The Spring Festival holiday is over. Some people have returned to work, while others may still be in the "return to work congestion". In any case, it is time to focus on your career.
The past year has been an extremely difficult year for many cross-border sellers. No matter which market they are in, sellers are under unprecedented pressure, including soaring overseas inflation, negative market conditions, and rising costs . However , the top sellers who are facing these challenges have submitted a relatively good report card .
Not long ago, a number of familiar old faces in the cross-border circle , such as Huakai Yibai, Youkeshu, and Chuangyuan Holdings, released their annual performance forecasts for the past year. Their revenue performances varied, with some seeing a surge in net profits and others seeing a significant narrowing of losses .
Gradually emerging from the shadow of the account ban wave, Youkeshu’s losses have been greatly reduced
In the cross-border circle, the name of Youkeshu is probably a household name.
According to the 2022 performance forecast released by Youkeshu Technology Co., Ltd. (hereinafter referred to as "Youkeshu"), its profit loss last year reached 220 million to 310 million yuan .
Obviously, the negative impact of Amazon's account blocking wave on Youkeshu's performance in 2021 is still continuing. During the "account blocking wave", Youkeshu had about 340 stores frozen and about 130 million yuan of funds frozen.
Its financial report data for the first half of 2022 clearly illustrates the sluggish operating conditions of its cross-border business.
As a popular seller, Youkeshu has a wide range of products, including 3C electronic products, daily necessities, household goods and building materials, sporting goods and toys, model aircraft accessories and auto and motorcycle accessories, clothing, shoes and bags, etc. In the first half of last year, its SKUs reached 158,000, with a total of 9.2 million.
Such a huge number of SKUs still cannot save the sharp decline in performance. According to the 2022 semi-annual financial report, in the first half of last year, its revenue on major cross-border e-commerce platforms showed a downward trend, with an overall decline of 68.75%.
Specifically, in the first half of 2022, Youkeshu's revenue on Amazon was 110 million yuan, a year-on-year decrease of 67.1%; the revenue on AliExpress was 99.1 million yuan, a year-on-year decrease of 43.26%; the revenue on other platforms was 130 million yuan, a year-on-year decrease of 77.36%.
Asset mergers and acquisitions, restructuring, divestitures ... In the past three years, Youkeshu has been experiencing such ups and downs. Its performance has been hit by both internal and external market environments, and it has been losing money year after year and unable to turn losses into profits.
However, in comparison, Youkeshu’s losses in 2022 have been greatly reduced. Its losses in 2021 were as high as 2.676 billion yuan .
In this regard, Youkeshu also stated that although the company's operating income has decreased compared with the previous year, the overall performance loss has narrowed. The main reasons for the change include: (1) Affected by unfavorable factors such as the slowdown in global macroeconomic growth, setbacks in overseas core consumer markets, and intensified competition in the cross-border e-commerce industry, and the company's corresponding contraction of business scale and continued implementation of a stable operation strategy during the reporting period, the company's cross-border e-commerce main business revenue in 2022 declined year-on-year, but its operating loss has narrowed relatively. (2) Non-core businesses of listed companies, such as Internet of Vehicles operations and software services, have further shrunk, and there will still be a certain degree of losses in 2022.
The losses have been significantly narrowed, which may also indicate that Youkeshu is gradually emerging from the shadow of the account ban wave and returning to the right track of growth.
On this side, there is a tree that is trying its best to heal, and on the other side, there are a number of big sellers that are quietly going overseas, with net profits skyrocketing.
Gross profit margin continued to rise, and Chuangyuan's net profit increased by 892.95%
Ningbo Chuangyuan Cultural Development Co., Ltd. (hereinafter referred to as "Chuangyuan Co., Ltd.") has always been a relatively low-key seller in the cross-border circle. In September 2017, the company officially landed on the Shenzhen Stock Exchange. In March 2022, the company completed major changes in its equity. The State-owned Assets Supervision and Administration Commission of the Ningbo Municipal People's Government became the actual controlling shareholder , and it has since become a national enterprise.
According to the latest disclosed 2022 performance forecast of Chuangyuan Co., Ltd., the company's net profit attributable to shareholders of listed companies last year reached 63 million yuan to 94 million yuan , an increase of 565.49% to 892.95% from 9.4667 million yuan in 2021 .
Looking at this profit figure alone, its performance is not particularly impressive. But if it is placed in 2022, coupled with the rapid growth rate of profits, Chuangyuan's performance in the past year is quite eye-catching.
Chuangyuan shares also explained the profit growth last year, mainly focusing on the company's rising gross profit margin and exchange rate changes . Specifically: (1) In 2022, Chuangyuan Co., Ltd. strictly implemented quotations in accordance with the quotation model, strengthened cost management, strengthened product line thinking, and increased product added value, thereby increasing gross profit margin year-on-year compared with 2021. (2) Due to the appreciation of the U.S. dollar against the RMB, foreign exchange gains increased in 2022, while there was a foreign exchange loss in the same period of 2021.
In addition to the external factor of exchange rate, the business revenue structure of Chuangyuan Co., Ltd. is what sellers are most concerned about.
For a long time, Chuangyuan’s main market has been overseas. It has started cross-border business on e-commerce platforms such as Amazon by relying on six major product categories, including fashion stationery, handmade educational puzzles, social emotions, sports and fitness, and home furnishings .
In 2020, 2021 and the first half of 2022, the export sales of Chuangyuan Co., Ltd. accounted for 97.62%, 97.14% and 98.70% of its main business income respectively, of which the sales revenue to North America accounted for 83.19%, 84.89% and 91.17% respectively . Obviously, the company mainly cultivates the North American market, and its dependence on this market will remain high for a long time in the future.
Among the six major product categories of Chuangyuan Co., Ltd., the business performance of fashion stationery products has always been the best . In the first half of last year alone, the revenue of this category reached 398 million , accounting for 53.23% of the total revenue , and the main profit was as high as 111 million . This may be related to the return of European and American consumers to offices and schools.
In addition, in the first half of last year, the revenue share of Chuangyuan's handmade puzzle and social emotional products exceeded 12%. It is worth noting that although its sports and fitness products only accounted for 8.8% of its revenue, its gross profit margin was the highest among all products, at 37.29%.
While deepening its original product categories, Chuangyuan will also seize hot spots and focus on the layout of trendy products. Previously, when the World Cup kicked off, Chuangyuan said it was preparing peripheral products and holiday flags related to the event , so it also expected that the performance in the second half of 2022 would continue to maintain a good growth momentum.
Although compared with the cross-border sellers that easily have revenues of hundreds of millions, Chuangyuan’s performance is relatively "average", but in terms of the 2022 market, the profit can be doubled by nearly 900%, which can be regarded as a high-scoring answer sheet.
For sellers, 2022 was an extremely cold year for cross-border trade. Many people left the market, but many new blood came in. Some made a lot of money, while others still lost money. However, the big sellers still held on in this extremely challenging year of 2022 and received good returns.
For example, Chuangyuan shares were able to achieve a net profit growth of up to 892.95% last year, and Youkeshu was able to gradually heal the pain of being blocked and significantly narrow the loss. In addition to them, other big sellers such as Huakai Yibai also announced that they would turn losses into profits in 2022, and the net profit is expected to reach 209 million yuan to 239 million yuan ; the net profit of Amazon charging pile seller Daotong Technology is expected to reach 107 million yuan ...
In general, the cross-border e-commerce sector is still a "sunrise" sector. With old sellers sticking to it and new sellers entering the market, this sector is still full of vitality. Big Sell Performance |
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