Revenue of 6.2 billion surpasses Anker! Cross-border sales in mid-year performance competition

The mid-term report card for cross-border sales is out!

How much of your annual sales target have you achieved so far?

The first half of 2022 has already passed, and small and medium-sized cross-border sellers have also made mid-year summaries, calculating how far they have progressed on the small sales goals set at the beginning of the year! The top sellers are no exception, and some of them have already announced their semi-annual financial reports.

This year, the editor will take stock of the half-year revenue of Anker Innovations, Yibai Networks, Giant Star Technology, Jihong Holdings, Santai Holdings, Suntech Power, Taotao Automobile and Zhiou, which are listed or planning to be listed. Through these data, we can also get a glimpse of the latest market conditions of the cross-border e-commerce market in the first half of this year.

Anker Innovations, Yibai Network and other four listed companies have released their first half-year performance reports

The sales performance of the four listed companies, Anker Innovations, Yibai Networks, Giant Star Technology, and Jihong Holdings, are all very impressive. Anker Innovations and Giant Star Technology lead the sales, among which Giant Star Technology's half-year revenue exceeded 6 billion.

1. Anker Innovations: Half-year revenue of nearly 6 billion, net profit increased by 41%

As the leading cross-border company, Anker Innovations achieved impressive revenue and net profit in the first half of this year.

From January to June 2022, Anker Innovations achieved operating income of 5.887 billion yuan, a year-on-year increase of 9.62%; achieved net profit attributable to shareholders of the parent company of 576 million yuan, a year-on-year increase of 41.01%; and achieved net profit attributable to shareholders of the parent company after deducting non-recurring items of 306 million yuan, a year-on-year increase of 1.94%.

As we all know, Anker Innovations has three major product lines: charging products, smart innovation products, and wireless audio products.

Charging products mainly include high-end and mid-range charging devices, data cables, mobile power supplies, outdoor energy storage and other digital peripheral products of the "Anker" brand, with revenue of 2.945 billion yuan, a year-on-year increase of 24.18%, accounting for 50.02% of total revenue. As we enter the post-epidemic era, overseas epidemic prevention and control has been gradually relaxed, consumer travel demand has increased, and mobile power business revenue has shown a rapid growth rate. Anker MagGo magnetic charging series is favored by consumers for its high appearance and full-scenario innovation.

The smart innovation category includes eufy smart home, Nebula laser smart projection products and other innovative product series, with revenue of 1.668 billion yuan. Affected by the slowdown in demand in some overseas markets for smart cleaning in the first half of the year, revenue decreased by 3.37% year-on-year, accounting for 28.33% of total revenue .

The wireless audio category is mainly composed of soundcore series products, with revenue of 1.21 billion yuan. Affected by the new product launch cycle and market demand, revenue decreased by 2.75% year-on-year, accounting for 20.56% of total revenue.

In terms of regions, Anker Innovations had the highest revenue share in North America, reaching 2.92 billion, accounting for nearly 50%. Its revenue in the Middle East increased significantly by 42% to 370 million.

Affected by factors such as shrinking external macroeconomic demand, escalating geopolitical disputes, and exchange rate fluctuations, Anker Innovations' revenue growth in various regions varies. The exchange rates of the euro and the yen have continued to weaken this year. As of the end of the reporting period, the central parity rate of the RMB against the euro and the yen had depreciated by 2.93% and 11.37% respectively compared with the beginning of the year, which to a certain extent affected the revenue performance in Europe and Japan. However, the revenue in the Middle East continued to grow steadily, and the development of Australia, Latin America and other regions also showed a good trend.

Anker Innovations' total online revenue is 3.78 billion, a large part of which comes from Amazon. As a big seller on Amazon, its revenue on the platform is as high as 3.2 billion.

As independent sites become a development trend, Anker Innovations is also increasing its investment in independent sites. It is understood that Anker Innovations' existing six major brands ( Anker, soundcore, eufy, Nebula, AnkerMake, and AnkerWork) all have separate sites, among which soundcore focuses on the sound quality segment, eufy is based in the smart home field, Nebula focuses on audio and video entertainment, AnkerWork is a smart office audio and video hardware brand founded in 2021, and AnkerMake is a cutting-edge consumer-grade 3D printing equipment brand founded in 2022. In the first half of the year, the total revenue of independent sites was 215 million, and the proportion of revenue continued to increase.

In the first half of 2022, according to the sixth annual "BrandZ China Global Brands" research report released by Kantar BrandZ, a global brand ranking, at Google's annual event Think with Google 2022, Anker has been on the list for six consecutive years, ranking 12th.

