Another cross-border IPO joins the market

It is often said that all industries are still in a cold wave this year, but judging from the IPO situation, the signal revealed is not so. In the cross-border field alone, this year's A-share market has given birth to many new players such as Zhiou , Saiwei, and Kangliyuan, and Santai Shares will also subscribe for new shares today.

Last week, another cross-border enterprise successfully passed the review and its listing is just around the corner.

Outdoor furniture giant successfully passed IPO and entered the NEEQ

On September 8, at the 51st review meeting of the Beijing Stock Exchange Listing Committee in 2023, Shandong Taipeng Smart Home Co., Ltd. (hereinafter referred to as "Taipeng Smart") was approved to pass the meeting.

In April this year , Taipeng Smart's IPO application was accepted. After two rounds of review and inquiry letters , it took 133 days for Taipeng Smart to finally be listed on the Beijing Stock Exchange. The review meeting results announcement showed that Shandong Taipeng Smart Home Co., Ltd. met the issuance conditions, listing conditions and information disclosure requirements .

In 2002, Taipeng Intelligent was established in Shandong. At that time, it was just a limited liability company. In 2018, Taipeng Intelligent transformed into a joint-stock company, just 16 years after its establishment.

In August 2022 , Taipeng Intelligent signed a coaching agreement with Wugang Securities Co., Ltd., and passed the coaching acceptance of the Shandong Securities Regulatory Bureau half a year later ( April 2023) .

Through the sales of garden tents including hard-top tents, soft-top tents and PC-top tents, as well as other outdoor leisure furniture and products , Taipeng Intelligent has made steady progress in its development over the past 20 years, with good performance in revenue, profit and gross profit margin.

From 2020 to 2022, Taipeng Intelligent's revenue increased from 287 million yuan to 472 million yuan and 410 million yuan, and its net profit also increased from 18.51 million yuan to 26.65 million yuan and 44.09 million yuan . The gross profit margin increased from 19.50% and 16.75% to 26.61% .

In the first half of this year, Taipeng Intelligent's revenue was 147 million yuan. Although it decreased by 28.66% compared with the same period in 2022, its net profit was 22.41 million yuan, a year-on-year increase of 26.24%.

At the product level, Taipeng has gradually formed a mature R&D system, production system and sales system. The prospectus shows that it has a total of 75 patents, including 5 invention patents, 45 utility model patents, 25 design patents, and 31 computer software copyrights.

From 2015 to 2022, Taipeng Intelligent has undertaken a number of technological innovation projects of the Shandong Provincial Department of Industry and Information Technology for eight consecutive years, and its brand "TAIPENG" has been recognized by many associations in Shandong; in May this year, it was recognized as a "Shandong Province's Specialized and Innovative Small and Medium-sized Enterprise."

Taking root overseas, the US market becomes the largest contributor to revenue

By selling tents and other outdoor leisure furniture and products, Taipeng Intelligent has been deeply rooted in international markets such as the United States, Canada, and Europe for more than 20 years.

The prospectus shows that Taipeng Intelligent's business revenue mainly comes from exports. In 2020, 2021 and 2022, the company's export revenue was 271 million yuan, 460 million yuan and 397 million yuan respectively, accounting for 94.89%, 98.08% and 97.86% of the company's main business revenue, which is a high proportion.

Through e-commerce, large chain supermarkets, and a small number of trading channels, Taipeng Smart has taken root overseas for many years. Although it mainly cooperates with supermarkets such as Lowe's, Home Depot, and Walmart, Yien.com found that a small number of Taipeng Smart's products are also sold on Walmart's e-commerce platform.

Unfortunately, compared with other cross-border companies, Taipeng Intelligence is increasingly relying on the role of "supplier" .

The prospectus shows that from 2020 to 2022, Taipeng Intelligent's revenue in e-commerce channels has basically declined year by year , and its share in the total revenue of export channels has dropped from 25.12% and 29.12% to 11.55%; the proportion of supermarket channel revenue has increased from 67.71% and 62.99% to 82.11%.

According to customer classification, Taipeng Intelligent has a high customer concentration. From 2020 to 2022, the sales revenue of its top five customers were 214 million yuan, 349 million yuan and 312 million yuan, respectively, accounting for 74.73%, 74.46% and 76.94% of the main business income in the current period. This means that once these customers stop cooperating, Taipeng Intelligent's performance will inevitably decline.

At the same time, Taipeng Smart is also deeply dependent on the US market. From 2020 to 2022, revenue from the US market accounted for 58.98%, 53.34% and 61.44% of total revenue respectively , which is a high proportion. However, in the past two years, the growth rate of import scale of outdoor leisure furniture in the United States has continued to decline, from 32.76% in 2021 to 12.17% in 2022. If this scale growth rate continues to decline in the future, Taipeng Smart's product market digestion capacity will become insufficient.

Rooted overseas, Taipeng Smart's customers and markets are highly concentrated, which may pose a hidden danger to its operations. After all, the current furniture and home furnishing market is highly competitive, and the overall industry background is not particularly optimistic.

Many outdoor furniture giants reported poor performance, and survival in the big market is becoming more difficult

Running on the same track as Taipeng Smart are Zhejiang Yongqiang and Zhejiang Zhengte, two well-known listed companies. Through these two companies, we can see the performance of the cross-border outdoor furniture track in the past two years.

Last September, Zhejiang Zhengte, whose products mainly include garden sunshades and other leisure furniture, was successfully listed on the Shenzhen Stock Exchange.

But in its first annual report after listing, Zhejiang Zhengte reported some "negative" conditions. In 2022, its revenue reached 1.382 billion yuan, a slight increase from 1.24 billion yuan in 2021, but its net profit was almost halved, plummeting from 108 million yuan in 2021 to 59.19 million yuan in 2022.

In the first half of this year, Zhejiang Zhengte's revenue fell by 18.37% year-on-year to only about 720 million yuan ; its net profit fell even more, down 34.34% year-on-year to only 41.86 million yuan .

Let’s take a look at Zhejiang Yongqiang, which has been listed for 13 years. It has been deeply involved in the overseas market for outdoor leisure furniture and supplies for many years, and its revenue has maintained continuous growth, especially in 2021, when its performance exploded. Its revenue soared from 4.955 billion yuan in 2020 to 8.151 billion yuan in 2021, and reached 8.219 billion yuan in 2022.

But the profit is not as good as before. The financial report pointed out that in 2019 and 2020, Zhejiang Yongqiang's net profit exceeded 500 million yuan, but in 2021 it plummeted by 76% year-on-year to only 125 million yuan. In 2022, it only rebounded slightly to 217 million yuan.

From this, it can be seen that the overseas outdoor furniture market is experiencing setbacks, which can also be confirmed by the listing application situation.

Data shows that in 2021, the number of home furnishing and furniture companies applying for listing on the A-share market exceeded 50, but in the end only 10 were successfully listed, and more than 40 listings were stranded ; in 2022, the number of home furnishing and furniture companies queuing for listing dropped to about 30, and in the end 15 were successfully listed ; in the first half of this year , only two were successfully listed.

Obviously, the current home furnishing market is undergoing tremendous changes, especially the furniture market, where overall consumer demand is lower than before, making it increasingly difficult for related companies to survive. Unlisted companies want to gain support from the capital market through IPOs, but may fail due to various financial conditions; listed companies fail to gain market recognition, and their stock prices and market capitalization continue to fall, until they are delisted.

In the increasingly difficult global context, if cross-border enterprises want to stand firm in the market game , they need to be more resourceful and more strategic ...

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