RaySharp 4th IPO Run Approved

By Isabella Cheng, Published Feb 10, 2021, 10:29am EST

RaySharp, whose top OEM customers include Swann, Hanwha, and Lorex, has been approved by regulators to IPO after being rejected on its first 3 tries.

IPVM Image

In this report, IPVM examines the newest prospectus and reports on:

  • RaySharp background
  • H1 2020, 2019 revenue and profit
  • Future financial performance
  • Main markets
  • Impact of US tariffs on sales
  • Camera kit sales
  • Reasons for increased profit
  • Customer concentration
  • Regulators' continuing concerns

IPVM previously reported on RaySharp's most recent failed attempt to IPO in 2019.

Executive *******

********'* **** ******* *** ~$119 ******* *** *** net ****** ******* **** ~11%. ***** ******* **** 12% ***, ******* **** ~50%. ********* ** *******, revenue **** *** ** US ******* *** ******* grew *** ** ****** product *******. ***** ******* grew ~* ****** **** ~19 ** **% ** 2019 ****** ******** ***** has ************* *** ***** margins.

**** *** (*** ***-**** ***** ******) ***** ** ***** ~$74 *******, ****** ** build * *** *&* center, ****** *** ********* platforms, *** *** * "security ******* ********** ******* industrialization *******." * ********* of ~$***-*** ******* *** is ******** ***** ** comparisons ** *** ***** and ******* ** *** closest ********** ***.

Background ********

***** ******** ** *** widely *****, ** ** a ***** ******** ** camera/recorder **** **** ** big *** ****** **** Costco, ***'* ****, *** Bestbuy. *** ******* *** registered ** **** *** is ***** ********, * ******* **** city **** *****. ** has ************ ******* ** exports ** *** **** business ****** **** ******* domestically, ** **** ~*-*% of *** ***** ******* is **** ****** *****.

** ************** ********, ******** ** * 4 *** ** *** 7 *** ************ *** either ***** *** ******* state-owned, ****** **% ** RaySharp's ****** ********** ***** by *** ******* **********. RaySharp's *********** ***********, ******* Lianzong ********* ***********, *** most ** *** ****** owned ** *** *****-***** Assets *********** *** ************** Commission (*****) ** ***** Province, * ******** *****-***** company. **** *** *** changed ***** ********'* **** attempt ** *** ** 2019.

2019 ******* **** **%, *** ******* ** **%

********'* **** ******* *** ~$119 ******* ***, **** 12% **** ~$*** ******* USD ** ****. *******, its ******* **** ** that **** **% **** ~$8.7 ******* *** ** ~$13 ******* ***.

IPVM Image

********* ******* ******** ***** profits, *** ******** ******** falling ********/****** ******* ** 2019. ******** ********** *** rising ******* **:

************ ** *** ******* structure, ********** ******* ******, and ********* *** ***** scale *** ********** ** high-margin ********, *** ******** attract ******* *** *.*. market **** *****-*******, **************, and *****-****** ********* ********** of ***** *** ******-***** customers

Future ********* *********** *********

********'* ******* ****** *** strong ******* **** *** 2017 *** ********* ** 2018 *** ********* ** 2019. ** ** ******* whether ******** **** ** able ** **** *** revenue **** $*** ******* USD *** ******, ** whether ** **** *******.

IPVM Image

*** **** ******** ****** for ********'* *******, ***** have ******* ***** *** shrank ** ****.

IPVM Image

H1 **** ******* *** ******* **** ****

********'*** *********** *** ******* **** down ~**% *** ~**% YoY, ************.

IPVM Image

** ********'* ******** ** primarily ******** **** **** a *** ******* ** sales **** ************ ****** China, ** *** *** particularly **** ** *** COVID-19 ******** ** ********* overseas ********* ** ******* while ***** *** **** to ******* ******* *** epidemic. *******, ********'* ** 2020 ****** ****:

****** *** ********* ******, the ******* ******* ** developing ********* ** *** domestic ****** *** ******* the ********* ** *********** high ****** *****.

******** *** *** ******** updated ******* *** ******** v. ******** *****, *** the ******* *** ****** its ********** ******** ** reduce *** **** ** having **** * ***** part ** *** ******* depend ** ******** *******. It ** ********* ******* whether ********'* ******** ********* in ** ****.

