The bet is completed! Yibai Network has an annual net profit of 288 million

Some big sellers achieved significant growth in performance, while others fell behind in the competition.

Recently, the financial reports of cross-border sellers for 2022 have been released one after another. How are the performances of various cross-border sellers? This article shares the IPO progress, financial status, and best-selling categories of sellers such as Yibai Network, which successfully completed the bet, Saiwei Times, a comprehensive seller that is in the IPO stage, Zibuyu, the first cross-border footwear and clothing stock to be listed in 2022, JS Global Life, a leader in small household appliances, Anker, and other big sellers such as Haineng Industrial and Santai Electronics...

1. Yibai Network: Successfully completed the bet, net profit of 288 million yuan in 2022

Yibai Network successfully completed the bet, and its net profit reached 288 million yuan in 2022.

Huakai Yibai uses its holding subsidiary Yibai Network as a carrier to sell home gardening, industrial and commercial supplies, automobile and motorcycle accessories, health and beauty, and 3C products to overseas end consumers mainly through third-party platforms such as Amazon, eBay, and AliExpress.

In 2022, Huakai Yibai's revenue was 4.417 billion yuan, and the net profit attributable to shareholders of listed companies was 216 million yuan. Its holding subsidiary Yibai Network also performed very well.

It should be noted that Yibai Network has exceeded its bet in the past two years, and 2022 is no exception. In 2022, Yibai Network's revenue was 4.384 billion yuan, and its net profit was 288 million yuan, exceeding the promised amount by 22.8559 million yuan, completing 109.11% of the forecast profit for this year.

Among them, Yibai Network achieved sales revenue of 3.48 billion yuan on Amazon, accounting for 78.79% of operating income, with a total of 25.0128 million orders and an average order amount of 139.14 yuan. Currently, Yibai Network has 777 online stores on Amazon , with 70 new stores added in 2022 and 38 stores closed.

In terms of product categories, home gardening contributed the largest revenue to Yibai Network, with sales revenue of 1.014 billion yuan, followed by industrial and commercial supplies, automobile and motorcycle accessories, health and beauty, etc.

Affected by the wave of account bans, most big sellers began to transform into boutique products. Yibai Network also began to deploy boutique business in 2021, and built a boutique business team with rich experience and independent operation. After more than a year of precipitation, Yibai Network has initially formed four major production lines of cleaning appliances, home appliances, pet supplies, and lamps, so as to diversify brand and product risks.

In 2022, the number of SKUs on sale for Yibai Network's boutique business was 338, with a sales unit price of 327.84 yuan. At the same time, the company is exploring platforms such as Walmart to seek new growth points. In the future, Yibai Network still plans to deepen its presence in developed countries in Europe and the United States, while developing emerging platform sites and deploying sales in Latin American markets such as Mexico and Chile.

In the first quarter of 2023, Huakai Yibai's revenue was 1.379 billion yuan, and the net profit attributable to shareholders of the listed company was 76.11 million yuan.

2. Savi Technologies: Revenue fell, net profit nearly halved

Suntech Power's road to IPO has been full of twists and turns, and its revenue and net profit performance in 2022 were not satisfactory.

On June 17, 2022, LDK passed the listing committee meeting and was officially approved. Currently, LDK is in the registration submission state and is waiting for the registration result. However, before that, LDK had its IPO suspended three times due to problems with financial data updates and hiring of law firms, and accepted four rounds of inquiries and one audit focus opinion implementation.

In 2022, Savi Times' revenue was 4.9 billion yuan, a decrease of 11.78% compared to 2021. The net profit attributable to the parent company was 185 million yuan, a year-on-year decrease of 46.76%, nearly halving.

Even though it has four major categories including apparel and accessories, department stores and home furnishings, sports and entertainment, and digital automobiles and motorcycles, Savi Times has not changed the situation of declining revenue and profits.

