The top sellers collectively handed in their reports, with the highest loss expected to be 2.5 billion in 2021

Sellers who have not been affected by the account suspension are thriving. Yibai Network, Ecovacs, XGIMI Technology, Rebecca and others have announced earnings forecasts, with Ecovacs forecasting a net profit of 2 billion yuan in 2021, leading the pack.

1. Cross-border e-commerce performance dropped sharply, and Tianze Information suffered a loss of 1.8 billion to 2.5 billion

This Tuesday, Youkeshu's parent company Tianze Information released its 2021 performance forecast , predicting operating income of 1.6 billion to 1.9 billion in 2021 , a sharp drop of more than 60% from 5.03 billion yuan in the same period last year; the net profit attributable to the company 's shareholders is expected to be a loss of 1.8 billion to 2.5 billion, compared with a loss of about 870 million yuan in the same period last year , a year-on-year decrease of 107%-187%.

The expected loss of about 2 billion yuan caused an uproar. Tianze Information said that the company's overall performance dropped significantly compared with the previous year. The main reasons are as follows:

1. Affected by changes in the Amazon platform policy environment and fierce competition in the European and American markets, the company's cross-border e-commerce operating performance this year has declined significantly;

2. Due to the uncertainty of the policy environment of cross-border e-commerce platforms and the intensified competition in the industry, the company's inventory sales this year were lower than the management's expectations, and there was a risk of impairment. The company conducted a comprehensive inventory check at the end of the period and made corresponding provisions for inventory depreciation. At the same time, due to the lower-than-expected operating performance of the main business of cross-border e-commerce, the goodwill formed by the subsidiary Youkeshu showed signs of impairment. The company conducted a preliminary impairment test and made corresponding provisions for goodwill impairment.

In addition, the subsidiary Yuanjiang Information also showed signs of sharp deterioration in performance and impairment. Tianze Information made full provisions for impairment of its large overdue accounts receivable and inventory. By the end of 2021, Yuanjiang Information will no longer be included in the company's consolidated financial statements.

In the face of two consecutive years of large losses , Tianze Information released the " 2022 Employee Stock Ownership Plan (Draft)" in the hope of boosting performance and employee enthusiasm.

The shareholding plan intends to use 6.49697 million repurchased shares . The participants are directors, supervisors, senior managers, middle-level managers and core backbones except independent directors , with a total number of no more than 200 people. The acquisition price is 1 yuan per share. The highest transaction price of the repurchased shares is 17.851 yuan per share , and Tianze Information's current share price is about 6.4 yuan per share.

The shares held by employees will be unlocked in two phases, 14 months and 26 months after the transfer of shares , with a 50% share unlocking ratio in each phase. The unlocking conditions include performance assessments at both the company and individual levels. The company requires that the growth rate of operating income in 2022 and 2023 should be no less than 30%, based on the operating income of the previous year.

After Tianze Information's shareholding plan was released, it quickly attracted the attention of the Shenzhen Stock Exchange. Tianze Information was required to explain the basis and rationality of the employee stock ownership plan's transfer price of RMB 1 per share ; and to explain the rationality of setting the performance evaluation indicator as "revenue growth rate of not less than 30% " in combination with the industry characteristics, the growth rate of operating income in the past three years, and the large losses in two consecutive years .

Tianze Information is expected to suffer a serious loss, which is also affected by its main business of cross-border e-commerce . Therefore, the Shenzhen Stock Exchange also requires Tianze Information to explain the number of stores that have been closed by various e-commerce platforms for violating platform policies, the amount and proportion of frozen funds, the impact on operating income and net profit, and the progress of resolving violations. In addition, it also requires Tianze Information to explain whether the external operating environment faces the risk of continued deterioration and whether the decline in the company's operating income and net profit is sustainable, based on the company's current main platforms, sales areas and models for cross-border e-commerce business, and industry competition.

Public data shows that Youkeshu has had about 400 sites blocked on Amazon , with a total of about 128 million yuan in frozen store funds. In the first half of 2021, Tianze Information's net loss reached 949 million yuan, a year-on-year decrease of 1285.48%, of which Youkeshu's net profit loss was 742 million yuan. Judging from the current full-year performance, the aftershocks of the account blockade on big sales will be difficult to eliminate in a short period of time.

From profit to loss, Xinghui Precision expects a loss of 1.24 billion to 1.42 billion

Zebao is a representative seller that adopts the boutique model. Most of its products are independently developed and designed, covering smart charging, smart audio and video, smart home, smart car, smart beauty and other fields. They are second to none on platforms such as Amazon, but the account blocking incident has dealt a heavy blow to Zebao.

