Xiao bear Electric Co., Ltd. ("Xiao bear electronics"), known for its "creative small appliances," recently embarked on the IPO journey.
According to the prospectus, Xiaogong’s revenue in 2017 reached 1.647 billion yuan, and the camp brought by online sales became a major part, up to 1.5 billion yuan, accounting for 91.59% of the main revenue. Many e-commerce brands have laid out their lines. In the next period, Xiaoxiong Electric still optimistically expressed its desire to continue to consolidate its own channel structure. Is it possible to continue the sales model on the heavy line and light line?
In addition, Xiaoxiong Electric has even greater ambitions. Of the 1,079 million yuan to be raised, nearly 93% of the fundraising will be used to expand production capacity, which means that the company’s production capacity will double in the future. This will be a channel construction for the company. And product research and development will be a great test. However, quality problems repeatedly on the 'black list', R & D investment is not much bear electronics, is facing various risks.
On June 1st, in response to a question from the reporter of the Changjiang Business Daily, Xiaoxiong Electric stated: 'Because the investment project is completed and put into production and gradually released, it will take some time. It will make a short-term dilution of the company’s earnings per share, but in the long run Will increase company earnings. '
90% dependence on online channels is the biggest limitation
As a small household appliance brand, the reporter found that Xiaoxiong Electric had heavy reliance on online channels. According to the prospectus, from 2015 to 2017, online sales revenue was 633 million yuan, 956 million yuan and 1.504 billion yuan, respectively. Compared with the total revenue of 87.55%, 91.24% and 91.59%.
Some industry insiders believe that with the rapid disappearance of Internet e-commerce online shopping bonuses, bears that have not yet entered the national mainstream market, mainstream channels, and mainstream category competition will continue to follow the traditional old roads. In a quagmire which is not so big, it will slowly face the rapid gnawing and squeezing from giants.
According to the prospectus, there is also a certain risk of high online sales. 'Currently, third-party channels such as Tmall Mall, Jingdong Mall, and Weipin Club have gradually developed into mature open e-commerce platforms. Failure to maintain good cooperation with the e-commerce platforms mentioned above, or significant adverse changes in the e-commerce platform’s sales policies, charging standards, etc., or the company’s operating conditions on the e-commerce platforms mentioned above are less than expected, and failure to expand other emerging sales in a timely manner. Channels will have an adverse effect on the company's operating performance. '
In this regard, the relevant person in charge of the bear electronics to the Yangtze River Business Daily reporter said: 'The company will consolidate the existing advantages of the online sales market, expand overseas markets; improve the offline marketing network, build marketing teams.'
"In recent years, online and offline embrace each other is a major trend. This is the reason why JD.com and Xiaomi actively expand offline stores." Liu Buchen, an observer of the household appliance industry, said in an interview with Changjiang Business Daily that simply relying on online channels, the future The discovery will be limited, bears should consider properly walking on both legs online and offline.
There is a big gap between R&D investment and similar companies
According to relevant data, in 2017, the results of a small household electrical appliance quality inspection test published by the Beijing Municipal Bureau of Industry and Commerce, the bear model of the DGJ-C608 was marked by a sign and description, and the structure was unqualified. Bear Electric said that this product has long been discontinued.
Before this, the bear brand yogurt maker and intelligent rice cookers all went through the black list due to quality problems. Electric kettles, crushers and other appliances were also exposed online by consumers due to quality problems.
According to statistics, in 2016, the Jiangsu Provincial Bureau of Quality Supervision entrusted the Suzhou Municipal Comprehensive Inspection and Testing Center for Quality and Technical Supervision to carry out supervision and spot checks and risk monitoring on rice cooker products. Xiaobiao Electric Appliance Co., Ltd. model DFB-A20Y1 is an intelligent rice cooker that has been listed for harassment power. In 2014, Xi'an Bureau of Quality and Technical Supervision announced the results of the second quarter liquid heater product quality supervision and spot checks. Among the 30 batches of tested products, six batches were unqualified, among which was Xiaogong Electric. Limited production of yogurt machine.
In addition, the reporter noticed that Xiao bear electronics was particularly pessimistic in terms of investment in research and development expenses. The prospectus showed that from 2015 to 2017, the research and development input of Xiaoxiong Electric was RMB 9,924,400, RMB 16,533.3 thousand and RMB 25,376,800 respectively, which accounted for 1.37 per cent of the current revenue. %, 1.57% and 1.52%.
Nine-Yang Co., Ltd., which is also a small household appliance, and Supor's R&D input during the period from 2015 to 2017 accounted for 3.68%, 2.97%, 2.95% and 2.71%, 2.95%, and 2.88%, respectively.
The book value of inventory accounts for about 40%
According to the Changjiang Business Daily reporter’s review of the prospectus, at the end of each period from 2015 to 2017, the book value of the company’s inventory was RMB 118 million, RMB 166 million and RMB 251 million respectively, accounting for 44.22%, 38.41% and 34.39 of the total assets of the current period respectively. %, The carrying amount of inventory keeps a high level. In the inventory structure of the company, the amount of goods sold and the amount of issued goods are relatively large, which together account for a relatively high proportion of total inventory, which is 87.34%, 77.37% and 81.15%, respectively.
The reason is that the company’s creative small home appliances production adopts the “predicted sales volume + safety stock” inventory management model, and at the same time, it aims at the peak sales period of the “Double 11” and “Double Twelve” promotions as well as the Chinese Lunar New Year. , In general, they will be stocked in advance to meet short-term large-scale supply requirements.
'From the standpoint of stock market investment value, small household appliances are not a promising industry in the capital market. The era of rapid growth in this industry has passed. Now that it has entered the reshuffle period, it is not easy for the bears to achieve great development. ' Liu Buchen said.