How can Tute shares break through the gambling pressure and the IPO of home furnishing companies is cold?
Author |Liu Qinwen.
Editor丨Li Mingyu.
* |Bronco Finance.
Anyone who has ever bought a house knows how tiring it is to decorate.
From hard decoration to soft decoration, to the direction of water and electricity, to a cabinet door, no corner can be ignored. With the improvement of the quality of life, people's demand for household products has also shifted from practicality to intelligence, comfort, convenience and other directions"Home hardware" is an important bridge for the realization of home furnishing products.
Guangdong Tute Precision Hardware Technology Co., Ltd. (hereinafter referred to as "Tute Shares") focuses on the field of "home hardware" and launches a sprint to the main board. It is worth noting that after the first submission of Tut shares in June this year, the IPO was suspended on September 30 due to the lack of updated financial information, and the IPO status has recently resumed. If this sprint went smoothly, it was successfully listedThe two actual controllers behind Tut shares are also expected to share this capital feast with their family members.
The annual income is 700 million, and the net profit has tripled in three years
Home hardware refers to the use in kitchens, bedrooms, washrooms, living rooms, balconies and other life scenesWe provide metal parts for storage, decoration, connection, movement, and other purposes. For example, slides on drawers, hinges on cabinet doors, sliding door systems in kitchens.
Don't underestimate these humble hardware products. According to the data of the General Administration of Customs, since 2017, the export volume of China's home hardware products has shown a growing trend, and by 2022, the export scale of China's home hardware has increased to 150$9.5 billion.
Founded in 2009, Tute Co., Ltd. was mainly engaged in the production and sales of a force hinge in the early stage of product export, and the main market was Europe and South America.
In 2013, Tut launched a sliding door system with cushion function, and the market feedback was good. In 2019, Tut Co., Ltd. developed a cabinet basket series, in which the development of storage system products made Tut Co., Ltd. further deepen its cooperation with domestic head home furnishing brands such as Opai Home Furnishing and Sophia, as well as foreign large companies such as EBCO. So far, the main products of Tutt Co., Ltd. include hinges, slide rails, sliding door systems, storage systems, ** devices and other precision hardware products.
Source: "Prospectus".
As of now,Tute's customers include a number of well-known domestic home furnishing brands, such as Sophia (002572SZ), Gold Medal Kitchen Cabinet (603180.)SH), Oppai Home Furnishing (603833SH), Hollywood (603898SH), Gujia Home Furnishing (603816SH), Shangpin Home Delivery (300616SZ) and so on.
Affected by the downturn in real estate and the repeated epidemics, which have dragged down consumer demand, the performance of China's home furnishing industry has been weak as a whole in the past three years.
At present, the development of the home furnishing industry is facing three new challenges, on the one hand, the upstream real estate market is affected by the policy, and the development of the home furnishing industry in the downstream of the industrial chain is also affected, and it is expected that the growth pressure of the home furnishing industry will continue in the short term;On the other hand, the home furnishing industry is facing the need for transformation and upgrading again, which increases the operating cost. Third, under the impact of geopolitics, epidemic, inflation and other factors, the global economy has increased more uncertainties, the economic outlook is less optimistic, people's desire to consume has decreased, and the export of the home furnishing industry has also had an impact. Liang Haiming, president of the Silk Road Wisdom Valley Research Institute, said.
However, Tut shares have withstood the test of time, and the net profit of revenue is not only against the trend, but also doubled.
According to the prospectus, from 2020 to 2022 and the first half of 2023 (hereinafter referred to as the "reporting period"), Tute shares achieved operating income of 35.8 billion yuan, 64.4 billion yuan, 69.5 billion and 3500 million yuan, net profit was 03.3 billion yuan, 06.4 billion yuan, 09.3 billion yuan and 0500 million yuan. Revenue increased by 1 in three years94 times, net profit increased by 2 in three years82 times.
