Recently, Lvlian Technology submitted a prospectus to Shenzhen Stock Exchange, intending to raise 65.438+50.4 million yuan in IPO on GEM. On the eve of the delivery of the form, Lvlian Technology introduced external capital twice, of which Gao Yan Capital invested twice in succession, with a capital contribution of 550 million yuan.
The impact of GEM, I wonder if it can swim a new wave in the ocean of 3C consumer electronics market? Behind Lvlian Technology stands a post-80s-Zhang Qingsen.
Zhang Qingsen, 1983, from Fujian. After graduating from university in 2007, I went to a Hong Kong-funded enterprise in Shenzhen to engage in foreign trade business. In July 2009, 26-year-old Zhang Qingsen left her job and embarked on the road of starting a business. Two years later, Zhang Qingsen's road to entrepreneurship gave birth to the Green League.
Lvlian Technology is a well-known brand enterprise of science and technology consumer electronics, with an annual revenue of 3.446 billion. Mainly engaged in research and development, design, production and sales of 3C consumer electronic products, and committed to providing users with all-round digital solutions. The products mainly cover five series: transmission, audio and video, charging, mobile peripherals and storage.
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A Fujian native has a starting salary of 250 thousand.
Kill a listed company
The story of Lvlian Technology began with a venture capital investment of 250,000 yuan. Zhang Qingsen, 26, left the company. With the natural business intuition of Fujian people, he started his own entrepreneurial road with the accumulated 250,000 yuan.
Before the establishment of "Green Alliance /Ugreen" brand, Zhang Qingsen mainly engaged in foreign trade OEM and OEM, starting with data lines. At that time, there were so many foundries in Shenzhen that no one could count them. Zhang Qingsen persisted in such a fierce competitive environment.
If nothing happens, Zhang Qingsen should continue on the road of OEM, but it was a sudden "price reduction incident" that made Zhang Qingsen determined to transform.
On July 20 10, Zhang Qingsen normally prepared goods for foreign customers, but received a notice from customers asking for price reduction. The reason is that competitors are maliciously competing with low-priced products, and the goods are ready. Once the order is cancelled, it means that all the goods are overstocked in the warehouse and cannot be sold. In desperation, Zhang Qingsen can only accept the price reduction.
In fact, this phenomenon in Zhang Qingsen was very common in the foreign trade environment at that time. Foreign brands are dominant, and domestic foundries basically have no say in pricing. In addition, there is a common phenomenon in the domestic OEM industry: many products are "public models", which leads to serious homogenization of products of different brands. Except for the LOGO, there is no difference.
In Zhang Qingsen's view, branding and differentiation are a better way out.
20 1 1 In July, Zhang Qingsen established a three-person brand team, including himself, and launched the Lvlian digital Tmall store, and began to launch an e-commerce platform. Customer service, operation, warehouse ... Zhang Qingsen has almost completed the whole process of e-commerce.
At that time, Tmall e-commerce was still in the barbaric growth stage, and most Tmall brand stores were not operated by regular companies, which brought very poor experience to users. After discovering this, Zhang Qingsen adjusted its strategy, "using the power of five-star hotels to open Shaxian snacks". Starting from the hd line, it quickly expanded to most categories of data lines. In just three years, Lvlian has achieved great success on Tmall.
In 20 14, Zhang Qingsen set its sights on overseas, and successively settled in overseas e-commerce platforms such as Amazon and AliExpress, and began to expand globally.
In 20 15, the revenue of Lvlian Technology exceeded 200 million. Six years later, this figure became 3.438 billion in 202 1, exceeding 17 times.
After 10 years of deep cultivation, the product has expanded from the initial self-developed data cable to equipment accessories covering mobile office, home life, outdoor travel, car space and other application scenarios.
Looking back on the entrepreneurial process, Zhang Qingsen once concluded: "From the first day of the company's establishment, just like human life is doomed to death, your company is doomed to bankruptcy, so always keep a sense of crisis!" Fortunately, Lvlian Technology persisted and ushered in the company's "adult ceremony", and Zhang Qingsen also ushered in its first IPO.
