Ningbo's 2021 revenue rose to 1.65 billion yuan, but its net profit fell sharply

Ningbo's 2021 revenue rose to 1.65 billion yuan, but its net profit fell sharply

Chuangyuan Co., Ltd. is a cross-border e-commerce seller of cultural, educational and sports goods in Ningbo. The report shows that Chuangyuan Co., Ltd.'s revenue in 2021 is expected to be 1.3 billion to 1.65 billion yuan, up 19.65% to 47.31% from the same period last year. Looking at Chuangyuan Co., Ltd. 's revenue from 2015 to 2021, its revenue in 2015 was 512 million yuan, and then it has been rising all the way. So far, its revenue has tripled. Judging from revenue alone, Chuangyuan Co., Ltd. is in a stage of continuous improvement.

 

It is important to note that despite the continued increase in revenue, the company's profits do not seem to have maintained an upward trend. The report pointed out that in 2021, the net profit attributable to shareholders of Chuangyuan Shares is expected to be 13.5 million yuan to 20.25 million yuan, a sharp drop of 60.93% to 73.95% from the previous year.

 


Chuangyuan shares gave some reasons for the decline in profits, such as the decline in the US dollar to RMB exchange rate, rising transportation costs, rising labor costs, and rising raw material costs. The gross profit margin fell by about 5.45 percentage points compared with the same period last year. The company also emphasized that the US dollar exchange rate fluctuated greatly in the past year, and although foreign exchange hedging measures had been taken, it still incurred a foreign exchange loss of about 10 million yuan.

 

In fact, it is not just Chuangyuan shares, but also other big sellers including Jihong shares that are dragged down by the above factors. In general, sellers have faced many challenges in the past year, and being able to make a profit is considered good. For example, Youkeshu, Zebao, and Tongtuo have been greatly affected by Amazon's account ban, and their parent companies have successively issued loss forecast announcements. Youkeshu's parent company Tianze Information's annual loss is even as high as 1.8 billion to 2.5 billion yuan.

 

In addition to these two data, Chuangyuan shares also announced the net profit after deducting non-recurring gains and losses, and expected to make 5 million to 7.5 million yuan, which is much less than the 13.5 million to 20.25 million yuan before deduction. Chuangyuan shares said that the amount of non-recurring gains and losses that affected the net profit attributable to shareholders of the listed company was about 9 million yuan, mainly government subsidies received.

 

The editor checked the government subsidy report released by Chuangyuan Shares in October last year and found that from January 1, 2021 to October 14, 2021, the company received a total of about 5.29 million yuan in government subsidies. The reasons for the subsidies are mainly foreign trade incentives, employment subsidies, social contribution awards, and social security subsidies for college students. In other government subsidy reports released by Chuangyuan Shares, invention patents are also one of the reasons for receiving subsidies. In recent years, the government has introduced many subsidy policies, and sellers may wish to pay more attention to them.

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