With a net profit of 490 million in 9 months, is Cross-Border Link going to "make a comeback"?

With a net profit of 496.7 million in 9 months, is Cross-Border Link going to "make a comeback"?

The latest financial report released by Cross-Border Link shows that from January to September this year, the company achieved operating income of 7.532 billion yuan, a decrease of 5.447 billion yuan from the same period last year, a year-on-year decrease of 41.97%; the net profit attributable to shareholders of listed companies was 497 million yuan, a year-on-year increase of 33.67%.

Cross-border Communication said that the main reason for the sharp decline in operating income was that Shenzhen Global's business basically stagnated and Paton was no longer included in the consolidated financial statements since May. For the same reason, Cross-border Communication's operating costs in the first nine months of this year also decreased by 2.63 billion yuan compared with the same period last year, a decrease of 31.57%.

Bankruptcy, debt, and the "notorious" subsidiary Global Easy Shopping... Cross-border Communication has gone from being the "number one cross-border communication company" to being the object of ridicule. Outsiders always sigh, "I saw him build a tall building, I saw him entertain guests, and I saw his building collapse." Judging from Cross-border Communication's net profit data, some people seem to see a little hope of a comeback! However, a careful study of Cross-border Communication's latest financial report shows that many of its data are still "negative."

It is reported that in the first nine months of this year, although the net profit attributable to shareholders of the listed company of Cross-border Link was 497 million yuan, the non-net profit was -0.87 billion yuan, a year-on-year decrease of 208.78%. In addition, the net assets of Cross-border Link also decreased by 5.831 billion yuan year-on-year, and now it is 2.042 billion yuan. Although the cash flow from operating activities of Cross-border Link increased by 25.43% year-on-year, it still could not escape the control of "negative numbers", as low as -445 million yuan.

At the same time, looking at the sales data of Cross-Border Link in the third quarter of this year, that is, from July to September, it can be found that Cross-Border Link is still in a loss-making state.

It is reported that in the third quarter, Cross-border Link achieved operating income of approximately RMB 1.934 billion, a year-on-year decrease of 50.32%. The net profit attributable to shareholders of the listed company was a loss of approximately RMB 64.44 million, a year-on-year decrease of 164.28%. The basic earnings per share was -0.04 yuan, a year-on-year decrease of 157.14%.

As a wholly-owned subsidiary of Cross-border Communication, some of the actions of Global Easy Shopping also directly affect the performance of Cross-border Communication. It is reported that due to the resignation of a large number of employees of Shenzhen Global, the balance of Cross-border Communication's payable employee salaries at the end of the period decreased by 97.21 million yuan compared with the beginning balance, a decrease of 54.80%; based on the basic stagnation of Shenzhen Global's business and the lack of R&D investment, Cross-border Communication's R&D expenses from the beginning of the year to the end of the reporting period decreased by 70.39 million yuan compared with the same period last year, a decrease of 84.71%; coupled with the basic stagnation of Shenzhen Global's business and the fact that Paton was no longer included in the company's consolidated financial statements since May, Cross-border Communication's sales expenses decreased by 2.38 billion yuan compared with the same period last year, a decrease of 62.08% .

Now, the latest number of pledged shares of Cross-Border Link is as high as 482.16 million shares, and the year-end balance of goodwill is as high as 141.363 million yuan. Both are in a high-risk state.

The number of shareholders of Cross-border Link decreased by 353, with an average shareholding of 45,600 yuan per household

Data shows that as of October 20, 2021, the number of shareholders of Cross-Border Communication was 62,900, a decrease of 353 households from the previous period (September 30, 2021), a decrease of 0.56%. However, the number of shareholders of Cross-Border Communication is still higher than the industry average.

After the latest financial report of Cross-border Communication was released, a group of stockholders started a heated discussion: Is the latest signal released by Cross-border Communication good or bad? There are so many words, but I don’t know whether it is a loss or a profit? Leeks said they don’t understand.

Some people have expressed strong confidence that Cross-Border Link will be delisted: If Cross-Border Link is delisted this year, it will be no problem for the stock price to reach 3 yuan by the end of the year; once Paton is unblocked, there is hope that the stock price will reach 3.6 yuan.

