The most profitable cross-border seller, with a net profit of 2.5 billion this year

As the internal competition intensifies, the profits of cross-border sellers are constantly diluted. In the past two years, the general consensus is that profit is king. In the cross-border e-commerce industry, the company that ranks first in making money is definitely Giant Star Technology, whose net profit this year is expected to reach 2.5 billion.

Net profit expected to reach 2.5 billion in 2024

Recently, Giant Star Technology took the lead in disclosing its 2024 performance forecast, with an estimated full-year profit of 2.284 billion yuan to 2.537 billion yuan, a year-on-year increase of 35% to 50%, and an increase of 492 million yuan to 845 million yuan over the previous year, a year-on-year increase of 35% to 50% . The net profit attributable to the parent company after deducting non-recurring items is 2.292 billion yuan to 2.546 billion yuan, a year-on-year increase of 35% to 50%.

According to previously released data, in the first , second and third quarters of this year , Giant Technology achieved operating revenues of 3.306 billion yuan, 3.395 billion yuan and 4.383 billion yuan, respectively, a year-on-year increase of 29.38%, 26.20% and 30.25%; the net profit attributable to the parent was 413 million yuan, 780 million yuan and 742 million yuan, respectively, a year-on-year increase of 36.70%, 36.87% and 17.05%.

According to the full-year expected performance and the net profit attributable to the parent company in the first three quarters , the company's net profit attributable to the parent company in the fourth quarter of this year is expected to be 349 million yuan to 602 million yuan, an increase of 88.65% to 225.41% year -on-year . The fourth quarter is the traditional peak season for cross-border e-commerce, and Giant Star Technology's growth is quite high!

The company also expects full-year revenue to increase by more than 35% year-on-year , which would be the fastest growth in recent years.

From 2021 to 2023, the revenue of Giant Technology was RMB 10.92 billion, RMB 12.61 billion, and RMB 10.93 billion, respectively, with year-on-year changes of 27.80%, 15.48%, and -13.32%; the net profit attributable to the parent was RMB 1.27 billion, RMB 1.42 billion, and RMB 1.692 billion, respectively, with year-on-year changes of -5.93%, 11.78%, and 19.14%.

Although Giant Technology's revenue declined in 2023 compared with the previous year, its net profit was quite strong, increasing by nearly 20%.

From 2022 to 2024, the company's net profit attributable to shareholders of the parent company was 11.78%, 19.14% and 35% + respectively , and the net profit achieved three years of leap-forward growth, especially this year.

According to Giant Star Technology, North American tool consumption has recovered this year, the company's main customers have completed the destocking process, and the company's orders have gradually matched the terminal sales. At the same time, the company has developed a large number of new product categories based on its own competitiveness , obtained new customer orders, and combined with the release of production capacity, it has achieved rapid growth in operating performance.

The most profitable company in the cross-border e-commerce industry

Due to its outstanding profitability, Giant Star Technology was named the most profitable company in the cross-border e-commerce industry this year.

According to the previously released " 2023-2024 Cross-border E-commerce Listed Companies Performance Ranking List", Giant Star Technology earned 100 million more than Anker in the first quarter of this year and ranked first.

In 2023, Giant Star Technology's revenue will be 10.929 billion yuan, and its operating cash flow will exceed 2.1 billion yuan. Anker Innovations' revenue in 2023 will be 17.5 billion yuan, 6.5 billion yuan higher than Giant Star Technology. In terms of net profit, Giant Star Technology is 77 million higher than Anker Innovations.

Looking at profitability in the first half of 2024, Giant Star Technology still ranks first among listed companies in cross-border e-commerce. In the first half of the year, Anker Innovations led the way with revenue of 9.648 billion yuan, while Giant Star Technology's revenue was 6.7 billion yuan, nearly 3 billion yuan less than Anker Innovations, but its net profit of 1.194 billion yuan was 322 million yuan higher than Anker Innovations.

