If askedWhat is the best selling product in 2020? Pet category items have a strong voice. Since the outbreak of the epidemic in 2020, home quarantine has made many American families more concerned about pets, and the sales of pet products have also experienced a major outbreak, and now it is the same.
Thanks to the popularity of pet products, many companies selling pet products have also made a lot of money, and many companies are seeking to go publicJiangsu Zhongheng Pet Products Co., Ltd(hereinafter referred to as“Zhongheng Pet”）It is also one of them.
Half year sales500 million yuan, Zhongheng Pet Sprint IPO!
Recently, Zhongheng Pet submitted an application for listing on the ChiNext to the Shenzhen Stock Exchange, which is currently in the acceptance stage. The sponsoring institution is Anxin Securities Co., Ltd. It is expected that this financing479 million yuan.
Zhongheng Pet was established inIn 2009, mainly engaged inPet hygiene products(Pet urine pads, cleaning pads, etc.)Pet Home Leisure Products(plastic particles, steel wire, etc.) andResearch and development of pet foodproductionandsalesIts products are mainly sold to markets such as North America and Europe, with customers mainly beingAmazon, Wal MartSellers waiting for the platform.
In terms of operating income, Zhongheng Pet hasThe revenue in the first half of 2021 was 550 million yuan, of which the net profit attributable to the parent company was 35 million yuan; In 2020, the operating revenue was 1.068 billion yuan, of which the net profit attributable to the parent company was 94 million yuan.
From the perspective of main categories,stayIn the first half of 2021, pet home and leisure products accounted for 48.93% of the total, with a revenue of 263 million yuanSubdivided into products, plastic products account for the highest proportion22.54%, with a revenue of 121 million yuan; Pet hygiene and cleaning products accounted for 41.67% of the total, with a revenue of 224 million yuan. Among them, pet urine pads accounted for the highest proportion of 30.94%, with a revenue of 167 million yuan; Pet food and pet supplies trade accounts for a relatively small proportion.
In terms of sales market, Zhongheng Pets mainly sellODM/OEMMainly focusing on business models, while selling independent brands to developed countries such as North America and EuropeRetailers and brands such as PETSMART, Amazon, Wal Mart and CHEWY cooperate.
In addition, the proportion of the company's overseas sales revenue to its main business exceeds90%, while sales in the United States are the most impressive, with sales revenue accounting for over 80% of the main business revenue.
But in terms of the current situation, the company hasThe sales revenue of ODM/OEM products accounts for over 85% of the main business revenue, which is too high. If there are changes in the market environment, competitive landscape, and other factors in the future, the main customers will reduce their procurement volume to the company, and the company's own brand will no longer be able to grow rapidly, which is highly likely to have a negative impact on the company's revenue.
It is reported that this financing,Zhongheng Pet will increase its construction of new projects such as pet hygiene products and pet household products to improve its production capacity.
in additionZhongheng Pet also attaches great importance to technological research and development work, developing over a hundred products every year. Currently, it has multiple patents abroad, and a portion of the funding from this financing will also be used to increase the construction of research and design centers.
Although the revenue is exceptionally impressive, due to multiple factors such as trade frictions, Zhongheng Pets, like many sellers, also faces many risks.
Impose tariffs and increase in raw materials... Zhongheng Pet Business Affected
Although the data and performance of Zhongheng Pet in recent years have been very impressive, from the content of the prospectus, the company still faces certain risks in some aspects.
The United States imposes tariffs on some imported products from ChinaThe products are mainly sold by Zhongheng Pets in overseas marketsPet urine pads, plastic pet home and leisure products, and other products are all within the scope of additional taxation. Zhongheng Pet stated that although the tariff rates for some subsequent products have decreased or been cancelled, it still has a certain impact on the company's export business to the United States.
The impact of rising raw material prices has had a certain impact on the company's main business gross profit margin. Zhongheng Pet mentioned in the prospectus that,In 2018, due to the high prices of raw materials such as wood pulp and toilet paper, the company's main business gross profit margin was low;Since the fourth quarter of 2020, the prices of some major raw materials, including wood pulp, plastic particles, and steel wire, have significantly increasedHowever, the company has a certain lag in adjusting prices to customers, resulting inThe gross profit margin of the main business decreased in the first half of 2021.
In addition, Zhongheng Pet stated that,The company has a certain risk of inventory depreciation loss. Data display,From 2018 to 2020, the company's inventory balance was RMB 180.2367 million, RMB 2012.671 million, and RMB 239.927 million, respectively. In the first half of 2021, it was RMB 273.6416 million, and the proportion of inventory compared to revenue was relatively high.
Based on numerous data, it is not difficult to see that in recent years, Zhongheng Pet has encountered numerous challenges, but its strong strength and enormous potential are still beyond doubt. With the emergence of more cross-border companies with pet products as their main business within the industry, the pet industry is receiving increasing attention.
The scale of overseas pet market has skyrocketed, and market consumption continues to upgrade
People's living standards have visibly improved, and pets have become emotional sustenance for many people and a member of many families. More and more households are raising pets, and the demand for various pet related products is increasing year by year, leading to rapid development of the pet industry.
As the largest pet market in the world,United StatesThere are a large number of pet owners,The popularity of "pet raising" and per capita pet consumption expenditure are both high. According to the Pet Products Association of America (APPA) data,From 2010 to 2020, the market size of the US pet industry increased from $48.35 billion to $103.6 billion, andThe figure of $103.6 billion increased by 6.7% compared to the same period in 2019.
In another major pet consumer market globally——EuropeIn recent years, the pet market has also developed at a speed that is visible to the naked eye. Data display,The total consumption of the European pet market in 2020 was 43 billion euros, including 21.8 billion euros in pet food sales, 12 billion euros in pet service sales, and 9.2 billion euros in pet product sales, andCompared to 2019, these data have all increased.
Although Asia is an emerging pet market, the Japanese pet market still accounts for a large proportion of the Asian pet market, and the growth rate has continued to steadily increase in recent years. Overall, the future development potential of Japan and the entire Asian pet market is still enormous.
Currently, among the pet raising populationThe majority of people born in the 1980s and 1990s, but with the improvement of consumption ability, increasing emotional demand, and the support of cross-border e-commerce, the overseas pet market will usher in better development!