A shares subscription | (301606.SZ) opens subscription for a globally renowned brand enterprise in the field of technology consumer electronics.

On July 15th, (301606.SZ) began the subscription with an issue price of 21.21 yuan per share, with a maximum subscription limit of 6,500 shares, a P/E ratio of 24 times, listed on the Shenzhen Stock Exchange, with Huatai United Securities as its exclusive sponsor. The prospectus disclosed that it is a well-known global technology consumer electronics brand enterprise, mainly engaged in the research, design, production, and sales of 3C consumer electronic products, committed to providing users with a comprehensive digital solution. The products mainly include five major series: transmission, audio and video, charging, mobile peripherals, and storage. Based on independent research and development of products, the company adopts a production model that focuses on outsourcing procurement of finished products, with independent production as a supplement. The proportion of self-produced products in the past three years accounted for about 23%-24%. Relying on the "UGREEN Green Connection" brand to layout domestic and foreign markets, using a combination of online and offline models, sales have been achieved in various countries and regions such as China, the United States, the United Kingdom, Germany, and Japan, making it one of the leading brands in the field of technology consumer electronics. The company strategically lays out online sales platforms, covering mainstream e-commerce platforms such as Tmall, JD, Amazon, AliExpress, Shopee, and Lazada in China and abroad, with the main brand products ranking leading in the mainstream platform lists. In addition, the company actively lays out offline sales channels, with domestic distribution networks covering major provincial-level administrative regions nationally, and the brand's offline influence continues to strengthen. During the reporting period, the composition of the issuer's main business income is as shown in the table below: In recent years, driven by factors such as continuous technological innovation, global consumer electronics products are innovating endlessly, with increasing penetration rates. The consumer electronics industry is developing rapidly, forming a huge industrial scale. According to Statista data, the global consumer electronics industry market size reached 940.4 billion U.S. dollars in 2018, and the market size is steadily growing, reaching 1,051.6 billion U.S. dollars by 2023, and is expected to grow to 1,176.7 billion U.S. dollars by 2028, showing a huge market size and ample development space within the industry. It is noted that the raised funds, after deducting the issuance expenses, are planned for the following projects: Financially, in the year 2021, 2022, and 2023, the company achieved operating income of approximately 3.446 billion yuan, 3.839 billion yuan, and 4.803 billion yuan respectively. The company's net profit is approximately 305 million yuan, 330 million yuan, and 394 million yuan respectively. Investors are specifically reminded in the prospectus to pay attention to the risks of outsourcing product procurement. During the reporting period, the proportion of outsourced product procurement costs to the main business costs was 58.22%, 60.34%, and 61.57% respectively. Although the proportion of independent production has steadily increased year by year, the production volume, quality, and production cycle of products independently researched, designed, and sold by the company are still to some extent limited by factors such as the production capacity, product technology, manufacturing costs, and operational management levels of suppliers. If the supplier stops production or cooperation with the company causes friction leading to the premature termination of the cooperation relationship, and the company is unable to timely replace suitable suppliers, there may be delays in product supply, negatively impacting the company's operating performance and financial condition. Furthermore, there is a risk of a significant increase in logistics costs. The company's logistics costs mainly include transportation fees, express fees, and freight insurance. Among them, transportation fees mainly consist of "first-leg" transportation fees, which are the relevant logistics costs for transporting products to JD warehouses, Cainiao warehouses, Amazon overseas warehouses, and so on. Express fees and freight insurance mainly consist of domestic direct mail fees, international direct mail fees, and logistics fees from overseas warehouses to end users (i.e. "last-leg" transportation fees). The amount of logistics costs and the proportion of main business costs are as shown below: Based on historical experience, logistics prices fluctuate due to various factors such as macro-environment, policies, market supply and demand relationships, etc. Also, the decrease in global logistics efficiency due to specific external factors overseas can lead to tight capacity and rising transport prices. If there are fluctuations or growth in global shipping prices due to reasons such as macroeconomic and political changes and fluctuations in fuel prices in the future, it will further lead to an increase in transportation costs, adversely affecting the company's profitability.