After doubling the growth, Tut shares have met the listing conditions: the net profit in the last three years is positive, and the cumulative net profit in the last three years is not less than 1500 million yuan, the net profit in the latest year is not less than 60 million yuan, and the cumulative net cash flow generated by operating activities in the last three years is not less than 100 million yuan or the cumulative operating income is not less than 1 billion yuan.
Behind the growth against the trend
Sophia and the owner of the gold medal kitchen cabinet became a shareholder
The company's ability to maintain rapid development is mainly due to the following reasons: the company's product categories continue to be enriched, driving revenue growth;The overall demand of the industry is strong;Deepening strategic customer cooperation;Industry competition tends to be more brand competition, and the company's advantages as the head brand of home hardware are constantly highlighted. Tut shares said.
In addition to that,Behind the contrarian trend of Tut shares, there are a number of home furnishing companies or practitioners who have increased their capital and invested in Tut shares.
In May 2021, Sophia increased its capital to the company by 22550,000 registered capital, holding 437%。In the same year, Sophia became the company's second largest customer, and the sales amount to Sophia reached 3103590,000 yuan, doubling to 7,405 in 2022860,000 yuan.
In recent years, with the continuous enrichment of the company's product matrix, we can continue to meet the innovation needs of customers, and the two sides have successively expanded the cooperation of multiple categories of products, and the scale of cooperation has been expanding, which has nothing to do with shareholding. The company's product quality and delivery are stable, cost-effective, and the service response is timely, and the cooperation between the two sides is based on normal business needsThere is no other agreement on sales volume, sales**, etc. Tut shares said.
Source: Canned Gallery.
Together with Sophia, Zeng Yong also invested in the shares, and his capital increased by 200440,000 registered capital, holding 388%。Zeng Yong is also a practitioner in the home furnishing industry and owns a custom home furnishing company - Bojun Home. Since its inception in 2011, the China Custom Home Furnishing Exhibition has become the first largest and most professional custom home furnishing exhibition in the country and even in the world.
In November 2022, Detao Home Furnishing invested 18 million yuan to increase the capital of Tute shares by 253610,000 shares, holding 3% of the shares. Behind Detao Home Furnishing are Wen Jianhuai and Pan Xiaozhen, the two actual controllers of the gold medal kitchen cabinet. Founded in 1999, Gold Kitchen Cabinet is mainly engaged in the research and development, production and sales of integrated kitchen cabinets and customized home furnishings.
Tute shares and the three external shareholders have special rights arrangements, commonly known as "VAM agreements". The agreement stipulates that Tute shares must complete the submission of listing application materials, be accepted by December 31, 2024, and be listed before December 31, 2026, otherwise they will face relevant share repurchase constraints.
At present, the capital market is more stringent in the review of all aspects of the indicators of the home furnishing enterprises that sprint to the market, as well as the more severe international and domestic market environment under the reality, plus the many subdivisions of the home furnishing industry have been listed one after another, and the early dividend advantages in the development of the industry are becoming less and less. In short,The IPO of a home business is more complex and difficult than before. Wang Jianguo, an expert in Internet strategy for China's home furnishing and design industry, said.
According to the calculation of "Sohu Finance", if the gambling fails, Tute shares need to pay 2343 to the three shareholders in four years60,000 yuan, 1964160,000 yuan and 25.2 million yuan of principal and interest,A total of 6827 was paid760,000 yuan.
Source: Sohu Finance.
Sophia, Zeng Yong, Detao and other shareholders invested in the company based on a high degree of recognition of the company's development strategy, industry status and market prospectsListing exit is not the only purpose. In the future, the company will continue to devote itself to high-quality development and create good returns for shareholders. If the shareholder needs to exercise the right to repurchase, the actual controller of the company will repurchase the equity in accordance with the agreement. The actual controller of the company currently holds 813% of the shares, the shareholding ratio will be higher after the buyback, and will not affect the control of the company. Tut shares said.
The two families behind it share the capital feast
Similar to the gold medal kitchen cabinet, the two founders of Tut shares are also friends.
