Kitchen appliance company Boling Electric withdrew its IPO and originally planned to raise 300 milli

Mondo Finance Updated on 2024-02-21

As early as 2022, Boling Electric, which has already passed the meeting, has come to the end of withdrawing the IPO.

On February 21, the Shenzhen Stock Exchange reported that Ningbo Boling Electric Co., Ltd. (hereinafter referred to as "Boling Electric") applied for withdrawal of the issuance and listing application documents on February 19. In accordance with the regulations, the Shenzhen Stock Exchange decided to terminate the review of its initial public offering** and listing on the GEM.

According to the prospectus, Boling Electric is mainly engaged in the research and development, design, production and sales of small kitchen appliances, including food processing and blenders, frying machines, coffee machines, air fryers and ovens and other small kitchen appliances. The company mainly provides R&D, design and manufacturing capabilities for internationally renowned small household appliance brands such as Capital Brands, Philips, SEB, Conair, Princess House, Hamilton Beach, BSH (Bosch), etc., and is the core supplier of small household appliance brand products such as capital brands food processors and mixers.

Boling Electric is mainly exported, and its sales customers are mainly world-renowned small household appliance brands, and its own brand business is still in its infancy, mainly through online channels.

Boling Electric is one of the "Top Ten Kitchen Appliance Export Enterprises in China during the 13th Five-Year Plan", and its product sales area covers more than 60 countries and regions around the world. From 2019 to 2021, Boling Electric's main products, food grinders and agitator series (customs HS code of 85094090), accounted for a total export of similar products in China34% and 511%, and exports to the United States accounted for a proportion of similar products exported from China to the United States78% and 1318%, and the export value ranked fourth among China's export enterprises of similar products and the first in Zhejiang Province for three consecutive years from 2017 to 2019. In 2020, China's top ten mixing export enterprises ranked second. In the 13th Five-Year Plan, China's top ten small kitchen appliances export enterprises ranked fifth.

In terms of performance, from 2021 to the first half of 2023, Boling Electric achieved revenue of 197.3 billion yuan, 14300 million and 64.4 billion yuan, and the net profit in the same period was 7861280,000 yuan, 9056220,000 yuan and 2611030,000 yuan.

Looking back on its capital history, as early as November 2018, Boling Electric has been listed in the first place, referred to as "Boling Electric", and "873083". In April 2021, the IPO of Boling Electric GEM was accepted, and the IPO originally planned to raise 300 million yuan for the construction of Indonesia's small household appliance industrial park, the construction project of small household appliance R&D center, and to supplement the company's working capital.

After several rounds of review and inquiry by the exchange, the IPO of Boling Electric was approved in November 2022. At the review meeting of the Listing Committee, issues such as the concentration of sales of large customers and the fluctuation of gross profit margin were focused on questions. The Listing Committee pointed out that Boling Electric is mainly engaged in the ODM OEM business of small kitchen appliances, and the company's sales revenue to its largest customer, Capital Brands, accounted for a relatively high proportion during the reporting period. In this regard, the Listing Committee requested Boling Electric to explain whether there is a difference between the high concentration of customers and other companies in the same industry, and whether the dependence on Capital Brands has a material adverse impact on the company's ability to continue operations.

In addition, during the reporting period, the gross profit margin of Boling Electric's food processing and mixer products was low and had a downward trend year by year. The Listing Committee requested the company to explain the reasons for the year-on-year decline in the gross profit margin of food processing and mixers, whether there is a risk of continuous decline in gross profit margin and countermeasures.

Although the meeting passed smoothly, there was no further news about the subsequent IPO of Boling Electric. It was not until more than a year later that Boling Electric finally chose to withdraw the issuance and listing application documents, and the GEM IPO also came to an end.

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