Revenue of nearly 10 billion! Is the performance of the heating products soaring due to the big sales?

In an inflationary environment, consumer spending is weak and sellers are struggling. However, under the huge pressure of everyone saying that cross-border business is difficult, some sellers are thriving. On October 19, the cross-border seller Giant Star Technology handed in its third quarter report card, with impressive data.

The third quarter report of Giant Star Technology shows that from January 1, 2022 to September 30, 2022, the company achieved operating income of 9.835 billion yuan, a year-on-year increase of 28.06%, and net profit of 1.263 billion yuan, a year-on-year increase of 9.76%. Its third quarter revenue was 3.601 billion yuan, a year-on-year increase of 11.5%, and net profit was 622 million yuan, a year-on-year increase of 47%. From this point of view, Giant Star Technology's profitability has increased compared with previous years.

As the European energy crisis intensifies, local consumers' demand for heating products has increased rapidly. The surge in orders from Europe is an important factor in Giant Star Technology's revenue growth. Giant Star Technology said that as a global furniture consumer goods sales company, it has been selling stoves, heaters and other products through European sales channels. These orders have also helped many companies' sales to pick up and achieve a substantial increase in sales, such as Rainbow Group and Ogawa.

In addition to the growth in exports, the recovery of foreign exchange, stable international logistics costs and stable raw material prices are also major factors that contribute to the increase in its profitability.

During the reporting period, Giant Star Technology also obtained the final confirmation of product purchase from a large retail company. The purchase targets are mobile energy storage ( POWER BANK) and home energy storage (POWER STATION) products. The estimated purchase amount is no less than US$20 million per year. The purchase is valid for two years. As of September 30, 2022, the purchase confirmation has taken effect.

As a global leading tool company, Giant Star Technology's products include hand tools, power tools, laser measuring tools, cabinet storage equipment, etc. Through continuous product innovation and category expansion, the company has not only achieved outstanding results in the power tool business, but also made breakthroughs in non-tool products such as European and American household energy storage.

In addition, it has 20 manufacturing bases around the world , and directly provides high-quality, full-category products to global end users through domestic and foreign e-commerce platforms such as Amazon. At present, cross-border e-commerce direct sales have become its most important sales channel besides traditional large-scale chain supermarkets. As an effective supplement to traditional channels, cross-border e-commerce channels have brought the company a new market for developing its own brands.

The international economic situation is changing rapidly, and Giant Star Technology may still face risks such as exchange rate fluctuations and rising raw material prices in the future. However, as long as it seizes opportunities and enhances its ability to resist risks, relying on its innovation capabilities, supply chain integration capabilities and channel management capabilities, this cross-border seller will definitely be able to effectively increase its market share and maintain its operating income growth.

Giant Star Technology

Third quarter report

Heating products