With sales of 4 billion in three quarters, this cross-border giant is amazing!

The home furnishing industry was booming in 2020 and is still booming in 2021. Recently, cross-border sellers have also handed in their third-quarter report cards. Among them, Henglin shares sold 3.871 billion yuan in three quarters, Jihong shares...

Henglin shares' third quarter revenue was 1.563 billion yuan

Henglin Co., Ltd.'s latest quarterly report shows that its operating income in the third quarter was 1.563 billion yuan, an increase of 8.65% over the same period last year. Among them, the net profit attributable to the listed company was 98.94 million yuan, a decrease of 35.05% over the same period last year.

As of the third quarter of 2021, Henglin Co., Ltd.'s revenue for three quarters was 3.97 billion yuan, an increase of 23.11% compared with the same period in 2020. The net profit attributable to the parent company was 265 million yuan, a decrease of 12.15% compared with the same period last year.

According to the performance data released by Henglin Co., Ltd., the company's revenue is on the rise, but its net profit is on the decline. Relevant data show that due to the impact of shipping and the epidemic, its production capacity has been affected to a certain extent, resulting in a slowdown in its revenue compared with the same period last year. The decline in net profit was affected by the rise in raw material prices, the appreciation of the RMB, and the epidemic in the Vietnamese factory.

Obviously, most companies this year have not been able to escape the impact of the volatile shipping costs and rising raw material prices. As for the impact of the blocked account, Henglin Co., Ltd. stated that its blocked brand smugdesk mainly sells ergonomic chairs and sofas and other products, and its operating income has little impact on the company's performance. The sales of other brands of the company on different platforms remain normal.

As a leader in the seating industry, Henglin Co., Ltd. mainly sells home products such as office chairs, sofas and massage chairs, and owns home brands such as nouhaus, smugoffice and smugdesk. It must be said that Henglin Co., Ltd. is well aware of the principle that eggs should not be put in one basket. The sales of its products are scattered in multiple sales channels such as Amazon, Walmart, Wayfair and independent stations.

Up to now, although the OEM and ODM sales models of Henglin Co., Ltd. have declined, they still account for a large proportion. However, Henglin Co., Ltd. also stated that it is vigorously developing its own brands. Its own brand Nouhaus has performed well, and the sales of massage chairs and office chairs produced by it continue to maintain a high growth in the Korean and American markets.

Henglin Co., Ltd. stated that it will continue to promote its branding strategy in the future, further increase its support for the brand in product research and development and market expansion, and at the same time strengthen the construction of its own cross-border e-commerce team and adjust its business cooperation model.

According to the data of many sellers this year, the sellers are also divided into two groups due to the account blocking trend. The big sellers have a strong ability to resist risks, among which Henglin shares is a representative. Even if a brand is dead, the profitability is still not to be underestimated; but for small sellers, the account blocking will undoubtedly make them annihilate and return to the pre-liberation era overnight.

Therefore, sellers should still pay attention to account security issues. Especially under the constant changes in Amazon's policies, sellers should strictly abide by the platform rules and resolutely not cross the red line to avoid unnecessary losses. At the same time, sellers should also be well aware of the principle that eggs should not be put in one basket, and operate in multiple channels to spread risks.

Jihong shares' revenue in the first three quarters was 3.847 billion

In addition to Henglin Shares, another big seller also released its third-quarter financial report.

As one of the best sellers, Jihong shares recently released its report for the first three quarters of 2021. The report shows that during the reporting period, the company achieved operating income of 3.847 billion yuan, an increase of 19.61% over the same period last year ; the net profit attributable to shareholders of the listed company was 248 million yuan, a decrease of 42.76% over the same period last year; the net profit attributable to shareholders of the listed company was 248 million yuan, a decrease of 42.76% over the same period last year ;

Net profit excluding recurring gains and losses was 235 million yuan, down 43.58% from the same period last year.

In the third quarter, Jihong Co., Ltd.'s operating income was 1.356 billion yuan, an increase of 4.32% over the same period last year ; the net profit attributable to shareholders of the listed company was 66.28 million yuan, a decrease of 62.09% over the same period last year; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 61.83 million yuan, a decrease of 62.64% over the same period last year.

As a company that once used printing and packaging as its main business, Jihong Co., Ltd. has long since shifted its development focus to Internet business, which accounts for most of the company's operating income. In terms of revenue details, the company's cross-border e-commerce business accounts for 56%, followed by color packaging cartons and boxes, accounting for 30%.

The financial report shows that the net profit attributable to shareholders of the listed company decreased by 42.76% compared with the same period last year , mainly due to the increase in raw material prices during the reporting period, which led to an increase in procurement costs, an increase in freight costs, an increase in advertising expenses for e-commerce business, and a strategic adjustment of the precision marketing advertising business. The net profit attributable to the parent company decreased by more than 55 million yuan compared with the same period last year, and the R&D expenses of the SaaS platform increased by more than 24 million yuan, resulting in a decrease of about 14.22 million yuan in net profit attributable to the parent company, which led to the decline in this data. It is worth noting that during the reporting period, Jihong's R&D expenses increased by 49.58% compared with the same period last year .

During the reporting period, due to the increase in the company's packaging business and e-commerce business revenue compared with the same period last year, the company's operating income increased by 19.61% compared with the same period last year .

Jihong shares' 2021 semi-annual report shows that the company's overseas business revenue accounts for 59%, but it is still affected by factors such as the macro environment and overseas markets. In addition, the epidemic has affected consumers' purchasing power, coupled with the impact of exchange rate risks and other factors, which has had a significant impact on the stability of Jihong shares' business.

The impact of the epidemic, rising costs, and account suspensions is huge. From the third-quarter financial reports released by big sellers this year, we can see that some big sellers have regrouped, shifted their development focus, paid more attention to research and development, and increased their investment in research and development.

Shenzhen Big Seller Subsidy Application Failed

This year's wave of Amazon account bans has indeed dealt a heavy blow to sellers, and even many big sellers could not escape the disaster.

Some time ago, the Shenzhen Municipal Bureau of Commerce issued a notice on the 2021 E-Commerce Innovation and Development Support Plan National Digital Commerce Enterprise Award Project Reward Plan, among which the cross-border shopping app Tongtuo received a reward of 3 million yuan.

However, among a number of projects that the Shenzhen Municipal Bureau of Commerce announced would not be funded by the Central Foreign Economic and Trade Development Special Funds (service trade matters) in 2021, Tongtuo did not pass the approval because "the funding amount was less than 10,000 yuan and did not meet the support method requirements."

According to the public announcement, the funding project applied for by Tongtuo was " undertaking international service outsourcing business projects - obtaining internationally recognized qualification certification ", but in the end it was not approved.

In April this year , the parent company Huading Holdings issued an announcement showing that from April 2020 to April 2021, it had received various government subsidies related to income, etc., exceeding 8 million.

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