However, some people also said that Cross-border Communication’s stock has “no future”: its profit has dropped 1.6 times year-on-year, and it is hopeless…

Is it inevitable that the former leader, Cross-border Link, will fall into decline? Wait for the answer to be announced!

Lechuang's revenue in the first three quarters was 2.1 billion, up 72.27% year-on-year

On the evening of October 28, Lechuang Holdings released its third-quarter 2021 financial report. The report showed that in the third quarter, Lechuang Holdings' revenue was 703 million yuan, a year-on-year increase of 19.97%. The net profit attributable to shareholders of the listed company was 39.58 million yuan, a year-on-year decrease of 57.58%. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 31.07 million yuan, a year-on-year decrease of 61.39%.

In the first three quarters, Lechuang Holdings achieved revenue of approximately RMB 2.1 billion, a year-on-year increase of 72.27%, and achieved a net profit attributable to shareholders of listed companies of approximately RMB 124 million, a year-on-year decrease of 23.46%, and achieved basic earnings per share of RMB 0.69, a year-on-year decrease of 23.33%.

In its financial report, Lechuang Holdings mentioned that during the reporting period, the company's net profit declined compared with the same period last year, mainly affected by two aspects: 1. The company increased its investment in research and development, personnel and resources; 2. Affected by external macro-adverse factors, including but not limited to raw material prices, international shipping costs, exchange rates, the Vietnam epidemic and other factors, the company's net profit has been under certain pressure in the short term.

The wave of store closures this year has had a huge impact on many big sellers. However, has Lejia Holdings, one of the big sellers, been affected?

In late August, an investor asked Lechuang Holdings, "Are Amazon's US stores operating normally? What impact will Amazon's large-scale store closures have on Lechuang?" Lechuang Holdings responded: The company has always attached great importance to compliant operations, and the Amazon stores are currently operating normally and have not been affected in any way.

In addition, Lechuang Holdings also mentioned in its reply that in the first half of this year, the company's operating income on the Amazon platform was 421 million yuan, accounting for 32.17% of the total operating income.

Recently, an investor asked about "the continued traffic jam at sea, the company's plans and changes for overseas storage warehouses", and the company responded that its wholly-owned subsidiary American Lecang Company opened a new warehouse of 500,000 square feet in Pennsylvania in September this year and a new warehouse of 1.2 million square feet in Los Angeles in October.

JMET: Net profit in the first three quarters was 34.1 million yuan, down 60.35% year-on-year

Also releasing its financial report on October 28 was 3C giant Gemtek.

The financial report shows that in the third quarter, Gemtek's revenue was 198 million yuan, a year-on-year decrease of 12.93%; the net profit attributable to shareholders of the listed company was 18.56 million yuan, a year-on-year decrease of 36.30%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 10.27 million yuan, a year-on-year decrease of 63.76%.

In the first three quarters, the company achieved revenue of 498 million yuan, a year-on-year decrease of 18.16%; the net profit attributable to shareholders of the listed company was approximately 34.1 million yuan, a year-on-year decrease of 60.35%; the net profit attributable to shareholders of the listed company after deducting non-recurring items was

The net profit from profit and loss was 10.37 million yuan, a year-on-year decrease of 87.65%.

The financial report shows that the R&D expenses during the reporting period were approximately RMB 36.61 million, an increase of 94.57% from RMB 18.81 million last year, mainly due to the increase in investment in the "R&D center construction" project of this period. Other income was approximately RMB 847,000, a decrease of 70.37% from RMB 2.86 million last year, mainly due to the decrease in government subsidies received during this period.

As a comprehensive high-tech development enterprise integrating R&D, design, manufacturing, sales and services, JMET mentioned in its 2021 semi-annual report that its main businesses are ODM/OEM business and private label business, accounting for 59.78% and 40.22% of its revenue respectively.

It is not difficult to see from the financial reports released by many major sellers that factors such as sea transportation, rising costs, overseas epidemics, and exchange rates have all had a significant impact on them, but at the same time, it has also once again proved the importance of innovative research and development and compliant operations. Only by complying with platform rules can they develop steadily and long-term.

Cross-border communication

Lechuang Holdings

JAMET