SACA (300464.SZ) continues to invest in the consumer electronics field. On the evening of Nov 4th, SACA disclosed the private placement plan of issuing shares to no more than 35 specified people and raising funds of no more than RMB 982 million, which will be totally applied for video product R&D project, laser projector R&D project, upgrade of the digital product R&D center, laboratory construction project, IT system upgrade project and supplementing working funds after deducting issue fees.
The announcement shows that in this fundraising, the main body of project implementation except for supplementary working capital is ZEBAO Group.
A reporter from the Changjiang Business Daily found that on December 31, 2018, SACA completed the merger and acquisition of ZEBAO Group, entering the consumer electronics field. In the first three quarters from 2018 to 2020, SACA achieved revenue of RMB 711 million, RMB 3.491 billion and RMB 3.466 billion respectively, and net profit of RMB 2.04 million, RMB 149 million and RMB 203 million, which increased rapidly.
Further Broaden Consumer Electronics Field
According to the Tianyancha app, SACA's main business consists of developing, manufacturing and selling precision metal connectors, as well as designing and developing consumer electronic products, brand promotion, and exploring online overseas business and offline avenues. After acquiring ZEBAO Group at the end of 2018, a two-wheel business pattern of "home life sector + consumer electronics sector" was formed.
In recent years, with the rapid development of Internet technology and logistics industry, increasing overseas market demand and strong policy support, the scale of China's cross-border export e-commerce transactions has grown rapidly. According to the 2019 China Cross-Border E-commerce Market Data Monitoring Report by E-commerce Research Center, the scale of China's cross-border e-commerce market reached RMB 10.5 trillion in 2019, an increase of 16.66% year on year, accounting for 33.29% of China's total import and export value of RMB 31.54 trillion, an increase of 3.79% year on year. Therefore, the company needs to invest more resources to adapt to the rapid development of the market.
According to the announcement, in this fundraising project, RMB 131 million will be invested in the video product R&D project, RMB 80 million will be invested in the laser projector R&D project, and RMB 405 million will be invested in the upgrade of the digital product R&D center and laboratory construction project. The information system upgrade project plans to invest RMB 75.23 million, and RMB 290 million will be used to supplement working capital.
SACA believes that this fundraising project is a project implemented on the basis of existing business and combined with future market development. Technology updates and product iterations are accelerating. In order to keep up with market technology development trends and consumer needs, the company needs to further strengthen the construction of the R&D system, expand the R&D team, strengthen the company's technical reserves, and ensure the company's products at the R&D level and market share are in a leading position in the industry.
The Subsidiary Has Invested Nearly RMB 200 Million in R&D in the Past Three Years
It's reported that ZEBAO Group, the implemented subject of the project, is a well-known export cross-border e-commerce enterprise, which sells quality products with its own brands to global consumers by means of big data mining and 'Internet + Marketing'.
Different from typical e-commerce, ZEBAO Group transitioned to develop products in 2016, and began investing a lot of resources in product research and development. In the past three years, the accumulated investment in research and development has exceeded RMB 196 million. By the end of September 2020, ZEBAO Group had 225 R&D staff. During the same period, ZEBAO Group had 42 utility model patents, 108 design patents and 2 invention patents in China; 4 utility model patents, 361 design patents, and 3 invention patents covering US, Germany, Japan, and other countries.
Currently, ZEBAO Group owns RavPower, TaoTronics, VAVA, Anjou, Sable, and HooToo; 6 brands encompassing several product categories like power management products, Bluetooth audio products, home appliances, smart devices & computer accessories, health, home textiles, intelligent hardware, beauty & personal care, and more.
In recent years, thanks to the rapid growth of the smart camera industry, sales of ZEBAO Group's video products are also growing rapidly. In 2019, the sales volume of the three video products developed by ZEBAO Group, namely dash camera, IP camera and baby monitor, reached 74,900 units with a sales revenue of RMB 49.9476 million. From January to September 2020, the sales volume of video products in the three categories has reached 130,500 units, and the sales revenue has reached RMB 127 million.
In addition, ZEBAO Group has run B2C business on Amazon for over ten years since 2008. At present, all products are self-owned brand products and some of the products are in the leading position in the Amazon online market share, such as LED desk lamp, Bluetooth headphones, power banks, dash cameras, etc. RAVPower, TaoTronics, VAVA and Sable are 4 of ZEBAO Group's brands that are among the top 100 Chinese cross-border export brands with stores on Amazon in 2019.
As SACA regards, the end users of ZEBAO Group are mainly middle-class consumers in the US, Europe and Japan, with relatively high levels of education and purchasing power, and a certain degree of brand recognition. On this basis, the new video products launched by ZEBAO Group can quickly win the recognition of the target market consumer groups, which is the further expansion and promotion of the company's existing business and will consolidate the company's industry position, continue to enhance the company's overall profitability and market competitiveness.