North ******* ***** **** ******, ****** ** **** *** ******

***** ******* ** ***** by *** ********'* ******* market, *** ******* **** and ****, ***** *** some ******** ** ******* to ***** *******. ** 2018, **** **% ** RaySharp's ***** **** ** North *******, *** ** 2019, **** ~**% ** sales **** ** ***** America. ******* ** **** and ****** **** *****.

IPVM Image

Revenue **** ** ** *******

** ******* **** ******** RaySharp ******** ** **** as *** *** *******, resulting ** ********* ********, the ********** ****. ** 2018, ******* ** *** US ********* *** **% of *** ** ********'* exports. *******, ** ****, exports ** *** ** fell ** **% ** all ** ********'* *******.

IPVM Image

******** **** *** ***** to *** ** **** declined ******* ** ******* and *** ** *** major *********' "********* ***********" (specifically ****** *** *****):

*** ** *** ********** impact ** *** ********** tariff **** ******* ** the ****** ******, *** company’s *****-*** *** ****-*** products **** **** ******** in *** **** ** taxable *****. *** ******** cost ** ***** ******** customers *** ******* *********. Low-margin *** ****-********* ********' (mainly ***** **** * resolution ** **** **** 5MP ****-********** ******* ********)final ****** **** ********* *** ******** ****** ******, ***** *** *** ** ******* ***** ** *******. [emphasis added]

*** ** *** *******, Hanwha ******** *** ******** so **** ** ******** products ** ******* **** the **, ****** **** directly ****** **** *****, decreasing *** ****** *********** from ******** ** **** it *** ********** **** for ******** ** *******:

*** ** *** **** customers, ******, *** **** major *********** ** *** procurement *******to ***** *** ********** ******* ******* ** ********** ******* ******* ** *** ****** ******. It plans to convert purchased products into purchased components and send them to the Vietnam factory for assembly before exporting to the US market. Due to the relatively long preparation period of Hanwha's production line in Vietnam, and the business connection between the two parties have a certain running-in period, it affects the time and efficiency of formal production and operation, and affects Hanwha's annual procurement scale for the company. [emphasis added]

Camera **** ***** ******** **+%

****** *** ***** **** over **% ** ****, significantly ******* ** ********'* product ***.

IPVM Image

******** ****** **** ********* for **** **% ** sales ** ****, **** only ********* *** ~**% in ****.

IPVM Image

****** *** ***** **** significantly ******** ** ******* as ****. *** *******, Swann ***** ** ******** fewer ****** **** ** favor ** ********** ******* and ********* ********** ** it ** *** ***** twice:

**** ********* ******** ******** products *** ****** **** to *** ****** ******, if *** *****-*** *** back-end ******** *** *** separated *** ******** **********,there ** * *********** **** *** *.*. ******* *** ****** ******* ** *** ******* ******. In order to prevent the risk of over-payment of tariffs, Swann has adjusted the procurement structure of products sent to the United States since November 2018, gradually adjusting from the procurement package to the separate procurement of front-end cameras and back-end hard disk video recorders and related parts. This led to major changes in the product sales structure in 2019, and the sales ratio of front-end cameras and back-end hard disk video recorders increased significantly. [emphasis added]

Higher ******* - ********** *******, ***** ********* *****

******** **** *** ****** profits ** **** *** due ** *** ********** margins, ** **** ******* of ***** ********* ***** and ** **** "********** the ***** ** ******** with ****** ********* ***** value." *** *******'* ***** margins ********* ~*.* ********** points ** ~**% ** 2019.

IPVM Image

******** **** *** ******** prices ********* ** ****, increasing *** ******* *******:

*** ******** ***** ** the **** *** *********, specifically ***** *** ********** has *********, *** *** corresponding **** **** ** consumption *** *********. ******* the **** ***** *** capacitors ******* *** * higher ********** ** *** unit **** ** *** product, *** **** **** of *** ******* *** a ******* ******.

