Jinquan Tourism, a high-tech enterprise that manufactures tents, can seize the domestic camping outlet

In the warm spring season, supporting a canopy, setting up a tent, meeting three or five friends, and camping around the egg roll table has become the choice of more and more people.

In fact, since the outbreak of the epidemic, outdoor leisure methods of camping have been very popular, and discussions about camping and camping equipment have been frequently searched. At the same time, the camping economy is on fire. According to Ctrip's Spring Travel Trend Report released in March this year, bookings for camping products for travel from March to April this year were hot, with bookings increasing by 120% month-on-month.

No, there is a tent company ready for IPO, the full name of this company is Yangzhou Jinquan Tourism Supplies Co., Ltd. (hereinafter referred to as "Jinquan Tourism"), mainly engaged in outdoor products research and development, design, production and sales, products are tents, sleeping bags, outdoor clothing, backpacks and so on.

The company is also some years old, founded in 1998 by Italian businessman Richard Vassack. Then, during the 2008 financial crisis, it was transferred to the current shareholders Lin Mingwen, Li Hongqing and others. At present, Lin Mingwen holds 54.97% of the shares, which is the actual controller of Jinquan Tourism and also serves as the chairman of the company.

High-tech enterprise of OEM tent

Yin persimmon financial reporter noted that the company mainly uses the ODM/OEM model to supply outdoor sports brands around the world. Major affiliates include Coleman, The North Face, Bergans, and others.

Generally speaking, the outdoor products industry chain has four links, namely raw material production, factory processing, brand owner and downstream retail.

The raw materials of outdoor products are mainly chemical fiber materials, partial standard products, and the industry production capacity is relatively sufficient; foundry enterprises are the links with the lowest added value, and also concentrate the most important participants in the current outdoor products industry in the mainland; brand owners have the highest value in the industrial chain, while downstream retail enterprises are mainly divided into two kinds of specialized retailers and comprehensive retailers, the former such as Decathlon, the latter such as Wal-Mart.

Jinquan Tourism is in the factory processing link, doing OEM work for foreign brand owners. From 2018 to June 2021 (reporting period), the company's operating income was 491 million yuan, 596 million yuan, 597 million yuan and 369 million yuan respectively, of which overseas sales revenue accounted for more than 90% of the main business income.

It can also be seen from the company's staff structure that the added value of the industrial chain link in which Jinquan Tourism is located is low. As of the end of June 2021, Jinquan Tourism has 2427 employees, according to age, the most under 30 years old, there are 1321 people; according to academic points, high school and below, there are 2038 people, only 114 people with bachelor's degree or above; according to professional structure, the largest number of production personnel, there are 2153 people. At this point, the factory brothers and factory sisters who graduated from high school have entered the outdoor product factory in addition to the electronics factory and the screw factory.

What makes the financial reporter of Yinxi wonder is that Jinquan Tourism said in the prospectus that "the company is a high-tech enterprise, has passed the corresponding quality management system certification, and has been identified as 'Jiangsu Provincial Enterprise Technology Center' and 'Jiangsu Functional Outdoor Products Engineering Technology Research Center', and the company has the advantage of product quality control and control.".

In December 2018, Jinquan Tourism was recognized as a high-tech enterprise by the Department of Science and Technology of Jiangsu Province, the Finance Bureau of Jiangsu Province, and the Jiangsu Provincial Taxation Bureau of the State Administration of Taxation, with a validity period of three years.

The reporter inquired about the following conditions for the recognition and acceptance of high-tech enterprises on the official website of the Science and Technology Department of Jiangsu Province. The fourth article is: the proportion of scientific and technological personnel engaged in research and development and related technological innovation activities of the enterprise in the current year shall not be less than 10%.

However, according to the prospectus, in 2018, Jinquan Tourism had a total of 1630 employees, and the average number of R&D personnel in the company in 2018 was listed when calculating the average salary of R&D personnel in R&D expenses, which was 110. R&D personnel accounted for 6.75% of the company's total employees. In addition, the average number of R&D personnel in the company's total number of employees has also shown a year-on-year decline, 5.12% in 2019, 4.00% in 2020, and 3.67% at the end of June 2021.

