RaySharp Revealed - Major China OEM For Western Consumer Video Surveillance
RaySharp is mostly unknown, even among people in the video surveillance industry, though it is a major supplier of OEM surveillance equipment such as the camera/recorder kits sold in big box retailers like Costco. The company does this by OEMing for major distributors like Swann, Hanwha, and Lorex, benefiting from Hikvision/Dahua's move to sell under their own brand.
However, not much is known about RaySharp. But thanks to a recent China IPO application, we now have an unprecedented level of information. In this post, we take a detailed look at this PRC company, examining its US customers, partial Chinese government ownership, legal disputes, financials, sales strategy, repeated failures to IPO in China, and more:
- Background
- Ownership Structure
- Large PRC Government Stake Revealed
- Financials: Low Margins, Poor 2018 Revenue Growth
- RaySharp's Top Market: North America
- Top Customers: Swann, Lorex, Hanwha
- Top Suppliers
- Sales Strategy: Mostly Big Box
- Legal Dispute Over Night Owl Security Shipment
- Failed China IPOs
- PRC Regulators Allegations' Against RaySharp
- Chinese Media Investigate RaySharp Sales Strategy
- Latest RaySharp IPO
- Cybersecurity Issues
- Hanwha Reaction to OEM Cybersecurity Risks
- Overall Risks/Strengths
*******
******** *** ********** ** **** *** is ***** ********, * ******* **** **** **** Macau. ** ** ******* ** *******: only * ***** ********** (*-*%) ** its ***** *** **** ************, *** latest *** ****** ******.
Ownership / ******* ********** *****
******** *** * ******* ********* *********, IPO ********* ******. ***** **'* * private *******, **** ** ********'* *** seven ************ *** ********** *****-********** ** have * ***** *****-***** *********:
- ******* ********* ********* *************** **% ** ******** *** ** thus *** ******* *** *********** ***********. In ****, **% ** ********* ********* is ********** ***** ** *** *****-***** Assets *********** *** ************** ********** (*****) of ***** ********, * ******** *****-***** company.
- ********'* ****** *** ****** ******* ************,********* ********** ******* *******(**** **.**% *********)****** **(*.**% *********) *** **** *****-***** ********** entities ********** *** ********* ********** ******’* Government.
- ********'* *******-******* ***********, ****** **, ** also ********** ** *****-***** *** **** 4.6% ** ********.
- *** **** ** ******** ** ***** by * ******* ** ******* *********: VCs, *** **********, ***** ********** ********, etc.
***********, **** ***** ***** **% ** RaySharp's ****** *** ********** ***** ** the ******* **********. **************, **** ** almost ******* *** **** ********** ** Hikvision **** ******* ** *** ******* **********.******** *** ********* **** **** * state ****** ** ******,*****, *** ********* *** ***** ****** that **** ***** **% ** ********* and (*** ********* *********) ***** **% of ********.
*******, *** ********* ***** *** "****** controller" ** ******** ** * ******* PRC ******* ***** ** *** (徐进), who ** ********'* ******** *** ***** representative. ********'* *** ****** ****** ****, directly *** **********, ** *** *********** controls ***** **% ** ********'* ******. This ** ****** ******* *** *********** 55% ***** ** ********* *********, ** which ** ** *** ********* ********. Xu *** **** ******** **** ***** 5.4% ** ********'* ******.
RaySharp **********: *** *******, ******* ******
- **** ******* *** *****$140 *******; profit of about $8.7 *******
- **** ******* *** *****$136 *******; profit about $11 *******
- **** ******* *** *****$80 *******; profit about $5 *******
- **** ******* *** *****$62 *******; profit of about $3 *******
- **** ******* *** *****$47 *******; profit of about$1.5 *******
** *** ** ****, ******* ****** increased **** ****-**** ***** ******* ********, leading ** * ***** ****** ******. RaySharp's ****** *******, ** **** ***** 6% **** ****, *** **** ***** than ****** *************,***** *** * **% ******, ********(***** **%). ********** ********* ********'* *** ********* * ******* (*** '****** ***' section ***** ** **** ****.)
******** ********* **** ***** **** ** based ** **** ***** ***** ** RaySharp's ****** *** *********** (***** ** in ***** ** **,*** ***):
****-**** **** *** ***** ** ********'********* *** ***********:
RaySharp **** *******
***** ******* ** ** *** ********'* largest ******. ** ****, ** **** up **** **% ** ********'* *****, or **** $*** *******, ********* ** its ****** *** ******:
*** **** ** ********'* ***** *** almost ******* ***** ******* **** *** Europe, **** ***** **% ****. ********'* domestic ***** *** **** ***, ******** around *-*% **** *** **** *** years.
