Shenzhen’s top seller’s annual revenue exceeds 4 billion!

As a popular and widespread product, Huakai Yibai has always attracted much attention.

Recently, Huakai Yibai announced its 2022 performance report , and the various data made its fellow small and medium-sized sellers envious.

With both revenue and net profit growing, Huakai Yibai’s performance is taking off!

According to the published data, Huakai Yibai achieved double growth in revenue and net profit in 2022.

In 2022, Huakai Yibai's operating income was approximately 4.416 billion yuan , an increase of 112.82% compared with 2.075 billion yuan in the same period of 2021. The net profit attributable to shareholders of the listed company was approximately 210 million yuan , compared with a loss of 87.4 million yuan in the same period of 2021 , and the net profit turned from loss to profit, an increase of 340.83% year-on-year.

In 2022, Huakai Yibai's net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was approximately 193 million yuan, an increase of 294.45% compared with the same period in 2021 .

At the end of the reporting period, Huakai Yibai's total assets were approximately RMB 3.13 billion, an increase of 5.37% from the beginning of the reporting period; owners' equity attributable to shareholders of the listed company was approximately RMB 2.19 billion, an increase of 5.30% from the beginning of the reporting period; net assets per share attributable to shareholders of the listed company were RMB 7.5993, an increase of 5.30% from the beginning of the reporting period.

Huakai Yibai also disclosed its first quarter performance forecast for 2023, and it is expected that the company 's net profit attributable to shareholders of the listed company in the first quarter of this year will be approximately RMB 75.5 million to RMB 93.5 million, a year-on-year increase of 117.45% to 169.29%. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses will be RMB 72 million to RMB 90 million, an increase of 118.59% to 173.24% over the same period last year.

Huakai Yibai said that the company's performance increased significantly during the reporting period mainly due to three reasons:

1) In 2021, the company only consolidated the financial data of Yibai Network from July to December

2) Throughout 2022, the company will focus on developing its general product business on the Amazon platform, while also actively expanding into emerging markets. The company's data-based management and self-developed information systems are more conducive to precise distribution of products. At the same time, the company's boutique business and Yimai ecological platform business have also maintained stable growth. Therefore, the company's gross profit margin and net profit margin have increased significantly compared to the second half of 2021.

3) The company's revenue and net profit in 2022 achieved breakthrough growth compared with the previous year, driving a significant increase in overall operating performance.

It is worth noting that Huakai Yibai also announced the multiple factors that affected the company's operating performance during the reporting period.

First of all, the external environment faced by the cross-border export e-commerce industry in 2022 has improved significantly, such as Amazon relaxing storage capacity restrictions, a sharp drop in shipping prices, and the industry's inventory reduction is nearing its end.

Huakai Yibai's holding subsidiary Yibai Network seized the industry development opportunities and implemented the three-business parallel strategy of "general products + fine products + Yimai ecological platform". Relying on the company's independent research and development strength and efficient inventory management capabilities, it achieved stable growth in the company's performance.

At the same time, the company's original space environment art design business has normal collection conditions. There was no large provision for accounts receivable and inventory impairment in 2022, which is also an important reason for the company's improved performance in that year.

It is understood that Huakai Yibai Technology Co., Ltd., formerly known as Hunan Huakai Cultural and Creative Co., Ltd., was established on February 23, 2009. It mainly provides comprehensive environmental art design services for large indoor spaces such as exhibition halls and exhibition halls. Its product form is various cultural theme space display systems.

On January 20, 2017, Huakai Yibai was officially listed on the Shenzhen Stock Exchange's Growth Enterprise Market (stock code 300592), becoming the industry's first A-share listed company.

In 2018 and 2019, Huakai Yibai's main business declined year after year, while the cross-border e-commerce industry was booming. In 2019, Huakai Yibai made strategic adjustments to the company, promoted major asset restructuring, and purchased 90% of the equity of Shenzhen Yibai Network Technology Co., Ltd.

After Huakai Yibai completed the acquisition of Yibai Network, it began to adjust the company's business. After shrinking the company's space environment art design business, it adjusted the cross-border export e-commerce business to the company's main business. The future development strategy will also focus on cross-border e-commerce.

Huakai Yibai is positioned as a cross-border e-commerce company with a wide range of categories, such as automobile and motorcycle accessories, industrial and commercial supplies, home gardening, health and beauty, outdoor sports, 3C electronic products, etc. Its sales channels include third-party platforms such as Amazon, eBay, AliExpress, Wish, Lazada, etc. In the sales market, Huakai Yibai has built a global sales network covering North America, Europe, Oceania and other regions.

It can be said that Huakai Yibai has integrated the resources of China's high-quality supply chain and sold cost-effective Chinese-made products to overseas consumers.

Moreover, the products sold by Yibai Network have a higher overall gross profit margin, a longer life cycle, and slower updates. The market demand in the niche segments is large, and the market competition is less intense than that of 3C electronic products and clothing. This gives it a differentiated competitive advantage in product development strategy compared to other cross-border export e-commerce companies.

Big deal! Huakai Yibai lets employees buy shares at half price

While its performance is growing rapidly, Huakai Yibai implemented an employee stock ownership plan in September 2022 to motivate employees and improve their enthusiasm and creativity at work, allowing employees to purchase shares at half price.

It is reported that the employee stock ownership plan launched by Huakai Yibai will transfer no more than 8 million shares, mainly for employees who currently work in the company's holding subsidiary Yibai Network or have made direct contributions to the operation and management of Yibai Network, such as the company's directors, supervisors, senior managers, middle-level managers and core backbones. Among them, no more than 7 middle-level managers and core backbones are planned to participate in the stock ownership plan, and the total number of employees who can eventually participate in the stock ownership plan will not exceed 15.

Of course, in this employee stock ownership plan, the price at which employees repurchase company shares is also very attractive, at 7.36 yuan per share, which is 50% of the average trading price of the company's stock in the 20 trading days before the announcement of the draft plan. This is equivalent to employees who meet the requirements of the stock ownership plan directly getting the opportunity to buy shares at half price.

The company calculated and predicted based on the closing price of the draft shareholding on the day ( 14.62 yuan per share) that the total expenses that Huakai Yibai will have to amortize will be 58.08 million yuan, which is equivalent to the company taking out 58.08 million yuan to incentivize employees!

As for equity incentives, many big sellers have already put them into practice. Not only Huakai Yibai, but also a number of big sellers such as Kuaijietong, Jihong Shares, Aosen E-commerce, and JmGO Technology have all spent millions or even tens of millions of shares for equity incentives. Doing a good job of equity incentives can make employees work harder and is more conducive to the future development of the company.

To sum up, with the recovery of the industry this year, the performance of many big sellers has ushered in rapid growth. Cross-border e-commerce may usher in a new round of growth, and sellers can also seize the opportunity and make great strides.

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