Recently, the information disclosed by the Shanghai Stock Exchange shows that Zhejiang Lixuan Sports Technology Co., Ltd. (hereinafter referred to as "Lixuan Sports") and its sponsor Huatai United Securities have withdrawn their listing applications. As a result, the Shanghai Stock Exchange decided to terminate the review of the company's initial public offering and listing on the main board.
According to Bedo Finance, Lixuan Sports pre-disclosed the prospectus in May 2022 and prepared to be listed on the main board of the Shanghai Stock Exchange, which was updated in September of the same year. After the implementation of the full registration system in 2023, Lixuan Sports will move to the Shanghai Stock Exchange to submit a prospectus (declaration draft).
In this sprint listing, Lixuan Sports originally planned to raise 2.002 billion yuan, which will be used for an annual output of 1.5 million pieces of fitness equipment, 600,000 pieces of dumbbell production base project, an annual output of 450,000 pieces of fitness equipment technical transformation project, R&D and office center construction project, 123 million yuan for marketing network construction project, information upgrade construction project, and supplementary working capital.
Tianyancha App shows that Lixuan Sports was established in November 2018 and is located in Ningbo City, Zhejiang Province. At present, the registered capital of the company is 90.9 million yuan, the legal representative is Wu Yinchang, and the shareholders include Ningbo Chiteng Enterprise Management Consulting Co., Ltd., Ningbo Qiangshen Enterprise Management Consulting Partnership (Limited Partnership), Xiaomi, Wu Yinchang, etc.
According to the prospectus, the main business of Lixuan Sports is the design, research and development, production and sales of fitness equipment and related accessories. Lixuan Sports said that the company has built a high-standard fitness equipment R&D and production base, and has a fitness equipment industry chain, covering product development, mold development, machining, welding, surface treatment, plastics, assembly, testing and other technological processes.
Lixuan Sports said in the prospectus that the company has established stable and in-depth cooperative relations with Decathlon, Nautilus, iFIT and other sports and fitness brands, and continues to invest in new customers and new products to expand the company's market influence.
At present, Lixuan Sports' products cover two major categories: aerobic exercise and strength training, including treadmills, exercise bikes, elliptical machines, rowing machines and dumbbells. Based on the downstream sales situation, the company mainly adopts the production model of "sales to production", formulates production plans and organizes production based on sales orders, production capacity and inventory.
In 2019, 2020, 2021 and the first half of 2022, the revenue of Lixuan Sports was 1.544 billion yuan, 2.449 billion yuan, 3.520 billion yuan and 845 million yuan respectively, the net profit was 207 million yuan, 310 million yuan, 437 million yuan and 103 million yuan respectively, and the net profit after deducting non-profits was 208 million yuan, 215 million yuan, 419 million yuan and 98.5729 million yuan respectively.
In terms of product type, the revenue of Lixuan Sports is mainly contributed by exercise bikes, elliptical machines, treadmills, etc. During the reporting period, the company's revenue from exercise bikes was 459 million yuan, 1.046 billion yuan, 1.333 billion yuan and 238 million yuan respectively, accounting for 29.80%, 42.89%, 38.37% and 28.53% of the main business income respectively.
It is worth mentioning that Lixuan Sports also has a high concentration of customers. During the reporting period, the company's sales revenue to the top five customers were 1.309 billion yuan, 2.131 billion yuan, 2.985 billion yuan and 711 million yuan respectively, accounting for 84.77%, 86.99%, 84.78% and 84.18% of the total operating income respectively.
According to Bedo Finance, the main customers of Lixuan Sports are Decathlon, Nautilus, etc. During the reporting period, the company's operating income to Nordex and Decathlon accounted for 66.60%, 79.51%, 76.82% and 68.56% of the total operating income respectively.
In addition, according to the information disclosed in response to the first round of inquiry letters of Lixuan Sports, the company's revenue in 2022 and the first half of 2023 will be 1.633 billion yuan and 863 million yuan respectively, the net profit attributable to the parent company will be 233 million yuan and 95.1605 million yuan respectively, and the net profit after deducting non-profits will be 219 million yuan and 87.6461 million yuan respectively, a significant decline.
Lixuan Sports said that since the second half of 2021, with the global epidemic (especially in Europe and the United States) entering the normalization and other reasons, the market demand for home fitness equipment has declined, and downstream customers have reduced their inventory levels, so they have reduced the scale of orders, and the company's operating performance has declined.
In particular, Lixuan Sports received investment from Xiaomi in December 2021. According to the prospectus, on December 13, 2021, Lixuan Sports held the third extraordinary general meeting of shareholders in 2021 and agreed that the company would increase its registered capital by 4.5 million yuan, and the registered capital would increase from 86.4 million yuan to 90.9 million yuan.
According to reports, the registered capital increased by Lixuan Sports this time was all subscribed by Hanxing Investment, a subsidiary of Xiaomi Technology, in currency, with a capital increase of 247.5 million yuan, which was included in the capital reserve of 243 million yuan. At the same time, a VAM agreement was agreed, and if Lixuan Sports failed to achieve an IPO before December 31, 2025, Hanxing Investment had the right to request Wu Yinchang to repurchase it.
Among them, Wu Yinchang is the actual controller of the Lixuan Movement. Before this listing, Wu Yinchang's family (Wu Yinchang, Zhao Wannong and his son Wu Bin) was the actual controller of Lixuan Sports. At present, Wu Yinchang serves as the chairman and general manager of Lixuan Sports, and his son Wu Bin is a director of the company.
According to the prospectus, the three of them hold a total of 74.81% of the shares of Lixuan Sports. Among them, Wu Yinchang directly holds 4.40% of the company's shares, 49.28% of the company's shares indirectly through Ningbo Chiteng, 0.24% of the shares through Ningbo Qiangshen, and 2.54% of the shares through Ningbo Xianjie.
At the same time, Zhao Wannong indirectly holds 21.12% of the shares through Ningbo Chiteng, Wu Bin indirectly holds 6.47% of the shares through Ningbo Qiangshen, and indirectly holds 0.03% of the shares through Ningbo Xianjie. Among them, Wu Bin is an undergraduate (editor's note: received undergraduate education, but failed to complete the study plan or failed to pass the graduation thesis).