Cross-border entrepreneurship for 13 years, Zhiou Technology launches IPO this month

Zhiou Technology launches IPO this month after 13 years of cross-border entrepreneurship

Wing Marketing Global has learned that home furnishing brand ZIELHOME will open for subscription on June 12th and officially list on the A-share market later this month.

The prospectus of ZIELHOME shows that the company’s revenue from 2020 to 2022 will be RMB 3.971 billion, RMB 5.967 billion, and RMB 5.455 billion respectively. However, due to the high shipping prices during the epidemic and high inflation in Europe and the United States, the company’s operating performance has fluctuated in the past two years. The overall revenue scale in the first half of 2023 is still affected to a certain extent. At the same time, the company also predicts that its sales performance will continue to improve in the second half of 2023.

As of now, ZIELHOME’s main sales market is overseas countries. The prospectus shows that “revenue mainly comes from countries or regions such as Europe, North America, and Japan” (56.99% of revenue comes from Europe in 2022, and 41.73% of revenue comes from North America), and the company has established wholly-owned subsidiaries in Germany, the United Kingdom, the United States, and Japan.

In terms of the supply chain, the company has a cross-border warehousing and logistics system of “domestic and foreign self-operated warehouses + platform warehouses + third-party cooperative warehouses”.

The main sales channels are online, including third-party e-commerce platforms (Amazon, Cdiscount, ManoMano, eBay) and independent websites. B2C business is the main focus (80.53% of revenue comes from B2C in 2022, while B2B accounts for 19.47%). Among them, Amazon is the most important sales platform for ZIELHOME, and the sales revenue from its B2C business has accounted for more than 80% in the past three years.

While relying on the cross-border e-commerce model, ZIELHOME has also been working on brand building and is committed to creating a mature brand matrix. ZIELHOME was founded in 2010. Founder Song Chuan started from third-party e-commerce platforms such as eBay while studying abroad in Germany, gradually expanded the market, and grew into a popular online home furnishing brand worldwide. Currently, ZIELHOME includes multiple brands under its umbrella, constantly expanding its product lines. ZIELHOME is the parent brand, and its three brands SONGMICS, VASAGLE, and Feandrea respectively focus on home and garden products, furniture products, and pet supplies.

Last year, Song Chuan, the founder and chairman of Zhiou Technology, stated in an interview with Morketing Global, “We hope to use ZIELHOME as the parent brand, covering several sub-categories, to create a brand matrix. Through this top-down sorting, users can understand us more clearly.”

According to the prospectus, Zhiou Technology will use the funds raised in the future to focus on “research and design centers,” “expansion of warehousing and logistics systems,” and “Zhengzhou headquarters operation and management centers.”

In the long run, this may help Zhiou Technology to develop a stronger product research and development level, provide better consumer experiences, improve its professional brand management system, and make up for its weakness in research and development investment ratio, thus enhancing its overall competitiveness in the international market.

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