Data in the prospectus show that the main revenue of Savi in ​​2022 comes from the Amazon platform, which accounts for 89.86% of Savi's main business income, reaching 4.4 billion yuan. Although the company has been streamlining its Amazon stores year by year, Savi still has 505 stores on the Amazon platform in 2022.

In sharp contrast, Savitech's layout on third-party platforms such as Wish, eBay, and Walmart accounts for a relatively small proportion, and some of the proportions are declining year by year. It can be said that Savitech has the risk of being highly dependent on Amazon as a single channel. The company also pointed out that it does not rule out the possibility that the platform will change its rules in the future, and the multi-account operation model will be questioned.

From the business perspective, the current revenue of SDIC is mainly derived from two major sectors: product sales and logistics services. Product sales include the four categories mentioned above, accounting for as much as 97.07%. The specific categories are as follows↓

Clothing and accessories brands include Ekouaer, Avidlove, etc., covering home wear, women's wear, men's wear and functional wear. This category contributes the largest revenue to the merchandise sales segment, which is 3.3 billion yuan;

Department store home brands include Homdox, Coocheer, etc., mainly selling high-pressure washers, electric footbaths, popcorn machines, etc., with revenue of 632 million yuan;

Sports and entertainment brands include ANCHEER, Hikole, etc., mainly selling bicycles, scooters, treadmills, fitness equipment, etc., with revenue of 737 million yuan;

Digital automobile and motorcycle brands include Coocheer, Sailnovo, etc., which mainly sell 3D printers, automobile and motorcycle accessories, etc., with revenue of 82.4283 million yuan.

As a leader in the distribution model, before applying for listing in 2020, Savi Times planned to transform from distribution to high-quality products, taking the route of refined operations and branding. At present, Savi Times has completed the branding transformation.

As mentioned in the prospectus, in 2022, Savitech has incubated 63 private brands with revenues exceeding 10 million yuan (50 in 2021), accounting for 88.07% of the company's merchandise sales revenue during the reporting period. In 2022, 21 brands, including homewear brand Ekouaer, menswear brand Coofandy, underwear brand Avidlove, and sports equipment brand ANCHEER, all had operating revenues exceeding 100 million yuan.

These brands have also achieved impressive results on Amazon. As of February 2023, many products from brands including Avidlove, Ekouaer, Coofandy, ANCHEER, etc. are among the top five in Amazon Best Sellers categories.

As the popularity and quality recognition of branded products continue to increase, the unit price of Savi Times' branded products has also increased, from 151 yuan in 2020 to 164 yuan in 2022. Benefiting from this, the gross profit margins of Savi Times' apparel and accessories products on Amazon and its own websites are relatively high, at 74.20% and 81.59% respectively.

In 2022, affected by external disturbances, SDIC Corporation has made certain adjustments to its employees based on its operating conditions and future development strategies.

In 2021, Savitech had 2,016 employees, while in 2022 the company's employees decreased by 164 to 1,852. It is reported that the company reduced the number of staff in the sales team and the supply chain team according to the market. The sales team was reduced by 130 people, but the number of R&D and technical personnel increased by 38. It seems that Savitech still attaches great importance to R&D.

Although the performance in 2022 was not satisfactory, the forecast of Suntech Power for the first quarter of 2023 has improved. The revenue in the first quarter is expected to be 1.218 billion to 1.378 billion yuan; the net profit attributable to the parent company's shareholders is 43.5328 million to 55.8783 million yuan, which are both increases compared with the data in the same period of 2022.

If Savitech can successfully go public in the future, with the influx of hot money, I believe it will definitely help it to move to the next level.

3. Zibuyu: Strategic focus on Amazon, revenue exceeded 3 billion, net profit fell 44.79%

The first performance report submitted by Zi Buyu, the “first cross-border footwear and apparel stock” after its listing was not ideal.

