Internet small appliances want to IPO IPO | puppy electrical storage worries

In December 2016, Puppy Electric Internet Technology Co., Ltd. (code: 870077, hereinafter referred to as' Puppy Electric '), the leading e-commerce brand, successfully listed on the new three-board and relied on its early capital accumulation and rapid cash circulation to become the' Domestic small appliances first unit. 'Prior to this, Puppy Electric has maintained a' zero financing 'record, which in many companies on the new board is rare.

After the successful listing of the new board, the founder of puppy Tan Chong said that "the new board is only the first step, the dog is the goal of the IPO. Because the financial statements require coherence, the puppy appliances to be declared until 2017 IPO The conditions, through the first three boards to make a rehearsal is also very good.

On December 29, 2017, Puppy Electric Co., Ltd. started to switch its way toward the main board.According to the disclosure prospectus of the dog electrical appliance IPO prospectus, it intends to issue no more than 1067 shares in the Shenzhen Stock Exchange with a total share capital of not more than 4267 shares, the sponsor for China International Capital Corporation.

As a veteran domestic small appliances company, puppy appliances in the IPO on the road will face any problems? Tan Chong finally achieve the ultimate goal? Investors how to treat such a completely different from the traditional home appliance business model? With these questions, the reporter consulted the relevant information and managed to reach out to the person in charge of the dog electrical brand department, but as of press release, the other party did not reply to the questions raised by the reporter.

Net growth for two consecutive years

Founded in July 1999, Puppy Electric Co., Ltd. is a leading e-commerce brand company that develops and sells household cleaning appliances such as vacuum cleaner, floor sweeper and mite meter. In the early days of establishment, Puppy Electric Appliance was similar to most household appliance enterprises , Mainly settled in Xidan Department Store, Gome appliance stores and other offline channels.

Later, the company was squeezed by management fees gradually getting higher and lower in the offline store, in addition to benefiting from the tide of Chinese e-commerce starting to rise and Puppy Appliances began to shift its focus to online.In June 2007, Puppy Appliances first made its debut on Taobao Try to open a shop, and have been stationed in Lynx, Vipshop, Gome online, Amazon, Dangdang, Shop No. 1 and other large e-commerce platform.

In 2010, Taobao urgently needed to upgrade its platform image and product quality. As a result, incubators supported a number of native brands and supported them through such measures as traffic flow. Pursuit Electric Appliances was one of those incubated companies. That year caught up with the outlet, growing rapidly.

The financial data of the prospectus shows that the operating results of Puppy Electric achieved a continuous increase from 2014 to 2016. The operating income for the three years was 128 million yuan, 234 million yuan and 516 million yuan respectively, with a revenue of 3.2 from January to June 2017 Net profit for 2014 to 2016 were RMB5.0 million, RMB0.04 billion and RMB33 million, respectively. From January to June 2017, net profit was RMB0.2 billion.

Looking at the performance of dog electrical appliances in recent years, we can see its growth is more stable. However, behind the continued growth, there is one issue worth noting, with the growing size of the small household appliances market, more and more international brands Join the small home appliance market in China, and trying to get a share of it.Now in the similar market of dog electrical appliances, rivals such as Philips Electronics, Dyson, Midea and other well-known domestic and foreign brands, Puppy Electric as the Internet Appliance brands, in the contest with these major international brands, its brand, technology and capital, size and other aspects are not dominant, the pressure should not be underestimated.

Single business type hidden worries

In the Yikang data show that the past two years, Puppy appliances and mite meter products online retail share and retail share of the top two, both maintain a stable industry-leading position.

However, a stable and advantageous market position, there is a problem can not be ignored - vacuum cleaner sales as a percentage of total sales revenue, making the company reliance on a single core product is also too large.

Prospectus shows that in Puppy electrical business revenue, sales of vacuum cleaners continue to occupy a dominant position, in 2014, 2015 and 2016 respectively, operating revenue of vacuum cleaners were 108 million yuan, 163 million yuan, 367 million yuan in 2017 From January to June, the operating income was 228 million yuan, accounting for 86.85%, 70.59%, 71.36% and 71.48% of the total revenue of the year respectively.

A senior sponsor, who declined to be named, told Investor News reporters: 'At present, China's domestic vacuum cleaner industry holds only 6%, while the number of foreign countries has reached 90% level, the market outlook looks very broad However, this does not obscure the hidden dangers of Puppy Appliances, which has been focusing on design and development of vacuum cleaners since its inception, which means that companies may face growing bottlenecks once the vacuum cleaner industry sentiment index declines. Single, and now sprint IPO, I am afraid it is not so easy to convince investors.

Service model lead controversy

It is worth mentioning that the after-sales and maintenance services has always been the pain point of the home appliance industry, it can be said that Haier, the United States, Gree and other home appliance giants who can maintain the leading position in the market 'moat'.

On this issue, Puppy Electric pioneered the "central maintenance" after-sales service mode, for the quality of products sold during the warranty period, for whatever reason can be free maintenance, the entire process of two-way logistics costs, maintenance Fees, spare parts fees, warranty costs borne by the company, the final interpretation of all users.

However, when Puppy Electric launched its 'Central Maintenance' with sincerity, is its effect really satisfactory to consumers as it expected?

According to the "2013 3.15 Consumer Goods Service Satisfaction and Integrity Survey" released by China Household Electrical Appliances Service Maintenance Association, consumers showed little difficulty in repairing puppies, poor repairs, fewer after-sales outlets, poor service attitude and poor service attitude among manufacturers. Consciousness is not strong and other issues reflect strongly.

In response, insiders said that the era of mobile Internet, quality and service is the fundamental business, honesty is the backbone of the enterprise, word of mouth is the pulse of the enterprise, so that consumer satisfaction is the only goal of business. Consumers are satisfied that has become a measure Industry and business is an important indicator of the healthy development of Once the brand was sold on the issue of consumers too much criticism, the brand's future development prospects will also face challenges.

2016 GoodChinaBrand | ICP: 12011751 | China Exports