A female cross-border tycoon in Fujian had her equity frozen due to a loan dispute!

He started his own business at the age of 34, and after entering the cross-border e-commerce track at the age of 48, he doubled the company's revenue.

From an annual income of 570 million yuan before entering the cross-border circle to an annual revenue of 6.7 billion yuan after entering the cross-border circle, targeting overseas markets and seizing the opportunity of cross-border e-commerce, the female boss from Fujian increased the company's revenue more than ten times in just a few years and made two attempts to list on the Hong Kong stock market for the second time.

It seems very glorious, but this female boss has been imprisoned recently.

The equity was frozen due to a loan dispute, involving 174 million yuan

On the last day of 2024, Xiamen Jihong Technology Co., Ltd. ( hereinafter referred to as "Jihong Co., Ltd."), a major cross-border e-commerce company in Xiamen, issued an announcement stating that part of the equity of the company's controlling shareholder and actual controller was frozen due to a loan dispute.

It is understood that due to her role as a guarantor in a loan contract dispute, Ms. Zhuang Hao, the actual controller of Jihong Shares, was recently sued and required to assume guarantee obligations. 8.91 % of the shares of Jihong Shares held by her (including persons acting in concert) were frozen, totaling 11 million shares, involving an amount of approximately RMB 174 million .

In 2003, Zhuang Hao established Jihong Co., Ltd. (formerly known as " Xiamen Jihong Printing Co., Ltd. ") in Xiamen. At that time, she, her younger brother Zhuang Shu and her mother held 65%, 25% and 10% of the shares respectively.

In 2016 , Jihong shares rang the bell at the Shenzhen Stock Exchange . At that time, Zhuang Hao and Zhuang Shu held 34.3 % and 13.2% of the shares respectively. As of this announcement, Zhuang Hao held about 69.6231 million shares of Jihong shares, accounting for 18.09% of the company's total share capital ; together with the persons acting in concert, they held more than 123 million shares of the company , accounting for 32.09% of the company's total share capital .

Although Jihong Co., Ltd. was established very early, its entry into cross-border e-commerce was delayed by more than ten years.

In the second year after the A-share bell rang (2017), 48-year-old Zhuang Hao founded Xiamen Jikeyin E-Commerce Co., Ltd. ( hereinafter referred to as " Jikeyin ") and started cross -border social e-commerce business .

Soon, Jihong Co., Ltd. transformed itself from a packaging and printing company into a cross-border seller with the help of Jikeyin. By building a cross-border social e-commerce business , Jihong Co., Ltd. connected sellers on the domestic supply chain with consumers in Europe, the United States, Southeast Asia and other markets, quickly seized the emerging cross-border e-commerce business opportunities, and its revenue also made a rapid leap.

In 2016, Jihong Co., Ltd.'s annual revenue was nearly 570 million yuan, and its net profit was about 43 million yuan; in 2017, its revenue doubled to 1.133 billion yuan, and its net profit also reached 80 million yuan. Among them, the cross-border e-commerce business brought in 215 million yuan in revenue, its operating profit reached 168 million yuan , and its gross profit margin reached 78.08% , which was higher than the original packaging printing .

In 2018, its full-year revenue and net profit continued to soar, reaching 2.269 billion yuan and 213 million yuan respectively. Among them, the revenue of cross-border e-commerce business reached 121 million yuan, and the proportion of total revenue increased from 19% to 53.30% . Since then, this business has become the main source of income for Jihong Co., Ltd.

From 2021 to the first half of 2024 , its cross-border business revenue reached 2.834 billion yuan, 3.107 billion yuan, 4.257 billion yuan and 1.384 billion yuan, still accounting for more than half of the total revenue, reaching 54.7%, 57.8%, 63.6% and 56.42% respectively ; the gross profit margin reached 58.0%, 59.1%, 63.1% and 59.73% , becoming the key driving factor of the overall gross profit margin.