Founded in 2011, Zibuyu mainly sells clothing, footwear, electronic devices and other products. Its women's clothing brand Cicy bell, sweater brand Imily bela and casual men's clothing brand Runcati are all popular brands on Amazon. The company was listed in November 2022. In 2021, Zibuyu ranked first among Chinese sellers of clothing and footwear sold in North America on Amazon in terms of GMV.

In 2022, Zibuyu's revenue hit a new high of 3.066 billion yuan , an increase of 30.67% compared with 2.347 billion yuan in the same period of 2021. However, the profit did not increase accordingly, but fell by 44.79% to 111 million yuan. This is also the first time that Zibuyu's profit has declined in the past four years.

Among them, Zibuyu's revenue from third-party e-commerce platforms was 2.939 billion yuan, an increase of 43.2% compared with the same period in 2021, which is related to the company's strategic focus on Amazon. It is reported that from 2018 to 2020, Zibuyu's products were mainly sold through Wish, and after 2021, Amazon became Zibuyu's main sales platform, accounting for 71.2% of sales revenue , and in the first half of 2022, the proportion was as high as 90.6%.

Zi Buyu's revenue from the Amazon platform soared, outperforming the overall Amazon clothing market during the same period. Sales of footwear increased by 1.5 times compared to the same period last year, promoting the company's coverage of all categories of apparel and footwear.

However, in contrast, Zibuyu's self-operated website performed poorly, with revenue of 116 million yuan, a decrease of 54.8% compared with the same period in 2021. Although Zibuyu made strategic adjustments to its self-operated website in 2021, the results were minimal in terms of revenue in 2022.

North America is still Zibuyu's main market , with revenue of 2.949 billion yuan in 2022, a year-on-year increase of 45.3%, followed by Europe, with revenue of 91.331 million yuan. At the same time, the company's gross profit margin continued to rise during this period, and its asset-liability ratio gradually decreased, which also shows the stability of the company's operations to a certain extent.

While adding to existing channels, Zibuyu is also diversifying its development. Currently, Zibuyu has reached a cooperation with TEMU, and plans to cooperate with third-party platforms such as OTTO in the future to open up the European market.

It is worth noting that in 2022, the sales of Zibuyu's top ten self-owned brands increased by nearly one-fold year-on-year, and hot-selling products contributed more than half of the revenue. As of the first half of 2022, Zibuyu has cultivated 87 popular brands with annual sales of more than 10 million yuan, and successfully created more than 6,000 hot-selling products. Take Cicy bell, a women's brand of Zibuyu on Amazon, as an example. Cicy bell's sales in 2022 reached 400,000 pieces, and its annual GMV exceeded 100 million yuan.

As for the decline in Zibuyu's profits mentioned in the previous article, some industry insiders speculated that it was related to the company's large investment in marketing and advertising activities. In the prospectus, Zibuyu mentioned that the company will not reduce marketing and advertising costs, and it is expected that a large amount of expenditure will still be incurred in the second half of 2022. These costs have eroded the company's net profit to a certain extent.

In 2022, Zibuyu's sales expenses and distribution costs were 2.086 billion yuan, an increase of 47.5% compared with the same period last year. These costs were mainly due to three aspects: increased freight and insurance costs due to increased sales; increased marketing and advertising expenses; and increased third-party platform revenue and an increase in total sales return rates, which led to an increase in e-commerce platform commissions and other distribution costs.

However, Zibuyu also pointed out its own core competitiveness: all products are independently designed, it only takes 7 days from design to production, and the shortest delivery is 15 days. Currently, Zibuyu has cultivated more than 300 brands; the company relies on OEM, and its suppliers include nearly a thousand suppliers, with strong bargaining power; the company has nearly a hundred logistics service providers, and the delivery network is extensive and reliable.

4. JS Global Life: Annual net profit exceeds 2 billion yuan, far exceeding Anker

JS Global Lifestyle, a leader in small household appliances, saw both revenue and net profit decline, but its net profit still exceeded that of big sellers such as Anker.

