Youkeshu’s performance plummeted in the first half of the year, with a net loss of over 700 million!

The semi-annual reports of Xunxing Co., Ltd., the parent company of Jiazhilian , and Tianze Information, the parent company of Youkeshu, have been released. It can be said that one is happy while the other is sad!

Youkeshu's net loss in the first half of 2021 exceeded 700 million

In recent times, many big sellers in the industry have been punished by Amazon’s account suspension, resulting in heavy losses, and Youkeshu is no exception.

Recently, Youkeshu's parent company Tianze Information released its financial report for the first half of 2021. The report showed that Tianze Information's revenue from January to June was 1.177 billion yuan, a year-on-year decrease of 50.27%; the net profit loss was 949 million yuan, a year-on-year decrease of 1285.48%.

Affected by changes in the policy environment of the Amazon platform and a significant decline in independent site business, Youkeshu's operating income in the first half of this year was 1.092 billion yuan, a year-on-year decrease of 51.12%, and its net profit was a loss of 742 million yuan.

In addition, Tianze Information also disclosed the sales situation of Youkeshu on various platforms in the first half of the year ↓

1. Amazon platform revenue from January to June was 336 million, a year-on-year decrease of 57.15%;

2. AliExpress platform revenue from January to June was 175 million, a year-on-year decrease of 45.90%;

3. Shopee platform's revenue from January to June was 124 million, up 26.89% year-on-year;

4. The revenue of other platforms from January to June was 457 million, a year-on-year decrease of 55.59%.

From the above data, it can be seen that except for the increase in revenue on the Shopee platform in the first half of this year, Youkeshu's revenue on other platforms has been in a declining state. Tianze Information also mentioned in the financial report that Youkeshu's operating performance is at risk of further decline in the short term.

Amazon, which is an important source of revenue for Youkeshu, saw its performance plummet by 57.15% in the first half of this year. Tianze Information also disclosed the main reason for the decline in performance in its financial report↓

( 1) During the reporting period, the operating rules of the Amazon platform became stricter, and the control over stores was significantly strengthened. Due to suspected violations of the operating rules of the Amazon platform, some of Youkeshu’s sales sites were closed and store funds were frozen, which objectively affected the business development on the Amazon platform;

( 2) Affected by the epidemic, Youkeshu’s sales of epidemic prevention materials on the Amazon platform increased significantly from January to June 2020. However, the overseas epidemic prevention situation has become a daily routine during this period, resulting in a larger comparison base for this period’s performance.

The impact of Amazon's account suspension on sellers is too great. Tianze Information also stated in its financial report that cross-border e-commerce export companies are generally exploring various ways to resolve problems such as store closures and fund freezes through platform appeals, litigation and arbitration, but the specific time and extent of unblocking cannot be accurately estimated.

In addition, the shrinkage of independent station business is also an important reason for the sharp decline in Youkeshu's performance. Tianze Information stated in its financial report that due to the increase in the phenomenon of withholding funds, the sales collection speed of Youkeshu's independent station business has slowed down significantly, and the cost of capital occupation has increased. In addition, the independent station business requires a large amount of advertising and marketing expenses in the early stage. Under the pessimistic financing situation of listed companies, Youkeshu does not have the conditions to continue to carry out independent station business in the short term.

When adjusting its business development direction, Youkeshu reduced the business and team size of its independent website. Later, with the loss of a large number of core business personnel, Youkeshu's independent website business shrank beyond expectations.

The supplier was owed more than 200,000 yuan in payment, but was told that he had to pay a fine of 6 times as much?

Previously, Youkeshu announced that a large number of its sites had been frozen and it was caught in a wave of account suspensions due to suspected violations of Amazon platform rules. However, Youkeshu, which has not yet recovered from the suspension storm, has encountered a more difficult problem - the inability to repay suppliers .

In July, a video of a supplier coming to Youkeshu to collect debts went viral in the industry. In the video, the supplier was holding a debt-collecting banner and blocking the door of Youkeshu, looking very emotional.