He Xiaoyu was born in 1974, after graduating from university, he was responsible for foreign trade business in Guangdong Zhongqiao Hardware and Electrical Appliance Manufacturing, and found the business opportunities hidden in home hardware, intending to start his own business.
On the other hand, according to the "Longjiang Town New Citizen Chamber of Commerce Federation", Chen Jieyuan, who was born in 1972, failed the college entrance examination, and went south to work with 150 yuan borrowed from relatives and became a production worker in a small home hardware factory in Fangcun, Guangzhou.
In September 2000, a boss in Guangzhou invited Chen Jieyuan to Shunde to help set up a home hardware factory and hired him as the factory director. In Shunde, Chen Jieyuan met He Xiaoyu, and the fates of the two began to intersect.
In 2006, the two co-founded Tut Co., Ltd. (the predecessor of Tutt shares). According to the prospectus, He Xiaoyu currently holds 4471% of the shares, serving as the chairman of the board of directors of Tut shares;Chen Xie Yuan holds 3659% of the shares, serving as vice chairman, general manager and legal representative. The two are acting in concertTotal control 813% stake.
The two founders have not forgotten their families on the "road to prosperity", and they have many relatives who work and hold shares in Tute shares. In November 2020, Tute Co., Ltd. established Foshan Jiheng and Foshan Shengheng as an employee shareholding platform for the implementation of equity incentive plans and the actual controller's relatives. The two shareholding platforms are combinedAmong the 14 shareholders, 9 are relatives of He Xiaoyu and Chen Jieyuan.
Source: "Prospectus".
He Xiaoyu has three relatives working in the company, the younger brother He Junyan is the manager of the ** chain management department of Tute shares, and indirectly holds 16%；The spouse's sister Zhang Jiani is the assistant to the chairman and indirectly holds 071%；The niece Lu Liwen is the manager of the Ministry of Commerce and holds 04%。The total shareholding is 271%。
Chen Xie Yuan has 6 relatives, the two elder brothers, Chen Aiyuan and Chen Renyuan, are respectively the manager of the mold department and the director of the logistics department, and indirectly hold shares. 36%；The younger brother Chen Xiaochun is the director of the mold department, and indirectly holds 036%；The niece Tang Qiuxiang is a senior manager of the manufacturing center and indirectly holds 04%；My sister's spouse, Long Lijun, is the sample supervisor of the R&D center, and indirectly holds 036%；Chen Mingming, the brother-in-law of the spouse, is the workshop supervisor and indirectly holds 036%。The total shareholding is 235%。
Source: "Prospectus".
It is worth noting that the subscription ** of both shareholding platforms is 225 yuan shares, and after half a year, Sophia's entry price was about 744 yuan registered capital. andFor the part of the shares of the relatives of the actual controller, since the service period and performance conditions are not set, no apportionment is made, and it is included in the current profit and loss at one time, so Tute shares will recognize the share payment expense of 1454 in 2020170,000 yuan.
Fu Jian, director of Henan Zejin Law Firm, believes that "the purpose of the equity incentive plan is to motivate the company's management and employees to work hard for the company's development, but if the performance appraisal target is too low, there may be a suspicion of benefit transfer." If the company's performance appraisal targets are too low, so that employees and management can easily get incentives, this may cause investors to question the perception that the company is conveying benefits in disguise. Therefore,When formulating the equity incentive plan, the company should reasonably set performance appraisal targets to ensure that the incentive matches the actual performance of the company and avoid the suspicion of benefit transfer.
The capital increase of the relatives of the actual controller is based on their kinship with the actual controller of the companyIt belongs to the internal arrangement and distribution of the family property of the actual controller, so the company and the actual controller have not set the service period conditions and performance conditions for such relatives, and have not set up sales restriction clauses, and there is no transfer of benefits. Tut shares said.
In any case, if Tut's shares can be successfully listed, the two families will enjoy this capital feast to varying degrees. The home furnishing industry will also once again have a pair of "friends gang" actual controllers. What household hardware items have you been exposed to?If you have any views on the IPO of Tut shares, please leave a message below to discuss.