￥2.1bn in 3 years, Voolga IPO Passed!
- Chaileedo Press
- Sep 9, 2022
- 2 min read
With the "medical dressing" products going viral, Voolga completed the examination before the listing transaction.
September 8, according to the Shenzhen Stock Exchange GEM official website news, the first issue of Voolga passed, which means that the first "medical dressing" stock of A shares will be born.
Currently, the company is mainly engaged in the R&D, production, and sales of professional skincare products, and the products on sale cover medical device dressing products and functional skincare products, mainly dressing and patch, film products, and launched water and essence, and lotion, spray, lyophilized powder, and other multiform products.
According to Frost & Sullivan's analysis report, in 2020, Voolga's patch products sales ranked No. 1 in the patch professional skincare products market, accounting for 21.3%. In addition, in the year 2021, the comprehensive gross profit margin of Voolga reached 81.95%, the highest among comparable companies in the same industry.
In terms of sales model, the online channel of Voolga is currently divided into direct sales, distribution, and agency sales, and is stationed in Tmall, Xiaohongshu, Tiktok China, Kwai, and Pinduoduo. Offline is mainly in distribution mode, mainly for beauty institutions, chain retail pharmacies, and other terminal channels. Among them, the offline channel is still the main source of revenue for Voolga, but the proportion is decreasing year by year.
As for product categories, by the end of 2021, it had 49 types of products, including 4 types of medical devices and 45 types of cosmetics. According to the prospectus of Voolga, its medical device products are still the main source of revenue for the company.
As a company established only 5 years, the overall performance of Voolga in recent years is quite great in terms of revenue scale and gross margin level. However, since the disclosure of its first prospectus in September 2021, its low investment in R&D was once considered a weakness of the company and was criticized by the public many times. Its R&D staff increased from 2 on March 31, 2021, to 6 by the end of 2021, with an average salary of 142,800 yuan ($20,600).
According to the prospectus of Voolga, it intends to raise about 1.9 billion yuan, which will be used to invest in production base construction projects, R&D, quality testing center construction, brand marketing, and promotion, etc. Among them, the highest investment is expected to be the brand marketing promotion project, with 886 million yuan ($128 million).
From the R&D side, it is clear that although Voolga has been successful in its IPO, it still has many challenges to overcome. The GEM Listing Committee has also asked it to further explain the innovation of its core technology. This will depend on Voolga's solid R&D capability to answer.
Comments