2. Yibai Network: Net profit exceeded 100 million, and sold more than 10 million products on the Amazon platform in half a year

Huakai Yibai, the parent company of Yibai Network, has now adjusted its main business to cross-border export e-commerce business. From January to June 2022, the cross-border e-commerce business revenue reached 1.949 billion yuan, an increase of 2453.75% over the same period last year, and the net profit attributable to the listed company was 83.67 million yuan, and the net profit after deducting non-operating items was 78.12 million yuan.

Huakai Yibai said that the main reason for the significant change in the source of profits was Yibai Network. It is understood that in the first half of this year, Yibai Network achieved a net profit of 112.2167 million yuan, and after considering the impact of minority shareholders' gains and losses and the amortization amount after the recognition of identifiable intangible assets, the profit contribution to the listed company was 95.6801 million yuan.

As a big seller on Amazon, Yibai Network achieved sales revenue of 154,481.97 million yuan through cross-border export e-commerce business on Amazon, accounting for 78.53% of operating income. The total number of Amazon orders was 11.4106 million, with an average order amount of 135.52 yuan.

Yibai Network has 729 online stores that sell on Amazon, with 34 new stores added and 11 closed during the period. In addition to Amazon, the company's sales revenue through other third-party platforms accounted for no more than 10% of its operating revenue from January to June 2022.

Yibai Network's main business categories are home gardening, health and beauty, automobile and motorcycle accessories, industrial and commercial supplies, etc., among which home gardening and industrial and commercial supplies have higher sales revenues, which are 430 million and 360 million respectively.

In terms of gross profit margin, the gross profit margins of health and beauty and outdoor sports are relatively high, at 46.95% and 41.74% respectively.

In terms of market, Yibai Network's main market is still the United States, with revenue accounting for only about 20%. However, in addition to deepening its presence in English-speaking markets such as the United States and the United Kingdom, the company is also developing rapidly in countries with small language backgrounds, such as Germany, Italy, France, Spain, and Japan, and has also deployed e-commerce in developing countries and regions such as Southeast Asia, South America and even Africa.

3. Giant Star Technology: Revenue exceeded 6.2 billion, net profit was approximately 642 million yuan!

Giant Star Technology 's main products include hand tools and storage cabinets.    The products are divided into two categories: Tools & Storage), power tools and laser measurement instruments (Power Tools & laser Measurement), which are mainly used in the fields of home residence maintenance, construction projects, vehicle repair and maintenance, map measurement and mapping, and home energy management.

In the first half of this year, Giant Star Technology achieved operating income of 623,419.75 million yuan, a year-on-year increase of 40.10%. In the first half of 2022, the company's net profit attributable to shareholders of listed companies was 64,154.36 million yuan, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 62,429.00 million yuan, a year-on-year increase of 7.48%.

As a tool seller, Giant Star Technology continues to develop its main business around the global tool consumption field, constantly exerting its efforts in category expansion and product innovation, and has made important progress in the development of its power tool business. At the same time, it has made breakthroughs in non-tool products such as household energy storage in Europe and the United States .

It is understood that Giant Star Technology is continuously making efforts in cross-border e-commerce, a new sales channel. Cross-border e-commerce direct sales have now become Giant Star's most important sales channel besides traditional large chain supermarkets .

4. Jihong Shares: achieved revenue of 2.6 billion, with an increase in cross-border e-commerce business revenue

Jihong shares is a leading enterprise in the cross-border e-commerce independent station model in Southeast Asia, mainly providing To C-end precision marketing cross-border e-commerce business and packaging service business for large customers to provide full-case marketing design. During the reporting period, the company achieved operating income of 262,118.96 million yuan, a year-on-year increase of 5.22%, and realized a net profit attributable to shareholders of the listed company of 11,530.56 million yuan, a year-on-year decrease of 36.48%.

In the first half of this year, the revenue scale of Jihong Co., Ltd.'s cross-border e-commerce business increased, with operating income of 144,741.72 million yuan, a year-on-year increase of 4.13%. Affected by the increase in advertising fees, logistics fees and other expenses and exchange rate fluctuations, the company achieved a net profit attributable to shareholders of 76,383,500 yuan, a year-on-year decrease of 41.62%.

In terms of gross profit margin, the gross profit margin of Jihong Co., Ltd.'s cross-border e-commerce channel is as high as 60%, ranking first among all categories.

Jihong shares not only sells goods, but also provides services. The company owns the cross-border e-commerce SaaS service platform GiiMall, an enterprise-level technical service platform that mainly focuses on helping cross-border e-commerce brands to expand into Southeast Asia through independent sites. It provides sellers with one-stop services such as product selection, website building, traffic, operation, payment, and logistics. The SaaS service platform has been officially launched during the reporting period, but has not yet generated any benefits.

