Sold 250 million Durex in a year. What is the origin of the drunk breeze that hit the “first stock of taste”?

Zui Qingfeng represents Durex, paired Hart, celebrities, Okamoto, Renchuyou, and Thunder brand, with annual revenue of 690 million, of which Durex’s revenue is 250 million. However, Zuiqingfeng’s own brand is weak and over-reliant on online channels. At the same time, it also exposed a record of more than 40 million orders.

Spark Global Limited Finance
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This time, shortly after Zui Qingfeng submitted the prospectus, the company was selected by the supervisory authority for on-site inspection. Is it still unknown whether it will be able to pass the level smoothly?

Rely on agency brands to grow bigger

Zui Qingfeng was funded and established by Yang Changliang in June 2012. At present, the company is an e-commerce company focusing on health products for both sexes. It is a comprehensive operator integrating brands, products and platforms. Its main business is health products for both sexes. Internet retail and distribution.

Zuiqingfeng’s erotic products cover all categories of health products for both sexes, including appliances, family planning, apparel, and nursing, and are divided into private brands + general-generation brands. In terms of private brands, there are Miji and Feimu; and the agency’s There are more than 100 brands, including famous brands such as Durex, Okamoto, Jissbon, and Pairhart.

From 2018 to 2020, Zuiqingfeng’s main business revenues were 761 million, 964 million and 1.067 million, and net profits were 63.30 million, 110.39 million and 97.46 million, respectively. Net profit will decline in 2020.

In terms of revenue, appliances and family planning products contributed most of Zuiqingfeng’s revenue. In 2020, the total revenue of these two types of products was 780 million, a year-on-year increase of 160 million.

Zui Qingfeng explained that the sales of well-known brands “Miji”, “Lei Ting” and “Tongzi Hart” have increased significantly; while the family planning products are mainly due to the company’s strengthening of cooperation with Durex brand vendors, and expansion of Tmall Supermarket and Retail sales channels, while increasing Okamoto brand promotion to increase sales.

From 2018 to 2020, the product sales revenue of Zuiqingfeng’s agency brands were 470 million, 550 million, and 690 million, respectively. It can be seen that the agency brands accounted for the main source of income, mainly Durex, pair Hart, celebrities, Okamoto, Renchuyou The overall revenue of agency brands such as Thunder and Thunder rose.

Among the agency brands, Durex has the largest contribution. In 2020, it sold 250 million in total, accounting for 23%. The four major brands such as Durex, Pair Hart, Celebrity, and Okamoto accounted for 40% of the revenue.

In terms of gross profit margin, from 2018 to 2020, the gross profit margin of Zuiqingfeng’s main business was 32.09%, 34.56% and 32.65%, respectively. Among them, the gross profit margin of appliances was the highest, reaching 33%.

In terms of specific brands, the gross profit margin of Durex appliances is 28.7%, and the family planning category is 22.2%. According to Zui Qingfeng, the gross profit margin of Durex brand is lower than that of celebrities and Okamoto, which is mainly caused by different terminal sales pricing policies and rebate policies formulated by each brand according to market conditions.

In 2018-2020, Zuiqingfeng’s total expenses were 160 million, 180 million, and 190 million, respectively, accounting for 21.43%, 19.43%, and 17.83% of operating income, respectively.

Among these expenses, the company’s promotion and publicity expenses were 160 million, 180 million, and 62.95 million, respectively. The main company continued to increase its investment in platform promotion in order to continuously improve brand awareness, expand sales scale.

Swipe 40 million

Based on the characteristics of erotic products, Zuiqingfeng’s main revenue channel is online. The company has two sales channels, namely the “Zuiqingfeng Flagship Store” on the Tmall platform and the company’s own platform “Yixingfang Mall”.

The prospectus disclosed: As of the end of 2020, the cumulative number of fans and members of Tmall Zuiqingfeng flagship store has reached more than 1.8 million and more than 1.3 million respectively. In 2020, the number of page views exceeded 760 million, and the number of transaction users exceeded 7.53 million.

Tmall is also the main source of income for Zuiqingfeng. In 2020, the revenue of Tmall platform will reach 540 million, accounting for 97.56% of online sales platform revenue and 51.52% of the company’s total operating revenue.

It is worth noting that Zui Qingfeng has a huge amount of ordering behavior. It is a single thing that makes it stand out from the companies that are about to IPO in the near future.

According to Zui Qingfeng’s explanation, in order to improve the store ranking and praise rate, the company has carried out a review for the purpose of promotion and drainage.

From 2018 to 2020, Zuiqingfeng’s order amount (tax included) was 24.137 million yuan, 7.266.7 million yuan and 14.9434 million yuan, accounting for 3.17%, 0.77% and 1.40 of each period’s sales revenue (tax included), respectively %, a total of 46,507,400 yuan in three years.

Zui Qingfeng stated in the prospectus that the sales revenue has not been confirmed by the order, and there is no situation of inflating the company’s performance.

The real reason may be related to the fact that the supervisory authorities have increased their involvement in e-commerce companies’ order-swiping behavior. In October 2020, Zui Qingfeng stopped buying orders, actively rectified it, and formulated the “Prohibition of buying orders system” to eliminate the behavior of buying orders.

Behind the brushing of orders, it mainly reflects the difficulties of e-commerce traffic. With the gradual disappearance of Internet traffic dividends, the effectiveness of traffic continues to decline, making it more difficult to acquire customers.

In addition, the sales platform where Zuiqingfeng is located, JD self-operated, Ali Health Pharmacy, etc. have long been in the market for sex toys. The increasingly fierce competition among Internet e-commerce companies has also affected Zuiqingfeng’s income to a certain extent.

In addition to the issue of rewriting orders, Zui Qingfeng has also been fined repeatedly for false propaganda. For example, “If you have not obtained a patent right, falsely claim that you have obtained a patent right in the advertisement”, “Illegal publication of medical, pharmaceutical, and medical device advertisements”, “Illegal publication of advertisements using’national’,’superior’,’best’, etc. term.”

Behind this is mainly the lack of effective market supervision in the health products industry for both sexes. In addition to condoms that implement national standards, electric comforters, manual comforters, and erotic clothing are all implementing corporate or industry standards, and there is no national authority. The uniform standards formulated also lack effective supervision by relevant departments. In black cat complaints, there are about ten complaints about the quality of Zuiqingfeng products.

According to the prospectus, Zuiqingfeng plans to raise about 566 million yuan for its listing, of which 325 million will be used for the construction of a comprehensive operation and collaborative management center, 72.16 million will be used for the construction of an integrated warehousing and logistics center, and 87.765 million will be used for the construction of customer service and training centers. 80,928,900 used to supplement working capital.

In other words, a large part of Zuiqingfeng’s fundraising is used to buy properties. In the past three years, Zuiqingfeng has paid out large amounts of dividends. From 2018 to 2020, the dividends will be 44.353 million, 90.764 million and 104 million, and the cumulative dividends in the three years will be 239 million. It is 88% of the company’s total profits in the past three years. According to Yang Changliang and Ye Junli’s total holding of 83.43% of the company’s shares, Zuiqingfengxiang and his wife paid a generous dividend of nearly 200 million yuan. This can not help but make people doubt the rationality of its fund-raising.

Over-reliance on agency brands, weak self-owned brands and low R&D costs have led to insufficient development potential, which has now appeared in Zuiqingfeng. It remains to be seen whether Zui Qingfeng can be sampled at the sub-supervisory level and whether the road to listing will have an impact.

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