( homewear brand) , Avidlove (mainly sexy underwear category) , and Ancheer (mainly bicycles) .

Branded products are generally more expensive, so Savitech clearly focuses on countries and regions with strong consumer power in market selection. "The company mainly focuses on the level and potential of regional consumer power. In the short term, it will still focus on countries and regions with higher overall consumption levels such as North America, Europe, and Japan, which are more suitable for the development of the company's branded business at this stage. There is currently a certain gap between the Latin American and Southeast Asian markets and the positioning of the company's products, but the company will continue to pay attention to market opportunities in specific categories and specific platforms. " It said in a recent institutional survey.