Smart door lock enterprise VOC plan 2020 IPO, funds will be used for mergers and acquisitions of the upper and lower reaches and similar companies

The VOC, a research and development manufacturer of smart door locks, was established in 2013 and will be listed on the A-share market in 2020. It is expected that the fund-raising scale will be 500 million yuan. VOC mainly provides home entry door intelligent door locks for the 2C market. So far, more than 10 series of smart door lock products have been introduced. The unlocking methods include fingerprints, passwords, or remote control of mobile phones.

Lin Feihe, general manager, has served as chairman of Zhejiang Yingdun Technology Co., Ltd. and founder of Zhejiang Kaidish Industrial Co., Ltd., and has more than 50 related patents in the field of smart locks and smart homes, and nearly 10 years of industry experience. According to Lin Feihe, VOC's revenue for 2014 was approximately 7 million yuan, and its 2015 revenue was approximately 30 million yuan. In 2016, the revenue was close to 100 million yuan, and the revenue for 2017 was more than 200 million yuan. According to the sales forecast of the company, revenue for the three-year period from 2017 to 2019 will still show a doubling trend year-on-year, and the three-year net profit is expected to be close to 150 million yuan. In 2019, the net profit for the year was about 100 million yuan, and the IPO raised about 500 million yuan. It is reported that VOC had previously completed two rounds of financing, totaling 135 million yuan, and now the company's valuation is about 800 million yuan. In mid-2016, VOC received 30 million yuan in Series A financing, and the investor was Wanxing Technology. At the end of 2017, it obtained nearly RMB 100 million round B financing, and reported that the company had led the investment.

Lin Feihe said that the main purpose of VOC preparation for listing is to capitalize on the strength of capital and acquire upstream, downstream, and similar companies to achieve leapfrog development.

Security as the biggest demand for smart homes has driven the development of smart door lock market. From the embryonic stage of 3 years ago to the rapid growth in 2017, smart door locks have really entered the fast lane of development. Compared with 80% market penetration in Korea, the market penetration rate of smart locks in China is only about 3%, and the market size for future expansion is expected to reach hundreds of billions of yuan.

As far as the development of the smart lock industry at this stage is concerned, the 2B market is still the main battlefield, and it is expected that by the year 2020 the overall 2B market will ship more than 10 million smart door locks. Internet smart door lock companies such as Yunding, Guojia, Yunyou, etc. are mainly concentrated in the area of ​​long and short-term rental apartments. The traditional hotel lock companies, such as Haibei Si, Di Jier, Ai Deer, etc., are mainly concentrated in the field of residential real estate.

VOC is not involved in the long-term and short-term apartments in the 2B market, mainly in the development of residential real estate and high-end projects. Lin Feihe thinks that he wants to quickly roll out his business in the area of ​​long-and-short-term rental apartments. Most of them want to adopt the puerile-profit-making model, and it is difficult to bring real profits to the company. Up to now, VOC has signed about 60 million yuan of high-end residential real estate projects. It is expected that by the end of 2018, the amount of project orders is expected to exceed 100 million yuan.

Although the B-side market for branded apartments and properties is concentrated due to procurement and the transaction volume is large, it is still the main force for large-scale shipments in the short term. The largest market for smart door locks is still in the massive, decentralized C-side. Moreover, the C-end market is more likely to form a scale effect, which also makes it a decisive area for many smart door lock companies. The industry believes that 2-3 years may usher in the 2C market's flashpoint.

In the past few years, VOC has been focusing on the research and iteration of smart door locks for home entry doors in the 2C market, and has ranked top 3 in terms of product shipments in the 2C market. In the 2C market, at present, their competitors are mainly foreign brands represented by Samsung and Yale, and domestic traditional hardware manufacturing companies such as Kaidi Shi and Yajie. The advantage of foreign brands is high brand awareness, but high prices, poor anti-theft performance, and product specifications that do not meet the criteria for domestic entrance doors will hinder their development in the domestic market. The domestic traditional hardware manufacturing enterprises have long-term manufacturing experience and mature channels, but lack the ability to develop and integrate software systems, and the marketing methods are more traditional. Lin Feihe believes that VOC as a company with Internet gene products will be stronger in the sense of software use experience, as well as the future integration performance of other smart home platforms.

In addition to these traditional door lock manufacturers, many head Internet door lock companies are also laying out the 2C market and will become potential competitors for VOCs in the future. Lin Feihe believes that compared to these Internet companies, the advantage of VOC lies in the advantages of products and channels that have been accumulated for many years in the 2C market. It is reported that VOC has established a offline operation and service system in more than 300 cities throughout the country in 3-4 years, and has carried VOC's major shipments and profits. However, in the future, VOC will strengthen the construction of online channels. Only if the online service system is relatively complete, online sales will be better supported.

The average gross profit margin of VOCs is now around 50%, and the company's net profit is around 15%-20%. In addition to marketing costs, offline channel costs also accounted for the bulk. Therefore, VOC will continue to optimize and simplify the offline channel structure afterwards, which has improved the company's net profit.

In addition to continuous optimization in the service system and channel structure, as a company with hardware product sales as the main profit model, it is still necessary to have the ability to continuously introduce representative products. After the smart door lock, VOC is developing smart door products. Lin Feihe believes that smart locks are now the main stock market, but China has tens of millions of new assembly markets every year. Compared to smart door locks, the physical space of smart doors is greater, meaning that more functions can be demonstrated and implemented. This smart door product is expected to be officially launched in 2019.