With half-year revenue of 1.278 billion yuan, Zibuyu is making its third attempt to list on the Hong Kong Stock Exchange

Recently, the cross-border retail giant Zibuyu Group Co., Ltd. (hereinafter referred to as Zibuyu) submitted a listing prospectus to the Hong Kong Stock Exchange. This is the third time that Zibuyu has submitted a prospectus to the Hong Kong Stock Exchange.

The first submission of the prospectus was on June 30, 2021, which became invalid due to application expiration; the second submission was on March 7, 2022, 8 months after the first submission, and this submission was half a year after the second submission.

The prospectus shows that Zi Buyu's revenue has increased year by year in the past three years, with revenues of 1.429 billion yuan, 1.898 billion yuan, and 2.347 billion yuan from 2019 to 2021, respectively; profits were 81.1 million yuan, 114 million yuan, and 200 million yuan, respectively, with stable revenue and profit growth.

In the prospectus submitted this time, the financial report information was updated.

Total revenue in the first half of 2022 was 1.278 billion yuan, a year-on-year increase of 16%. However, net profit declined, with net profit of 61.314 million yuan in the first half of 2022, down 86.3% from 114 million yuan in the same period last year.

From the perspective of sales channels, Zibuyu mainly sells through third-party e-commerce platforms and its own independent websites. The third-party e-commerce platforms it has settled in include Amazon, Wish, etc. According to the financial report, in the first half of this year, Zibuyu achieved a revenue of 1.157 billion yuan through Amazon, accounting for more than 90% of the total revenue.

As for the revenue of Zibuyu's independent website, the revenue in the first half of this year was 74.756 million yuan, accounting for 5.8% of the total revenue. This is mainly because Zibuyu adjusted its strategy, reduced the number of products sold through its own website, and focused on cultivating selected self-operated websites with better sales performance. It will take some time to achieve normal growth.

In terms of sales regions, the United States has always been Zibuyu's largest market. In the first half of 2022, the United States accounted for 95.5% of Zibuyu's total revenue, followed by Europe, which accounted for 3.6%.

According to the financial report, Zibuyu ranked first in terms of GMV of apparel and footwear products sold in North America through third-party e-commerce platforms in China. Zibuyu has always focused on the design and sales of fashion apparel products and has achieved outstanding results. In the first half of this year, its apparel products brought in 1.017 billion yuan in revenue; footwear products brought in 258 million yuan in revenue.

Overall, ZiBuYu's performance has been growing steadily in the past three years, and its market layout has been continuously adjusted and optimized. After two failed attempts to go public, ZiBuYu is making its third attempt to go public on the Hong Kong Stock Exchange, and this time there is a great chance of success.

This year has been a difficult year for the development of cross-border e-commerce. Some big sellers have been forced to suspend trading, some have laid off employees and liquidated, and some have suffered losses. Only a few have gone against the tide. We hope that Zibuyu can successfully go against the tide and bring more confidence to the cross-border e-commerce industry.

Zi Bu Yu

Listing