Why is Huile Toys not listed on the market?
In recent years, competition in the toy industry has been fierce, and many companies have expanded their scale through listing and financing. However, the well-known brand Huile Toys has yet to take the step of going public. This article will analyze the reasons why Huile Toys is not listed on the market from multiple perspectives such as market environment, corporate strategy, and financial data, and explore the business logic behind it based on hot topics on the Internet in the past 10 days.
1. Hot topics in the toy industry in the past 10 days
| topic | heat index | Affiliated enterprises |
|---|---|---|
| The rise of domestic building block brands | 85 | Brooke, Senbao |
| STEAM educational toys become a new trend | 92 | Programming Cat, Youbixuan |
| Toy raw material prices rise | 78 | Aofei Entertainment, Xinghui Entertainment |
| Blind box economic cooling | 65 | Bubble Mart, 52TOYS |
2. Analysis of the five major reasons why Huile Toys is not listed on the market
1. Obvious attributes of a family business
Huile Toys was founded in the 1990s, and its equity is highly concentrated in the hands of the founding family. The latest industrial and commercial data show that its natural person shareholders hold more than 95% of the shares, and there is a lack of motivation to introduce external investors.
| Shareholder type | Shareholding ratio |
|---|---|
| Founders and related parties | 97.2% |
| Employee Stock Ownership Platform | 2.5% |
| Others | 0.3% |
2. Good cash flow position
According to industry research data, Huile Toys' operating cash flow has maintained positive growth in the past three years, reaching 320 million yuan in 2023, and it has the ability to create its own blood.
| Year | Revenue (100 million yuan) | Net profit (100 million yuan) | Cash flow (100 million yuan) |
|---|---|---|---|
| 2021 | 12.8 | 1.5 | 2.1 |
| 2022 | 14.3 | 1.8 | 2.7 |
| 2023 | 15.6 | 2.1 | 3.2 |
3. Special market positioning
Huile focuses on infant and toddler enlightenment toys, with unit prices concentrated in the 50-200 yuan range, which differentiates it from the IP derivatives and technology toy tracks that listed toy companies focus on.
4. Cost-benefit considerations for listing
Taking peer listed companies as an example, annual compliance costs increase by approximately 8-12 million yuan, while Huile's current net profit rate is only 13.5%, and listing may dilute profits.
5. Uncertainty about industry policies
Recently, the "New Regulations on the Safety of Toys for Minors" was released for public comment. The infant toy category may face stricter supervision, and companies choose to wait and see.
3. Expert opinions and industry comparison
According to data from the Toy Industry Research Institute, the average price-to-earnings ratio of 12 A-share listed toy companies is 22 times, but in the past three years, 4 companies have experienced changes in performance. In contrast, Huile adopts a "small steps and fast running" strategy, and its compound growth rate has been stable at 8%-10% in the past five years.
4. Analysis of future possibilities
Although there is currently no listing plan, the following three situations may change the status quo: 1) there is a need for major technology research and development investment; 2) encountering pressure from mergers and acquisitions by leading companies; 3) strategic adjustments after the second generation takes over. According to insiders, Huile has begun to contact brokers for preliminary guidance or to prepare for future capital operations.
To sum up, the non-listing of Huile Toys is the result of comprehensive consideration of control rights, financial needs and industry characteristics. In the context of the current low valuation of traditional manufacturing industries in the capital market, this pragmatic strategy has won it more flexible development space.
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