Successful turnaround! The seller made 160 million yuan in three months

It’s time for the big sellers to announce their performance last year …

Net profit soared, earning more than 600 million yuan a year

Last week, auto parts giant Daotong Technology released its full-year performance report for 2024. Both its revenue and profit are the envy of many cross-border companies, especially the profit. As the overall consumption environment tends to ease, it has grown exponentially against the wind.

A cross-border auto parts seller said, "Last year I just wanted to make a profit and was very cautious to maintain balance. But in the same auto parts business, the ambition and pattern of big sellers are different, and their profits can be multiplied several times."

In 2024, Daotong Technology achieved annual revenue of 3.932 billion yuan , a year-on-year increase of 20.95%; net profit of 640 million yuan , a year-on-year increase of 257.34%; non-net profit of 543 million yuan , a year-on-year increase of 47.94% .

Every figure reveals a sense of joy. Regarding last year’s performance, Daotong Technology also mentioned that it was the continued efforts of its products.

It is reported that last year, Daotong Technology focused more on AI, using it as the core driving force to build an " intelligent " business ecosystem and continue to consolidate its brand advantages in the global market .

As a result, the revenue of its main digital maintenance business reached approximately 3.042 billion yuan, an increase of approximately 14.59% year-on-year; the digital energy business is expected to achieve operating income of approximately 867 million yuan, an increase of approximately 52.98% year-on-year.

This year, Daotong Technology still adheres to the strategy of AI+products. DeepSeek, which has become popular due to its algorithms, operation and thinking capabilities, has become a new choice for most companies. Daotong Technology also announced almost immediately that its AI team has completed the full access and localized deployment of DeepSeek and applied the DeepSeek training process, becoming the first batch of users in the cross-border circle.

Daotong Technology also stated that it will continue to cooperate with cutting-edge basic large-model algorithms at home and abroad such as ChatGPT, DeepSeek, Llama, and Qwen , which shows its optimism about AI.

Actively promoting digital transformation and organizational capacity building has enabled Daotong Technology to continuously optimize its operational efficiency , which in turn has been fed back to the profit level. In 2024, in addition to the excellent performance of net profit and non-net profit, its operating profit also reached 649 million yuan, a year-on-year increase of 54.43 %; the total profit reached 637 million yuan, a year-on-year increase of 281.67 %.

Statista data has predicted that the global car ownership will exceed 1.6 billion in 2025. Auto sales in emerging markets such as Southeast Asia, the Middle East, and Latin America have increased significantly (average annual growth rate of 5%-8%), driving aftermarket demand, especially replacement parts and repair parts (such as filters, brake pads, tires, etc.).

At the same time, the International Energy Agency ( IEA) predicts that the global sales of new energy vehicles will account for more than 20% in 2025 , and the corresponding demand for charging equipment, battery components, and lightweight parts will surge. China accounts for more than 60% of the global production capacity in the new energy auto parts supply chain (such as batteries and motors) (data from Gaogong Lithium Battery), and there are significant opportunities for technology export.

From the perspective of the overall auto parts industry, iResearch Consulting Group's survey shows that the global auto parts cross-border e-commerce market is expected to exceed US$120 billion in 2025. This year, auto parts sellers who seize the opportunity and have a proper strategy may usher in a new wave of growth.

Patent litigation is a big problem, and profits are declining

Also releasing its earnings report on the same day as Daotong Technology was home furnishing giant Stone Technology.

In 2024, Stone Technology seemed to be having a hard time and was involved in patent litigation with its old rivals, both domestically and overseas.

First, before the domestic "618 Big Sale", Dreamy applied to the Quanzhou Intermediate People's Court for pre-trial behavior preservation on the grounds that two sweeping robots under Stone Technology infringed its patent rights of " cleaning devices and cleaning equipment " . The court supported the application, and the two products involved in Stone Technology had to be removed from the e-commerce platform . Although they were put back on the market for sale later , they missed the big sale period .

Later, in the judgment of the Düsseldorf District Court in Germany, Stone Technology lost the infringement lawsuit filed by Dreame and was required to recall, stop sales, and destroy the products involved. It was also ordered to compensate Dreame for its losses.

Judging from the performance report, Stone Technology's profits declined in 2024. Although the annual revenue increased by 37.82% year-on-year to 11.927 billion yuan , the total profit decreased by 9.58% year-on-year to 2.098 billion yuan ; the net profit also decreased by 3.42% year- on - year to " only " 1.981 billion yuan .

However, benefiting from the joint development of domestic and overseas market businesses, Stone Technology's revenue has increased, especially in the fourth quarter. With the support of the peak sales season at home and abroad, the revenue in the last three months alone increased by 65.94% compared with the same period in 2023 .

In addition, it is also due to the targeted strategies in different markets. In China, Roborock Technology has enriched its product matrix and price matrix, and made breakthroughs in the mainstream price segment . Overseas, Roborock Technology continues to optimize its sales structure, refine its channel layout, and enhance the influence of its brand and products .

Although Stone Technology stated that the decline in net profit was mainly due to increased investment in research and development and market brands , many cross-border practitioners also stated that the patent lawsuit with Dreamie may have certain negative impacts .

In summary, year-on-year revenue growth is still closely related to the product's technological innovation and R&D capabilities. If new products can obtain good feedback, product sales will be increased and market competitiveness will be enhanced, thereby boosting business growth.

With the core advantages of the supply chain, Chinese home furnishing brands can share the pie overseas, and the consumer demand in the overseas home furnishing market is still very high. Looking at the sweeping robot market alone, Kaiyuan Securities pointed out that its overseas market size is about 2.5 times that of the Chinese market , and there is great potential for development .

One quarter of sprint, successfully turned losses into profits

In the first half of last year, the performance report released by Xgimi Technology was so ugly that it made many people sigh.

As the "big brother of projectors", XGIMI Technology once had the Internet technology giant Baidu (the second largest shareholder), and Baidu has since reduced its holdings several times. And after listing, the stock price has fallen significantly, from the peak of 626.68 yuan per share to the lowest of 50.71 yuan per share, less than 10% .

As a category leader that has been ranked first in the Chinese market and second in the global market in terms of shipments for many years , in the first half of last year, the net profit of Xgimi Technology was less than 4 million yuan . At that time, it also stated that it would optimize resource allocation, promote continuous improvement in revenue structure and gross profit margin, and launch more differentiated and competitive products.

Judging from the latest earnings report, these strategies are quite effective.

In 2024, Xgimi Technology's annual revenue reached 3.414 billion yuan . Although it was 4.02% less than the previous year, its profits were all increasing.

For example, the operating profit reached 86 million yuan, a year-on-year increase of 164.43 % ; the total profit was 87 million yuan, a year-on-year increase of 188.15 %; the net profit attributable to the parent company's owners reached 122 million yuan, a year-on-year increase of 1.14 %; the non-net profit was 93 million yuan , a year-on-year increase of 36.96% .

That is to say , in the second half of the year, Xgimi Technology made a net profit of 118 million yuan, especially in the fourth quarter. According to preliminary calculations by its financial department, in the fourth quarter, the company's revenue was 1.132 billion yuan and its net profit was 162 million yuan, reversing the loss from the previous quarter and increasing by 375% year-on-year .

Continuously advancing R&D innovation strategies and improving the quality and efficiency of the supply chain system, continuously innovating and optimizing the product matrix, and firmly establishing the brand overseas and global business layout have all paid off in Xgimi Technology's performance.

Thanks to the good results, Xgimi Technology also granted 340,000 stock options to 67 key business personnel at a price of 120.84 yuan per share , with a value of over 41 million yuan.

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