Some sell wine, some build ships! The diversified layout of big sellers begins

In recent years, more and more cross-border sellers have diversified their layout. With the development of cross-border e-commerce, the competition in the sales track has become increasingly fierce, and it has become difficult for sellers to increase their performance. In addition, more roads mean more choices and more guarantees for risk diversification. Therefore, since last year, many big sellers have embarked on the road of diversified layout.

Some of them started from a single category and tried other categories, some planned their business layout around the cross-border e-commerce industry, such as training, incubation, logistics, and some even directly crossed the border and invested in the wine industry and started selling wine.

Breaking the circle to make profits, mobile phone cases sell well and a joint venture subsidiary is established

When Shenzhen's big seller Jiemite successfully listed on the A-share market, many people did not understand why a mobile phone case company with no technical content and barriers could be listed. Obviously, Jiemite was well aware of its own disadvantages, and one and a half years after its listing, it established a joint venture subsidiary to deepen upstream and downstream collaboration and expand its business layout.

As we all know, JMET is the "first stock of mobile phone cases". From this, we can see that its main business is the production and sales of mobile phone cases. Therefore, the establishment of this subsidiary is also the beginning of its attempt to break the circle.

From the announcement of "About Overseas Investment and Establishment of Joint Venture Subsidiaries" released by JMET in February this year, we can know that the name of the joint venture subsidiary is Shenzhen JMET Technology Co., Ltd. (hereinafter referred to as "JMET"). From the name, we can also know that the name of its joint venture partner contains the word "Sheng". The company jointly invested with JMET is called Shenzhen Tycosun Technology Co., Ltd. (hereinafter referred to as "Tycosun").

From the content of the announcement, it can be seen that Taikosheng's main business scope includes the technical development and sales of automation equipment, packaging products, non-woven bags, luggage, clothing, electronic products, electronic craft gifts, computer software and hardware and peripheral equipment, and communication products; research and development of intelligent systems and underwear (cloth and silicone), etc.

Therefore, the main business scope of Jiemeisheng was also defined from Taikosheng, including the research and development, production and sales of plastic products, electronic products, communication products, smart electronic products, mobile smart terminal protective cases, mobile phone accessories, leather products, hardware products, molds; import and export of goods, import and export of technology.

The establishment of a joint venture subsidiary by Gemtek can be said to be an attempt to break out of the smart terminal protective covers such as mobile phone cases, or it can be said to be forced into it.

According to the news, on April 15, the share price of Gemtek plummeted, hitting a record low. As of the close of the market on the 15th, Gemtek fell 2.37%, closing at 20.15 yuan, and the intraday share price hit a record low of 20.11 yuan. In the past year, Gemtek's share price has fallen by 44.85%, while the CSI 300 Index fell by -15.36% during the same period.

In fact, since its listing, the share price of Gemtek has been declining. Gemtek was listed on the Shenzhen Stock Exchange's Growth Enterprise Market on August 24, 2020, with an issue price of 41.26 yuan per share. On January 7, 2021, Gemtek fell below the issue price, with the lowest intraday price of 38.10 yuan. Since then, it has continued to decline until today.

In addition, according to the 2021 annual performance forecast of Gemtek, the company's operating income in 2021 is expected to be 720 million yuan to 740 million yuan, a year-on-year decrease of 13% to 16%; the net profit attributable to shareholders of the listed company is 24 million yuan to 31 million yuan, a year-on-year decrease of 71% to 77%; the net profit after deducting non-recurring gains and losses is a loss of 4 million yuan to 8 million yuan, compared with a profit of 89.81 million yuan in the same period last year.

The establishment of JMS is also an attempt by JMET to save itself. In the above announcement, JMET pointed out that this investment will enable it to further expand its business, take it to a higher level in the field of production and manufacturing, and promote the coordinated development of the company's upstream and downstream businesses. It is conducive to enabling the high-quality development of the company's business. From the perspective of the long-term development of the company's business, the establishment of the joint venture will have a positive impact on the company's performance improvement.