In 2019, JS Global Lifestyle, which was crowned as the "world's first small appliance stock", officially rang the bell on the Hong Kong Stock Exchange and immediately started its road to success. Judging from its performance in recent years, JS Global Lifestyle has maintained a high-speed growth trend. From 2019 to 2021, the company's revenue scale increased from US$3.016 billion to US$5 billion, and the profit attributable to shareholders also increased from US$42 million to US$420 million.

However , in 2022, affected by uncertain factors such as the global economic environment and the Fed's interest rate hike, the small appliance market was cold, which directly affected JS Global Life's revenue and net profit. In 2022, the company's revenue was US$50.41 and its net profit was US$332 million (equivalent to more than RMB 2 billion), with both revenue and profit declining.

As for the overseas business SharkNinja, it has two major brands, Shark , which focuses on cleaning appliances , and Ninja, which focuses on cooking appliances. Both are billion-dollar brands and are also the leading brands in Amazon's home appliance category.

Shark products include cleaning appliances such as vacuum cleaners, which are frequent sellers on Amazon's best-selling list. Shark has many products with more than 10,000 reviews. It has been the number one vacuum cleaner brand in the United States in terms of market share for four consecutive years and the number one floor care brand in the United States in 2022. Ninja products include appliances such as cooking pots and clothing care. Its brand's cooking pots accounted for about 48% of the market share in the UK in 2022, and it also maintained its position as the number one brand of small kitchen appliances in the United States.

The revenue of these two brands in 2022 was basically the same as in 2021, at US$3.716 billion, accounting for 73.7% of total revenue.

Looking at the success of the two flagship brands, it can be said that the support of R&D is indispensable. It is understood that JS Global Life has established dual R&D centers in China and the United States, established a world-leading cleaning appliance laboratory, and set up all-weather R&D centers in China, the United States and the United Kingdom. At present, the laboratory has 913 team members, of which SharkNinja engineering R&D talents have reached 250.

5. Haineng Industrial: 3C category supplier, net profit exceeds 150 million

It supplies leading retail brands such as Anker, Amazon, and Belkin, and is also a very popular 3C category supplier.

As a supplier of leading retail brands such as Anker, Amazon, and Belkin, Haineng Industrial has always focused on providing customized consumer electronics products to retail brand customers. Since its establishment in 2004, Haineng Industrial has been deeply involved in the consumer electronics accessories industry and has established production bases in Jiangxi Province, Guangdong Province and other places. It has formed industrial clusters such as wires, molds, SMT, and assembly, and its products cover three major categories: wiring harnesses, signal adapters, and power adapters.

In 2022, Haineng Industrial expects to achieve revenue of 2.387 billion yuan and net profit of 322 million yuan to 338 million yuan. Compared with the same period last year, both revenue and profit have increased, which is inseparable from the support of products.

Its category products are the most popular 3C category products on the Amazon platform, as follows↓

Signal adapters are mainly used for the conversion and switching of signals from televisions, computers, etc., which are what we call converters, docking stations, etc. This category of products contributes the most to the company's revenue, accounting for 41.40% of the company's revenue in 2021, reaching 861 million yuan.

Power adapters are mainly used to supply power to electronic products, including computer case power supplies, car chargers, and travel chargers. This category accounts for 30.69% of the company's revenue , second only to signal adapters.

Signal harnesses are mainly used for data and signal transmission and charging, and products include SB Type-C, DVI, DP, HDMI, and Lightning. This category accounts for a relatively low proportion of the company's revenue, at 26.76%, or 557 million yuan.

Haineng Industrial has been insisting on the research and development of new products. In 2021, the company invested 108 million yuan in research and development, an increase of 20.19% from 89.9213 million yuan in 2020, accounting for 5.19% of operating income. The 2022 performance forecast pointed out that its research and development expenses increased by about 35 million yuan compared with 2021. Based on this, the company's research and development expenses in 2022 will reach 143 million yuan.

