The hottest Yang Yang endorsement also did not bri

Yang Yang's endorsement also did not bring traffic. Puppy appliance plans to go public to raise funds to buy a house in Beijing

puppy appliance, which has no production and weak research and development, has the largest expenditure in this fund-raising is to buy a house in Beijing

: Zhang Yi

: zizichen

the puppy appliance endorsed by the famous artist Yang Yang is about to end its 21 month listing on the new third board and turn to the gem. The company that produces household cleaning appliances recently submitted an updated prospectus to the CSRC

from the 2017 results disclosed in the prospectus, under the double squeeze of high-end brands and many medium and low-end products, the share of online retail sales of puppy appliances is declining year by year. Even if nearly ten million people invited Yang Yang to speak for them in a year, they failed to convert the traffic into sales

in addition, puppy appliance is also deeply involved in the intellectual property case with Dyson, and the company's flagship products have the risk of being unable to produce and sell. It is worth noting that the dispute in this case did not make puppy electric pay attention to research and development. According to the existing data, the R & D expenses of this company account for less than 2%. Therefore, some institutional investors are worried about the future sustainable development of puppy appliances

unlike being stingy in research and development, puppy electronics is very "deep" in other aspects. The largest expenditure of the company's funds raised in this listing was to spend 249million yuan to buy more than 3000 square meters of office buildings in Beijing. It will provide more than 10 square meters/person of office space for employees

at present, puppy Electric has issued a suggestive announcement on the termination of the listing of the company's shares in the national small and medium-sized enterprise share transfer system. Will the company's next A-share IPO journey be smooth

non head Internet company that has lost its growth story

puppy appliances is mainly engaged in the research and development and sales of household cleaning appliances such as vacuum cleaners, floor sweeping robots (16.300, -0.15, -0.91%) and mite removers, focusing on the "puppy" brand. Previously, it was listed on the new third board on December 6, 2016

the updated prospectus shows that the revenue growth of puppy appliances is slowing down significantly. Compared with the growth rate of operating revenue that easily doubled in 2015 and 2016, the year-on-year growth rate of the company's operating revenue in 2017 plummeted to 34.87%

in terms of operating income, Midea Group (40.300, 0.00, 0.00%) () and Qingdao Haier (15.320, 0.24, 1.59%) () achieved an increase of more than 50% and 30% in 2017 with their revenue base of more than 100 billion yuan. In 2016, the revenue of puppy appliance just exceeded 500million yuan, and the year-on-year growth of revenue in 2017 was only 34.87%. This is obviously not an order of magnitude

it is worth noting that the updated prospectus of puppy electric was sent on August 22, and the company has disclosed the 2018 semi annual report data on August 17, but the prospectus does not contain the interim financial data

according to the 2018 interim report data, the growth rate of puppy appliance revenue slowed to 5.92% in the first half of the year

the growth of operating revenue of comparable listed companies

the same is true of the growth of net profit. The net profits of puppy electric in 2016 and 2017 were 32.7691 million yuan and 49.2646 million yuan respectively, with year-on-year growth rates of 442.78% and 50.34% respectively

the decline in performance growth is closely related to the decline in the online market share of puppy appliances

as an Internet concept company, e-commerce channel is the "lifeline" of puppy appliances. In the past year, puppy electric still failed to get rid of the sales model of highly relying on third-party e-commerce platforms, and its online revenue accounted for more than 95%

according to the data of zhongyikang, the online retail volume and retail volume share of vacuum cleaners and mite removers of puppy appliances have ranked the top two in the past two years. However, the trend is contracting

among the main products of puppy appliances, vacuum cleaners account for more than 70%. The dog electric vacuum cleaner ranked first online from 18.29% in 2015 to 14.30% in 2016, and its online share fell by 0.58 percentage points in 2017 compared with 2016

the main reason for the shrinking share is the strong momentum of Dyson, a high-end brand of vacuum cleaners

Dyson is a technology company headquartered in the UK. Its main products include vacuum cleaners, air purifiers, humidifiers and other small household appliances. It occupies an absolute position in the high-end field of vacuum cleaners, and has produced a "Dyson phenomenon" that "the more expensive, the better to sell"

in 2016, Dyson's revenue in China market increased by 2.44 times. A large part of the credit comes from online sales. Although Dyson's online sales volume was less than that of puppy appliances, its unit price was high and quickly occupied the market

Dyson attacked, and the sales of puppy appliances suffered a "Waterloo". In the same year, the online retail volume of puppy appliances was barely flat, but the proportion of retail sales fell by about 4 percentage points

the interface can be seen in tmall Dyson's official flagship store that Dyson vacuum cleaners are priced from 2000 yuan to 4950 yuan. However, it is not the entry-level model that sells the most, but each pricing ladder is "popular"

at the same time, in the official flagship store of puppy electric appliance, vacuum cleaner products range from 289 yuan to 3499 yuan, and there are only two products with more than 2000 yuan, and the sales volume is very small, far less than the sales volume of low-cost products

there is a risk that ACE products cannot be produced and sold.

