Preview of US stock new shares | Under the policy of trading in old appliances for new ones, Jingruiwangpu (JRWP.US) accelerates its US IPO.

In the beginning of 2025, the National Development and Reform Commission and the Ministry of Finance issued a notification on "Expanding the Scope of Large-scale Equipment Renewal and Trade-in Policy for Consumer Goods in 2025", including smartphones, tablets, and smart wearable devices in the subsidy scope, while continuing to carry out trade-in subsidy activities for home appliances. In addition, at this year's two sessions, it was announced that a special national bond of 300 billion yuan would be issued to further enhance the consumption stimulus policy for new household appliances, with the addition of dishwashers, water purifiers, microwaves, and rice cookers to the list of products eligible for subsidies. According to relevant statistics, in the categories eligible for subsidies, in February, the online market saw a year-on-year increase of over 50% in retail sales of range hoods, gas stoves, and dishwashers; while the offline market saw a year-on-year increase of over 100% in retail sales of air conditioners, range hoods, gas stoves, dishwashers, water purifiers, and embedded steam ovens. In the current high demand for the home appliance industry, the enthusiasm of companies along the industrial chain for going public has been reignited. Recently, Chinese home appliance retailer Jing Rui Wang Pu (JRWP.US) filed an initial public offering (IPO) application with the U.S. Securities and Exchange Commission (SEC), planning to issue 1.3 million shares of stock at a price ranging from 4 to 6 US dollars per share, raising 6 million US dollars. Based on the midpoint of the proposed price range, Jing Rui Wang Pu's market value will reach 106 million US dollars. For this IPO, what are the highlights of Jing Rui Wang Pu? Let's find the answers from its prospectus. Optimized business structure adjustments, steady increase in revenue and net profit Jing Rui Wang Pu is headquartered in Hangzhou and was established in 2002. It is a wholesaler and retailer of electrical appliances, products include air conditioners, refrigerators, televisions, washing machines, dryers, dishwashers, range hoods, electric kettles, food processors, and rice cookers, among others. Currently, the company has opened 9 retail stores and has developed 20 wholesale distributor customers. According to the prospectus, in the 2023 and 2024 fiscal years (referred to as the "reporting period" here), the company's revenue was 9.4037 million yuan and 10.6521 million yuan respectively, with a year-on-year growth of 13.28%. In the first half of the 2025 fiscal year, the company's revenue further increased to 6.1641 million yuan, a year-on-year growth of 25.4%. Looking further, the company's business is mainly divided into electrical appliance sales, electrical-related services, and leasing services. Electrical appliance sales mainly involve selling various electrical products to customers, which is the company's main source of revenue. In the 2023, 2024, and first half of 2025 fiscal years (the reporting period), revenue from electrical appliance sales was 8.82 million, 9.47 million, and 5.44 million yuan, respectively. However, while revenue from electrical appliance sales continued to grow, the proportion of revenue from this business decreased slightly over the period, accounting for 93.8%, 88.9%, and 88.3% respectively. It is worth noting that the decrease in the revenue proportion of electrical appliances is mainly due to the increase in the revenue proportion of electrical-related services. According to the prospectus, electrical-related services include after-sales maintenance and repair services for electrical products, as well as consultation services. During the reporting period, revenue from these services was 570 thousand, 1.17 million, and 720 thousand yuan, with the revenue proportion increasing from 6.0% in the 2023 fiscal year to 11.0% in the 2024 fiscal year, and further increasing to 11.6% in the first half of 2025. While revenue has been on the rise, the company's profitability has also continued to improve. During the reporting period, the company's gross profit margin was 22.4%, 26.2%, and 25.5%; and net profit was 995,500 yuan, 1.0786 million yuan, and 520,100 yuan respectively. It is understood that the fluctuation in Jing Rui Wang Pu's gross profit margin is related to the company's product mix. The retail gross profit margin for the company's electrical products is higher than the wholesale gross profit margin. The prospectus shows that the gross profit margin for retail sales of electrical products usually remains in the range of 15% to 20%, while the gross profit margin for wholesale sales to distributors is around 10%. In the 2024 fiscal year, in order to improve the company's