Yesterday, Xinghui Co., Ltd. released its 2021 annual performance forecast. The company made a profit of 210 million yuan in the same period last year , but in 2021, Xinghui Precision expects a loss of 1.24 billion to 1.42 billion yuan, and its performance has turned from profit to loss.

According to Xinghui Precision Analysis, in 2021, the subsidiary Zebao was affected by the "Amazon account blocking" incident, which caused the company's performance in the second half of the year to suffer a blow. The company's consumer electronics segment is expected to achieve operating income of approximately 2.6 billion yuan in 2021, a year-on-year decrease of 46%.

In mid- June last year , Amazon suspended sales of three brands of Zebao, namely RAVPower, Taotronics and VAVA. As the platform further strengthened the supervision of operating rules, the stores of its brands Anjou , Sable and Hootoo were also suspended. As of mid-October , the number of sites where Zebao was suspended from selling by Amazon totaled 330, accounting for 70.21% of the company's total number of sites , and the frozen funds of the relevant stores amounted to RMB 60.0346 million.

Affected by this, Zebao 's sales revenue in the first three quarters of 2021 fell 24.83% compared with the same period last year , of which sales revenue in the third quarter fell 74.88% year-on-year .

Considering that the "Amazon account suspension" incident is difficult to resolve in the short term, according to the relevant regulations of the China Securities Regulatory Commission, and based on objective factors and future business development judgment, Xinghui Precision intends to make an impairment provision of approximately RMB 600 million for the goodwill of the asset group where Zebao is located . It also makes an inventory impairment provision of approximately RMB 400 million for the ending inventory of Zebao Technology.

E-commerce sector suffers losses, Huading shares expects losses of 520 million to 780 million

Tongtuo was also hit by the account blocking incident, but in comparison, its losses were much less than those of Youkeshu and Zebao.

Yesterday, Huading Co., Ltd. issued a notice of expected loss for 2021. According to calculations, the net profit attributable to shareholders of the listed company is expected to increase compared with the same period last year, and the net profit attributable to shareholders of the listed company is expected to be between -520 million yuan and -780 million yuan.

The main reason for the loss is still the e-commerce sector incident. Since mid-to-late July, the Amazon incident of its subsidiary Tongtuo Technology has affected the sales of multiple brands in Amazon's stores and frozen their funds, resulting in a significant decline in Tongtuo's operating income and gross profit in the second half of the year. At the same time, in order to reduce the impact of the Amazon incident, Tongtuo Technology's related return shipping fees, storage fees, advertising fees, etc. have increased.

In addition, since 2021, the tax policy of cross-border e-commerce platforms has changed, and the platform has begun to implement a policy of withholding VAT, which has led to a substantial increase in VAT taxes. At the end of the reporting period, the company made corresponding provisions for asset impairment losses on inventory and accounts receivable affected by events such as Amazon.

Like Youkeshu's parent company Tianze Information, Huading shares has taken into account the impairment of goodwill and expects to set aside impairment provisions for goodwill generated by the acquisition of Tongtuo and other companies, with an amount of approximately 200 million to 289 million yuan.

According to Huading Shares' announcement, in the account blocking incident, a total of 54 stores of Tongtuo were banned and closed , possibly because some inappropriate reviews of some products were suspected of violating Amazon platform rules, including suspected freezing of RMB 41.43 million in funds, accounting for 4.27% of the company's monetary funds at the end of 2020. The sales of the affected stores accounted for about 18% of Tongtuo's total sales in the first half of 2021, which also had a certain adverse impact on the development of the annual cross-border e-commerce business.

Unlike ZEBO, Tongtuo follows the "pan-channel, pan-supply chain" model. Apart from Amazon, Tongtuo's stores and self-operated websites on other platforms have not been affected. Since then, Tongtuo has increased the sales share of other e-commerce platforms such as eBay, Walmart, AliExpress, Lazada, and increased investment in self-operated websites, accelerating the expansion of offline physical store channels in Europe and the United States. Its products include dozens of categories and hundreds of thousands of products, including game accessories, computer accessories, mobile phone accessories, home furnishings, health and beauty, auto parts, photographic equipment, audio and video, clothing, toys, and outdoor.

