Net profit loss of 133 million! Is the crisis of Youkeshu difficult to resolve?

Since October, cross-border sellers have successively announced their third quarter reports. As a well-known seller in the cross-border circle, Youkeshu has always attracted much attention.

On October 26, Tianze Information released its third quarter report. The report shows that in the first three quarters of 2022, its revenue was 625 million yuan, a decrease of 57.66% compared with the same period last year, and its net profit was -133 million yuan, an increase of 88.45% year-on-year. The net profit attributable to the parent company after deducting non-recurring items was a loss of 129 million yuan, which was a significant decrease compared with the loss of 1.173 billion yuan last year. Data shows that its main income comes from online, and electronic products and home building materials categories have made great contributions to its revenue.

In 2021, its cross-border e-commerce business operations were significantly affected by changes in the Amazon platform policy environment and fierce competition in the European and American markets. In order to reverse the situation, Tianze Information took the initiative to shrink its business scale and implement a stable operation strategy. Although it is still in a loss-making state this year due to factors such as the "account blocking wave", its operating conditions have improved compared with 2021.

Recently, Tianze Information released an announcement to officially change its name to Youkeshu. After Tianze Information completed the acquisition of most of the shares of Shenzhen Youkeshu in 2019, its performance in the same period of the year increased significantly, which can be said to be the most eye-catching performance in recent years. Now, Tianze Information has changed its name to Youkeshu, which can also more clearly reflect its main business and development strategy.

As we all know, as a cross-border seller, Tianze Information deals in a wide range of products, including 3C electronic products, daily necessities, sporting goods and toys, model aircraft accessories and auto parts, clothing, shoes and bags, etc. It sells these products to overseas consumers through platforms such as Amazon, AliExpress, and Shopee.

In the past, Tianze Information achieved remarkable results through the distribution model, but in recent years, the distribution model is no longer applicable to the cross-border e-commerce industry, and the refined model has replaced it. If Tianze Information wants to go further, it must change its business model to adapt to market development.

In order to keep up with the times and occupy an important position in the cross-border e-commerce industry, Tianze Information is committed to improving the level of refined operations, optimizing the supply chain, and leveraging its own advantages in the wide coverage of operating products to increase consumer stickiness and acquire more repeat customers.

Today, under the pessimistic economic situation, many sellers have been ruthlessly swept away in this industry torrent. Tianze Information still faces many difficulties ahead. As it transforms, how it will perform in the future is still uncertain.

There is a tree

Third quarter report