Greenlink Technology IPO registration submitted, the company faces risks from online platform operations.

On February 26, Shenzhen Green Link Technology Co., Ltd. (referred to as Green Link Technology) applied for the status change of its IPO review on the Shenzhen Stock Exchange's Growth Enterprise Market to "submit registration." Huatai United Securities is its sponsoring institution, with plans to raise 1.50371 billion yuan. According to the prospectus, Green Link Technology is a globally renowned brand in the field of technology consumer electronics, mainly engaged in the research, design, production, and sales of 3C consumer electronic products, dedicated to providing users with comprehensive digital solutions. Its products mainly cover five major series: transmission, audiovisual, charging, mobile peripherals, and storage. In the past three years, Green Link Technology's sales revenue was approximately 2.738 billion yuan, 3.446 billion yuan, and 3.839 billion yuan, with an average annual compound growth rate of 18.42%. Based on independent research and development of products, the company adopts a production model mainly focused on outsourced procurement of finished products, with independent production as a supplementary measure. Over the past three years, the proportion of self-produced products has been around 24%. This model allows the company to focus on product technology research and development, product innovation, and brand management, and collaborate with excellent outsourcing factories to provide users with high-quality products competitive in the market, enhancing user product experience and brand value. The company owns two holding production subsidiaries, Haiying Zhilian and Zhize Technology, with independent production capabilities that can provide technical support for new product pre-research, production processes and cost evaluation, product risk assessment, etc. The procurement of production subsidiaries mainly includes raw material procurement (including chips, connectors, wire, casings, packaging materials, etc.) and outsourcing of a small amount of non-critical process processing. The company's major suppliers include Shenzhen Xiangfan Technology Co., Ltd., Shenzhen Feixuan Electronic Technology Co., Ltd., Shenzhen Huafuyang Supply Chain Co., Ltd., Shenzhen Orangefruit Electronic Co., Ltd., Strong Source Technology Industry (Shenzhen) Co., Ltd., and Dongguan Baida Electronic Technology Co., Ltd. Relying on the "UGREEN Green Link" brand, the company has expanded its presence in domestic and international markets, adopting a combined online and offline model to achieve sales in multiple countries and regions including China, the United States, the United Kingdom, Germany, and Japan, becoming one of the leading brands in the field of technology consumer electronics. The company strategically laid out online sales platforms, covering mainstream domestic and foreign e-commerce platforms such as Tmall, JD, Amazon, AliExpress, Shopee, and Lazada, with the company's main brand products ranking high on the mainstream platform lists. In addition, the company actively expanded its offline sales channels, with the domestic distribution network covering all major provincial-level administrative regions, and the brand's offline influence continuously strengthening. The company has received honors such as "Alibaba King Store" and "JD Annual Best Store," with the company's main products consistently selected as Amazon's Best Seller and Amazon's Choice, continuously enhancing the brand's global influence. Financially, in the first half of 2020, 2021, 2022, and 2023, Green Link Technology achieved operating revenues of approximately 2.738 billion yuan, 3.446 billion yuan, 3.839 billion yuan, and 2.121 billion yuan; during the same period, the company's net profits were 306 million yuan, 305 million yuan, 330 million yuan, and 189 million yuan respectively. It is worth noting that Green Link Technology mentioned in the prospectus that the company faces risks in online platform operations. During the reporting period, the percentage of revenue generated through online e-commerce platforms accounted for 82.35%, 78.14%, 75.98%, and 74.04% of the main business income, while the gross profit generated through online e-commerce platforms accounted for 88.48%, 84.31%, 81.94%, and 80.56% of the main business gross profit. The company's main online sales platforms include Amazon, JD, and Tmall. These platforms have gradually developed into mature open e-commerce platforms globally, forming a mutually dependent and mutually beneficial relationship with platform sellers. The company's sales proportion on e-commerce platforms is relatively high, posing risks in online platform operations. On one hand, if the platform's market share decreases due to market competition, changes in business strategies, or political and economic changes in the countries or regions where the e-commerce platforms are based, and the company fails to adjust its sales channel strategy in time, it may have a negative impact on the company's revenue. On the other hand, if significant adverse changes occur in the platform's management policies regarding store registration, sales, settlement, platform fees, etc., and the company fails to respond promptly and take effective adjustment measures, it may also have a negative impact on the company's revenue and profitability level.