Shortly after the account blocking incident, Tongtuo launched a one-stop cross-border incubation and training service, stating that on the premise of stabilizing its business, it would list training, incubation and investment as the "three pillars" of its development strategy , becoming a representative of the horizontal business development of leading sellers.

Of course, cross-border sellers not only suffered losses in 2021, but many companies also made a lot of money.

2. Strong profitability, many Amazon sellers make money quietly

"Making a fortune in silence" has always been the impression that sellers in the industry have of their low-key peers. According to the 2021 performance forecasts released to the public, companies including Huashengchang, Rebecca, Ecovacs, and Yibai Technology have all achieved profitability. They have one thing in common - Amazon sellers.

Huashengchang expects net profit of 140 million to 160 million

Huashengchang recently released its 2021 annual performance forecast, and it is expected that the net profit attributable to shareholders of the listed company during the reporting period will be 140 million to 160 million yuan , a decrease of 52.60% to 58.53% compared with the same period last year .

Some sellers may be unfamiliar with Huashengchang, which is engaged in technical research, design, development, production and sales of measuring and testing instruments for global customers. It has been OEM for major American brands such as Flir and Ridge for many years , and has also opened a store on Amazon.

According to the performance forecast, although Huashengchang's net profit is expected to exceed 100 million yuan in 2021, it is still down compared with the same period last year. The main reason is: due to the epidemic in 2020, the company's sales of epidemic prevention products surged, resulting in a higher performance base in the same period last year. During the reporting period, sales of epidemic prevention products decreased significantly compared with the same period last year.

During the reporting period, sales revenue of non-epidemic prevention products increased by 31% year-on-year and 46% year-on-year compared with the same period in 2019 before the epidemic. The company's overall operating income increased by 58% compared with the same period in 2019 before the epidemic, and the net profit attributable to listed companies increased by 1.3% year-on-year.

The company's net profit attributable to shareholders increased by more than 65% compared with the same period in 2019.

Selling epidemic prevention supplies has been a good business in the past two years, and the coronavirus diagnostic reagents are in great demand. Huashengchang was previously asked a question: Has the company's coronavirus diagnostic reagents started selling? In response, it said that it is actively trying to sell coronavirus in vitro diagnostic reagents, and the reagent samples have been tested on the client and the relevant registration is being processed.

The surge in epidemic prevention supplies in 2020 has also boosted the company's revenue from non-epidemic prevention products to a certain extent. This is a virtuous circle, and Huashengchang's future development is promising.

Amid the epidemic, sales of epidemic prevention products have skyrocketed, and another company that makes money from such products is iHealth.

According to the performance forecast, iHealth expects to achieve a net profit attributable to shareholders of listed companies of RMB 900 million to RMB 1.2 billion in 2021, an increase of 271.40% to 395.19% over the same period last year ; the net profit after deducting non-recurring gains and losses is RMB 850 million to RMB 1.15 billion, an increase of 243.46% to 364.68% over the same period last year.

Some time ago, iHealth sold iHealth test kits to the ACC in the United States and signed an order of 8.1 billion yuan, which made its peers envious. In the context of the shortage of new crown test kits in the United States, iHealth has made huge profits from such products.

Jiuan Medical only started to provide forehead thermometers, blood oximeters and other medical products to overseas markets in March 2020. In July of the same year, the daily sales of its forehead thermometers on the Amazon platform exceeded 20,000 units. Its iHealth forehead thermometers, blood pressure monitors, blood glucose meters and other products are all "regulars" on Amazon's BSR list in various subcategories. In 2020, iHealth products accounted for 70.62% of the company's operating income.

In 2021, epidemic prevention supplies continued to bring high profits to companies such as Jiuan Medical and Huashengchang. The epidemic in Europe and the United States boosted the profits of sellers of epidemic prevention supplies. As the epidemic became normalized and market demand rebounded, sellers of products such as wigs and small appliances also achieved high performance and considerable profits.

Wig giant Rebecca expects net profit of 58 million to 61 million in 2021

Hair products giant Rebecca also released its 2021 annual performance forecast, predicting that the company will achieve a net profit attributable to shareholders of listed companies of 58 million to 61 million yuan, an increase of 19.86 million to 22.86 million yuan compared with the same period last year, a year-on-year increase of 52.07% to 59.94%.

The announcement shows that the performance forecast period is from January 1, 2021 to December 31, 2021, and the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses is 55 million yuan to 58 million yuan, an increase of 36.69 million yuan to 39.69 million yuan compared with the same period last year, an increase of 200.38% to 216.77% year-on-year.