Relying on its own supplier system and Alibaba's 1688, Jihong Co., Ltd.'s cross-border products cover more than 60 categories including home furnishings, clothing, electronics, and beauty , with more than 600,000 SKUs .

Riding on the cross-border trend, although Jihong Co., Ltd. entered the market a little late, its results are exceptionally impressive.

Regarding the freezing of the shares of the actual controller this time, Jihong Co., Ltd. stated that the case was caused by a guarantee dispute involving Zhuang Hao himself and would not affect his personal credit and the company's daily operations and governance structure .

Revenue and profit both fell, and the brand has not yet gained momentum on Amazon

The year before last, ChatGPT became popular, and Jihong Co., Ltd., which seized the opportunity to enter this field, also entered the vision of more sellers. In 2023, Jihong Co., Ltd. publicly stated that since connecting to ChatGPT, the company's digital operation capabilities have been effectively improved.

But after this wave of popularity, Jihong shares seemed to have disappeared again, except for February and August last year, when Jihong shares prepared for a secondary listing and submitted applications to the Hong Kong stock market twice, which attracted a small wave of attention.

Once again, some of the shares of the actual controller were frozen. However, according to the information from Qichacha, in addition to Jihong Shares, Zhuang Hao currently has three companies whose shares have been frozen, with a total target amount of 48.31 million yuan.

Although Jihong Co., Ltd.'s revenue has continued to grow since entering the cross-border e-commerce industry, its net profit has experienced relatively obvious fluctuations.

Judging from the data of the past four years, its revenue increased year by year from 2021 to 2023, from 5.178 billion yuan, 5.376 billion yuan to 6.695 billion yuan, and its net profit reached 209 million yuan, 172 million yuan and 332 million yuan .

In addition to expanding its overseas product categories and increasing its independent site business, Jihong Co., Ltd. is also constantly exploring new profit growth points, such as incubating its own brands to enhance its market competitiveness and brand influence.

At present, Jihong Co., Ltd. has created brands including SENADA BIKES, Veimia, Konciwa and PETTENA, covering categories such as electric assisted bicycles, underwear, parasols and pet supplies. It can be seen from the Amazon platform that many brands have also settled in for sales .

Unlike other brands, Jihong Co., Ltd. already has the advantage of social e-commerce. The brand team can make full use of the company's revenue resources on various social media platforms, respond quickly to market changes, formulate effective strategies, and ultimately achieve the goal of brand premium.

However, judging from the Amazon platform, Jihong’s brand performance is still relatively average. It may rely more on its original cross-border social e-commerce business, but this part of the business also seems to be not optimistic.

In 2024, Jihong's revenue and net profit declined sharply. For example, in the first nine months, its revenue fell by 20.96% year-on-year to only 3.897 billion yuan; its net profit was directly cut by more than half year-on-year to less than 135 million yuan, a year-on-year decrease of more than 58%.

Jihong Co., Ltd. stated that the decrease in revenue , net profit , sales expenses , etc. in this period was mainly due to the decrease in operating income and profits of cross-border e-commerce business .

Judging from its financial report data, in the first half of 2024, the business revenue of the cross-border e-commerce sector decreased by 31.53% year-on-year to only 1.384 billion yuan, and the gross profit margin also decreased by 3.97% year-on-year.

Data from CSI Consulting pointed out that if the revenue generated by social media e-commerce business in Asia in 2023 is calculated, Jihong shares will rank second among China's B2C export e-commerce companies, with a market share of 2.3%. However, judging from last year's revenue and net profit, it seems to have encountered some bottlenecks in its development.

Can Jihong Stock recover its revenue and profits? Unknown.

But it is worth noting that at the end of last year, Jihong Co., Ltd. announced that it would invest 440 million yuan to form a joint venture with a Middle Eastern company to open new projects locally, actively expand overseas markets, especially the Middle East and African markets, and accelerate the company's overseas layout and strategic planning of cross-border business .

Big Brother

Equity Freeze