Another Amazon blockbuster is heading for IPO!

Xiangjiang Electric , a small appliance seller on Amazon, has multiple self-operated brands, most of which are BestSellers. Some of its hot-selling items have over 10,000 reviews and thousands of units sold per month. Currently, it is striving for an IPO. If nothing unexpected happens, this small appliance seller in Hubei will be listed soon. Before Xiangjiang Electric, there were already three listed companies that seized the overseas small appliance market.

After many twists and turns, the hot sales of small household appliances have impacted the IPO

Recently, Hubei Xiangjiang Electric Co., Ltd. (hereinafter referred to as "Xiangjiang Electric") submitted a prospectus to the Shenzhen Stock Exchange to apply for listing on the main board. It is currently in the "inquiry" status. The sponsor is Guotai Junan Securities Co., Ltd. and it is expected to raise 575.79 million yuan in this round of financing.

However, Xiangjiang Electric's IPO process was not smooth.

As early as 2017, Xiangjiang Electric signed a listing guidance agreement with Dongguan Securities for guidance filing. In the six years since then, Xiangjiang Electric has changed its sponsor securities firms twice. The reason given by Xiangjiang Electric was the need for strategic development.

After many twists and turns, five years later, Xiangjiang Electric Appliances, which mainly deals in small household appliances, garden hoses and other household products, finally succeeded in its IPO on the Shenzhen Stock Exchange.

Xiangjiang Electric Appliances is headquartered in Huanggang City, Hubei Province. It has been deeply involved in the industry for more than 30 years, and more than 90% of the company's revenue comes from overseas. Its two major categories of products can be divided into electrical household products, such as electric heating (air fryers, etc.), electric (blenders, etc.), electronic (electronic scales, etc.) and other series of small household appliances; non-household appliances are mainly garden hoses and other products.

To date, the company has established several wholly-owned subsidiaries around the world, responsible for business in more than 70 countries and regions. Among them, the company's cross-border e-commerce platform operations are mainly managed by Nuocheng E-commerce and Shenzhen Nawu, which are mainly engaged in air fryers, kettles and other products.

At present, the company's business is mainly ODM/OEM business, supplemented by self-branded business. In terms of details, ODM/OEM business mainly supplies to well-known brands such as Amazon, Walmart, and Philips, while self-branded business is mainly concentrated in online sales. Among them, "Weighmax" and "Accuteck" are mainly sold through Amazon and have developed well.

On Amazon, the sales of "Weighmax", "Accuteck" electronic scale series products and garden hose products are at the top of the Amazon Best Sellers list. Some hot-selling items have over 10,000 reviews and thousands of units sold per month.

Specifically, some postal scale products are among the top five similar products on Amazon's Best Sellers list. The garden hose series is a "Hubei Province single champion product" with 1 invention patent, 6 utility model patents, and 4 design patents. It is recognized by the international market for its high temperature resistance, frost resistance, and pressure resistance. It has been consistently ranked in the top 50 of Amazon's Best Sellers list for the past year, and its average monthly ranking has been consistently ranked in the top 5 in the past three months.

In terms of sales volume, electric heating, electric, electronic and garden hose products have sales of millions of units each year. In terms of revenue, electric heating products are the company's highest-earning products, with revenue of 459 million yuan, accounting for more than 40%; electric products have revenue of 318 million yuan, accounting for nearly 30%.

Good product sales also drive the growth of its overall profits. From 2020 to 2022, the company's revenue was 1.478 billion yuan, 1.489 billion yuan and 1.103 billion yuan, respectively. Even though the revenue declined, the company's net profit still increased, reaching 88.68 million yuan, 71.89 million yuan and 90.79 million yuan, respectively.

The success of Xiangjiang Electric is inseparable from the support of the supply chain. It is reported that the company has multiple production bases in Hubei, Guangdong, Jiangsu and other places. In the first quarter of 2023, Xiangjiang Electric's orders on hand still showed a positive trend.

Before Xiangjiang Electric, there were already three listed companies that seized the overseas small home appliance market

Small appliances, big market. As necessities in people's daily lives, small appliances have attracted more and more attention from consumers in recent years, especially in economically developed European and American countries. In 2022, the scale of the small appliance market in the United States was US$26.92 billion. It is expected that the overall scale of the small appliance market in the United States will reach US$32.89 billion in 2028, and that in Europe will reach US$50.62 billion, showing an overall growth trend.

China also has a number of listed companies that are conquering the overseas home appliance market. Many people divide these companies into three echelons. The first echelon is home appliance giants represented by Midea, Haier, and Gree; the second echelon is smart home appliance giants represented by Ecovacs, Roborock, and Dreame Technology; the third echelon is mainly small home appliance companies, and the following ones are the leading companies with similar business categories to Xiangjiang Electric.

Guangdong Xinbao Electric Appliance Co. , Ltd. is one of the earliest domestic companies to enter the overseas small household appliance market. It was founded in 1995 and listed on the Shenzhen Stock Exchange in 2014. It mainly engages in ODM/OEM, with overseas sales accounting for more than 70%. Its revenue scale is quite large, with revenue of 13.696 billion yuan and net profit of 961 million yuan in 2022.

Its main products include electric kitchen appliances, electric kitchen appliances, household appliances and personal care appliances. Among them, electric kitchen appliances and electric kitchen appliances are its main sources of income.

Xiamen Tsannkuen Industrial Co., Ltd. was established in 1988, much earlier than most small home appliance companies. It was listed on the Shenzhen Stock Exchange in 1993. It is mainly engaged in ODM/OEM business. In 2022, its revenue reached 1.584 billion yuan and its net profit was 0.94 billion yuan.

Relatively speaking, the company mainly focuses on overseas sales, and its products cover many categories, such as household appliances, electronic products, electromechanical equipment, office supplies, and kitchen and bathroom appliances. Its main products include household helpers (humidifiers, air purifiers, air circulation fans, etc.), gourmet cooking (electric rice cookers, steak makers, food processors, etc.), tea /coffee and other series of small appliances.

Zhejiang Biyi Co. , Ltd. was established in 2001 and listed on the Shanghai Stock Exchange in 2022. It mainly focuses on ODM/OEM and independent brand businesses, with overseas sales accounting for about 90%. Its revenue in 2022 was 1.499 billion yuan. Although it is not as good as Xiamen Tsannkuen, its net profit is much higher than it, at 178 million yuan.

At present, Biyi shares mainly focuses on the design, manufacture and sales of heating kitchen small appliances such as air fryers, air ovens, deep fryers, and grills.

At present, the demand for small household appliances is still very strong, and the industry has considerable profit margins, which has attracted more and more companies to participate in the competition. In order to break through the development bottleneck of their own scale, companies that have developed to a certain extent are also actively expanding and extending their product lines to seize market share.

Of course, Chinese sellers also face some challenges in exporting small household appliances. Consumption habits and market demands vary from country to country, so companies need to design and promote different products. In addition, countries have different certification and testing standards for electrical appliances, so sellers need to pay attention to local compliance policies when exporting to overseas markets.

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