The acquisition of Yibai Network has been finalized, and more than 100 store links have been exposed...

After many twists and turns, Huakai Creative's acquisition of Yibai Network has finally been finalized. Yibai Network sold 90% of its shares for 1.51 billion yuan. Recently, it also announced the store links of the top 10 subsidiaries in terms of revenue on various platforms, employee incentive plans, and the approximate revenue and profits for the first three months of this year...

The top 10 subsidiary stores on each platform were revealed...

If a major company wants to go public, its core information still needs to be revealed to the public. According to the latest announcement from Huakai Creative, Yibai has announced the number of its stores on major platforms and the information on stores with the highest revenue rankings.

Yibai stated in the announcement that the number of stores operated on major platforms in 2020 is:

Amazon: 498 stores

eBay: 101 stores

AliExpress: 379 stores

Wish : 366 stores

Lazada : 186 stores

As shown in the above figure, as of 2020, 498 Amazon stores brought 2.69 billion yuan in revenue to Yibai, 101 eBay stores brought 557 million yuan in revenue, 379 AliExpress stores brought 200 million yuan in revenue, 347 Shopee stores brought 120 million yuan in revenue, and 186 Lazada stores brought 140 million yuan in revenue.

The reply letter pointed out that in 2019 , the number of online stores that Yibai Network had activated in 2018 and earlier on the five major platforms of Amazon, eBay, AliExpress, Shopee, and Lazada accounted for 37.72%, 54.88%, 52.17%, 45.31%, and 32.50%, respectively, and the corresponding revenue share was 83.21%, 90.09%, 83.01%, 74.96%, and 92.03%, respectively, which were significantly higher than the quantity share .

In 2020, the number of online stores that had been activated on the five major platforms, Amazon, eBay, AliExpress, Shopee, and Lazada, in 2018 and before accounted for 25.30%, 44.55%, 47.49%, 16.71%, and 20.97%, respectively, and the corresponding revenue accounts for 64.33%, 72.61%, 62.40%, 49.68%, and 59.25%, respectively .

In addition, the announcement stated that from January to March 2021, Yibai Network achieved operating income of approximately 1.4 billion yuan and net profit of approximately 100 million yuan, year-on-year growth of approximately 49% and 46%, respectively, and a net profit margin of approximately 7.30%, which was the same as the same period in 2020 (the above 2021 data are unaudited).

Selling at a low price? Yibai's revenue last year was 4.2 billion, and its net profit soared 281% year-on-year

According to the latest announcement from Huakai Creative, Yibai's revenue in 2020 was 4.259 billion yuan, and its net profit was 368 million yuan, a year-on-year increase of 281.83%. The net profit margin was 8.65%, and the inventory balance was 550 million yuan.

As a big seller with revenue exceeding 4 billion last year , some sellers expressed the view that it might be inappropriate for Yibai Network to sell 90% of its shares for 1.5 billion yuan. Isn't it a bit of a low price?

The answer to this question will be answered by Yibai Network's business model. Huakai Creative has also been responding to the question of whether Yibai is profitable. Judging from the revenue situation in 2020, Yibai's profitability is also continuing to rise.

The latest announcement revealed the future plans of Yibai Network. In addition to continuing to increase market expansion in the United States and Europe, Yibai Network will actively expand into Southeast Asia and South America. The global market layout strategy is conducive to offsetting some of the above risks in some countries or regions, thereby maintaining a steady development trend.

In 2018, 2019 and 2020, Yibai Network achieved operating income of 1.8 billion yuan , 3.5 billion yuan and 4.2 billion yuan , respectively, and realized net profit attributable to the parent company's owners after deducting non-recurring gains and losses of 90.02 million yuan, 170 million yuan and 360 million yuan , showing good development speed and potential.

Therefore, the conclusion drawn from the analysis in the announcement is that, based on the operating conditions in the historical period, Yibai Network will be able to maintain good sustainable profitability.

