Immersed into Mosquito Repellent Runben to Go Listing
- Chaileedo Press
- May 26, 2022
- 3 min read
The mosquito repellent and personal care company Runben Biotechnology Co., Ltd. disclosed its prospectus for listing on the SSE. Its best selling products enjoyed sales volume of 1million units.
Recently, the mosquito repellent and personal care company Runben Biotechnology Co., Ltd. disclosed its prospectus for listing on the SSE with a proposed capital raising of $134 million, which will be used for the R&D of its Huangpu factory and industrialization project, information system upgrade construction project, channel construction and brand promotion project and supplementary working capital project respectively.
According to CHAILEEDO observation, RunBen is a brand of Runben Biotechnology Co., Ltd. , one of China's mosquito repellent care brands for pregnancy and kids. Founded in 2006 in Guangzhou, it products covered four series of products: mosquito repellent, anti-itch products, paper and toiletries. It has established comprehensive strategic partnerships with foreign companies such as Symrise, ROBERTET France, Clariant Switzerland, BASF Germany, Dow from the United States, Dow Corning of the United States and Cargill of the United States.
According to the prospectus, Runben Biotechnology's revenue in 2021 is $86.4 million and operating profit is $20.8 million, net profit attributable to the parent company is $18 million and net profit attributable to the parent company is $17.4 million.
From the product side, Runben Biotechnology entered the market with a new generation of mosquito repellent products, and has formed three core product series: mosquito repellent products, baby care products and essential oil products, with the brand "Runben". Among them, as of 2021, its mosquito repellent products accounted for 39.14% of total revenue and reached $33.9 million and baby care products accounted for $32.2 million, or 37.24% of total revenue. Its essential oil products accounted for $19.5 million, or 22.5% of total revenue.
The company's mosquito repellent series products contribute to the main profit. From 2019 to 2020, the amount of sales revenue of the mosquito repellent series products of the company is $16.8 million, $25.1 million, accounting for 40.88% and 38.21% of the main business revenue, which is growing at a high rate year by year.
Moreover, baby care products series are also increasing year by year, the proportion of its main business income from 30.58% in 2019 to 37.24% in 2021. The product line mainly includes chapped cream, plant lip balm, Rumoto ding soothing stick and other hot products.
In the Runben's Taobao official flagship store, the categories on sale are mosquito repellent, care soothing, baby moisturizer, clothing washing, etc. The highest selling product is Runben mosquito repellent essential oil stick, priced at $3, with total sales of 1 million + units.
In addition, according to the prospectus, as of the end of 2021, Runben's biological research and development expenses were $2.02 million, accounting for 2.34% of revenue and sales expenses were $20 million, accounting for 23.09% of revenue.
According to the prospectus, when Runben was established, it was mainly in offline distribution mode, and only in 2010 did it start to layout online. Nowadays, Runben shares mainly cooperate with large e-commerce platforms such as Tmall, Jingdong, TikTok, Vipshop and Pinduoduo. It provides consumers with products through online direct sales, online platform distribution, online platform reselling and other Internet sales models. In 2021, online direct sales accounted for the largest proportion of total revenue of 57.15%, with sales of $49.5 million. From 2019 to 2021, the online channel's contribution to direct contribution to sales revenue will be 74.77%, 78.73% and 77.72%, respectively.
During the reporting period, the company's marketing expenses are mainly traffic promotion fees paid within Tmall, Jingdong and other e-commerce platforms, platform commissions and technical service fees, etc. From 2019 to 2021, the amount of promotion fees for Runben shares will be $6.02 million, $11.5 million and $15.9 million, accounting for 14.56%, 17.42% and 18.54%, the overall trend of promotion fee is on the rise.
According to the survey, in addition to repeatedly appearing in the live broadcast of the famous anchor, Runben also invited Li Jiaqi to repeatedly promote its ice dew. It also put themselves and the famous influencer in the medical science field "Dr. Ding Xiang" together. Dr. Ding Xiang represents the safety and reliability of exactly the needs of Runben's target customer base. While across the two fields of mosquito repellent and products of pregnancy and kids, it is also easy to make the Runben's mosquito repellent products covering a safe and harmless mask for mother and child customers than other products.
It is worth mentioning that in the prospectus, Runben regard Liu Shen from Shanghai Jahwa, Raid from SC Johnson Wax, Cheerwin from Cheerwin Group as its competitors in the mosquito repellent industry. The company also listed Shanghai Jahwa, which owns the "Qichu" brand, Chicmax Group, which owns the "Red Elephant" brand, and BTN, which owns the "WINONA Baby" brand as their competitors in the personal care industry.
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