Three-year performance report of 4 companies including Suntech Power that plan to go public

Santai, Suntech, Taotao and Zhiou are in the process of going public. In the first half of this year, the revenue and profits of these four big sellers almost all declined to a certain extent, but they remain optimistic about the sales in the second half of the year.

5. San Tai Shares: Both operating income and net profit declined to a certain extent

Santai Co., Ltd. is a comprehensive enterprise engaged in export cross-border e-commerce retail and third-party export cross-border e-commerce logistics. From January to June 2022, due to the repeated global epidemics and the Russia-Ukraine conflict, its operating performance was affected to a certain extent, and both operating income and net profit declined to a certain extent.

From January to June 2022, Santai Co., Ltd.'s operating income was 816.9913 million yuan, a year-on-year decrease of 33.53%, of which the income from commodity sales business was 705.2539 million yuan, accounting for 86.32% of the operating income; the income from logistics service business was 111.5624 million yuan, accounting for 13.66% of the operating income; the net profit attributable to the parent was 70.2834 million yuan, a year-on-year decrease of 28.56%.

The sales of goods decreased by 26.79% year-on-year. The main reason was that the three states adaptively adjusted the overall selling price of goods in order to pass on the increased supply chain costs caused by the repeated epidemic; at the same time, the short-term online consumer demand in Europe weakened due to the conflict between Russia and Ukraine.

The logistics service business decreased by 57.96% year-on-year, mainly due to three aspects:

(1) From January to June 2021, the company's logistics service business revenue was boosted by the peak of the epidemic, and the performance base was relatively high;

(2) The decline in logistics order demand caused by various external factors mainly includes :

A. The COVID-19 pandemic at home and abroad has caused a decline in domestic and cross-border logistics efficiency compared with the same period last year, and freight rates are higher than the same period last year, which has suppressed customer demand to a certain extent ;

B. The conflict between Russia and Ukraine since February 2022 has affected the short-term consumption behavior of people in Europe to a certain extent, reduced the stability of contract performance, and reduced the demand of the company's logistics customers for European-bound logistics products; some cross-border e-commerce sellers were impacted by the Amazon account suspension incident, resulting in a decrease in the overall market order volume. The overall order volume from January to June 2022 has not yet recovered to the same period last year;

(3) In February 2022, the Company's original key customer no longer purchased logistics services from the Company and adopted its own logistics for distribution, resulting in a year-on-year decrease in revenue from this customer from January to June 2022.

Overall, the COVID-19 pandemic, the impact of the Russia-Ukraine conflict, foreign exchange rate fluctuations, platform fees, and customer cooperation stability have all had an impact on Santai's operating performance in 2022. Below we will mainly look at the impact of exchange rates on Santai and its countermeasures.

It is understood that from January to June 2022, Santai Co., Ltd. recognized a foreign exchange loss of 2.9425 million yuan, a year-on-year decrease of 3.9209 million yuan. The exchange loss caused by exchange rate fluctuations did not have an adverse impact on the company's year-on-year operating performance in 2022. In response to the risk of exchange rate fluctuations, in addition to considering the impact of exchange rate fluctuations in commodity pricing and adjusting commodity prices in a timely manner, Santai's response measures also include direct use of foreign currency settlement, timely adjustment of capital structure, optimization of currencies and exchange rates, and planning of exchange arrangements. It is expected that exchange rate fluctuations will not have an adverse impact on the company's year-on-year performance in 2022.

6. Suntech: The estimated operating income is up to 2.38 billion, and the net profit is up to 144 million, both decreasing!

Savi's main products cover four major categories, including clothing and accessories, department stores and home furnishings, sports and entertainment, and digital automobiles and motorcycles. It owns multiple brands including Ekouaer, Avidlove, Homdox, Coocheer, and ANCHEER.

Based on the market environment and the company's current operating conditions, after preliminary estimates, Suntech expects its operating income in the first half of 2022 to be between 2.2 billion and 2.38 billion yuan, a year-on-year decrease of up to 22.84%, and its net profit to be between 110 million and 144 million yuan, a year-on-year decrease of up to 55%.

In the first quarter of 2022, Suntech's revenue and net profit both declined. Its operating income was 1 billion, a decrease of 401.6622 million yuan, or 28.40% , compared with the same period last year . The net profit attributable to the parent company's shareholders after deducting non-recurring items decreased by 99.2727 million yuan, or 73.59%, compared with the same period in 2021 .

In this regard, Savi believes that an important reason is that in the first quarter of 2021, the epidemic subsidy policy boosted the climax of online consumption, which led to a lot of pre-emptive consumer demand, such as purchasing improved equipment or stockpiling in advance. After the subsidies were stopped and offline traffic resumed in the second half of 2021, online traffic has declined to a certain extent and gradually returned to normal development. At the same time, the company's non-brand business contraction and fluctuations in the US dollar exchange rate also affected its performance.

