In the cross-border circle, there are not many cross-border e-commerce sales that suddenly change their performance after listing, and after standing in the capital market, the report card handed over is still eye-catching, which can be described as an excellent representative. Recently, cross-border e-commerce sales have successively released their 2023 financial reports and financial reports for the first quarter of 2024, and Taotao Automobile, which just entered the A-share market in March last year, has performed well.
earned 280 million a year
According to the financial report, in 2023, Taotao's operating income will be about 2.144 billion yuan, an increase of 21.44% year-on-year, and the net profit attributable to shareholders of listed companies will be about 280 million yuan, an increase of 36.09% year-on-year.
The first quarter of this year continued to improve. According to the financial report, in the first quarter of 2024, its revenue will be about 520 million yuan, an increase of 49.06% year-on-year, and the net profit attributable to shareholders of listed companies will be about 50.87 million yuan, an increase of 45.89% year-on-year.
According to the analysis of Yien.com, there are three reasons for this achievement:
First of all, backed by the "Yongwujin" 100 billion hardware industry belt, it occupies a favorable location advantage, the raw materials required for production can be purchased nearby, reducing the circulation links, coupled with its perfect business system, operation framework and independent production of core components, so that it can effectively control costs and provide cost-effective products for the market.
Secondly, in 2017, two years after the establishment of the company, Taotao Automobile Industry began to sell in the United States and Asia Station, and its online channels expanded to Walmart, Newegg, eBay and other platforms, and even established 7 independent stations (4 VELOZ brands and 3 GOLABS brands). It's no secret that online retail margins are much higher compared to the vendor model. According to the financial report data, its overall gross profit margin will be 37.60% in 2023, an increase of 1.85 percentage points from 35.75% in 2022.
Third, after years of construction and development, at present, all-terrain vehicles and motorcycles have formed their own brands "TAO MOTOR" AND "RIVAL", and electric scooters and electric balance vehicles have formed their own brands "GOTRAX" and "FLUXX". And the brand can be at a premium.
In today's cross-border e-commerce market, the living space left for sellers has become narrower and narrower, and sellers like Taotao Automobile Industry, which rely on the advantages of the industrial belt and deeply cultivate vertical categories, are emerging. At present, its products include all-terrain vehicles, electric scooters, electric balance bikes, electric bicycles, electric golf carts, off-road motorcycles, etc.
Among them, electric scooters account for the largest proportion of sales and the most revenue, with sales of 718 million yuan in 2023, accounting for 33.49% of total revenue, followed by all-terrain vehicles, with sales of 620 million yuan, accounting for 28.93% of total revenue, and the third is electric self-balancing vehicles, with sales of about 300 million yuan, accounting for 13.79% of total revenue.
Repeatedly on the Amazon BS list
For example, in the first half of 2022, these two channels accounted for more than ninety percent (155 million yuan) of the total online revenue of 172 million yuan.
Among all online channels, the sales revenue from Amazon is the largest, for example, 104 million yuan was sold in the first half of 2022, accounting for 60.14%, and 184 million yuan was also sold in 2021, accounting for 51.83%.
However, it can be clearly seen from the above table that before 2021, the main online revenue of Taotao Automobile Industry is not Amazon, but independent stations, for example, in 2020, its independent station revenue will be 154 million yuan, accounting for 71.97% of online revenue, while Amazon's revenue is only more than 50 million, less than one-third of independent stations. Why did revenue from Amazon suddenly skyrocket in 2021?
According to the prospectus, mainly due to the continuous improvement of its marketing channels, in 2021, Taotao Automobile Industry set up a cross-border e-commerce team (Shenzhen Baike) in Shenzhen, which is responsible for the operation of the Amazon platform. Among them, the sales of the three major stations in Canada, the United States and Japan were 123 million yuan, 60.2581 million yuan and 7.958 million yuan respectively.
Boosted by sales, Taotao has become a frequent visitor to the BS list, among which the electric scooter brand "GOTRAX" has performed well, and has been selected into Amazon's "Amazon Best Seller" and "Amazon's Choice" best-selling lists for many times, and once ranked in the top ten of similar product sales lists. From the perspective of specific products, H600, H853 and other electric scooter products have been in the forefront of similar products for a long time in the sales ranking of Meiya Station.
Not only that, as one of the classic products, the performance of the electric balance car is not bad, in 2023, among the similar products in the United States and Asia Station, the sales volume of electric balance car related products will rank among the top three, and the sales performance during the "Black Five" and "Net One" period will be outstanding, and the sales volume and sales will be in the forefront.
In fact, not only Amazon, Taotao Motor's electric self-balancing car has also performed well in Wal-Mart, not only logging on to the platform's annual product recommendation list for three consecutive years, but also winning the annual sales champion of the electric self-balancing vehicle category for two consecutive years.
E-bike sales doubled
Under the concept of green environmental protection, the electric bicycle (E-Bike) market has been very lively in recent years, and many overseas brands have emerged in this 100 billion track, such as Aventon, Urtopia, Tenways, etc. Even DJI, the hegemon in the field of drones, came up and intervened.
In the cross-border circle, big sellers such as Anker Innovations have also moved to recruit product experts, motion control algorithm engineers and other professionals to enter the market and share the cake.
In the face of such business opportunities, Taotao Automobile Industry is of course impossible to take action. As one of the three new products in its key layout, in 2023, Taotao Bicycle Industry's electric bicycle sales will double to 165 million yuan, accounting for 7.69% of operating income, a year-on-year increase of 111.11%.
During the period, it continued to extend and expand its electric bicycle products, and on the basis of the existing urban commuting, folding, cruising, snow and other series, it added three new categories: mountain, cargo and hunting, which accurately met the personalized needs of consumers in leisure and entertainment, daily commuting, outdoor sports and competitive challenges, and further enhanced the competitiveness of the products.
At present, its two independent brands of electric bicycles, DENAGO and GOTRAX, have entered the US market and achieved full coverage of online and offline sales channels.
Among them, DENAGO brand electric bicycles are mainly sold through high-end dealers and independent stations, and GOTRAX brand electric bicycles are mainly sold through third-party e-commerce platforms such as large chain supermarkets and Amazon, as well as independent stations.
Electric bicycles have set off a boom in the global market, and the current sales are mainly concentrated in the European and American markets, and the manufacturing is mainly concentrated in China, which accounts for more than 90% of the market share.
According to QYResearch statistics, the global electric bicycle market size will reach $7.656 billion in 2023 and is expected to reach $7.838 billion in 2024 and $8.932 billion in 2030, with a compound growth rate of 2.2% from 2024 to 2030. Under this market scale, there is still a lot of room for growth in the Taotao car industry.