Performance soared! Cross-border sales revenue reached 4.4 billion in half year, with net profit exceeding 700 million

In 2021, small and medium-sized sellers are having a harder time, and big sellers are also moving forward under tremendous pressure. Recently, big cross-border sellers have released their 2021 semi-annual performance reports one after another, and the data is very impressive.

Giant Star Technology’s half-year revenue exceeded 4.4 billion yuan, and its net profit exceeded 700 million yuan!

The report shows that Giant Star Technology's operating income from January to June 2021 was approximately 4.45 billion yuan, an increase of 16.44% over the same period last year. In the first half of 2021, the company's net profit attributable to shareholders of listed companies was approximately 728 million yuan, a year-on-year increase of 15.26% . Among them, the main business income excluding epidemic prevention materials increased by more than 50% year-on-year, exceeding the operating target set at the beginning of the year.

The North American market still maintains a high level of prosperity, and the European and other regional markets around the world have entered a state of recovery to varying degrees, which are the main driving forces for the soaring performance of Giant Star Technology. Therefore, even under the pressure of continued appreciation of the RMB, continued rise in raw material prices, a second outbreak of the epidemic in Southeast Asia, high international logistics costs and recent shortage of transportation capacity, Giant Star Technology still delivered an excellent answer.

Data shows that during the reporting period, the following three product businesses of Giant Star Technology all achieved significant growth:

The hand tool business achieved sales revenue of approximately RMB 3.187 billion, a year-on-year increase of 44.03%.

The power tool business grew significantly, with total power tool sales of approximately RMB 140 million in the first half of the year, a year-on-year increase of 205.98%.

The storage cabinet business grew by more than 20% year-on-year in the first half of the year . The US market continued to obtain important new orders from customers, and the storage cabinet business grew by 62.16% year-on-year in the first half of the year .

Overall, although the company was affected by unfavorable factors such as Amazon's warehouse capacity limitations and logistics restrictions in the first half of 2021, its progress in cross-border e-commerce was not hindered, and its cross-border e-commerce business continued to maintain rapid triple-digit growth.

Giant Star Technology believes that innovation is the soul of the company's development and has always been committed to product research and development innovation. During the reporting period, the company invested approximately RMB 120 million in research and development, developed and designed 935 new products, and obtained a total of 158 patent authorizations.

During the reporting period, the company continued to develop its main business in the field of global tool consumption, accelerated the expansion of new categories and the development of new products, and consolidated the development foundation of the power tool business. The company's main products currently include four categories: hand tools , power tools, laser measurement instruments, and storage cabinets , which are mainly used in the fields of home maintenance, construction engineering, vehicle maintenance, map measurement and mapping, etc.

At present, cross-border e-commerce business is still the top priority of Giant Star Technology's development. It not only provides Giant Star Technology with a broader channel, but also enables Giant Star's innovative advantages to be brought into play to a greater extent.

Despite the ever-changing economic situation at home and abroad, Giant Star Technology is still promoting the globalization of its production capacity. Currently, the company has 20 manufacturing bases in 9 countries around the world.

It is not difficult to see from the financial report that innovation, channels, supply chain, brand and internationalization are all the core competitiveness of Giant Star Technology. Cross-border e-commerce business is definitely one of the indispensable sectors in the development of Giant Star Technology.

Unaffected by the "account blocking wave", Jihong Co., Ltd.'s half-year revenue was nearly 2.5 billion!

Recently, another big seller in the cross-border circle, Xiamen Jihong Technology Co., Ltd. (hereinafter referred to as Jihong Co., Ltd.), also released its 2021 semi-annual performance report.

The report data shows that the company achieved revenue of 2.491 billion yuan in the first half of 2021, a year-on-year increase of 29.97%. The net profit attributable to the parent company was 181 million yuan, a decrease of 29.66% compared with the same period last year. Regarding the decline in net profit attributable to the parent company, Jihong Co., Ltd. stated that it was mainly due to the divestiture of advertising business, the decline in sales of epidemic prevention materials, the investment in research and development of the construction of e-commerce SaaS service platform, and the reduction in investment income recognized by the equity-holding subsidiary.

As a listed company with sales as its core and packaging, advertising and e-commerce going hand in hand, Jihong Holdings' semi-annual report also disclosed the operating conditions of its cross-border e-commerce business.

Data shows that Jihong's cross-border e-commerce business revenue reached 1.39 billion yuan in the first half of 2021. Compared with the same period last year (1.094 billion yuan), the e-commerce revenue in the first half of this year increased by 27.02%. The net profit attributable to the parent company of the cross-border e-commerce business was 130 million yuan, which was 21.5906 million yuan less than 152 million yuan in the same period last year, a decrease of 14.16%.

The reason for the decline in net profit attributable to the parent company is mainly due to the decline in sales of epidemic prevention materials mentioned above! Affected by the epidemic, Jihong Co., Ltd.'s net profit from sales of epidemic prevention materials in the first half of 2020 was close to 20 million yuan, while in the first half of this year, the net profit from sales of this part was only less than 300,000 yuan.

At the same time, due to the prolonged duration of the epidemic and the decline in consumer purchasing power, the company made corresponding adjustments to its cross-border e-commerce marketing strategy. The overall average order value declined, and the profitability level was inevitably affected to a certain extent.

However, from the perspective of Jihong's overall cross-border e-commerce business, it has been on a continuous upward trend! In the first half of 2021, the scale of Jihong's cross-border e-commerce business orders increased by more than 60% compared with the same period last year, the market share further expanded, the head effect further highlighted, and continued to maintain its leading position in independent e-commerce in Southeast Asia.

The success of Jihong shares is not without reason. The reason why Jihong shares can stand out in the turbulent cross-border circle this year and rise instead of decline is inseparable from its unique cross-border e-commerce business model.

Thanks to Jihong Co., Ltd.'s strategic height and forward-looking layout, Jihong Co., Ltd.'s cross-border e-commerce business is mostly based on the self-built independent station e-commerce model rather than the store opening model on platforms such as Amazon. Therefore, it is not affected by Amazon's wave of account bans and has become one of the few cross-border sellers in the cross-border circle that has not been affected by Amazon's wave of account bans.

As a leading company in the cross-border e-commerce independent station model in Southeast Asia, Jihong Co., Ltd. focuses on independent stations and accurately pushes independent station advertisements on foreign social networking platforms such as Facebook, Google, Tik Tok, Line, YouTube, Instagram, etc. for online B2C sales. The advertising channels are diverse and do not rely on a single delivery platform.

At the same time, Jihong Co., Ltd. continues to increase its investment in technology research and development in digital management and intelligent operations, upgrading and iterating data monitoring and intelligent decision-making systems for each node including product selection, design, placement, procurement, delivery, supply chain management, and profit monitoring, to maintain a good level of operational management.

While the entire cross-border e-commerce industry was reeling from the “black swan event” of Amazon’s account ban, the e-commerce business of these listed big sellers actually increased in the first half of this year.

While providing new development directions for cross-border e-commerce, it also proves to sellers that the cross-border e-commerce industry still has a lot of room for development and profit. The cross-border e-commerce industry is not in a cold winter, but the era of wild growth is gone forever.

Semi-annual report

Giant Star Technology

Jihong Shares