However, it is worth noting that the net cash flow generated by Suntech's operating activities in the first quarter of 2022 increased by RMB 53.9001 million compared with the same period last year, mainly due to the decrease in inventory purchase payments made in the first quarter of 2022 compared with the same period last year.

Based on the strategic considerations of building a brand matrix and developing multi-category businesses, Savi has adopted a multi-account store operation model that is more common in the cross-border e-commerce industry, operating multiple stores on third-party e-commerce platforms such as Amazon, Wish, eBay and Walmart. The Amazon platform is a platform that Savi focuses on. From the perspective of brand influence, as of April 2022, many products from brands such as Avidlove, Ekouaer, Coofandy, and ANCHEER are among the top five Amazon Best Sellers in the sub-category.

7. Zhiou Home Furnishing: The highest estimated revenue is 2.8 billion, and the highest profit is 120 million, both of which are down year-on-year!

Zhiou is mainly engaged in the research and development, design and sales of its own-brand home furnishings and other products . As a major home furnishings seller, Anker Innovations has also seen the development potential of Zhiou and has already become a shareholder of the company.

Since 2022, the changing trends on the supply and demand sides, the fluctuations in the RMB exchange rate and other trends have intensified the competitive pressure on major sellers in the industry to a certain extent. Combining the market environment and the company's current operating conditions, after preliminary calculations, Zhiou expects its operating income in the first half of 2022 to be 2.73 billion yuan to 2.83 billion yuan, a decrease of 11.55% to 14.68% compared with the same period last year; the net profit attributable to the parent company's owners is 106 million yuan to 120 million yuan, a decrease of 14.54% to 24.51% compared with the same period last year. In the first quarter, Zhiou achieved operating income of 142,701.32 million yuan, a year-on-year decrease of 4.07% .

Zhiou believes that the operating income in the first half of 2022 will decline compared with the same period in 2021, which is related to the high base of operating performance in the first half of 2021 due to the peak of overseas epidemic consumption. The operating performance level after the peak of epidemic consumption in the first half of 2022 still maintained a significant growth trend compared with the first half of 2019 and the first half of 2020. After the peak of epidemic consumption subsided, the company's normal sales season is in the third and fourth quarters, and the main holidays and shopping festivals of overseas e-commerce platforms are concentrated in the second half of the year, such as Halloween, Thanksgiving, Christmas, "Black Friday", etc. are all in the fourth quarter. Therefore, the company's operating income in the second half of the year is usually higher than that in the first half of the year. Against the backdrop of easing related factors and recovery of seasonal demand, Zhiou expects that the operating performance in the second half of 2022 will continue to improve.

8. Taotao Automobile: Revenue of nearly 780 million yuan, net profit of 82.1 million yuan!

Taotao Vehicles is a company that focuses on outdoor leisure and entertainment, as well as short-distance transportation functions.

A high-tech enterprise that develops, produces and sells vehicles and their accessories and supplies.

All-terrain vehicles in the 50cc~300cc displacement segment and motorcycles in the 50cc~250cc displacement segment; electric vehicles mainly include electric scooters, electric balance bikes, electric motorcycles, electric bicycles, etc.

From January to June 2022, Taotao Automobile's operating income was RMB 773.5479 million, down from the same period last year.

The issuer's net profit attributable to shareholders of the parent company was RMB82.1041 million, a decrease of RMB16.7909 million or 16.98% compared with the same period last year.

Taotao Automobile believes that the company's operating income decreased compared with the same period last year, mainly due to factors such as reduced subsidies for the US epidemic, increased inflation, and the Russia-Ukraine war; the company's net profit decreased compared with the same period last year, mainly due to factors such as price fluctuations in the bulk material market and rising shipping costs. Affected by factors such as exchange rate fluctuations, the comprehensive gross profit margin from January to June 2022 was 43.13%, a slight increase from 42.82% in the same period last year; due to the impact of the epidemic, the unit price of shipping costs increased, and sales expenses-transportation costs increased by 14.8135 million yuan compared with the same period last year.

Although revenue and profits declined, the net cash flow generated by Taotao Automobile's operating activities increased year-on-year. In the first half of this year, the cash flow generated by operating activities increased by RMB 40.4186 million compared with the same period last year to RMB 19.9797 million.

Summarizing the revenue and net profit data of major sellers in the first half of this year, it can be found that some sellers have achieved gratifying sales and profit results, but some sellers have seen a decline in both sales and profits.

How were your sales and profits in the first half of this year?