Jiaoxia Updated Its Prospectus With Revenue Exceeding 2.2 Billion Yuan In The First Half Of This Year

According to the IPO news, Jiaoxia Holding Co., Ltd. (hereinafter referred to as "Jiaoxia") updated its prospectus to the Hong Kong Stock Exchange on October 10, 2022, and planned to be listed on the main board. CICC and Morgan Stanley acted as co sponsors, and Huaxing capital acted as financial adviser of * *.

This means that under the banana continues to "urban outdoor first" sprint.

Jiaoxia business started in 2013, when it launched sunscreen product double layer small black umbrella and sold it in tmall flagship store; In 2016, Jiaoxia opened its first brand store in Shanghai; Since 2017, the sunscreen products under banana will gradually extend from umbrella to other categories such as sleeves, hats, sun protective clothing, masks, etc; In 2021, Jiaoxia will further expand its product category to other non sun proof outdoor products such as canvas shoes, Martin boots, thermal clothing and accessories.

According to the data of burning knowledge consulting, according to the total retail sales and online retail sales, Jiaoxia is a large brand of sun proof clothing, which is in the sun proof clothing market in China; Among the emerging brands in China's shoe and clothing industry with annual retail sales of more than 1 billion yuan, Jiaoxia also ranks first in 2021, and the retail sales growth rate is the fastest in 2021.

Based on its strong profitability, as a new consumer brand, Jiaoxia has less external financing in the nine years since its establishment. It only obtained investment from Sequoia China in 2015 at its initial stage, and introduced Fengqiao capital and Huaxing new economic fund successively in 2021 and 2022 before IPO. Before IPO, Sequoia China held 19.37% shares of Jiaoxia, and Fengqiao capital and Huaxing capital held 6.96% and 1.54% respectively; Zheng Qingsheng, partner of Sequoia China, and Chang Xin, founding partner of Fengqiao capital, serve as non-executive directors of Jiaoxia.

The net proceeds from the IPO will be mainly used to strengthen product development and enhance R & D capabilities, Jiao said in the prospectus; Improve brand awareness and recognition, and enhance brand recognition; Strengthen the omni channel sales and distribution network, improve the market penetration of products and increase the market share; Improve supply chain management; Funding for digital operations; Promote business growth through strategic alliances, acquisitions and investments; And for working capital and general corporate purposes.

Successfully expand its business to outdoor scenes in different cities. In 2021, the revenue of non sunscreen products accounted for 20.6%

It is undeniable that Jiaoxia was first known as "little black umbrella" product. But in fact, sunscreen products such as "little black umbrella" are just the starting point of exploring urban outdoor lifestyle under banana.

At present, under banana can provide customers with both protection and comfort products, covering sunscreen, cool feeling, dry, warm, waterproof, lightweight and sports protection functions.

In terms of product building, on the other hand, it emphasizes data driven product development and iterative upgrading, that is, the design and function of products are continuously iterated according to consumer feedback. For example, user feedback is reflected in the product planning stage, trial marketing stage and upgrading iteration stage of product development; On the other hand, relying on the studio mode, we will concentrate resources on the research and development of core technologies and realize cross category reuse, so as to rapidly realize multi category expansion, and successfully replicate the success in sunscreen field to more diversified urban outdoor market.

As of the last practical date, Jiaoxia has 172 items of * * in China and is applying for 56 items. From 2019 to 2021, the compound annual growth rate of R & D investment under banana is about 90%; In the first half of 2022, R & D expenditure increased by 152% to 63.2 million yuan.

As for the supply chain. Jiaoxia has established cooperation with selected raw material partners and contract manufacturers, and has deeply controlled the core links of the supply chain, so as to continuously improve the efficiency of the supply chain while ensuring the continuous production of high-quality products. From 2019 to 2021, the sales cost of Jiaoxia decreased from 49.3% to 40.3%, and further decreased to 39.0% in the first half of this year. In addition, through the digitization of the supply chain, the average turnover days of banana inventory have decreased from 110 days in 2019 to 62 days in 2021.