According to the 2021 financial report, in 2021, the company's R&D investment was mainly used for the research and development of products such as Type-C portable retractable converter, Thunderbolt 3 multi-function docking station, computer stand with Type-C multi-function converter, and silicone charging data cable.

At the same time, the company is also laying out the new energy field and forming a core team for new energy business . The products will be put into normal mass production and sales by the end of 2023. At present, Haineng Industrial has completed the development of outdoor energy storage 1000w-3000w products , 6000w household hybrid inverters and 5000wh battery systems .

Haineng Industrial has been planning to expand in Vietnam. In April this year, Haineng Industrial planned to raise a total amount of no more than RMB 600 million, of which 70% of the funds will be used for a new consumer electronics factory project in Vietnam with an annual output of 33.6 million units.

6. Santai Electronics: 670,000 SKUs on sale, IPO suspended again by Shenzhen Stock Exchange

Compared with the highly anticipated IPOs of Suntech Power, Zhiou, Huabao New Energy and others , the comprehensive IPO San Tai Electronics does not seem to be so prominent, but it is also a unique company.

Since its establishment in 2007, Santai Electronics has been selling nearly 100 sub-categories of goods through more than 20 overseas e-commerce platforms such as Amazon, eBay, and AliExpress, covering multiple categories such as tool accessories, digital technology, and home life. Currently, Santai Electronics has about 670,000 SKUs on sale.

In 2021, San Tai Electronics applied for listing. Half a year after passing the review of the Listing Committee in 2022, San Tai Electronics was again suspended by the Shenzhen Stock Exchange for listing review. This is not the first time that San Tai Electronics has been suspended for review. San Tai Electronics has been suspended many times due to the reason that "the financial information recorded in the IPO application documents has expired and needs to be supplemented and submitted." At present, the prospectus data of San Tai Electronics has only been updated to the first half of 2022.

In the first half of 2022, Santai Electronics' revenue was 817 million yuan and its profit was 70.2834 million yuan, both of which decreased compared with the same period in 2021.

Like SDIC, Santai Electronics also has two major business segments: e-commerce and logistics. However, the revenue of the e-commerce segment is about four times that of the logistics business. Among them, the commodity sales revenue of the e-commerce segment in the first half of 2022 was 705 million yuan, accounting for 86.32% of the main revenue.

San Tai Electronics has many products, mainly covering 5 categories and 17 subcategories. Among them, fashion includes clothing accessories, personal care products, and beauty products; tool accessories include industrial and commercial tools and auto parts; home life includes pet products, kitchen and bathroom appliances, wedding ceremonies, home decoration, and home gardening; digital technology includes computer games and consumer electronics; hobbies include creative handicrafts, outdoor activities, leisure and entertainment, music and art, sports and fitness, etc.

Among them, categories such as hobbies and home life contribute relatively large revenue to the company. However, for San Tai Electronics, the current traditional distribution model seems to be a "burden". In the inquiry of the Shenzhen Stock Exchange, the Listing Committee asked San Tai Electronics to explain its core competitiveness in comparison with companies in the same industry, but San Tai Electronics pointed out that it did not engage in independent production of products, and mainly relied on channel resources to select products, and its core competitiveness was not high.

The prospectus mentioned that from 2019 to 2021, Tri-State Electronics' revenue has been growing, and its net profit margin has been close to or higher than 10%, exceeding that of Anker, SRV and Youkeshu. However, this state did not continue. In 2021, Tri-State Electronics' net profit began to decline, and in the first half of 2022, both revenue and profit declined. In this way, improving its own competitiveness is the key that Tri-State Electronics urgently needs to do.

Judging from the data of the above big sellers, except for Yibai Network and 3C category supplier Haineng Industrial, the big sellers either saw an increase in revenue but no increase in profit, or a decrease in both revenue and profit. Overall, they were more affected by the overall environment.

Since the first quarter of 2023, the performance of many big-selling products has picked up, so we can look forward to it.

Yibai Network

Savi era

Zi Bu Yu