Having earned nearly 100 million yuan in half a year, Yibai Network is making a fortune!

2022 is already halfway through, and big sellers have successively released their half-year performance forecasts. Naturally, some are happy and some are sad. Judging from the financial forecasts currently released, Yibai Network's performance is the most impressive.

Yibai Network expects profit to exceed 100 million yuan in the first half of the year

Recently, Yibai Network's parent company Huakai Yibai released its 2022 semi-annual performance forecast, showing that its profit was 83 million to 101 million yuan. Compared with the loss of 22 million yuan in the same period last year, it has obviously turned losses into profits.

The steady increase in the parent company's profits can be attributed to the performance growth of its holding subsidiary Yibai Network. It is understood that Yibai Network 's revenue in the first half of 2022 is expected to be 1.9 billion yuan to 2 billion yuan , and the net profit attributable to listed shareholders is expected to be 110 million yuan to 130 million yuan. Taking into account the impact of minority shareholders' gains and losses and the amortization amount after recognizing identifiable intangible assets, Yibai Network 's profit attributable to the listed company is 93 million yuan to 113 million yuan.

In contrast to Yibai Network's crazy money-making, its parent company and wholly-owned subsidiary Shanghai Huakai are expected to incur losses of about 10 million to 12 million yuan, mainly due to management expenses . In addition, the government subsidies and financial management income have an impact of about 2.9 million yuan on the company's net profit.

The profits generated by Yibai Network, a subsidiary alone, have far exceeded the total net profit of the parent company. It can be seen that Yibai Network's cross-border e-commerce business has become the company's revenue pillar , so much so that some industry insiders joked that Yibai Network has pulled Huakai Yibai from an "environmental art design stock" to a "cross-border e-commerce stock" in one fell swoop.

The editor learned that Yibai Network 's non-GAAP net profit in 2019-2021 was 175 million yuan, 364 million yuan, and 216 million yuan, respectively. It has completed the performance betting agreement with Huakai Yibai for three consecutive years, which further strengthened the parent company's strategy of continuing to focus on cross-border e-commerce business.

As early as June 13, Huakai Yibai planned to acquire the remaining 10% equity of Yibai Network held by Mangliduo and Chaoran Mailun to complete 100% control of Yibai Network . However, this situation changed on June 24, and the plan to acquire equity was suspended. Huakai Yibai issued an announcement stating that in order to improve the efficiency of rectification of third-party online stores, a corresponding rectification plan has been formulated and it is planned to complete the rectification before August 31, 2022.

It is understood that the total number of third-party online stores of Yibai Network in 2021 is 535 , accounting for 15.82% of the total number of stores in 2021. Its realized revenue accounts for 12.12% of the main business income, which is 576 million yuan; the net profit accounts for 11.71% of the total net profit in 2021, which is 25 million yuan.

Currently, Yibai Network is actively promoting the rectification of third-party online stores and plans to complete all rectification work this year. For some online stores with smaller business scales, Yibai Network will rectify by stopping operations and closing the stores.

In addition, according to the data disclosed by Huakai Yibai, Yibai Network has completed the bet for three consecutive years, and its operating performance has been on an upward trend month by month since 2022. According to this performance growth trend, after the rectification of Yibai Network's third-party nominal outlets is successfully completed, there is still a great hope that Yibai Network will complete the performance bet as required in the next two years.

With a bright future, Yibai Network has become a leader in successful gambling

Unlike general enterprises, Yibai Network is positioned as a cross-border e-commerce company with a wide range of business categories, such as automobile and motorcycle accessories, industrial and commercial supplies, home gardening, health and beauty, outdoor sports, 3C electronic products , etc. Its sales channels include third-party platforms such as Amazon, eBay, AliExpress, Wish, Lazada , etc. In the sales market, Yibai Network has built a global sales network covering North America, Europe, Oceania and other regions.

It can be said that Yibai Network has integrated the resources of China's high-quality supply chain and sold cost-effective Chinese-made products to overseas consumers. Huakai Yibai chose to acquire Yibai Network in full because it is optimistic about its future profitability and core competitiveness, which may be one of the important reasons why Yibai Network was able to succeed in the bet.

Compared with a number of companies that failed in the bet, Yibai Network appears to be particularly strong.

In the bet with Huading Shares, Tongtuo needed to achieve net profit after deducting non-operating expenses of no less than 200 million, 280 million, and 392 million in 2017-2019. However, a report from Huading Shares showed that Tongtuo's final performance was far below expectations: it only completed the performance bet in 2017, and failed to meet its performance commitments for two consecutive years in 2018 and 2019 , with a shortfall of 60 million in the second year and more than 80 million in the third year .

Behind the "sky-high" performance commitment, Tongtuo also needs to pay huge compensation to Huading Co., Ltd. , including 189 million yuan in 2021 and 349 million yuan in 2019. However, as of July this year, the compensation has not yet been settled .

As early as in Xunxing Co., Ltd.'s acquisition of Jiazhilian , it required Jiazhilian to achieve a total net profit of US$510 million within three years . However, the reality is that Jiazhilian not only failed to achieve its performance target, but also faced huge losses .

In 2018 , Jiazhilian's net profit loss was 74.9308 million yuan, while the net profit promised by the performance bet that year was 160 million yuan, with a completion rate of negative 46.83%. Since then, Jiazhilian has continued to lose money . Among them , the net profit loss in 2019 was 58.582 million yuan; in 2020, the net profit loss was 24.3994 million yuan; in 2021, after deducting 192 million yuan in performance compensation, the total profit loss was 9.8891 million yuan; and the net profit loss in the first quarter of 2022 was 6.4 million yuan.

Let's look back at Yibai Network, which has completed the performance bet for three consecutive years. Among them, the net profit of the parent company's owners after deducting non-recurring gains and losses from 2019 to 2021 was 175 million yuan, 363 million yuan, and 216 million yuan, respectively, all exceeding the performance commitments of the corresponding years.

According to the betting agreement, if the performance bet is completed for three consecutive years, members of Yibai Network's main operating and management team will be rewarded with excess performance. Some industry insiders said that its core management team is very likely to receive a reward of more than 60 million yuan.

The reasons why Yibai Network has achieved such great success are due to the following key points.

In terms of business categories, Yibai Network mainly operates general category businesses. It adopts a differentiation strategy, avoiding categories in the red ocean market and focusing mainly on relatively unpopular niches with stable market demand. In terms of sales channels, it chooses multi-channel operations such as Amazon. In terms of R&D capabilities, it improves its core competitiveness from multiple aspects such as increasing R&D expenses, accumulating core technologies, and establishing intelligent stocking systems.

Overall, it is not easy for Yibai Network to maintain such excellent performance during the turbulent period of the industry. On the basis of improving its core competitiveness, it pays attention to legality and compliance, and its business style is relatively stable, which can be regarded as a reference for sellers.

Yibai Network

Semi-annual report

profit