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Gao Yan, whose annual income is 3.446 billion yuan, also joined in the fun.
In the field of consumer electronics, Lvlian also attaches great importance to R&D investment.
By the end of 20021,the company had 565 R&D technicians, accounting for 22.57% of the total number. At present, many core technologies such as high-strength wire forming, millimeter-wave audio and video transmission, intelligent voltage doubling control, intelligent terminal management system and embedded private cloud storage system have been formed.
Before listing, the company and its subsidiaries owned 698 domestic patents and 506 overseas patents. Although the invention patents in domestic patents are only 1 1, according to the patent quality evaluation standard of "appearance of inventions and utility models", the gold content of patents seems to be slightly insufficient, but it is enough for digital accessories with relatively low scientific and technological content.
A data cable and some 3C digital accessories supported the IPO of Lvlian.
According to the prospectus, Lvlian Technology is a well-known brand enterprise of science and technology consumer electronics, mainly engaged in the research and development, design, production and sales of 3C consumer electronics products, and is committed to providing users with all-round digital solutions.
At present, Lvlian Technology adopts the online and offline business model, and has achieved sales in more than 100 countries and regions in Europe, America, East Asia and the Middle East, covering mainstream e-commerce platforms at home and abroad such as Tmall, JD.COM, Amazon, AliExpress and Shopee, and its main products rank first in the list of mainstream platforms.
It can be seen from the prospectus that in 20 19, 2020 and 20021year, the operating income of Lvlian Technology was about 2.045 billion yuan, 2.738 billion yuan and 3.446 billion yuan respectively, and the corresponding gross profit margins were 35.7 1% and 3.8/kloc-0 respectively. The net profit after deducting non-profit is 220 million yuan, 287 million yuan and 276 million yuan respectively. Among them, the domestic and overseas markets of the HKTA account for about half of the revenue.
Although the compound annual growth rate of operating income of Lvlian is 29.80%, the growth of net profit is not ideal. In 2020 and 20021year, the company's operating income increased by 33.85% and 25.88% respectively, and its net profit increased by 34.60% and -0.37% respectively.
According to the information in the prospectus, in 20021year, the purchasing cost of finished products and main raw materials purchased by Lvlian Technology basically faced a price increase of more than 15%, and the cost of individual projects exceeded 50%. In the downstream market, the average increase in the sales price of Lvlian products is only 2. 19%, which is undoubtedly an important reason why Lvlian's profits are decreasing instead of increasing.
In May, 2002 1, founder Zhang Qingsen and co-founder Chen Junling transferred the original 3.7028% shares and 1.8528% shares to Gao Yan Capital at the price of 200 million yuan and1100 million yuan respectively, and this round of valuation reached 5.4 billion yuan.
Gaoyan Capital invested 300 million yuan in Lvlian, and subsequently attracted institutional investors such as Shi Heng, Yuanda Strategy and Nut Nuclear Power, which were the only two external investments introduced by Lvlian.
After IPO, Zhang Qingsen holds 45.27% of the shares, Chen Junling holds 65,438+07.36%, and the employee-owned platform, Legal Alliance Consulting, holds 65,438+02.82%, Gao Yingxiheng holds 8.44%, and the employee-owned platform, Legal Alliance and Shun, holds 4.22%. Gao Yan Capital is the largest external shareholder.
With a data line, from the "obscurity" in the past ten years to the current popularity and even listing, Lvlian Technology has demonstrated the strength of vertical and deep segmentation.
Nevertheless, to this day, Lvlian is still developing new products and laying out new channels: from intelligent hardware, wearable products, Type C series, video converters and other new products, to KA channel, which helps to establish good relations with industry-related customers ... In 20 18 years, Lvlian achieved sales of160,000 on the day of Tmall Double Eleven, reflecting its strong brand strength.
Although both belong to the consumer electronics industry, high-value consumer electronic devices such as smart phones, computers, tablet computers and automobile consumer electronics occupy a large market share, while data cables and audio cables can only appear as "scraps".
Lvlian entered the consumers' minds by selling data lines, and data lines are still the mainstream of its business. Perhaps, for 3C consumer electronics, Lvlian has made its own way with practical actions.