RaySharp **** *********: ***** *********
********'* *** ********* ** **** ****:
- *****:$53 *******
- ****** *******:$22.9 *******
- *****:$17.3 *******
- ****** ******* *****:$5.3 *******
- ** ******: (* ***** ****** ***********):$3.8 *******
*** ******* *** *** *********** ** the ******** ***** *****, ** **,*** RMB **********:
*** *** ***** ****** ***** **** share ** ********'* ***** ****** **** company's ****** *********. **** ***** ***** is ** *** ********'* **** ********* customer, ************ ****** **% ** ***** alone.
RaySharp ******* ********
********'* ******* ****** ****** ******* ** ***-***** *******/****, ** **** ******************/****, ******* ** ****, * ******* ******* *** *** surveillance **** ** *** *** ******. They ***** **** ********* ********* ****** and ****, ****** *** **** ** the ******* **** ** ***** ****. Additionally, **** ***** ********* *** **** "**** ********" ** **** ******, ****** **** is * ******** ********.
RaySharp *** *********
** ****, ********'* *** *** ********* were ***** **, * ********** ** Swann ** **** **** ****** ****, and ****** *********, *****'* ******* *** producer. ***** *** ********* **** ** almost **% ** ********'* ***** ********* purchases, ** ***** $** *******, **** each ****** ***** ** ***** *****.
** *****, ******** ***** *** * top *********, *** ** ****. *** other ***** ********* **** ******* *** electronics *************. ***** **** ********* **** up ***** **% ** ********'* ***** purchases.
RaySharp *****: *** *** *******
******** ****** **** ***** **% ** its ******* ***** **** ******* ******* and ********* ********* ** ***** ************ distributors *** **-***** *** ******** *** sell *** ***** ***** ** ****** like ******, ***’* ****, **** ***, Fry's ***********, **** *****, ****'*, *** Harbor ******* ***** - ** *** end **** *** ****** ********** ***** to ***** ****** ** ******** ****** kits. *** **** ** ********'* ***** go ******** ** *********** **********.
Night *** ***** *******
******** ** ******** ** ** ***** dispute **** * ******* ***** *****,***** ***********, **** * ******** ******** ******** *** ********, * **** *****, ** ***********, it ****** ** *** ****** *** filing.
******** ****** **** ***** **** **** in ******* **** ** ******** ***** over * ******** **** ******** ** Night ***-******* *******. *****, * ******** Night *** *****, **** *** ****** to ***** ***'* ********* **** ** China *** ******* ******** *** ******** its *********. ******** ****** ****; *** case ** *******.
***** *** ******** ********'* ******* ** events. ** ********, ***** ******** * ********* *** ****** ******** ** ******* against ***** **** *** ********, ***** caused *********** ******, ******* ** ***** authorized ***** ** **** *** *** 'Night ***' ********* ** *****. **** case ** ******* ** ****, *** RaySharp ** *** * ***** ** it.
Failed ****
******** *** ********* ******* ***** ** list ** *** ******** ***** ********'*************. ******* *** ****** *********/******* ************ than ********'* **** ***** ********, ** it ** ***** ** ******* *******, hi-growth **** *********.
*******, ******** *** ****** *****, ***** in **** **** ************* ***********, **** **** **** **** RaySharp's *** *********** *** ******** ** regulators, ************** *********** ******:
*** ********** *** ***** ****** ** 2017 ** ************* ****** **** **** in ****, [***] *** ********* [***********] and *** ********* ** *** ************, and *** ******* ********* ******* ** basically *** ****
****** *** ********* ******, *** ******'* sales ** ***** ********* **** ** Hanwha ******* ********** *************
********** ********-********* ********* ** *** **** industry **** ****** ***** ****** *******
[***** ** *] ***** ********** ******* overseas ***** ******* *** ******* **** during *** ********* ******
**'* ***** ****** ****, **********,******** *** ***** $*** *** *** reporting*,*** ******* ** *** ******* ** 2015.
Chinese ***** *********** ***** ********
***** *** **********'* *********,************* * ******* ************************* ********* ***** ********'* ***** ********, attributing **** ***** ****** ** **** to ******* *********.
*** ******** ******** *** **** **** and **** ***** *** ********'* ******** and ***** *** ******** *** ******* prices **** ***** ***** *********. *** articles ********* **** ******** **** **** strategy ** ***** *** ******* ** it ***** **** **** *** *** IPO. ***, **********, **** **** ** one ** *** ***** ***** ****** margins ** *** ********, ******* ********* from **********.
** *** *** ******* ******** *** claimed *** ******* ******** *** *** to ********* ********** *****, *** *** articles ****** **** *** *** **** to ** *** **** ******* ********'* management ***** **** ******* *** ** the ****** ** *** ********.
New ***: ***** **** *****?
*** *****, ******** ** ********** ** IPO,****** *** * ***** **** ** June **. *** ********** **** *** ********* yet. ** *** **** ******* ** any *****, ** **** **** **** months, ******** **** * ****, ** know ******* **** ******* ** **********. Last ****, ******** ***** *** ** IPO ** **** **** *** *** formally ******** ** ********* ****.