the fierce competition between puppy appliance and Dyson not only exists in the field of market sales, but also in the field of intellectual property rights

on September 21, 2017, Dyson Technology Co., Ltd. filed a lawsuit with the Beijing Intellectual Property Court on two disputes over the infringement of design patents with the issuer, orange technology and Zhongxin wire technology. Dyson Technology Co., Ltd. believes that the d-535 "handheld/rod five risks vacuum cleaner" produced by the issuer infringes its two "vacuum cleaner parts" that have obtained appearance patents

later, puppy electric filed a patent invalidation request with the Patent Reexamination Board of the State Intellectual Property Office for these two patent rights involved in the lawsuit. However, on June 1st, 2018, the committee rejected this request and still decided that the patent right involved in the lawsuit was valid

the case has been deadlocked for nearly a year and is still under trial. If puppy electric loses the lawsuit, there is a risk that it will not be able to produce and sell d-535 products, and it is expected to compensate 1million yuan

d-535 is the fist product of puppy electric appliance. The interface can be seen in the flagship store of tmall puppy electric appliance. The d-535 is the sales champion of the store, with a promotion price of 1699 yuan. It is also a product with a high gross profit margin of puppy electric appliance

data show that d-535 also accounts for a high proportion in the sales of puppy appliances, and a single product accounted for 6.08% of the sales revenue in 2017

puppy appliance said that if it loses the lawsuit, it can continue to sell through product upgrading and replacement of parts involved in the lawsuit

puppy electric d-535 sales page

behind this case, it is actually the research and development ability of puppy electric

from 2015 to 2017, the R & D expenses of puppy electrical appliances were 4.5693 million yuan, 7.872 million yuan and 10.477 million yuan respectively, accounting for 1.96%, 1.53% and 1.51% of the company's revenue

at the same time, the company's advertising, publicity and promotion expenses were 51 million yuan, 112 million yuan and 125 million yuan respectively, accounting for more than 17% of the operating revenue

in the view of many industry insiders, less than 2% is not a normal level of R & D investment

as early as 2009, when the Ministry of industry and information technology guided the transformation and upgrading of the household appliance industry, the policy of "guiding opinions on accelerating the transformation and upgrading of China's household appliance industry" put forward a clear goal: by 2015, the average R & D investment of the industry will account for 3% of the sales revenue. In the guidance on accelerating the construction of independent brands in China's electrical appliance industry in 2011, it was once again clear that the R & D investment intensity should not be less than 3% by 2015

at present, the R & D investment in the household appliance industry has basically reached 3%. In 2017, the R & D expenses of Midea Group, Gree appliances (37.080, 0.63, 1.73%) () and Qingdao Haier, the three home appliance giants, reached 8.5 billion yuan, 5.767 billion yuan and 4.589 billion yuan, accounting for 3.53%, 3.89% and 2.88% of revenue respectively

in addition to the three giants, Lake Electric (24.980, -0.36, -1.42%) which has a similar business with puppy electric appliance also had 231 million yuan of R & D expenditure last year, accounting for 4.05% of revenue. Compared with these listed companies, the research and development expenses of puppy appliances account for the bottom

most of the R & D expenses of puppy appliances, which account for an extremely low proportion, are also used to pay the R & D personnel

the employee compensation of the R & D personnel of puppy electric appliance was 3.7751 million yuan, 6.0842 million yuan and 6.6311 million yuan respectively, accounting for 82.62%, 77.29% and 63.29% of the R & D expenses

it can be seen that the research and development expenditure of puppy appliances in materials, testing, molds and other aspects is very small. According to the prospectus, the puppy electric research and development team has developed more than 200 patents. However, puppy electric did not specify the specific proportion of invention patents and design patents

it is difficult to solve the sales dilemma with marketing expenses of more than 100 million

in the face of competition, puppy appliances has realized the income problem, so it has increased its investment in marketing and promotion. In 2016, the company's advertising, publicity and promotion expenses surged by 118% to 112 million yuan. With an operating income of 500 million yuan, more than 100 million yuan is spent on advertising and promotion, which is also a big deal

at the same time, in order to promote brand communication, puppy appliance invited film and television artist Yang Yang as the spokesperson of puppy brand image in 2017

according to the prospectus, puppy Electric paid 9.8 million yuan to Centrino fashion (Shanghai) Technology Co., Ltd. in January 2017, with the endorsement period from March 1, 2017 to February 28, 2018

Yang Yang is known by the market as the front-line "flow niche" in the entertainment industry. However, Yang Yang's joining doesn't seem to bring much help to the sales of puppy appliances, and the transformation from traffic to sales is not obvious

according to the data of zhongyikang, although the sales share of puppy appliance increased in 2017, the share of retail sales is still declining. This means that larger retail sales are occupied by high-end brands, while puppy appliances compete for market share through promotion

in addition to Dyson, a high-end brand, puppy appliances is also facing market erosion from low-end products

in 2017, Dyson, puppy appliance and Philips accounted for the top three retail sales with 33.87%, 13.72% and 9.46% respectively, while behind these three brands, there were more than 200 vacuum cleaner brands

the operation of these brand internet channels is more homogeneous, and the quality is uneven

how can puppy appliance stabilize its market share under the impact of Dyson? How to face the price competition of homogenization of low-end products is a difficult problem

the above-mentioned endorsement period of Yang Yang has expired at the end of February 2018. However, recently, Yang Yang's puppy appliance advertisements still appear frequently. This means that the two sides have renewed the endorsement. As for whether the endorsement fee is still nearly ten million yuan, there is no public information

of the 600million yuan raised by the IPO plan of puppy electric, 37.281 million yuan is planned to be used for marketing system optimization and enterprise information construction projects

the company said that in the next two years, it will continue to take spokesmen as a breakthrough in the domestic market, enhance the marketing output capacity of pgc/ugc and other content, and enhance the marketing capacity of fans and community services

if the endorsement fee does not rise and remains nearly 10million yuan a year, nearly 20million yuan of funds raised from this project will fall into Yang Yang's pocket in the next two years

some institutional investors commented after reading the latest prospectus of puppy Electric: light research and development, heavy promotion, the company's future sustainable development is worrying

it should also be noted that the puppy electrical appliance Institute