Following Dunhuang Network and Zhiou Technology embarking on the path of capital listing,On June 30, cross-border e-commerce companies submitted listing applications to the Hong Kong Stock Exchange without saying anything, and wanted to be listed on the Hong Kong Main BoardHuatai International and Agricultural Bank International are their co-sponsors.Since June of this year, this is the fourth cross-border e-commerce company that wants to go public with an IPO.

Zibo was founded in Hangzhou in 2011 and is currently one of the largest cross-border e-commerce companies in China, focusing on selling clothing and footwear products through third-party e-commerce platforms. Currently, the company's sales cover more than 80% of the world's overseas markets, including the four major countries of the United States, Germany, France and Japan.

In terms of financing,Prior to the IPO, the company had completed three rounds of financing.Among them, in March 2018, it received a total investment amount of 39 million yuan from Ningbo Zhongyao; in May 2021, it received a total investment amount of 21 million US dollars from CalorCapital; and on the 31st of the same month, it received a total investment of 5 million US dollars from Aloe Tower, and after the transaction was completed, the company's valuation reached 516 million US dollars.

Judging from the shareholding structure, before listing, the controlling shareholders of the company were Hua Bingru and Yu Feng, who held a total of 55.47% of the shares. Among them, Hua Bingru's Hong RuTrust held 50.14% of shares through gfxtmyun and the same destiny, and Yu Feng's Wiloru Trust held 5.33% of shares through Hyufeng. Other shareholders include Daredevil, Xringirl, etc.

1

Single product and sales channel

Judging from financial data, during the reporting period,The company's performance has grown steadily.Revenue reached 1,898 billion yuan in 2020, an increase of 25 points over the previous year. At the same time, gross profit also increased from 998 million yuan in 2019 to 1,378 million yuan in 2020.

According to the prospectus, the impressive performance is mainly due toThe steady growth of China's cross-border e-commerce export B2C industry, and the increase in profits from global sales of clothing, footwear and other products.

However, looking at it concretely,There are also many challenges in running a company.Judging from the business revenue structure, sales revenue of clothing products and footwear accounts for more than 90% of total revenue, which indicates that the companyThe product structure is relatively uniformThis means that if the company is unable to identify and respond to changes in fashion trends, consumer preferences, and market demand in a timely manner, the company's future revenue may fluctuate.

At the same time, when it comes to sales channels, companies also have the same problem. The company's products are mainly sold through third-party e-commerce platforms and self-operated websites. Judging from sales channel revenue, The company relies heavily on Amazon and Wish platforms, which account for more than 70% of total revenue from sales revenueAs can be seen from the side, if the company is unable to maintain a solid business relationship with these platforms, the company's future operating performance may fluctuate.

On the supply side,The company relies on selected OEM suppliers to produce products. During the reporting period, the company's sold inventory costs accounted for more than 80% of the total sales cost for the same year. It can be seen that if supplier supply is interrupted, there may be a shortage or delay in the supply of the company's products, making it impossible to meet customer needs, thereby adversely affecting the company's financial revenue or revenue. Previously, due to the impact of the COVID-19 pandemic, the company's business performance has been seriously affected.

2

Market competition is becoming more and more intense

In recent years, driven by the Internet and the dividends of policy support,The cross-border e-commerce industry is growing explosively.According to the 2020 GMV calculation, the total market size of China's cross-border B2C e-commerce export market is about RMB 2287 billion.

However,Under the racetrack dividend, competition in the market is also fierce.However, with the racetrack crowded, competitors in the same industry are entering the market at an accelerated pace, and the company may face various competitive challenges in the future.

In terms of the number of cross-border e-commerce companies, data shows that it has increased from 612,500 in 2017 to 806,200 in October 2020. Furthermore, in mid-2021, Tmall International, Koala Haibao, and Jingdong International ranked among the top three in the cross-border e-commerce market (import) with market shares of 26.7%, 22.4%, and 11.3% respectively. In the future, with the gradual emergence of the Matthew effect of e-commerce giants such as Tmall, the company will be threatened by competition from high-quality rivals in the same industry or further expanded, and its market share may face the risk of being reduced.

In addition, the company also faces the risk of fluctuations in third-party logistics services, consumer demand, and exchange rates such as the RMB against the US dollar.

3

epilogue

In recent years, cross-border e-commerce has set off a “boom” in capital listing, but judging from the previous performance of the Onion Group's launch on the first day of listing in the US, even after a successful listing, some cross-border e-commerce businesses are facing many challenges from the market. Without saying anything, facing many internal risks such as a single product and sales channel, and in an external environment of fierce market competition, the path to listing in the US this time may also be a tortuous one.