The financial report of cross-border giant ZeShang Technology is out, showing a loss of 7.31 million in one year!

Wuxi ZeShang Technology Co., Ltd. officially released its 2020 annual report.

Zeshang Technology's annual revenue was 290 million yuan and its net loss was 7.31 million yuan

It is understood that ZeShang Technology is a company whose main business is traditional clothing trade export and cross-border export e-commerce retail . Its main product categories have developed from the initial fashion to today's gardening, accessories, home furnishings, luggage, shoes and other categories.

The report pointed out that ZeShang Technology's annual revenue in 2020 was 290 million yuan, a year-on-year increase of 45.69%; the net profit attributable to shareholders of the listed company was -7.31 million yuan, a year-on-year decrease of 548.84%.

The editor learned that it was not only the major holding subsidiaries of ZeShang Technology that suffered losses, but also many of its shareholding companies. Among them, Nanjing Interjet Software Technology Co., Ltd. suffered a net loss of 1.01 million yuan; Nanjing Kuaiyue E-commerce Co., Ltd. suffered a net loss of 5.71 million yuan; and V-Shangs suffered a net loss of 180,000 yuan.

It can be seen from the financial report that the operating income in this reporting period has increased compared with the previous year, with a growth rate of 45.69%, mainly due to the growth of e-commerce platform business in this period.

In addition, although sales increased in this period, the increase in logistics costs and advertising promotion expenses ultimately led to a decrease in net cash flow. The report shows that the net cash flow generated by operating activities totaled 2.22 million yuan, a decrease of 45.01% compared with the same period last year.

In fact, it is not difficult to see from the 2020 first half financial report released by ZeShang Technology that net profit has declined. The 2020 semi-annual report shows that ZeShang Technology achieved operating income of approximately 107 million yuan, but net profit of approximately 336,000 yuan.

With a large number of sellers entering the market, how will ZeShang Technology respond?

In recent years, Zeshang Technology has developed its own ERP system, built its own website, opened third-party stores, etc., and has never stopped on the road of exploration and progress. This fast-moving fast fashion brand has successfully entered the track ahead of its competitors before the bonus period arrives.

The founder of ZeShang Technology once said that his team had been paying attention to small domestic commodities very early on. In 2014, ZeShang successfully entered AliExpress and officially started its multi-channel operation.

At that time, for founder Li Yang, traffic from multiple channels was what they needed most. After entering the AliExpress platform, ZeShang successfully sold its products to countries such as Spain and North America, with more than 1,000 T-shirts sold in one day.

Today, the cross-border e-commerce industry is developing rapidly, with a large number of sellers entering the market. Competition in the industry is becoming increasingly fierce. In order to gain more traffic, price wars have already begun, and profitability has been greatly affected.

Faced with such a situation, ZeShang Technology had to make rapid changes to cope with the ever-changing market demands. ZeShang Technology said that it would integrate advantageous resources, accelerate business transformation, make a series of rectifications, and focus on the refinement of target markets in the future .

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