Revenue exceeded 1 billion for three consecutive years! Well-known big seller plans to buy land in Hangzhou

In recent years, the cross-border e-commerce industry has experienced rapid development. The market has maintained a high growth trend and has made considerable profits. Many big sellers have made a lot of money.

Many cross-border sellers with sufficient cash flow will purchase land, office buildings, etc. to meet the needs of business expansion or make investments.

Performance is growing rapidly! Tianyuan Pet plans to buy land in Hangzhou

Recently, news came out that the well-known pet retailer Tianyuan is planning to buy land in Hangzhou.

It is understood that Tianyuan Pet recently reviewed and passed the "Proposal on the Purchase of Land Use Rights" and plans to use its own funds of no more than 20 million yuan to acquire approximately 20 acres of land for industrial development through bidding and auction near Xingqiao Street, Linping District, Hangzhou .

The purpose of Tianyuan Pet's acquisition of the land this time is to meet the company's future business development needs. The final land acquisition amount will be based on the transaction price.

In recent years, with the rise of the "pet economy" , the pet industry has gradually developed into a huge track with a scale of hundreds of billions. Tianyuan Pet, the leading seller in this track, has also ushered in rapid development, with revenue exceeding 1 billion yuan in the past three years and net profit reaching nearly 100 million yuan.

Hangzhou Tianyuan Pet Products Co., Ltd. (hereinafter referred to as Tianyuan Pet) was established in 2003. Its main business is the design, development, production and sales of pet products. Its products include pet beds, cat climbing frames, pet toys, pet clothing, electronic smart pet products, pet food and other multi-series and full-category pet products.

From 2019 to the first half of 2022, Tianyuan Pet's revenue was 1.049 billion yuan, 1.450 billion yuan, 1.854 billion yuan, and 864 million yuan, respectively , and its net profit attributable to the parent was 87.1744 million yuan, 100 million yuan, 96.2866 million yuan , and 47.3114 million yuan, respectively.

According to the performance forecast released by Tianyuan Pet, the revenue in 2022 is expected to reach 2.1 billion yuan to 2.25 billion yuan , an increase of 13.25% to 21.34% compared with 2021 ; the net profit attributable to the parent is 120 million yuan to 140 million yuan , an increase of 11.7% to 30.32% compared with 2021 ; the non-net profit is 127 million yuan to 147 million yuan , an increase of 31.9% to 52.67% compared with 2021 .

Since 2019, Tianyuan Pet has been actively expanding its online business and has developed domestic and overseas online sales layout on multiple third-party platforms such as Amazon and JD.com.

At present, Tianyuan Pet has entered the international pet markets in the United States, the European Union, Japan, Australia, etc. Its downstream customers include internationally renowned e-commerce companies such as Amazon and Walmart in the United States, some vertical pet e-commerce companies such as Chewy, and large pet product chain companies such as Fressnapf and Petco.

From 2019 to 2021, Tianyuan Pet's overseas sales revenue accounted for 90.94%, 74.08% and 72.31% of the company's main business revenue respectively.

With the rapid expansion of overseas business, listing has become an inevitable choice for most cross-border sellers to achieve business expansion.

Since July 2017, Tianyuan Pet has started its journey to be listed on the GEM . After many twists and turns, it finally officially landed on the GEM in November 2022. Its current market value is approximately 3.5-4 billion yuan.

After going public, Tianyuan Pet became the third A-share listed pet company in Zhejiang Province and the sixth in China , with a bright future.

Big spend! Many big sellers spend hundreds of millions of yuan on buying land and buildings

Compared to Tianyuan Pet's 20 million yuan purchase of land, Anker Innovations, a leading seller in the cross-border circle, was even more generous, spending 1.5 billion yuan to buy a building in Shenzhen!

In December 2022, Anker Innovations officially signed a real estate purchase and sale contract and purchased a property in Bao'an District , Shenzhen , for RMB 1.54 billion. The building area is 51,000 square meters . This place may become Anker's southern headquarters.

