Net profit plummeted by 1,700%, and 3C sales performance "changed"!

2022 has passed, and the big sellers have released their report cards one after another. Naturally, some are happy and some are worried. Zebao's parent company, Cross-border Communication, and Jiemite suffered huge losses; Huakai Yibai handed in a brilliant report card, turning the company's performance from loss to profit, and Yibai Network is also likely to complete the bet. Looking at the report cards handed in by the big sellers, whether it is profit or loss, there are reasons to follow.

JMET's net profit plummeted 1,700%

In the 2022 performance forecast released by Xinghui Shares , the company is expected to have a net loss of 182 million to 236 million yuan in 2022, while the loss of Xinghui Shares in the previous year was 1.524 billion yuan. So far, Xinghui Shares has been losing money for two consecutive years. The main reason is that the cross-border e-commerce business has suffered a great impact from the account suspension, and the business has not been fully restored.

Another major seller, Cross-border Communication, recently released a performance forecast showing that its net profit attributable to shareholders of the company in 2022 is about 5 million to 7 million yuan, a decrease of 99.26% to 98.96% compared with the net profit in 2021. After deducting non-recurring gains and losses, Cross-border Communication's net profit is a loss of 90 million to 120 million yuan.

Regarding the issue of a significant decline in net profit in 2022 compared with the previous year, Cross-Border Link explained that it was due to two major reasons: Shenzhen Global went bankrupt and was delisted, and large investment income was recognized from the sale of Paton.

As we all know, Cross-Border Link has two major arms: Shenzhen Global and Paton, but after the collapse of Global Shopping, the current situation of Cross-Border Link has also changed.

Global Easy Shopping, which was focused on expansion , suffered backlash as early as 2019. The bank's loan suspension and a large backlog of inventory led to a tight operating fund for Global Easy Shopping and it began to default on payments to suppliers. The 2020 epidemic dealt a heavy blow to Global Easy Shopping, and its losses reached 2.95 billion yuan that year. At the end of 2021, the court ruled to seal up all the properties of Shenzhen Global, and Global Easy Shopping has been liquidated due to bankruptcy.

At the beginning of 2022, Cross-border Communication announced that it plans to transfer 100% of the equity of its wholly-owned subsidiary Shenzhen Qianhai Paton Network Technology Co., Ltd. to 20 transferees including Xiaomi and Shunwei. However, Paton, as a top seller on Amazon, not only has hundreds of Best Sellers on Amazon, but also creates more than 100 million yuan in net profit for its parent company every year.

With the bankruptcy application of Global Easy Shopping and the sale of Paton, Cross-border Communication, which lost its two major profit-making arms, is in a mess. At the same time, the company's chairman, supervisor and internal audit director have resigned one after another. In the future, Cross-border Communication will still face considerable challenges.

At the same time, Gemtek, a big seller of mobile phone cases, is also facing a sharp drop in net profit.

Once upon a time, Gemtek relied on orders from Huawei to generate huge revenues; but as the market environment changed, Gemtek's profitability also changed.

In the performance forecast issued by Gemtek, its net profit attributable to shareholders of listed companies in 2022 is a loss of 93 million yuan to 138 million yuan. The net profit after deducting non-recurring gains and losses is a loss of 135 million yuan to 189 million yuan, a decrease of 1700.46% to 2420.64% compared with the net profit of the same period last year.

Gemtek attributed the reasons for the performance changes to the following points: changes in revenue structure, namely, a decrease in the company's own brand and overseas sales revenue and proportion; increased production and management costs; and due to external economic influences, credit impairment losses and asset impairment losses during the reporting period increased compared with the same period last year.

Some industry insiders also pointed out that an important reason for the sharp drop in JMET's net profit is that JMET itself is reducing its dependence on major customers. Previously, Huawei's mobile phone shipments plummeted, resulting in a decrease in JMET's product shipments and a sharp drop in net profit, which made JMET realize its over-reliance on Huawei. Subsequently, it began to reduce the supply to its top customers, which affected its net profit. In addition, the decline in its own brand business with higher gross profit margins and the increase in the proportion of its main OEM business may also be the reasons for JMET's net profit.

As the saying goes, some are happy and some are sad. Unlike the big sellers such as Cross-Border Link and Jiemite whose performance "changed", Huakai Yibai's performance in 2022 was excellent.

Turning losses into profits, Huakai Yibai will make a net profit of 190 million yuan in 2022

In the performance forecast issued by Huakai Yibai, we can see that its net profit attributable to shareholders of listed companies in 2022 is 210 million yuan to 239 million yuan. The net profit after deducting non-recurring gains and losses is 190 million yuan to 220 million yuan, while the net profit in the same period of 2021 was a loss of 99.391 million yuan.

Huakai Yibai has some skills to turn the company from loss to profit within a year.

In the performance forecast of the holding subsidiary Yibai Network, we can find some reasons for the company's turnaround. In the second half of 2022, Yibai Network's sales resumed growth and its profit margin increased significantly. In 2022, Yibai Network expects to achieve operating income of 4.3 billion yuan and net profit of 270 million yuan to 290 million yuan. After deducting the impact of minority shareholders' gains and losses and the amortization amount after recognizing identifiable intangible assets at the level of the listed company's consolidated financial statements, the net profit attributable to the listed company is 230 million yuan to 250 million yuan.

At the same time, Huakai Yibai also pointed out that the performance changes were affected by the shareholding plan. It is reported that the company launched an employee stock ownership plan in 2022 to stimulate the enthusiasm of core personnel and enhance the cohesion of the team. The plan brought a total amortization amount of share-based payment expenses of approximately 9.9669 million yuan. After calculating the corresponding expenses of the employee service entity, Huakai Yibai was approximately 2.9901 million yuan and Yibai Network was approximately 6.9768 million yuan.

In addition, the parent company and its wholly-owned subsidiary Shanghai Huakai are expected to incur a full-year loss of approximately RMB 30 million, and non-recurring gains and losses such as government subsidies and financial management income will affect the company's net profit by approximately RMB 19.7 million, which are important reasons affecting the changes in Huakai Yibai's performance.

Looking at Huakai Yibai's performance and the reasons for its changes, it can be said that Yibai Network saved Huakai Yibai on its own.

In the announcement issued by Huakai Yibai, we can find that Yibai Network is expected to achieve a net profit of 270 million to 290 million yuan in 2022. In the performance betting agreement between Yibai Network and its parent company Huakai Yibai, it is required that Yibai Network's net profit after deducting non-recurring items from 2019 to 2023 should not be less than 141 million yuan, 170 million yuan, 204 million yuan, 251 million yuan, and 290 million yuan, respectively. In other words, Yibai Network's net profit after deducting non-recurring items after 2022 cannot be less than 251 million yuan. It seems that Yibai Network is very likely to complete the bet , and its announcement even predicts that Yibai Network will exceed the agreement in the supplementary agreement to the bet.

At the same time, in accordance with the agreement of the bet, Yibai Network will set aside performance rewards for the excess performance. However, since Huakai Yibai implemented an employee stock ownership plan in 2022, in order to avoid duplicate incentives, the main management team members of Yibai Network unanimously agreed to voluntarily give up the excess performance rewards for 2022. This was mentioned in Huakai Yibai's announcement.

Compared with the rewards after Yibai Network reaches the 290 million yuan target in 2023 and completes the bet unlocking for five consecutive years, many industry insiders believe that the loss of Yibai Network's management team giving up the excess rewards in 2022 is not big. According to the current development of Yibai Network, there is a high probability that the bet will be completed in 2023.

Zebao

Yibai Network

Cross-border communication