Zebao’s revenue was halved, and the parent company suffered a huge loss of 260 million!

Another big-selling listed company discloses its financial report.

Recently, Xinghui Co., Ltd. released its 2022 annual report. The report shows that in 2022, Xinghui Co., Ltd. achieved revenue of 2.351 billion yuan, a year-on-year decrease of 35.76%; net profit was -260 million yuan, a year-on-year increase of 82.92%.

Among them , Zebao's performance was halved year-on-year , with operating income of 1.225 billion yuan in 2022, a year-on-year decrease of 52.39%. The financial report detailed that under the influence of multiple factors such as intensified inflation and declining overseas consumption, Zebao's backlog inventory processing in the early 2022 was not as expected, processing costs increased, sales scale declined, and sales gross profit was low .

Zebao is a well-known listed company that mainly sells smart small appliances, power supplies, Bluetooth audio and other products. Let's take a look at Zebao's revenue on B2C platforms such as Amazon, Walmart, Wayfair, self-operated platforms (independent sites) and offline channels :

As can be seen from the figure, Amazon is still the main source of revenue for Zebao, with sales exceeding 600 million in 2022, 91 million from the self-operated platform, and 180 million from other third-party platforms. In addition to the year-on-year growth in revenue from other third-party platforms, Zebao's revenue on Amazon and self-operated platforms has declined to varying degrees.

In terms of product categories , the operating income of Zebao's smart small appliances, computer and mobile phone peripherals, power supplies, furniture, Bluetooth audio, personal care and health categories also decreased significantly year-on-year. Among them, the revenue of the smart small appliances category, which has the largest revenue, was 580 million, a year-on-year decrease of 43.85%.

In terms of regions , although Zebao's products cover major countries and regions around the world, including North America, Europe, Japan and the Middle East, North America is still its key layout area, with revenue of 790 million in 2022.

As branding is the general trend, ZEBO is also continuously strengthening brand building, through site optimization and off-site promotion, using mainstream platforms such as Facebook and Instagram to attract traffic to the website, increasing brand product exposure and sales conversion. Among them, kitchen appliances and cleaning appliances have created multiple best sellers on the overseas Amazon platform, occupying the top position in the category, and the outdoor swimming pool product line has created a mid-to-high-end series. In-depth development and cooperation with the Amazon team to expand the new product line of home furnishings has entered a profitable and sustained growth stage.

Warehousing and logistics expenses have always been the bulk of expenses for most cross-border sellers, and Zebao is no exception. In 2022, warehousing expenses were 41.6052 million yuan, accounting for 8.71% of sales expenses; logistics and transportation expenses were 310.8116 million yuan, accounting for 36.88% of operating costs.

Regarding Zebao’s 2022 financial report, Xinghui Co., Ltd. stated that due to the possible risk of significant misstatement in the management’s recognition and reporting of revenue, they regard the authenticity of Xinghui Co., Ltd.’s revenue recognition from online sales of goods through cross-border e-commerce platforms as a key audit matter.