Reflected in the product side. From January 1, 2019 to June 30, 2022, there are 24 selected items under Jiaoxia, each of which has achieved an annual sales of more than 30 million yuan. Three sun protection products (double layer small black umbrella, Pocket Series umbrella and capsule series umbrella) were launched in 2017 or before, and the remaining 21 selected items were launched during the record period. Among them, five selected items were launched in 2021, namely dayview series sunglasses, Pocket Series umbrellas and capsule series umbrellas In the first half of this year, there are also two selected items, namely, the shell double protection hollow top hat and the daytime view series transparent field folding sunglasses.

It is worth noting that from 2019 to 2021, the revenue of non sunscreen products under banana is about 2.8 million yuan, 77 million yuan and 496 million yuan respectively, and the income contribution rate is 0.7%, 9.6% and 20.6% respectively. In other words, Jiaoxia's expansion of its business to outdoor scenes in different cities has been effective.

The net profit in the first half of this year exceeded 490 million yuan, and the repurchase rate of tmall's flagship stores in 2021 will be 46.5%

Financial data. From 2019 to 2021, the revenue of Jiaoxia will be 385 million yuan, 794 million yuan and 2.407 billion yuan respectively, with a compound annual growth rate of 150.1%; In the first half of 2022, revenue increased by 81.3% to RMB 2.211 billion from RMB 1.219 billion in the same period of 2021.

From the perspective of income structure, clothing category has become the main source of income. From 2019 to 2021 and the first half of 2022, the revenue is 3.04 million yuan, 139 million yuan, 711 million yuan and 792 million yuan respectively, accounting for 0.8%, 17.5%, 29.5% and 35.8% of the revenue, respectively, showing an upward trend year by year.

Among them, in the first half of 2022, the income of Jiaoxia clothing category increased by 155.8% year-on-year. At the same time, hats, other accessories (mainly including masks, sleeves, sunglasses, gloves, shawls and scarves) and other products (mainly including shoes) also experienced rapid growth in the first half of 2022, with revenue of 497 million yuan, 603 million yuan and 56.73 million yuan, respectively, with a year-on-year growth rate of 65.2%, 127.5% and 213.4%.

In the first half of 2022, the net profit of Jiaoxia is 491 million yuan, and the net loss is about 35.12 million yuan in the same period of 2021.

From the perspective of channels, from 2019 to 2021, the revenue generated by the offline shops and e-commerce platform of Jiaozhou will be 286 million yuan, 618 million yuan and 1 947 billion yuan respectively, with a compound annual growth rate of 160.9%. In the first half of 2022, the revenue generated by the offline online stores and e-commerce platform increased by 73.8% to 1.708 billion yuan from 983 million yuan in the same period of 2021.

Among them, from 2019 to 2021, the total number of paying customers of tmall flagship store is about 1 million, 3 million and 7.5 million respectively. In the first half of 2022, the total number of paying customers of tmall flagship store increased from about 4.5 million in the same period of 2021 to about 5.5 million. From 2019 to 2021, the repurchase rates of tmall flagship stores are 18.2%, 32.9% and 46.5% respectively.

As of June 30, 2022, Jiaoxia has about 19 million followers on multiple accounts of popular social platforms in China and online stores on e-commerce platforms.

According to a consumer survey conducted by insightful consulting in November 2021, about 70% of Jiaoxia's customers recommend their products and brands to their friends and family through social media or word of mouth.

To some extent, this explains the decreasing proportion of marketing expenses under banana. In 2021, the proportion of advertising and marketing expenditure in revenue was 23.0%, which had dropped to 11.9% in the first half of 2022.

At the same time, the number of offline retail stores under Jiaozhou has increased from 39 in 15 cities as of December 31, 2019 to 99 in 34 cities by June 30, 2022, and has established cooperation with many well-known chain stores, convenience stores and department stores in China.

According to the report of insightful consulting, the retail sales of China's shoes and clothing market will reach 3.0 trillion yuan in 2021, and it is expected to expand by 1.2 trillion yuan to 4.2 trillion yuan by 2026. In all styles of market segments, leisure and sports shoes and clothing are the two major market segments, and the expected growth rate is higher than the industry average. In 2021, the market size of leisure and sports shoes and clothing will be 1.1 trillion yuan and 290 billion yuan respectively. It is expected that from 2021 to 2026, they will grow at a compound annual growth rate of 9.3% and 10.7%, far exceeding the growth rate of the whole industry of 6.8% in the same period.

For Jiaoxia, which has become a new outdoor brand in China's leading city, such market opportunities create considerable imagination space for its sustained and rapid growth in the future.