It is still unknown whether Gemtek can create a second growth curve with the help of this joint venture, but judging from its performance, it has chosen a good partner. The financial data for the three years from 2019 to 2021 show that Tycosun's revenue was 179 million yuan, 230 million yuan, and 258 million yuan, and its net profit was 21.86 million yuan, 28.72 million yuan, and 28.52 million yuan.

The diversified layout of Dama: some people sell wine, some people build ships

In developing diversified layout, the actions of big sellers are far more than just expanding product categories. Some of them started logistics, some carried out cross-border e-commerce training business, and some directly stepped out of the cross-border e-commerce industry and entered the field of Maotai-flavor liquor and shipbuilding.

Jihong shares: cross-border layout of wine industry

In March this year, an investor asked whether Jihong Co., Ltd. had successfully transformed into a wine business and whether it would continue to focus on wine or cross-border e-commerce in the future. Jihong Co., Ltd. replied that wine is a category for the company's new domestic retail business.

If it weren’t for the above questions and answers, many people would not have realized that the diversified layout of cross-border sellers is no longer limited to the field of cross-border e-commerce.

On June 29 last year, when the cross-border e-commerce industry was experiencing turbulence, Jihong Shares, a major independent seller in Southeast Asia, suddenly announced that based on the overall development strategy planning and industrial layout in the liquor industry, Xiamen Jihong Technology Co., Ltd. (hereinafter referred to as "Jihong Shares") established a wholly-owned subsidiary, Xiamen Zhengqi Private Equity Fund Management Co., Ltd. in Xiamen with its own funds of RMB 10 million.

In February this year, Jihong Co., Ltd. responded to investors' questions and said that its current free sauce brands include Heyu, Guifan, Guishangqu, etc.

In addition to developing the liquor business, Jihong Co., Ltd. has also entered the cross-border service industry. In January this year, the independent station SaaS service GiiMall launched by Jihong Co., Ltd. was launched for public testing. As a SaaS service platform focusing on cross-border e-commerce, GiiMall mainly provides merchants with product selection, website building, marketing, warehousing, logistics and other services.

Lege Holdings: Layout of overseas warehouses and shipbuilding

I believe many people still remember the time when Leckey publicly criticized COSCO Shipping. In August 2020, Leckey suddenly issued a "Call for Foreign Trade Export Enterprises to Jointly Call for Stabilizing Export Container Shipping Prices". In this call, Leckey denounced the behavior of shipping companies forming alliances and not actively increasing shipping capacity, and even increasing profits by significantly raising prices under the rapid growth of domestic export business. At the same time, it also "named" COSCO (i.e. "COSCO Shipping Container Lines") in the call, believing that it should actively increase shipping capacity.

After this incident, and with freight rates rising amid the pandemic, Leckey may not want to let its fate be in the hands of shipping companies, so it took the initiative. Earlier this year, Leckey said it planned to sign a contract with a first-class domestic shipyard to build a 1,800TEU container ship, with a total construction cost of US$32.6 million (about RMB 207 million in total). The new ship construction has been approved at the 37th meeting of the fourth board of directors of the company held on January 27, 2022. The delivery date is March 31, 2023.

In terms of logistics, in addition to shipbuilding, Lechuang has also stepped up its efforts to deploy overseas warehouses. In May last year, Lechuang said in response to investors' questions that the overseas warehouse business has gradually begun to make profits. In October of the same year, media reported that as of now, Lechuang Lechuang has deployed 17 public overseas warehouses around the world, with a total storage area of ​​3.2276 million square feet. Among them, there are 14 overseas warehouses in operation, with a total storage area of ​​2.883 million square feet, equivalent to 267,800 square meters. There are also 344,700 feet of public overseas warehouses under construction, equivalent to 32,000 square meters.

It is worth mentioning that regarding the controversial shipbuilding business, Lechuang’s chairman Xiang Lehong explained that Lechuang’s ship business is actually an extension of its overseas warehouse business.

Not only did some people start selling wine, but some people also built ships. Big sellers also tried their best to expand their multi-business layout. With these unexpected cases, it makes more sense to look at Tongtuo's cross-border e-commerce training business and Anker Innovations' agency operation business.

Lechuang Holdings