profitability, Jing Rui Wang Pu focused more on retailing electrical appliances to customers, which not only drove a 12.3% increase in retail income but also improved the company's profitability. Fierce competition in the home appliance industry Looking at the industry, the Chinese home appliance industry has undergone a profound transformation from incremental expansion to stock competition over the past decade. It is understood that the epidemic has brought a great impact to China's home appliance market in the past three years. With the easing of the epidemic, the trend of recovery in the home appliance market is not significant, mainly due to the high inventory of home appliances, some consumer categories becoming optional, low consumption frequency, and no urgent need for upgrades. Data shows that in 2023, the scale of China's home appliance market reached 849.8 billion yuan, recovering to 95.4% of the pre-epidemic retail scale, with a year-on-year growth of 3.6 percentage points. It can be seen that under various factors, the home appliance industry is showing a slow recovery trend. In 2024, with the introduction of national subsidies, the Chinese home appliance industry cycle and market logic have undergone significant changes. According to data from the "2025 China Home Appliance Retail and Innovation White Paper", in the first eight months of 2024, the retail sales of home appliances (excluding 3C products) decreased by 3.6% year-on-year, while in the 9-12 months, it increased by 23.8% year-on-year. It can be seen that the implementation of the trade-in policy has become a clear watershed in the home appliance market in 2024, bringing about a structural rebound in the industry. It is worth noting that, Some analysts point out that although the "national subsidy" policy has boosted the price and quantity of some products, increased retail customer flow, and improved consumer demand in the short term, in the long run, the industry still faces the main challenges of "difficulty in acquiring customers, difficulty in conversion, and difficulty in innovation" due to factors such as consumption, real estate, population, etc. According to Ovi Yunwang's forecast, considering that some of the home appliance demand for 2025 has been overdrafted in 2024, consumer interest in home appliance national subsidies may gradually decline, and factors such as the high base of home appliance retail sales in the second half of 2024 stimulated by the "national subsidy" policy, although the national subsidy policy will continue in 2025, the retail scale of all categories of domestic home appliances in 2025 is expected to increase only slightly compared to the previous year. In addition, in terms of market competition, Jing Rui Wang Pu faces fierce competition, especially in the electrical appliance sales and repair services market. In the Chinese electrical appliance sales market, the company's competitors include wholesalers and retailers of various electrical appliance brands, while in the repair services market, the company's competitive landscape is also significant.Facing competition from rivals like 58.com and Zhumu Niao maintenance. Jingruiwang Store admits that some of the company's major competitors have a wider range of products or services and have more working capital to support sales and marketing expenses.It is worth noting that Jingrui Wangpu also faces price pressure brought by online retailers. Driven by the digital wave, online shopping has gradually become an important channel for consumers to purchase goods. According to data from the National Bureau of Statistics, in 2024, the national online retail sales reached 15.52 trillion yuan, a year-on-year increase of 7.2%, ranking the world's largest online retail market for 12 consecutive years. Among them, the online retail sales of physical goods reached 13.08 trillion yuan, a year-on-year increase of 6.5%, accounting for 26.8% of the total retail sales of consumer goods, with a growth rate 3 percentage points higher than that of social consumer goods retail sales. However, as of now, Jingrui Wangpu has not started online sales yet, and the company's home appliance sales still rely on physical stores, only providing appliance maintenance and repair services through online channels. The company admits in its risk factors that if it cannot compete with existing online retailers in terms of price and service, its business and income will be negatively affected. Overall, in the highly competitive home appliance sales market, Jingrui Wangpu's advantages are not obvious. In the short term, the company has improved its revenue and profitability by adjusting its business structure, but in the long term, Jingrui Wangpu, which has not yet ventured into online platforms and has a relatively small business scale, may not find it so easy to gain recognition from the capital market.