Net profit has been in the red for five consecutive years! The former "king of cross-border" continues to perform poorly

Under the influence of multiple factors such as the epidemic, transportation, and costs, many companies have suffered varying degrees of impact in 2021, and Shangying Global is one of them. Recently, Shangying Global released its 2021 annual performance forecast, and it is expected to lose at least 300 million yuan.

Expected loss of 300 million! Shangying Global has been losing money for five consecutive years

The performance forecast of Shangying Global Co., Ltd. (hereinafter referred to as " Shangying Global ") shows that the net profit attributable to shareholders of the listed company in 2021 is expected to be a loss of 283 million yuan to 424 million yuan, which is a continued loss compared with the same period last year; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses is expected to be 305 million yuan to 457 million yuan.

In fact, this is not the first time that Shangying Global has suffered losses. From the company's performance reports in recent years, it can be seen that the company's non-net profit has been in the red for five consecutive years, and the cumulative loss has even reached 3 billion yuan.

As for the reasons for the loss, Shangying Global stated in its performance forecast that due to the impact of the 2020 COVID-19 pandemic, the United States was particularly severely impacted, and the company's main business is also concentrated in the United States. Therefore, the operation of the company's overseas subsidiaries was almost stagnant in the first half of 2020, and only gradually recovered in the second half of the same year. In 2021, although the company's clothing factories in Central and North America gradually returned to a stable production state, market demand was still affected by the epidemic, which affected the company's performance.

Shangying Global also mentioned that due to the company's heavy operating cost burden, it is expected that the company will suffer a large operating profit loss in 2021.

It is worth mentioning that Shangying Global expects to achieve a main business income of 135 million yuan in 2021, and a net asset of 274 million yuan to 411 million yuan at the end of the period. At the same time, Shangying Global mentioned that since the 2021 annual audit report has not yet been disclosed, assuming that the company's operating income is less than 100 million yuan after deducting business income unrelated to the main business and income without commercial substance, the company's stock may be subject to a delisting risk warning.

Shangying Global's performance and various data in recent years have aroused discussions among a number of industry insiders. Some industry insiders have raised questions: what are the reasons for the company's continued poor performance in recent years?

In fact, from the continuous actions of Shangying Global in recent years, it can be seen that the company has been trying various routes. Relevant information shows that Shangying Global was called Dayuan Shares at that time. Since it landed on the A-share market in 1999, its main business has changed many times, such as plastic boards, PVC boards, clothing, rebar , etc., and was once called the "king of cross-border" by industry insiders . However, these actions have not achieved outstanding results, and the non-net profit has been negative for many consecutive years.

In 2015, Dayuan Shares was officially renamed Shangying Global, and in the second year, it completed the acquisition of 95% of the equity of Global Star , a clothing company . Since then, Shangying Global has embarked on a "M&A journey" and has completed more than 20 M&A deals in the following years.

However, Shangying Global's various attempts have not achieved obvious results, and the company's performance has not shown an upward trend. Especially since 2019, Shangying Global's various data show that the company's operations are not optimistic. The annual revenue was only 1.166 billion yuan, and the net profit attributable to the parent company also lost more than 300 million yuan.

Overall, Shangying Global turned losses into profits in 2016, with revenue reaching 430 million yuan, net profit of nearly 30 million yuan, and non-net profit of more than 26 million yuan. However, it has been on a downward trend since then. From 2017 to 2021, the company's non-net profit has been in the red for five consecutive years...

However, Shangying Global is not the only company suffering from losses. Another company also lost more than 200 million in the past year .

Yinzhijie's net loss exceeded 200 million, and e-commerce revenue remained stable

Recently, many big sellers have handed in their 2021 results. Some big sellers have seen their performance soar, with net profits leading the pack, while others have seen their performance plummet, with losses reaching hundreds of millions of yuan. As for the sellers that have suffered losses, not only the Shangying Global mentioned above, but also the sudden change in performance of Yinzhijie.

Data from Yinzhijie's financial report shows that the net profit loss attributable to shareholders of the listed company in 2021 is expected to be between 200 million yuan and 250 million yuan, a significant decrease compared to 20.8583 million yuan in the same period of 2020 ; the net profit loss after deducting non-recurring gains and losses is between 210 million yuan and 260 million yuan.

On the day when Yinzhijie released its performance forecast, its net profit turned from profit to loss, causing the company's stock price to plummet 12.24% to 15.34 yuan on the same day , with a total market value of 10.8 billion yuan.

As for the reasons for the performance changes, Yinzhijie explained that in 2021, the company's two main businesses were greatly affected. Financial informationization business and mobile information service business were affected by the increase in channel costs of telecom operators and industry competition, resulting in a decrease in operating income and gross profit margin compared with the previous year, and operating profit was also in a loss state. In addition, a large amount of goodwill impairment was also a major reason for its turnaround from profit to loss.

Unlike the financial information business and mobile information business, both of which saw a sharp decline in revenue and net profit, Yinzhijie's e-commerce segment's operating income grew steadily compared with the previous year, and its operating performance also remained stable.

It is understood that Shenzhen Yinzhijie Technology Co., Ltd. (hereinafter referred to as "Yinzhijie") was established in 2007. Financial information services, mobile information services and e-commerce are the company's three main business sectors. The operating income in the field of e-commerce services mainly comes from the holding subsidiary Anke Innovation, which mainly focuses on the research and development of home security and daily 3C electronic products . It has its own brands such as ANNKE, VACOS, and EASEHOLD. The production of products is mainly based on outsourcing manufacturers. It uses Amazon, Ebay and its own platform to sell its products to more than 80 countries and regions around the world, including North America, Europe and Australia .

Since the specific business data for 2021 has not yet been announced, based on the financial report data of Yinzhijie in 2020, Yinzhijie's operating income was 1.39 billion yuan and its net profit was 20.85 million yuan. Among them, the operating income of e-commerce service business was 431 million yuan, accounting for nearly one-third of the revenue.

The risks have already emerged. As early as in the 2020 financial report data, Yinzhijie mentioned that its company has short-term profitability risks, and the company's emerging businesses may affect the company's short-term profitability to a certain extent; the risk of operating capital shortage, the company's accounts receivable and the continuous expansion of business scale will bring certain risks to the company's subsequent business operations. In addition, the company's operating and management risks and goodwill impairment risks are one of the important reasons affecting Yinzhijie's business data.

For many big sellers, the past two years have been a fast track for the development of e-commerce, which is a new outlet for development. Many big sellers have also achieved considerable performance; but under the dual pressure of the epidemic and the pressure of account suspension, many sellers are being reshuffled in the industry, and more and more sellers are forced to leave the circle due to revenue and net profit losses. Sellers need to formulate a reasonable strategy in the new year to occupy a place in the field of cross-border e-commerce.

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