Cogobuy is listed in the top ten stocks in Hong Kong, and IngDan is evolving into a "unicorn" company

Cogobuy CEO , Kang Jingwei, founder of IngDan

In 2015, along with the vigorous bull market and the rare stock market crash experienced by A-shares, Hong Kong stocks also experienced ups and downs. The Hang Seng Index closed down 7% for the whole year, and its overall performance was inferior to that of major global markets. In the Year of the Goat, Hong Kong stocks staged phased market trends such as "resurrection" in April, "stock market crash" in June, "shock" in August, "rebound" in October and "interest rate hike" in December. As the world's number one IPO market in 2015, the frequent emergence of monster stocks is also a major feature.

In the overall volatile downward market, many companies, supported by profitability and growth, have bucked the trend and achieved a steady upward trend, bringing considerable returns to investors. Futu Securities, China's largest Internet brokerage firm for Hong Kong and US stocks, recently selected the top 10 bull stocks in 2015 from the Hong Kong stock market. Among them, Tencent Holdings (700.HK), the leader in the information technology sector, ranked tenth with an annual increase of 35%.

2014 Year 7 moon 18 On the morning of the same day, Cogobuy was officially listed on the Hong Kong Stock Exchange.

What caught the attention of investors was that Cogobuy Group (400.HK) ranked fourth with a 1.5-fold increase, becoming the dark horse of the year. Cogobuy is the largest e-commerce service platform for electronic manufacturing enterprises in China, and has gained more than 2 million customers through online marketing. Among all the financial report data disclosed, the company's three major businesses in the first three quarters of 2015 all achieved strong growth, with total merchandise transaction volume increasing by 68.3%.

According to research reports from several securities firms, Cogobuy is the designated supplier of electronic components for many large domestic mobile phone brands. For example, Huawei's Mate8 uses modules supplied by Cogobuy. The latest data shows that the global sales of this mobile phone have reached 100 million units, and Huawei has become the third brand to achieve this goal after Apple and Samsung. These good performances at the front end of the market have greatly stimulated and promoted the growth of Cogobuy's inherent business.

The report also shows that another major reason for the doubling of the stock price is the rapid growth of the company's smart hardware innovation and entrepreneurship platform "Hard Egg". According to the company's model and future goals, "Hard Egg" will eventually become the UBER of China's manufacturing industry based on big data, connecting global innovation and entrepreneurship with China's large manufacturing industry, and the ability to split and go public and realize cash in the future can be expected. With the strong support of investment institutions and the company's performance, Cogobuy's stock price has climbed nearly 1.5 times throughout the year, and it has the potential to grow into a leading TMT company in Hong Kong stocks.

“UBER of manufacturing”

In November 2015, Dr. Li Shipeng, former Vice President of Microsoft Research Asia, took up new positions at Cogobuy and IngDan.

In 2015, WeWork raised $969 million at a valuation of $10 billion, becoming the 11th most valuable startup in the world. This once again made people see the market space and energy contained in the sharing economy model.

The Hard Egg platform under Cogobuy was established only two years ago. Currently, it has connected more than 10,000 smart hardware startups and projects, more than 5,000 supply chain companies, and 6 million fans. It is committed to connecting global smart hardware innovators and entrepreneurs with China, especially Shenzhen's manufacturing industry, providing hardware innovation information, supply chain demand docking, software patents and cloud platform services for global smart hardware innovators and entrepreneurs, building an ecosystem for the electronics manufacturing industry, expanding and improving supply chain financial services, accumulating and mining big data, and providing more complete solutions for the entire industry chain. At the same time, it is not ruled out that outsourcing services such as finance and taxation will be provided in the future.

In addition, the Hard Egg Experience Hall will provide a special venue for roadshows of its smart hardware team products. It is understood that in 2016, more than 20 Hard Egg smart hardware experience centers will be built in major cities across the country, including Shenzhen and Beijing, Hong Kong, Chongqing, etc. Hard Egg, a one-stop service model with supply chain as the core, is evolving into a unicorn company in the global innovation and entrepreneurship platform. In the tide of the sharing economy, being able to become a company like UBER is also the goal that Hard Egg has been working hard for.

UBER promotes "Uber for the People" and HardDan promotes "Hardware for All". This is the wonder of the sharing economy - as one of the world's largest travel service providers, the platform itself does not own any vehicles; determined to become China's largest smart hardware supply chain ecosystem, HardDan itself does not own any hardware brand.