Of course, we do not know whether the "scientific and technological personnel engaged in R&D and related technological innovation activities of the enterprise" mentioned in the acceptance conditions are equivalent to the concept and caliber of the average number of R&D personnel in the prospectus. This time, Jinquan Tourism also applied for the first listing on the main board of the Shanghai Market, and the content of enterprise technology and innovation is not as important as the science and technology innovation board and the ChiNext board.

Being able to be rated as a high-tech enterprise and enjoy the preferential tax rate of 15% for enterprise income tax is also a great benefit to the company's development.

Whether it can seize the domestic market outlet

Outdoor sports originated from European and American missionary, adventure and scientific investigation, the world's earliest outdoor sports club was born in Germany in 1857, with mountaineering and hiking as the main sports. Since outdoor sports have formed a mature industrial chain in Europe and the United States, most of the mainland outdoor products companies are mainly foundry and going to sea.

Compared with the long history of the development of the outdoor products industry in foreign countries such as Europe and the United States, the outdoor products industry in the mainland has developed since the 1950s, and the industry foundation is relatively weak. Although the domestic outdoor products industry has developed rapidly in recent years, compared with the relatively mature outdoor products market abroad, the release of the potential of the domestic outdoor products market still needs a certain amount of time.

Under the influence of the epidemic, outbound travel and inter-provincial travel are restricted, and the main short-distance outdoor camping continues to rise, which accelerates the release of the consumption potential of the domestic outdoor products industry to a certain extent.

According to media reports, in March this year, the number of notes containing the keyword "camping" on the Little Red Book increased by more than 5 times over the same period in 2020. According to CCTV Finance, the number of bookings for camping products for the Qingming Festival in 2022 increased by more than 3 times year-on-year.

In the Ctrip community, since 2021, the number of releases containing "camping, cooking, and camping" related content has increased by more than 400% compared with last year, and the number of readings has increased by more than 11 times.

In the secondary market, Jinquan Tourism's comparable company is also a main outdoor product such as tents (603908. SH) share price has also continued to rise this year, and has risen by 34.89% so far this year (before the restoration).

In 2021, Mugaodi achieved revenue of 920 million yuan, an increase of 43.6% year-on-year, of which the revenue growth rate of Q1 to Q4 was 25.7%, 58.4%, 36.4% and 50.7%, respectively, and the quarterly growth rate maintained a bright trend. In 21 years, the net profit attributable to the mother was 78.61 million yuan, an increase of 71% year-on-year.

In the primary market, The Outdoor Equipment Brand Naturehike, which focuses on exquisite camping, also completed nearly 100 million yuan of financing in early April, and the investor was Zhong Ding Capital. Earlier, at the end of 2021, the hot wilderness, which is mainly engaged in experiential development activities and campsite services, received more than 10 million yuan of financing from MuGaodi, Little Dinosaur Fund and the only capital.

Analysts at the Head Leopard Research Institute believe that camping, which is at the top of the short-distance tourism popularity list in the post-epidemic era, will usher in a new round of growth. Thousands of outbound travel consumers have successively turned to the domestic peripheral tourism market, and these consumers have strong spending power and sufficient budgets, and they are more likely to give priority to exquisite camping positioning in the middle and high-end.

Compared with Mugaodi and Jinquan Tourism, Mugaodi is the global leader in the field of tent foundry, and its main business covers two major sectors: OEM/ODM business and independent brand business.

In Makigaodi's operating income, 66.66% comes from foreign countries, 33.15% comes from China (and 0.19% from other businesses). MuGaodi attributed the performance growth to the growth of domestic and foreign camping market demand, and the company accurately grasped market opportunities through strategic planning on the one hand, and improved operational efficiency through the landing of management projects on the other hand.

Especially in terms of brand operation business, in 2021, Mugaodi achieved brand business revenue of 306 million yuan, an increase of 90% year-on-year, online channels continued to exert force, offline channels were steady and steady, making Mugaodi a complete range of exquisite camping lifestyle brands.

However, Jinquan Tourism only relies on the ODM/OEM method to process and produce corresponding products for the brand merchants in the outdoor goods industry, and does not have its own brand, and the added value of its industrial chain location is relatively low.

At the same time, more than 90% of the sales volume of Jinquan Tourism during the reporting period were in overseas markets, and the domestic market development was relatively small. Although the Outdoor Goods Market in Europe and the United States is basically stable, whether the company has the ability to seize the continuous release of the consumption potential of the domestic outdoor goods market still has to play a question mark.

This article originated from Silver Persimmon Finance