When searching for sun umbrellas on Amazon, consumers are often overwhelmed by the vast selection. Little do they know that behind these popular outdoor products stands Zhejiang Zhengte Co., Ltd., a veteran in the outdoor furniture industry that recently marked a significant milestone by listing on China's A-share market.
From Humble Beginnings to Market Leader
Founded in 1996 as Linhai Zhengtai Crafts Co., Ltd. with initial registered capital of 1.5 million yuan, the company began by manufacturing sun umbrellas and wood products. After more than two decades of development and a 2015 corporate restructuring, Zhengte has grown into an industry leader with five holding companies, three equity investments, two branches, and one branch of a holding company.
The company has established a comprehensive product portfolio in outdoor furniture and leisure products, primarily divided into two categories: shading products (including awnings and sun umbrellas) and outdoor furniture (encompassing pet houses, outdoor furnishings, and drying equipment). These products serve various settings from private gardens to commercial spaces like restaurants, beaches, parks, and hotels.
Strong Financial Performance
Shading products have consistently contributed over 70% of Zhengte's revenue in the past three years. The massive demand is evident from bulk purchases by major clients—Walmart alone purchased 325 million yuan worth of folding awnings in 2021.
From 2019 to 2021, Zhengte demonstrated steady growth with revenues of 675 million yuan, 910 million yuan, and 1.24 billion yuan respectively. Net profits attributable to shareholders followed this upward trajectory, reaching 108 million yuan in 2021. The first half of 2022 saw continued growth with revenue increasing 31.04% year-over-year to 882 million yuan.
Strategic Market Expansion
As an integrated manufacturer-trader, Zhengte primarily serves European and American markets through a carefully developed distribution network. The company initially expanded through trading firms before establishing direct export operations in 2001. Demonstrating foresight, Zhengte entered cross-border e-commerce in 2014 when most competitors were still unfamiliar with Amazon's potential.
Today, Zhengte maintains a robust omni-channel presence including major retailers like Walmart and Costco, brand partners such as Lucky Dog and Gimi, and e-commerce platforms including Amazon and Wayfair. Its Abba Patio and Sorara brands have become top sellers on Amazon, with one sun umbrella product accumulating over 10,000 reviews.
Cross-border e-commerce sales grew significantly from 78.99 million yuan in 2019 to 173.44 million yuan in 2021, reflecting Zhengte's successful digital strategy.
New Chapter with IPO
Zhengte's successful IPO on September 19 at the Shenzhen Stock Exchange involved issuing 27.5 million shares and raising 375 million yuan. These funds will primarily support the annual production of 900,000 outdoor leisure products and other expansion projects.
The company's public listing represents a significant achievement for China's manufacturing and cross-border e-commerce sectors. Zhengte's success demonstrates how integrated manufacturers with strong supply chains and market insight can thrive in global competition. As more Chinese companies expand overseas, Zhengte's experience offers valuable insights for product-based businesses navigating international markets.
Looking ahead, Zhengte is positioned to continue its leadership in outdoor furniture through product innovation and service enhancement, delivering superior outdoor living experiences to consumers worldwide while reinforcing China's manufacturing competitiveness on the global stage.