Under this setting, how can Hard Egg use the sharing economy approach to help smart hardware entrepreneurs?

A smart hardware product may have thousands of processes. The supply chain structure is very complex, such as component procurement, electronic solutions, board manufacturing and patching, assembly and testing, etc. IngDan launched core supply chain services in the mode of general contractor. Entrepreneurs can hand over the project to IngDan, and then break it down and hundreds of component suppliers will solve the supply chain problems. In response to the needs of entrepreneurs, IngDan launched "IngDan Link", "IngDan Direct" and "IngDan IOT Supermarket", which provide supply chain O2O services specifically for IOT entrepreneurs, as well as recommend solutions and corresponding component procurement for hardware startup teams.

In addition to helping domestic smart hardware manufacturers, the Hard Egg platform has begun to expand globally. Kang Jingwei, chairman of Cogobuy Group and founder of Hard Egg, said that 80% of entrepreneurs on the Hard Egg platform are from China, and 20% are from all over the world, such as Silicon Valley in the United States, Israel and Europe, etc. Innovative and entrepreneurial people from these regions have also gathered on this platform, and this proportion will increase in the future. Hard Egg Vice President Liu Hongjiao also previously revealed that Hard Egg is increasing its international expansion efforts, including the United States, Italy, Israel, South Korea and other regions with the most innovative and entrepreneurial concentrations.

Kang Jingwei, chairman of Cogobuy, said of IngDan, "We hope to use crowdsourcing and sharing economy models to lower the threshold for innovation and the cost of making mistakes for young people around the world. This will make innovation more popular and fundamentally change China's manufacturing industry. Applying the sharing economy to China's innovative entrepreneurship and manufacturing companies will bring new development momentum to the Chinese economy."

Cogobuy CEO , Kang Jingwei, founder of Hard Egg, attended 2015 Keynote speech at the Asia Capital Annual Conference

Future spin-off and listing is almost certain

Relying on the supply chain background of Cogobuy, IngDan has the confidence to build a leader in China's smart hardware field and even in the future China's innovative manufacturing and sharing economy. The platform-based operating model also enables it to have the characteristics of a unicorn company.

At present, Hard Egg has begun to contribute revenue to Cogobuy. In the second quarter, Hard Egg contributed RMB 340 million in GMV, accounting for 10.2% of the total GMV of the listed company. The latest data in the third quarter showed that the GMV contributed by the Hard Egg platform reached RMB 350 million, accounting for 9.3% of the total GMV. The synergy between Hard Egg and Cogobuy, with the supply chain as the core, has gradually grown.

As the platform's brand and profitability grow, the market has also heard about the independent listing of Hard Egg. Although Cogobuy recently issued a clarification announcement stating that it has no plans to spin off its "Hard Egg" platform and list it on the A-share market of the Shanghai Stock Exchange, and as of now, no professionals have been hired to provide advice on the independent listing of the "Hard Egg" platform. However, the author understands that although there is no timetable, it is highly likely that Hard Egg will be split and listed independently in the mainland in the future.

Hard Egg's Italian Team

"Cogolink is currently one of the largest e-commerce platforms for IC and other electronic components in China. Its unique business model of self-operation + third-party platform + financial services makes it difficult to find similar companies in the A-share and H-share markets," a researcher from a large domestic brokerage firm told the author. Models like Hard Egg have no specific targets to compare with.

Some securities analysts also pointed out: "Hard Egg relies on Cogolink, but the main customers of Cogolink platform are enterprise users, while Hard Egg covers a wider range. This platform will be split sooner or later. Because the smart hardware field and the Internet of Things market that Hard Egg has entered have a broader imagination space than the traditional electronic manufacturing industry." In addition, the analysis also pointed out that Hard Egg will definitely seek the opportunity to go public in China. Although the A-share market has undergone a round of adjustments, the high valuation of emerging industries is still attracting the return of overseas and Hong Kong technology companies. At present, the high valuation given by the mainland capital market to Internet and technology is unmatched by other markets. Under such background and expectations, Hard Egg's dual genes of the Internet and the Internet of Things may make its future valuation higher than that of Cogolink Group, which has been listed in Hong Kong. From another perspective, the registration system is expected to be implemented in two years. At the policy level, both the New Third Board and the A-share market are open to high-tech companies. Hard Egg's independent listing in the future is expected to open up a higher valuation space for Cogolink.

Source: China Business Network

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