Yibai Network has exceeded its performance commitments for two consecutive years

On April 23, Huakai Creative announced that the company intends to purchase 90% of the equity of Yibai Network by a combination of issuing shares and paying cash , with a transaction amount of 1.512 billion yuan. The share payment ratio is 83.85%, and the cash payment ratio is 16.15%. The amount of assets purchased by issuing shares in this transaction is approximately 1.268 billion yuan, and the issue price of the shares issued to purchase assets is 8.80 yuan per share, corresponding to the number of shares issued is approximately 144 million shares. After the completion of this transaction, Yibai Network will become a holding subsidiary of the company. The remaining 10% equity of Yibai Network that did not participate in this transaction will be acquired by the company in cash based on the operating performance of Yibai Network and other conditions. The specific acquisition valuation and time will be negotiated separately.

The specific details of the consideration obtained by each transaction counterparty are as follows:

It is not difficult to see from the above content that this acquisition case, which has gone through many twists and turns, is just one step away from completion.

When doing business with listed companies, you need to bring out strong bargaining chips. For big cross-border e-commerce sellers, the most common one is performance betting.

Regarding performance betting, Yien recently reported that another cross-border e-commerce giant, Zebao Technology, successfully completed a three-year performance bet of 443 million yuan with its parent company, Xinghui Holdings.

Judging from the relevant announcements released by Huakai Creative in recent days, Yibai Network’s performance is also good.

According to the commitment of both parties, if the acquisition can be completed before December 31, 2020 (inclusive), the net profit attributable to the parent company's owners in the consolidated statements of Yibai Network after deducting non-recurring gains and losses in 2019, 2020, 2021 and 2022 shall not be less than RMB 141 million, RMB 170 million, RMB 204 million and RMB 251 million, respectively ; if the acquisition is not completed before December 31 , 2020 ( inclusive ) , the performance commitment period shall be postponed to 2023 accordingly, and the net profit attributable to the parent company's owners in the consolidated statements of Yibai Network after deducting non-recurring gains and losses in 2019, 2020, 2021, 2022 and 2023 shall not be less than RMB 141 million , RMB 170 million , RMB 204 million , RMB 251 million and RMB 290 million , respectively .

On February 24 this year , the Shenzhen Stock Exchange just approved Huakai Creative's acquisition of Yibai Network, a major asset restructuring application. Obviously, the acquisition was not completed before December 31, 2020 (inclusive) . The performance commitment period needs to be postponed to 2023 .

However, this did not hinder the rapid growth of Yibai Network's performance, and it has exceeded the performance commitments made with the acquirer Huakai Creative for two consecutive years.

Relevant financial reports show that in 2019 and 2020, Yibai Network achieved operating income of 35.671535 billion yuan and 42.592743 billion yuan, respectively , and realized net profit attributable to the parent company's owners after deducting non-recurring gains and losses of 1.752814 billion yuan and 3.635601 billion yuan . Among them , the revenue and net profit attributable to the parent company's owners after deducting non-recurring gains and losses in 2020 increased by 19.40% and 107.42% year-on-year, respectively .

Yibai Network 's performance and net profit in 2019 and 2020 undoubtedly demonstrate its good development speed and potential. Therefore, according to this development momentum, the possibility of Yibai Network successfully winning the performance bet in 2023 is still worth looking forward to.

Like Zebao Technology, Yibai Network exceeded its performance targets and also received corresponding rewards.

According to the reward plan proposed by Huakai Creative, at the end of the performance commitment period , if the cumulative net profit achieved by Yibai Network during the performance commitment period exceeds the cumulative committed net profit and meets other conditions at the same time, such as the net profit achieved by Yibai Network in 2022 is not less than the committed net profit for that year, then the main management team members will receive corresponding rewards. The calculation formula is as follows:

Excess performance reward = (cumulative net profit realized in 2019, 2020 and 2021 - cumulative promised net profit in 2019, 2020 and 2021)*30%+(net profit realized in 2022 - promised net profit in 2022)*50%+(net profit realized in 2023 - promised net profit in 2023)*50% .

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