Suppliers are facing obstacles in collecting debts, and industry insiders have lamented that "collecting debts is as difficult as climbing to heaven." Indeed, when the big sellers' accounts are blocked, a large number of people must be affected. When a company no longer has the ability to continue to make profits, the suppliers' debts are not settled, and the payment period has come but they still cannot get the money, and the suppliers are left with nothing but sadness.

Nowadays, more and more big sellers are urgently changing their sales channels and clearing out their inventory to minimize losses after their accounts are blocked. Many big sellers lower their prices again and again when clearing out their inventory, and for a while, competition on the Amazon platform has become more intense.

The lips and teeth are interdependent. The wave of account bans affects not only suppliers, companies and operators, but also many sellers who are "watching the battle". The low-price spiral has gradually turned into a floor spiral. Perhaps only you can understand the feeling in your heart.

The semi-annual report is released, and the half-year revenue of Jiazhilian is nearly 200 million

Recently, Xunxing Co., Ltd., the parent company of Jiazhilian, released its performance report for the first half of 2021.

The report shows that from January to June 2021, Xunxing Co., Ltd. achieved operating income of 973 million yuan, an increase of 30.23% over the same period last year; operating profit of 85.2315 million yuan, an increase of 81.27% over the same period last year; net profit attributable to the parent company's owners was 73.0327 million yuan, an increase of 98.97% over the same period last year. In addition, its non-wholly owned subsidiary Jiazhilian had revenue of approximately 190 million yuan and a net profit of approximately 6.62 million yuan in the first half of 2021.

According to the financial report, Jiazhilian is mainly divided into two sales businesses: e-commerce brands and e-commerce services. The e-commerce brand sales business does not have a self-built sales platform, and mainly realizes export B2C sales through third-party platforms such as Amazon and Shopify independent stations. In the first half of 2021, online sales revenue through third-party sales platforms was 181.61 million yuan, a year-on-year decrease of 17.92%, accounting for 92% of the total business sales in the first half of the year; the e-commerce service business uses self-developed software: AMZTracker, Vipon, CashCowPro, Unicorn Smasher Pro, Tracker M to provide relevant software services for Amazon sellers. In the first half of 2021, the e-commerce service revenue was 15.03 million yuan, a year-on-year increase of 32.54%, accounting for 8% of the total business sales in the first half of the year.

In addition, in terms of sales of own brands, all products sold by Jiazhilian's e-commerce business are own brands. In the first half of 2021, the categories of own-brand products covered household living supplies, health and beauty products, 3C electronic products, automotive peripheral products, other products and other fields. In the first half of 2021, the revenues of the above five major categories were RMB 70.4116 million, RMB 40.5315 million, RMB 42.0855 million, RMB 25.9861 million and RMB 2.3501 million, respectively, accounting for 38.77%, 22.32%, 23.18%, 14.31% and 1.30% of the total revenue of e-commerce brand business in the first half of the year, respectively.

The company's cross-border e-commerce business mainly realizes export B2C sales through third-party platforms such as Amazon, AliExpress, and eBay . Among them, Amazon is the most important e-commerce sales platform. The company's cross-border e-commerce business is to a certain extent dependent on third-party e-commerce platforms such as Amazon. If there are major changes in the sales policies, sales and traffic allocation principles of the third-party platform, and the business strategy is not adjusted in time, it will have an adverse impact on the company's cross-border e-commerce business operations.

In response to the above risks, the company has also taken countermeasures, stating that it will explore new platforms and business models to reduce the risk of platform dependence.

The account suspension incident of Amazon in the first half of this year did have a significant impact on the big sellers, but overall, some were happy and some were sad. After experiencing this wave of turmoil, we don’t know what actions the surviving big sellers will take in the future, and in which direction they will develop, but what is certain is that for sellers, compliant operation is the only correct path!

There is a tree

Semi-annual report