Why did Anker spend huge sums of money to buy a building?

One important reason is that Anker's R&D and office space in Shenzhen are all rented, which poses risks such as the leased space being reclaimed or not being renewed upon expiration, and the rent cost continuing to rise . Moreover, changes in leased space will also bring repeated renovation costs and relocation costs, which is not conducive to the company's long-term stable operation and development.

In contrast, purchasing the company's own R&D and office space can provide independent and stable R&D and office space, which is conducive to ensuring the company's long-term operations and business stability.

In addition to buying buildings, Anker Innovations also used idle funds to purchase financial products, with an investment amount of 2.4 billion yuan.

As of December 31, 2022, the total amount of wealth management products (including cash management products such as large-denomination certificates of deposit) purchased by Anker Innovations using idle self-owned funds that have not yet matured reached RMB 2.400985 billion, which did not exceed the board of directors' authorized investment limit for the use of idle self-owned funds to purchase wealth management products (RMB 3 billion).

From November 8, 2022 to December 30, 2022, in just two months , Anker Innovations used 960 million yuan of its own funds to purchase financial products. From the perspective of products, there are large-denomination certificates of deposit, fund trust plans, structured deposits, and treasury bonds.

The main reason why Anker has so much idle funds to buy buildings and financial products is that Anker Innovations' revenue has maintained a high growth trend.

In the first three quarters of 2022 , Anker Innovations ' revenue reached 9.536 billion yuan and its net profit was 830 million yuan. According to forecast data from relevant industry institutions , Anker's profit is expected to reach about 1.22 billion yuan in 2022 .

Just buying land and financial products is far from enough. Some big sellers have also expanded new business lines by buying land to build overseas warehouses, and have continued to make profits of hundreds of millions of yuan.

In recent years, the business of home furnishing giant Lechuang has also ushered in rapid development. In the first three quarters of 2022 alone, Lechuang's revenue has exceeded 2.3 billion yuan, an increase of 10.10% over the same period in 2021, of which the profit attributable to shareholders of listed companies was 158 million yuan, a year-on-year increase of 28.12%. In addition to its main business, Lechuang has also targeted new business opportunities. At the beginning of 2022, Lechuang announced that it would spend 32.6 million US dollars to build its own ship, and then announced that it would invest 17.6 million US dollars to buy land in the United States to build a warehouse.

In November 2022, Lucky announced that it had sold a "small" warehouse of 360,000 square feet in California, and the sale made a profit of nearly $77 million. Lucky officials said that the company's overseas subsidiary 6075 LANCE LLC sold an overseas warehouse in California, USA, for $120 million, involving 360,000 square feet (about 33,400 square meters), with a profit of $77 million.

Looking back at Leckey’s overseas warehouse business, it actually started in 2019, and began to vigorously promote the development of this business in 2020 .

In addition to the self-purchased and leased overseas warehouses in the core hub port areas of the United States, LEACHO overseas warehouses are also distributed in Germany, the United Kingdom, Japan, etc. At present, LEACHO has 17 public overseas warehouses around the world, with a total area of ​​more than 350,000 square meters .

Moreover, Lechuang's overseas warehouses do not only serve its own products, but also open up leasing forms to rent to other sellers to obtain more profits. Its financial report shows that in the first half of 2022, Lechuang's overseas warehouse business revenue reached 258 million yuan, of which third-party service revenue was 180 million yuan. Lechuang said that its overseas warehouses have served nearly 400 small and medium-sized foreign trade enterprises.

Overall, Lejia’s overseas warehouse business is a sure-win business.

From buying land, to buying financial products, to buying land to build overseas warehouses, these top sellers are quite generous, making a group of cross-border people envious.

The reason why they can maintain a stable cash flow is inseparable from their own product operations, product advantages and perfect supply chain . Small and medium-sized sellers can also draw more successful experiences from them.

Big Sell

Buying land