With annual revenue of nearly 5 billion, Shenzhen’s big seller bet wins again!

With annual revenue of nearly 5 billion, Shenzhen’s big seller bet wins again!

As the new year approaches, many big sellers are distributing year-end bonuses to their employees. For employees, the amount of the bonus is naturally linked to the income of the big sellers. Recently, the cross-border big seller Yibai Network released its 2021 performance forecast, and some sellers estimated the bonuses of its core team...

 

Annual net profit exceeds 200 million, Yibai Network completes the bet

 

For cross-border sellers, 2021 can be described as a year of hardship. Due to the endless stream of events such as the epidemic, platform bans, policy changes, soaring costs such as logistics, and platform runaways, many sellers calculated their profits for the whole year, but most sellers found that they did not reach their goals.

 

The fact that Yibai Network completed the bet with an unexpected profit really surprised many people in the industry. After all, in the eyes of many sellers, the profits from distributing goods are there.

 

According to the performance forecast issued by Yibai Network's parent company Huakai Creative, after the consolidation, Yibai Network's annual operating income in 2021 is expected to be 4.7 billion yuan, of which the full-year net profit will be between 210 million yuan and 230 million yuan.

 

Judging from the bet agreement between Huakai Creative and Yibai Network, Yibai Network has completed the bet for three consecutive years. The net profit attributable to the parent company in 2019 and 2020 was 175 million yuan and 364 million yuan respectively, exceeding the bet target.

 

 

However, the performance forecast issued by Huakai Creative shows that Yibai Network has not been fully incorporated into the company's performance report. Its "old business" is also in a loss-making state. The company's net profit loss is expected to be between 71.5 million yuan and 92.5 million yuan.

 

Huakai Creative remains optimistic about future development, saying that it expects to achieve the promised performance of the restructuring in 2021, with net profit after the consolidation date expected to be 70.6 million yuan.

 

It is reported that Huakai Creative has promoted cross-border e-commerce business to its main business and expressed optimism about its potential and development. Some industry insiders speculate that relying on Yibai Network's cross-border e-commerce business, Huakai Creative is very likely to turn losses into profits.

 

Yibai Network relied on Huakai Creative to go public. Huakai Creative acquired Yibai Network after many twists and turns. Now it seems that the two parties have achieved a win-win situation.

 

In addition, according to the gambling agreement, if the gambling is completed for three consecutive years, the members of Yibai Network's management team will be rewarded excessively.

 

Some sellers calculated the bonus clauses in the gambling agreement and found that over the next three years, members of Yibai Network's management team could receive a total of more than 60 million yuan in excess bonuses.

 

For its core team, this is undoubtedly a considerable bonus, so much so that some sellers joked that members of Yibai Network's management team could buy a house in Shenzhen Bay No. 1.

 

But judging from the current situation, the cross-border circle is full of uncertainty. Earlier, big sellers such as Youkeshu and Zebao also made bets, and completed the bets for two consecutive years, but they all suffered heavy losses at this critical point in 2021, and the mess of Jiazhilian also made many people in the industry sigh.

 

Like many big sellers, Yibai Network also suffered varying degrees of impact in 2021, but it formulated corresponding response strategies to the influencing factors and reduced a lot of losses.

 

Faced with numerous challenges, Yibai Network increases investment in "quality products"

 

Although Yibai Network's performance in 2021 has been very impressive, under the influence of the overall industry environment, Yibai Network's performance has inevitably been affected.

 

The announcement mentioned that the cross-border export e-commerce industry as a whole has faced many challenges from unfavorable factors since the second half of 2021, including repeated outbreaks of the "new crown" epidemic at home and abroad, a sharp increase in cross-border logistics costs, frequent fluctuations in the RMB exchange rate, and changes in European VAT policies . In this context, many sellers have sold off inventory at low prices in order to clear excess inventory and accelerate capital recovery, which has intensified market competition .

 

It is worth mentioning that as early as late September 2021, when an investor asked whether the high international shipping prices and the shortage of containers would have a significant adverse impact on Yibai Network's operating performance in the second half of the year, Huakai Creative stated that Yibai Network's operations in the second half of the year would be less affected by shipping overall.

 

 

As mentioned in the announcement, in the face of various challenges, Yibai Network has taken timely response strategies to minimize the impact as much as possible. The company has always insisted on effective control of the two lifelines of cross-border e-commerce - inventory and cash , continuously optimized business strategies, controlled inventory scale, reduced the risk of unsalable products, and ensured capital turnover.

 

As a cross-border seller with a wide distribution network, inventory and supply chain management play a vital role in the advancement and development of Yibai Network. In this year's industry context, Yibai Network insists on strategic and continuous investment in information system optimization and boutique business, and responds to changes in the external business environment and market competition pattern by continuously optimizing operating efficiency and business models.

 

It is not difficult to see that the previous popular products have begun to increase investment in high-quality products and control the scale of inventory. The transformation of Yibai Network has also actively created favorable conditions for performance improvement and stable operation.


In addition, the announcement shows that during the reporting period, the estimated impact of non-recurring gains and losses on the company's net profit is approximately RMB 6.5 million, mainly government subsidies.


Whether judging from the data or the achievements in recent years, the development of Yibai Network seems to have been pressed the "fast forward button".

 

Starting from 2019, Yibai Network embarked on the journey of financing and completed the merger and acquisition in 2021. In today's increasingly competitive cross-border industry, Yibai Network stands out and has successfully completed many mergers and acquisitions. What are the advantages of Yibai Network?

 

In early December 2021 , when an investor asked, " Yibai Network has been successfully involved in mergers and acquisitions and restructuring time and again, what advantages does it have among many cross-border e-commerce companies ?" Huakai Creative stated that the core advantages of the company's subsidiary Yibai Network are mainly reflected in the following aspects: independent research and development of information systems to continuously improve the level of automation and intelligent operations; implementation of a blue ocean product development strategy to strategically avoid red ocean categories; multi-category, multi-platform, and multi-market operations, with balanced development of domestic and overseas warehouse shipments to effectively diversify operating risks.

                      

At the same time, Huakai Creative also stated that it is precisely relying on the above-mentioned core advantages that Yibai Network has a stable operation and is better than other comparable companies in controlling the two major industry pain points, namely inventory and cash flow .

 

It can be seen from Yibai Network's 2021 annual performance forecast that although big sellers standing at a high position cannot avoid a series of problems including rising freight rates, rising costs and declining profits, they can still minimize the impact and achieve good results by timely changing and adjusting corresponding strategies, abiding by platform rules, and working hard on products.


Shenzhen

Big Sell

Yibai

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