As one of the enterprises in xiaomi ecological chain, Chengdu Fun Sleep Technology Co., Ltd. (hereinafter referred to as "Fun Sleep Technology") began to sprint to the gem board listing, sponsored by CICC (601995. SH）。
Nearly 65% of its operating income depends on Xiaomi Group (01810. HK) sales platform, most of the others are from JD Group (09618. HK) and Alibaba (09988.HK). Fun Sleep Technology belongs to the traditional furniture, home textile industry, has a strong Internet attribute in sales channels, Xiaomi Group and its related parties hold more than 12% of Fun Sleep Technology.
The inquiry letter issued by the exchange involves many details of fun sleep technology's cooperation with Xiaomi, including the details of individual customers who trade frequently.
In addition, as the first supplier of Fun Sleep Technology, Xilinmen (603008. SH) is also a 2.91% shareholder of Fun Sleep Technology.
Revenue depends on the Xiaomi channel
"During the reporting period, the company continued to expand its diversified sales channels, but the sales revenue was still mainly achieved through third-party platforms such as Xiaomi series platform, Ali series platform, and Jingdong Mall." Fun Sleep Technology said.
Fun Sleep Technology is an Internet retail company engaged in its own brand scientific and technological innovation home products, the main business is high-quality easy to install furniture, home textiles and other home products research and development, design, production and sales. Products mainly include furniture, home textiles two categories. The furniture category mainly includes upholstered furniture and wooden furniture, of which upholstered furniture includes mattresses, sofas, soft beds and other products; wooden furniture includes solid wood beds, solid wood coffee tables, solid wood combination cabinets, solid wood dining tables and chairs, solid wood bedside tables and other products. The home textile category mainly includes pillows, quilts, mattresses, four-piece sets and other products.
In 2020, the main business income of Fun Sleep Technology in Xiaomi series platform, Ali series platform and Jingdong series platform was 326 million yuan, 46.8222 million yuan and 72.5672 million yuan respectively, accounting for 68.20%, 9.79% and 15.17% of the main business income of the current year, respectively; from January to June 2021, the main business income of Fun Sleep Technology in Xiaomi series platform, Ali series platform and Jingdong series platform was 146 million yuan, respectively. 20.3178 million yuan and 43.1618 million yuan, accounting for 64.86%, 9.05% and 19.22% of the main business income in the current period, respectively, with a high degree of concentration.
Xiaomi Group and its affiliates hold 12.0055% of the shares of Fun Sleep Technology, Xiaomi Group is both a major shareholder and a major customer, Xiaomi Group's Shunwei Investment and Jinmi Technology as early as 2015, the company was founded at the beginning of the establishment of the shares of Fun Sleep Technology predecessor Fun Sleep Limited.
According to the prospectus, the "Explanatory Letter" issued by Li Yong, Li Liang and Chen Lin, shareholders of Fun Sleep Technology, was established on October 22, 2014, and at the beginning of its establishment, the company had not yet determined the development direction and main business, had not yet carried out actual operations, and had little demand for funds. Therefore, at this stage, all shareholders of the company have not paid up their capital contribution. Subsequently, the company determined the development direction of the home furnishing industry, and successively contacted relevant investors, and signed a relevant investment agreement with Shunwei Investment in May 2015. According to the requirements of Shunwei Investment, before the delivery of Shunwei Investment, all shareholders of the company are required to pay the subscribed capital contribution. As a result, as of May 20, 2015, all shareholders of the Company at that time had paid the full registered capital.
At that time, the initial investment of Shunwei Investment and Jinmi Technology was only 428,500 yuan and 32,100 yuan.
In response to the inquiry letter, the sponsor of Fun Sleep Technology said that according to the interview with Xiaomi Group, Xiaomi Group confirmed that "for ecological chain enterprises in the same industry, Xiaomi Group will adopt the same evaluation criteria; Xiaomi Group has a strict project approval process for each company and each product, and selects the best instead of exclusive cooperation.". Therefore, for ecological chain enterprises in the same industry, Xiaomi Group applies the same evaluation criteria, and there is no situation where only a single company is supported for a single category.
Multiple recipients for the same customer
Regulatory inquiries also focused on the details of the transaction.
"During the reporting period, there are reasons and reasonableness of the names, delivery addresses, and contact information of 5-30 or more recipients corresponding to the same customer ID, whether the above situations are in line with industry practices, whether they are in line with the consumption characteristics of the issuer's products, and whether there are abnormal circumstances." In the inquiry letter, the regulatory authorities raised such questions about Fun Sleep Technology.