Cybersecurity ******
** ******** ****, ******** *********** ***** that ** ** **,*** ******** **** had * ******** *************: "* ****-*****, unchangeable ******** *** *** *******-********** **** in ***** ******** -- *** **** account",******* ********** *** ****. (**** ********* *** incident****.)
*** ************* *** ** ***** *** ****** "**" - *** ***** ******** score - ****-****, **** ** *** ** **********'* cybersecurity ********.
Hanwha ********: ** **** *** ******** *** ******** ****
**** ******* *** ** ****** ******* about ***** *** ** ******** *** products, ****** ***** *** ************* ***** - **** *** ***** ******** *********:
****** ******* ******** ******** ** ** OEM ******** *** *** ***/*** ******** products ****. ***** ** ********* ******** OEM ******** ** *** ******, ****** Techwin ******** ******** ******** ************ ********** to ****** *** **** ** ********* security ********* **** ******** ******** ** customer ********. **** ******** ************ ******* a ******** ********* *** ************* ****** using ****** ****** *****.
**** **** ******* ***** **********, ***** the ****** **** ***** **** ********, some **** ***** *******. ********* ********, vulnerabilities *** **** ****** *** ******** - *** ************ ** ***** ************ ************* *************** and ********.
*********
******** *** ****** ************ ******* ** the **** ** ****** *** ********* Hikvision *** ***** **** ******** **** and **** ** ***** ******* ********.
************, ***** *** ** ******* ***** restrictions ** ********, ****** ******* ******* ************* ** *********/***** *********.
***** *** **** *********** ** ***** ****** *********** *** **** **************** ***** ** ********. **** ******** *** *** ***** RaySharp ******** ********, ** **** *********** China ****** ********, *** ******'* **** any, ********* * ******** *********** ****** ********** **** ************ ** *****.
*****
** *** ***********, ******** ****** **** significant ***** ** *** ******** ******* the **-***** ***** ***, *** **** concentration ** *** *** * ******* (who *********** ****** ***** ******** ** total ******* ** ****), *** ********* profit *******.
** ********, ******** ********'* *** **** not ******* ****, *** *******'* ***** use ** ****** ********* ********* *** expose ** ** ***** *********** ********* on *** *** ** ********** ********** key ******** ** *** **** ***. As *****, ********* ** ********'* ****** largest ********. (*** ****, ********* ********* ******* ******** **** ** Millions ** ******* *** ************* ******** *** ***** ***** ******** Delay ** ********* / ***** ******* Blacklist).
False **** ******
** ********,******** ******* ******* "**** *************" *** *** "video ********" **** ** ****** **** German ********* ********** *********. ** **** *** ********,** ******* *** ** **** ************ *** **** ****** ****** **** such ******* ** *** ****** *********.
******** ******* ** *** *** "***** one ** ***** *****" ** ******* the ************* *** *** ************ ********, which *** ** **** *** ** not ************ ******** ***** **** *****'* major ************ ************* *** ** *******/******** China.******************* ****** ********* *** *********'* '*************' before ********.
** ** ****, ******* **** ************ are ****** ** ***** ************ *** other *******, **** ********* ***** **** TUV ********* ************ ** *********' ***** of *** **** ***********.
**, **** *****, ***** ** *** acquisition ** ***** ** *****. *** FLIR *** ** ********* **** *** Chinese ************.
**, **** *****, ***** ** *** acquisition ** ***** ** *****...
**, *** **** ****** *** *********** of ***** ** *****, *** ***** were ******.
*’* ******** ***** ***** ***** ******* was/is ******** ****, ** *** ****?
**, ****** ** *** ***** *********, you *** **** ** *******. *** example, ***** ****** **** **** $** million ** ******** ******** ** **** while ***** ******* *** *** **** $100 *******, ******* **** ******** *** a ******** ******** ** **** *** / ********.
******** ********* ****** ******* ****...
...***** **********.
******:******** *** ************ ********* ** "********* * ********** in ******** *** *** ********** *** sales ** ******** ***** ************ ********", planning ** ****** "** **** **** 20 ******* ***" (***** $*.** *******). The **** "***** ***** ** ** submitted ** *** ************ ******* *** consideration".
************, *********** ************ ****-**** **** *******, ******* * 1.08% ******** ** ******* ****-**-**** ** around $** *******, **** ******* ** $5.9 ******* (* **% ********). ***** now ***** ** **% ******* ** Raysharp's *******, ******** ** **% *** 2018.
***** ****** ** *** **** ***** to *** *** ********* ******* ** US *********
***** ****** ** *** **** ***** to *** *** ********* ******* ** US *********
*** ** *** **** ** ****?
*** **** ******? ******?
** ** ******** **** *** ********* FLIR/Dahua *** **** *** ******** ********?