It is understood that in 2020, Rebecca achieved a net profit attributable to shareholders of the listed company of 38.14 million yuan; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 18.31 million yuan.

Rebecca focuses on the research and development, design, production and sales of hair products. It owns independent brands such as "Rebecca", "Sleek", "NOBLE", "JOEDIR", "Magic" and "QVR" around the world . Its products are mainly sold to North America, Africa, Europe and Asia. The company's export revenue accounts for about 80%.

In 2017, Rebecca began to expand its online sales channels. Currently, it has layouts on mainstream platforms such as AliExpress and Amazon, and the company's online sales account for about 10%. Zheng Wenqing, chairman of Rebecca, said that in the future, the sales share of online channels will gradually increase, and the proportion should be between 20% and 25%.

According to Rebecca's announcement, the main reason for its expected profit increase in 2021 is the slow recovery of the global economy amid the spread of the epidemic, and the rebound in demand in the hair products market, especially in the United States. Affected by the government's economic stimulus policies, the demand for hair products has recovered strongly, the company's orders have increased, and the company's domestic sales have rebounded significantly, driving the company's revenue growth, resulting in a substantial increase in the company's net profit compared to 2020.

Yibai Network and Ecovacs saw a sharp increase in profits

In addition to the above sellers, sellers that are more familiar to cross-border sellers, such as Yibai Network, Ecovacs, and Xgimi Technology, have also released their 2021 performance forecasts. Several of them have achieved excellent results and their profits will also increase significantly.

Huakai Creative, the parent company of Yibai Network, issued a performance forecast. It is expected that after the consolidation, Yibai Network's full-year operating income in 2021 will be 4.7 billion yuan, of which the full-year net profit will be between 210 million yuan and 230 million yuan. This net profit is enough for Yibai Network to exceed the bet. Combined with the data of 2019 and 2020, Yibai Network has completed the bet for three consecutive years. In the industry context of 2021, this excellent net profit data makes many peers envious!

Such excellent performance is closely related to Yibai Network's timely adjustment based on the market. Previously, Yibai Network was a wholesale seller. Based on market conditions, the company increased its investment in high-quality products and controlled the scale of inventory. Good inventory and supply chain management also played a great role in its development.

Yibai Network operates dozens of product lines including industry, auto parts, home furnishings, sports and outdoor, 3C digital, maternal and child pets, health and beauty, model aircraft toys, etc. The impact of the epidemic on its business is completely controllable, because the company implements a multi-category development business strategy, does not rely heavily on a single category and product, and can more effectively respond to emergencies. At the same time, the company can quickly respond to demand, develop new products in a timely manner, and promote the performance growth of each product line.

According to the performance forecast of Xgimi Technology, the net profit attributable to shareholders for the whole year of 2021 is expected to be approximately 484 million yuan, an increase of about 80.07% year-on-year.

The reasons for the performance changes are: 1. Impact of main business: In 2021, the company's product market performed well, sales continued to grow, driving revenue growth; changes in the company's pricing strategy and product structure, as well as the company's continued introduction of self-developed optical machines led to an increase in gross profit margin. 2. Impact of non-recurring gains and losses: In 2021, the company used part of its idle funds for cash management to obtain income, resulting in an increase in income from non-recurring gains and losses compared with the same period last year.

Ecovacs once again proved its strength with its 2021 annual performance.

The announcement shows that in 2021 , Ecovacs expects to achieve a net profit attributable to shareholders of listed companies of RMB 2 billion to RMB 2.05 billion, an increase of RMB 1.35 billion to RMB 1.41 billion compared with the same period last year, a year-on-year increase of 211.9% to 219.7%; the non-net profit is expected to be RMB 1.85 billion to RMB 1.9 billion, a year-on-year increase of 248.4% to 257.8%.

Ecovacs specializes in the research and development, design, manufacturing and sales of household service robots, and has created products such as the floor cleaning robot Deebot, the automatic window cleaning robot Chuangbao, the air purification robot Qinbao, and the robot housekeeper Qinbao. Ecovacs is very popular on Amazon and is the best seller of cleaning robots on the platform .

As cross-border sellers have released their 2021 performance forecasts, we can see that the net profits of industry sellers have begun to polarize in the past two years. Ecovacs expects a net profit of up to 2 billion, while Youkeshu expects a loss of 2.5 billion. The epidemic is further accelerating the reshuffle of the cross-border industry. Next, while more and more sellers will quickly become popular, a group of sellers will quickly disappear in the competition.

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