3.3 billion yuan in profit in 9 months! Dongguan's big sales helped it break through adversity

Due to the continued turbulence in the overseas economic situation, the current cross-border e-commerce industry is facing many challenges, and many sellers are in a difficult situation. However, in such a market environment, the leading seller Aohai Technology still maintains a high growth trend.

Both revenue and net profit increased, and strong product and business lines helped Aohai's performance take off!

Recently, Aohai Technology announced its third-quarter performance, and the data made its fellow small and medium-sized sellers envious.

Judging from the data, in the third quarter of this year, Aokai Technology once again achieved double growth in revenue and net profit.

In the first three quarters of this year, Aohai Technology achieved operating income of 3.349 billion yuan, a year-on-year increase of 12.9%; net profit attributable to shareholders of listed companies was 381 million yuan, a year-on-year increase of 53.25%; net profit attributable to shareholders after deducting non-recurring items was 370 million yuan, a year-on-year increase of 63.9%.

Specifically, the revenue in the third quarter was 1.17 billion yuan, a year-on-year increase of 6%; the net profit attributable to the parent was 140 million yuan, a year-on-year increase of 56.8%; the non-recurring net profit attributable to the parent was 130 million yuan, a year-on-year increase of 71.6%.

In the third quarter of this year, Aokai Technology maintained strong business growth.

Founded in 2004 and listed on the Shenzhen Stock Exchange in 2020, Aohai Technology is mainly engaged in the design, research and development, manufacturing and sales of smart terminal charging and storage products such as chargers. Its products are mainly used in smart phones, tablets, smart wearable devices (smart watches, etc.), smart homes, artificial intelligence equipment, power energy, network energy and other fields.

Aohai Technology said that the performance growth in the third quarter was mainly due to three reasons:

1) In 2021, the company's IoT introduced important customers such as Google, Amazon, Xiaomi, and Huawei. This year, the company continued to explore new markets, driving steady growth in non-mobile phone businesses such as IoT, PC, and power tools.

2) The company continues to invest in R&D funds for products to improve product performance to meet the changing needs of consumers. Product optimization and innovation have driven profit growth. The company's gross profit margin in the third quarter of this year reached 21.9%, a year-on-year increase of 4.4%.

3) The growth of the company's foreign sales, coupled with multiple factors such as exchange rate fluctuations, drove the growth of its third quarter performance.

In fact, it is not just the third quarter of 2022 that has achieved impressive results. It can be seen from the 2021 annual report released by Aohai Technology that its strength should not be underestimated.

In 2021, Aohai Technology achieved operating income of 4.245 billion yuan, a year-on-year increase of 44.14%; and achieved net profit attributable to shareholders of the parent company of 344 million yuan, a year-on-year increase of 4.4%.

Aohai Technology has been in the energy storage and charging industry for 18 years, and has accumulated a long history of products and supply chains. At the same time, Aohai has also actively expanded its product line and entered the fields of IoT, PC, power tools, data centers, consumer brands, etc. At the same time, Aohai Technology also acquired 67.2% of Zhixin Control and 100% of Feiyouque, and worked hard to lay out the "three electrics", power supplies and in-vehicle electronic products of new energy vehicles. Its customers include domestic and joint venture automakers such as Dongfeng, SAIC, Hongqi, and Dongfeng Honda. The current order volume of related products is very high.

At the same time, in order to promote the layout of distributed photovoltaic inverters and other businesses, Aohai established a wholly-owned subsidiary, Aohai New Energy, in early August, which will have certain competitive advantages in the market in the future.

In addition to actively expanding its product and business lines, Aohai Technology also has its own brands: "AOHI" and "MOVE SPEED". Products of these two brands are sold on multiple platforms including Amazon, eBay, and Lazada. On Amazon, one of AOHI's mini fast chargers has also received the Amazon's Choice logo.

In 2021, Aohai Technology's independent brand sales revenue exceeded 40 million yuan.

In the same year, Aokai Technology achieved breakthrough progress in new business areas: power adapters used in IoT fields such as security and small appliances grew significantly, with sales revenue reaching 567 million yuan, a year-on-year increase of 69.8%.

At present, Aohai Technology has established four major production and manufacturing bases in Dongguan Aohai, Jiangxi Aohai, Xihai in India, and Aohai in Indonesia. The production capacity in 2021 has exceeded 220 million units.

Many 3C sellers have become popular with their strength

There is no shortage of top sellers in the 3C market. In addition to Aokai Technology, the well-known ones include Anker Innovations and UGREEN Technology.

Anker Innovations, which adheres to long-termism and focuses on research and development, continues to lead in the consumer electronics sector.

In terms of product development, Anker Innovations can develop differentiated products to meet different needs in special scenarios. It is actually a common problem for many sellers to launch new products this year, but with its long-term technical accumulation and talent accumulation, Anker has launched multiple new categories in smart innovation, wireless audio, and charging categories, which is particularly evident in the second half of the year.

At the same time, Anker Innovations is also actively exploring new areas. At the same time, relying on a powerful logistics operation system, it has improved the turnover rate of its products and promoted rapid business growth.

Shenzhen 3C big seller UGREEN Technology has certain advantages in terms of brand. The company has been committed to the construction of its own brand since its inception. By creating the "UGREEN" brand, UGREEN Technology has rapidly expanded its business scale and further accelerated the company's entry into overseas platforms. Its products have also continued to be selected as Amazon Best Sellers and ranked at the top of multiple platform charts.

At the same time, UGREEN Technology is good at channel promotion and has rich experience in network operation. The company also focuses on technology research and development, and its new products such as private cloud storage, wireless headphones, and charging endurance have achieved fruitful sales results.

3C consumer electronics have long been regarded as a red ocean category in the cross-border e-commerce industry, and many cross-border sellers are scrambling to enter the market. According to statistics, the total scale of China's cross-border e-commerce in 2021 exceeded 960 billion, of which 3C electronic consumption accounted for as much as 1/4.

Recently, Meta released the "White Paper on Home Appliances and 3C Products Going Global in 2022". The report shows that the global 3C market has maintained a steady growth trend in the past three years, with a compound annual growth rate of 3.4%. It is expected that the market size of 3C consumer electronics products will reach 1.44 trillion US dollars in 2022. It can be seen that the entire 3C market is facing unprecedented market opportunities.

As the market scale expands, consumers pay more attention to quality when choosing 3C products, which puts higher requirements on 3C companies. There are more and more demands for personalized customization and product upgrades are getting faster and faster. Multiple demands have also brought new challenges to 3C manufacturing. New products and new technologies have become important growth points for the 3C industry.

Affected by the impact of the epidemic and rising costs, the entire cross-border market is becoming more "competitive". As the mainstream market for 3C products, the European and American markets are also very competitive. For 3C companies that intend to challenge overseas markets, they should meet market demand, make precise layouts, and find the right entry point for products. At the same time, they should accurately study consumer needs and continuously explore new performance and new functions of products. Establish your own brand and sprint to the top of the market.

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