Giant Star Technology is the largest hand tool manufacturer in Asia and the second largest in the world , second only to industry giant Stanley Black & Decker. The company has a strong industry position and brand influence in the field of hand tools.

Located in Hangzhou, Zhejiang, the company has deep roots in the global market, with more than 90% of its revenue coming from overseas markets, which are mainly concentrated in the Americas and Europe, through online and offline sales.

Online, Giant Star Technology entered Amazon in 2015, and it has been 9 years since then. Later, the company sold through multiple third-party e-commerce platforms such as eBay and AliExpress. Offline, the company has deeply tied up with large supermarket chains such as Home Depot, Lowes in the United States, Kingfisher in Europe, and CTC in Canada. Its products cover more than 20,000 supermarket chains, making it one of the largest suppliers of tools and storage cabinets.

Why is it so profitable?

As the "king" of the net profit track of cross-border e-commerce companies , why is Giant Star Technology so profitable? Its advantages are mainly concentrated in the following aspects.

First, build a brand matrix and strengthen the brand. In 2010, Giant Star Technology was listed on the Shenzhen Stock Exchange. In the same year, the company completed the merger and acquisition of 10 world-class century-old tool brands such as ARROW, BeA, SK, and Goldblatt, with a total amount of more than 3 billion yuan.

These mergers and acquisitions have brought significant brand effects to the company, allowing it to transform from a single manufacturer to an international brand operator with a diversified product portfolio. At the same time, Giant Star Technology is also actively building and developing its own brands including WORKPRO, DURATECH, OLEI, EverBrite, and SHEFFIELD to strengthen its brand advantages.

According to the 2023 financial report, Giant Star Technology's own-brand revenue was 5.215 billion yuan, accounting for 47.71% of its operating income. In the first half of this year, this proportion was 44.08%. The higher proportion of own-brand revenue is conducive to the company's gross profit increase and stable growth in performance.

Second, attach importance to DTC channels. Giant Star Technology has increased the proportion of DTC business and thus improved its profit margin by directly operating cross-border e-commerce, acquiring independent websites, and establishing distribution channels in Europe and the United States and Asia-Pacific .

In addition to third-party e-commerce platforms, most of the 15 brands under Giant Star Technology have established independent websites, which have high efficiency. At the same time, independent websites also accumulate their own traffic pools to provide support for product innovation and market strategies.

Taking WORKPRO, the company’s first comprehensive tool brand independently founded , as an example, the brand’s independent website has more than 40,000 visits per month, of which direct visits account for 35.53%. The brand also directs traffic to the independent website through social media and actively improves conversions.

Third, focus on research and development, designing 923 new products in half a year . In 2023, Giant Star Technology designed 1,828 new products, with more than 200 new patent applications and patent authorizations. In the first half of 2024, the company designed 923 new products and innovatively developed a number of new tools and industrial tools.

From 2020 to 2023, Giant Star Technology 's R&D investment will be 245 million yuan, 310 million yuan, 319 million yuan, and 323 million yuan respectively. In the first three quarters of this year, the company's R&D investment was 248 million yuan, a year-on-year increase of 11.21%.

Innovation and category expansion have always been the core driving force of Giant Star Technology 's development . In the first half of this year, the company won an order for a series of 20V cordless lithium battery power tools and related spare parts from a large retail company in the United States by relying on its large-scale innovation in lithium battery power tools . Currently, the company has sufficient orders.

Fourth, establish a global industrial chain. After years of forming a global industrial chain, Giant Star Technology has built a global supply chain management system with China as the core, and established stable cooperative relations with thousands of suppliers around the world.

The company currently has 21 manufacturing bases around the world , which can not only respond to market demand and complete order delivery in a timely manner, but also enhance the brand's influence in the local market. The powerful online and offline channels truly realize global procurement, global manufacturing, and global distribution.

Giant Star Technology has seized the dividend of Chinese engineers, built a global industrial chain, strengthened its own brand, and achieved the top spot in profitability in the fast-growing export cross-border e-commerce industry. It will have both growth and value attributes in the future.

Giant Star Technology

Net Profit