The low-price sales were hit hard, and Shenzhen suffered losses of over 10 million!

Three quarters of 2021 has passed. In this extraordinary year, big sellers are also moving forward under pressure. Recently, many cross-border big sellers have successively released their performance forecasts for the first three quarters of 2021. Under the influence of multiple factors such as the epidemic, rising raw material prices, account suspension, and shipping costs, what kind of data have these big sellers created?

Huakai Creative's losses in the first three quarters exceeded 13 million yuan

Since the account blocking wave, a large number of accounts in the industry have been blocked one after another, including some big sellers. In order to continue to operate, big sellers began to find their own way out, taking various measures such as clearing inventory at low prices and deploying other third-party platforms .

On the evening of October 14, Yibai Network's parent company Huakai Creative released its performance forecast for the first three quarters of 2021. The content showed that the company expects a net loss attributable to shareholders of the listed company of 13 million to 16.9 million yuan, compared with a loss of 19.6999 million yuan in the same period last year.

The performance forecast shows that during the reporting period, the company has completed the relevant work of acquiring Shenzhen Yibai Network Technology Co., Ltd. From July 2021, 90% of Yibai Network's equity will be included in the merger scope, and cross-border export e-commerce business will be added.

In the cross-border export e-commerce business segment, Huakai Creative stated that since 2021, under the influence of multiple factors such as the continued recurrence of the "new crown" epidemic, poor international trade links, and stricter supervision of e-commerce platforms, the cross-border e-commerce industry has faced multiple challenges, such as: a sharp increase in cross-border logistics costs, and the cost and expense pressure brought about by Europe's comprehensive withholding of VAT taxes and fees from July.

In addition, many sellers drastically cut prices to clear out excess inventory, speed up capital recovery, and reduce Amazon FBA warehouse capacity restrictions. Some sellers also sold off large quantities of inventory at low prices due to account freezes caused by serious violations of platform rules such as fake orders, which caused a severe impact on the market competition environment in the short term.

Therefore, Huakai Creative stated that affected by the above-mentioned market environment factors, Yibai Network's gross profit margin in the third quarter of 2021 decreased month-on-month . In addition, its own new boutique business since 2021 has invested heavily and is in the early stages of development and has not yet made a profit. At the same time, it continues to increase investment in information system construction and optimization, resulting in a month-on-month decrease in Yibai Network's net profit in the third quarter of 2021, approximately 20 million yuan (unaudited, 90% of which is included in the company's consolidation scope).

It is worth mentioning that the performance forecast shows that from January to September 2021, Yibai Network achieved a net profit of approximately RMB 170 million (unaudited), accounting for approximately 83% of the promised net profit of RMB 204 million in 2021. The fourth quarter is the traditional peak season for the industry, and the profit margin has rebounded from July to September. Therefore, it is expected that Yibai Network will be able to achieve the promised performance of the restructuring throughout the year.

Previously, Huakai Creative mentioned in its 2021 semi-annual report that its operating income during the reporting period was approximately RMB 77.03 million, a year-on-year increase of 47.80%; the net profit attributable to shareholders of the listed company was approximately RMB -22.134 million, a year-on-year decrease of 72.83%.

Rapid growth! Xunxing shares' net profit in the first three quarters exceeded 107 million yuan

In addition to Huakai Creative, the parent company of another cross-border big seller in the cross-border circle, Fujian Xunxing Zipper Technology Co., Ltd. , also recently released its performance forecast for the first three quarters of 2021, and the results are eye-catching.

The semi-annual report recently released by Xunxing Co., Ltd. shows that the company's main businesses include zipper industry and cross-border e-commerce business, accounting for 79.79% and 20.21% of revenue respectively.

The recently released performance forecast for the first three quarters shows that the net profit attributable to shareholders of the listed company is 107 million yuan to 123 million yuan, a year-on-year increase of 73.83% to 99.82%. In the third quarter of this year, the company expects to achieve a net profit of 34 million yuan to 50 million yuan, an increase of 36.82% to 101.21% compared with 24.8501 million yuan in the same period last year.

The performance forecast shows that the reasons for the performance changes are as follows: In the first three quarters of 2020, affected by the new crown epidemic, the company's performance declined and the comparable base was low; during the reporting period, the domestic new crown epidemic was effectively controlled and the company returned to normal operating levels; the company continued to promote lean management, "stable, deep and excellent" to optimize customer structure and other measures to improve operating efficiency.

It is worth mentioning that the company's operating income in the first three quarters of 2021 is expected to increase by about 40% year-on-year, which is also an important reason for the increase in net profit attributable to shareholders of listed companies.

Giant Star Technology expects to make a profit of about 1.2 billion in the first three quarters

As one of the largest, most technologically advanced and most powerful leading enterprises in the domestic tool and hardware industry , Giant Star Technology performed well in the first three quarters of 2021 and created impressive data. The semi-annual report released some time ago showed that the company achieved operating income of 4.45 billion yuan in the first half of the year, a year-on-year increase of 16.44%, and net profit of 728 million yuan, a year-on-year increase of 15.26%.

The first three quarters performance forecast shows that Giant Star Technology expects to achieve a net profit attributable to shareholders of listed companies of 1.128 billion yuan to 1.204 billion yuan, a year-on-year increase of 3% to 10%. In the third quarter of this year, the company expects to achieve a net profit of 400 million yuan to 476 million yuan, a change of -13.72% to 2.83% compared with 463 million yuan in the same period last year.

This achievement is hard-won for Giant Star Technology. In the performance forecast for the first three quarters, Giant Star Technology explained the reasons for the performance changes, as follows:

In the first three quarters of 2020, the company achieved sales revenue of RMB 1.052 billion from personal protective equipment such as masks , and the same category revenue was less than RMB 20 million in the first three quarters of 2021. As the European and other regional markets in the world have entered a state of recovery to varying degrees, the company's orders have continued to grow rapidly, and production capacity is in short supply in the short term. The company's main business revenue has continued to maintain rapid growth on the basis of overcoming many unfavorable factors.

However, due to multiple factors including the continued rise in prices of major raw materials, international logistics costs increasing several times year-on-year, severe shortage of shipping capacity at domestic U.S. ports, and repeated outbreaks of the epidemic overseas, Giant Star Technology Company once faced severe challenges.

Among them, due to the severe shortage of international logistics and domestic US port capacity in the third quarter, the company's tens of millions of dollars of goods were stranded in warehouses or ports, which affected the revenue recognition in the third quarter.

In addition, the performance forecast shows that the related assets of Geelong Holdings Limited and Joh. Friedrich Behrens AG, which the company completed the acquisition of during the reporting period, were in a loss-making state in the third quarter, affecting the company's third-quarter profits.

The performance forecast for the first three quarters of the big sellers has been released. From the above, it is not difficult to see that the impact of the account blocking wave on the big sellers is huge, but after suffering the impact of the account blocking wave, the big sellers also responded in time and took various ways to "save themselves". In addition, the attack of the account blocking wave also once again proved to all sellers that although there is still a lot of room for development in the cross-border e-commerce industry, the era of wild growth is indeed gone forever.

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