In this regard, Fun Sleep Technology said that there was no abnormality in the transaction.
The issuer's product categories mainly include mattresses, sofas, beds, pillows, quilts, living peripherals and other products. The issuer judged that "the same buyer, one purchase of multiple goods at a time" is not a duplicate purchase, mainly because the type is a single purchase, and repeated purchases generally refer to the repetition of the number of purchases, in addition, because the company is in the home furnishing industry, the category is relatively rich, consumers usually contain multiple categories when purchasing multiple products at a time when placing an order online, such as buying 1 mattress and 2 pillows as home products.
The sponsor, CICC, said: After verification, the issuer's repeated purchases by the same buyer under the online sales model during the reporting period were less common, which was in line with the consumption habits of users of household durable goods. During the reporting period, the company had a small number of large buyers and repeated purchases, and after verification of all large buyers and repeat purchase customers, it was mainly due to the secondary sales of products purchased by the company's customers, the company's purchase of gifts, the operation needs of hotel apartments and the decoration needs of individual whole houses, which were reasonable. Online sales by issuers are authentic.
Taking the "receiving address" as an example, from 2018 to the first half of 2021, the amount of the same customer ID corresponding to 5-30 or more receiving addresses accounted for 0.37%, 0.17%, 0.10% and 0.04% respectively, showing a downward trend as a whole, and the overall proportion was relatively low.
However, Fun Sleep Technology did not explain in detail how this phenomenon of a sharp decline in the proportion of the beginning of 2018 was caused.
In this regard, a sponsor representative told the first financial reporter that now the regulatory authorities pay more and more attention to the details of the upstream and downstream transactions of the proposed listed company, and the inquiry letter will "ask the root of the matter", and the proposed listed company can only disclose the details of its sales and procurement of customer cooperation in more detail, but the result to be borne is that the relevant information is easily obtained by competitors.
Xilinmen is both a shareholder and a supplier
As a competitor, Xi Linmen (603008. SH), also one of the shareholders of Fun Sleep Technology, and even the largest supplier of Fun Sleep Technology, Xi Lin Men holds 875,600 shares of Fun Sleep Technology, accounting for 2.92% of the total share capital before the issuance. At the same time, Xilinmen is also the main competitor in the furniture and home textile industry of Fun Sleep Technology.
From 2018 to 2020, the first largest suppliers were Ningbo Mengshen Mattress Machinery Co., Ltd. and Zhejiang Mengshen Home Furnishing Co., Ltd., and the procurement ratio of Fun Sleep Technology to it was 27.68%, 19.74% and 16.74%, respectively, showing a downward trend year by year; from January to June 2021, the largest supplier was Xi Linmen, and the purchase ratio of Fun Sleep Technology to it was 16.72%.
Fun Sleep Technology said that due to the relatively full competition in the production and processing field of furniture home textile industry, the company will generally choose 2-3 suppliers for the same product to maintain a state of full competition, which is conducive to the company's control of product quality.
On May 5, 2017, Shunwei Investment transferred its 3.00% equity interest in Fun Sleep Limited to Xilinmen for 27.57 million yuan.
"Benefiting from the steady increase in China's urbanization rate, the upgrading of residents' consumption, the arrival of secondary decoration and the wave of marriage, the development potential of the domestic furniture and home textile industry is huge and the development prospects are broad." In the "Opportunities and Challenges Facing the Industry", the prospectus of Fun Sleep Technology said, "In the past ten years, people born during the third peak fertility period in China have successively entered the marriageable age. The large-scale growth of the marriage and childbearing population will greatly drive the consumer demand for household products. In addition, the full liberalization of the second child will also stimulate the growth of residents' demand for improvement of the home environment. ”
However, the reality may not be as optimistic as the description of Fun Sleep Technology, and the number of marriages may be further reduced in the future after years of continuous decline.
According to the China Statistical Yearbook 2021, the number of marriage registrations in 2020 totaled 8.1433 million pairs, a decrease of 1.13 million pairs compared with 2019. It is also a seven-year decline since reaching 13.4693 million pairs in 2013; it also hit a new 17-year low since 2003 (8.114 million pairs). Compared with the peak in 2013, the number of marriages fell by nearly 40% in 2020.