*************, ******** **** ********* tariffs ****** ** ******** its ******* ******* *** low-margin ******** **** ******** by ***** *******. ******* of ******* ***-****** ********, RaySharp ******* ** ******* "higher ********* ***** *****", higher-margin ********:

*** ** *** ********* impact ** *** ****** rate ******* ** *** United ******, *** ***** of ***-****** ******** ********. At *** **** ****, the ******* *********** *** optimization ** ******* ********* and ********* ********* *** sales ***** ** ******** with ****** ********* ***** value, ***** *** ** an ******** ** ***** profit ******.

******** ** ******** *********** like *********, *****, *** TVT (*** ********* ************ in *** ******** **** RaySharp), *** ***** ******* are ***** ***.

IPVM Image

******, ********'* *** ******* have **** * ******* of ******** *************** * ****** *** regulators********** *********** *** *********** ** 2018.

Customer ************* **********

***** ******** ************* ** decreasing, ******** *** ******* felt *** ****** **** come **** ***** ******** concentration. ***** ******** ************* has ****** **** ** issue *** ********. *** example, ** ****, **+% of *** ******* **** from *** *** * customers, *** **% ** sales **** **** ***** alone. ** ****, ***** to ******, *****, *** Swann, *** ***** *********, decreased ****** *** *****.

IPVM Image

******** ** *** ** a ******** *** ********** that ** ***** ******** is ********** *** ************* in * *** *********, this ** ****** ** effect ** ******* *** internal *********** **** *** permanently ******** ********'* ******* permanently. ******** ******* ***** sales ** ****** ******** because ** ****** ********. It **** ********* "******* *** ******** strategy" ** ****, ** RaySharp **** *****'* ****** for ***-******** ******* ********:

*** *******’* ******** *****’* controlling *********** ***** ****** internal ********* ***********. ***** and *** ******* ******** to ******** ****** *********** on ******** ******* ********, but ****** *** ***-******** battery ******** *** *********** to *** ****** ******* Dahua, ********* ** ********* sales *** ********.

Shenzhen **********' ********* *** ********

***** ********** ******** ********'* IPO *********** ** ******* 6, ****, **** **** issued ********* *** ******** to *******, ************ ***** "adverse ******* ** ***** suppliers *** *********", *** margins, ** **** ** why ******** ********** ******* little ** *&*:

*** *** ******’* ************** to ******** ***adverse ******* ** ***** ********* *** ********* during the reporting period and factors such as globalization, ******* ****** ** *** *********, ******* ** ******* *********, ***., ********** *** ***** ****** *******.

********* ** *** *********** materials, *** ******’* ******** technology ** ******* *******, there **** **** ***** in *** ******* ** losing ********* ********* *** to ******** ********* *******, and ******** ****** *** reporting ******,the ********** ** ******** *** *********** ******** *** ***** **** **** ** ********** ********* ** *** **** ********. Ask the issuer representative to identify the issuer’s core competitiveness and specific measures taken to deal with product innovation risks.

******** ** ******** ***********, RaySharp **** ***** *% of *** **** ******* on *&*:

IPVM Image

RaySharp ***** ******** ** **** ********?

***** ********'* *** *** run *** ******* **** approved, **** ** *** old ******** ***** *****, including *** ***** ******* compared ** *** **** of *** ********. ******* issue ******** **** **** with ** *** *********** against ******** ****** **** Hikvision *** ***** ***** simultaneously ****** ** ****** headwinds, ***** ****** *** price ***************.

** ** ******* *** RaySharp *** ********* ** regulators' ******** ***** *** business. ** ** ******** 2021, ******** *** *** yet **** ****** ** the ******** ********. **** will ******** ** ***** RaySharp's *** *********** *** update *********** ** **** details *** **** *********.

Comments (4)

*** *** ****** ******** I ********** **** *******, so ** *** ** least *** ** ********** their ******** ****. *** link ***** ** ****** wants ** **** * look. ;-)

************.*** - ****** *****

**'* * ***.

Agree
Disagree
Informative: 1
Unhelpful
Funny

**** ** ********!

Agree
Disagree
Informative
Unhelpful
Funny

*** *** ** *** Raysharp ****** ***?

Agree
Disagree
Informative
Unhelpful
Funny

*....*....*... ***** *** **** Shocka *****!

Agree
Disagree
Informative
Unhelpful
Funny: 1
Read this IPVM report for free.

This article is part of IPVM's 6,901 reports, 921 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now
Loading Related Reports