With the rapid development of cross-border e-commerce, many big sellers have reached a certain stage of development and started to capitalize and seek listing. And some major suppliers are no exception. Amazon's major supplier, Sanwen Home, also submitted a listing application earlier.
However, the path to the listing of Sanwen HomebutIt was quite bumpy, and the listing application was terminated in September 2021. Now, Sanwen Home has withdrawn its listing application againbring a person to the presence of sb.What exactly is going on?
Performance error of nearly 40%, San Wen Home Terminates IPO Again
Based on the inquiry materials from Sanwenju Home, the termination of IPO may be an inevitable situation.In the financial data for January September 2021 updated on January 6, 2022, its net profit decreased by over 60%, a decrease of nearly 40% compared to the data predicted in the inquiry on August 30, 2021.
As a service-oriented trader with original design as its core competitiveness,Sanwen Home mainly provides specialty home textiles, home clothing, and specialty fabric products for retailers and brand merchantsIts customers include cushions, blankets, pajamas, and sportswear in over 30 countries, including the United States and the United Kingdom. Amazon's home furnishings brands such as Barefoot Dreams and Vera Bradley are among its customers.
Based on the financial report data, Sanwen Home's performance is good and the overall operating condition is good. Among them,In 2020, the company's operating revenue was 1.791 billion yuan, and its net profit attributable to the parent company was 109 million yuan.Compared to a group of companies applying for IPO on the ChiNext board, the ranking of such a large scale is already very high.
However, as the main products of Sanwen Home Furnishing Company involve textile products, and the proportion of export sales exceeds 90%, people have to consider the significant impact of the COVID-19 on its performance.
On January 27, 2020, the regulatory authority conducted its first inquiry into San Wen Home and askedThe impact of the COVID-19 on enterprises, which disclosed the number of orders in hand by the end of March 2021.Among them,The current orders for medical and nursing services are 137 million yuan, which is a significant difference compared to the 740 million yuan in 2020.
In addition, it is noteworthy that Sanwen Home's revenue increased by 2.13% year-on-year in 2019, but its performance increased significantly in 2020, reaching 62.26%, a significant difference, which is related to the aforementioned medical care of 740 million yuan.
Excluding the medical and nursing revenue of 740 million yuan, Sanwen Home's revenue was in a negative growth state, at -4.78%, which also laid the groundwork for the Shanghai Municipal Committee to inquire about its business status again.
In the second round of inquiries, the Listing Committee inquiredThree Questions on the Financial Status of Home Furnishings after the Audit DeadlineThe requirement to disclose the expected performance for the first half of 2021 has become a focus of the Shanghai Municipal Committee's attentionThe response provided by Sanwen Home is that it is predicted that the net profit from January to June 2021 will decrease by over 90% year-on-year.
In the three rounds of inquiries, the regulatory authority directly requestedThree Questions Home Furnishing provides additional information on the company's performance from January to September 2021, and explains whether there is a decline in the company's performance and whether it will affect its listing.
The response given by Sanwen Home is,The net profit for this period is expected to be between 50.2 million yuan and 68.2 million yuan, with non medical net profit exceeding 50 million yuan. It is expected that the growth of non medical performance will not have an impact on the company's listing.
But realityit seemsNot so. On January 6, 2022, the disclosed data for the 2021 financial half year report showed a decrease of 7.07% in operating revenue and a net profit of 30.2818 million yuan, a year-on-year decrease of 67.23%,Compared to the data disclosed on August 30, 2021, it has decreased by nearly 40%.
Expand the business of medical and nursing products, with a new profit of over 700 million!
Established in 2013, Sanwen Home AppliancesProduct Innovationandsupply chain managementThere is an exclusive set of gameplay.
stayProduct InnovationIn terms of research and development of women's home clothing, as an example, Sanwen Home tries to incorporate popular market trends, including mix and match stylesofFashion elements are integrated into home clothing, while strictly selecting fabrics to pursue both comfort and fashion.
And in thesupply chain managementOn the one hand, most of Sanwen Home's orders are outsourced production, customized procurement from textile and clothing factories in the Yangtze River Delta, and also empowering suppliers. After years of exploration and development, Sanwen Home has established a complete supply chain management system, focusing on product quality, brand protection, and other aspects, committed to meeting the needs and preferences of overseas consumers.
Data shows that as of the end of 2020, the number of long-term cooperative factories with Sanwen Home has reached over 150. On the other hand, due to the rise in domestic labor costs and the development of the textile industry in Southeast AsiaImpact ofSanwen Home has alreadyIn Southeast AsiastartYesLayout.
In fact, before the outbreak of the epidemic in 2020, the company's main source of revenue was fromhome textile Among them, the sub products include pillows, blankets, cushions, etc., with sales exceeding 2.1 million, accounting for half of the total revenue. The outbreak of the epidemic in 2020 was a challenge for many companies, but Sanwen Home, which has advantages in supply chain management and sales channels, has gone against the trend.After the outbreak of the epidemic, Sanwen Home expanded in the shortest possible timeExport business of medical and nursing productsNot only did it meet the needs of overseas consumers, but it also demonstrated the strength of the company's supply chain management, successfully achievingNew profit exceeding 700 million yuanSignificant growth.
In addition, providing product solutions for customers is also one of the core advantages of Sanwen Home. It is reported that Sanwen Home once reportedAmazon Fashion Brand, American Enterprise Vera BradleyProvided product scenario extension and achieved good response and revenue.
Overall, it has continued to develop in recent yearsinSanwen Home has strong capabilities in supply chain management, sales channels, product development, and other aspectsAnd advantagesAnd from the data, Sanwen Home also meets the requirementsThe review standard for the issuance and listing of GEM stocks is that the net profit has been positive for the past two years and the cumulative net profit is not less than RMB 50 million.
For many companies, once their revenue scale increases, the next step is to prepare for going public, and some even consider going public as their ultimate goal. In the just past year 2021, rising prices and difficult business have been the real feelings of many practitioners in the home building materials industry. Although going public can indeed satisfy their thirst, what is the probability of success?
In the entire industry, there is more than one company that has impacted the termination of the listing path, Sanwen Home, established in 2016Home Furnishing EnterprisesFar beyond wisdomofSame listing planalsoAnnouncementYesA paragraph
According to industry insiders,In the first half of 2021 alone, there were over 40 home furnishing companies rushing to go public, but about 30 of them did not have a smooth listing path, with continuous news of suspension or failure of listing.Some practitioners believe that based on the current market situation,For businesses,Rather than rushing to go public for a while, it is more important to solidify the foundation, work hard from multiple aspects such as product and supply chain management, and enhance the "intrinsic" is the best strategy.