The sales revenue exceeded 2.4 billion! It ranked first in the Amazon category

The “top student” in cross-border e-commerce listing has submitted his paper!

As we enter August, major cross-border e-commerce listed companies have begun to release their half-year performance reports. Smart home brand Levo has taken the lead in "prototyping", achieving operating income of 2.427 billion yuan in the first half of the year, an increase of 44.64% over the same period last year.

It is worth noting that Leckey’s revenue data on sales channels such as independent sites and Amazon have increased significantly, and its products are ranked first in categories on multiple platforms.

Lechuang’s operating income for the first half of the year was 2.427 billion yuan, a year-on-year increase of 44.64%!

Public data shows that the cross-border listed company Lege's revenue in the first half of 2024 was as high as 2.427 billion yuan, a year-on-year increase of 44.64%! The net profit attributable to shareholders of the listed company was 160 million yuan, a decrease of 63.86% from the same period last year (mainly due to the sale of overseas warehouses in January 2023, which generated a large non-operating income and increased the current asset transfer income before deducting transfer income tax by approximately US$73.52 million). The net profit attributable to shareholders of the listed company after deducting non-operating income was 107 million yuan, an increase of 29.95% from the same period last year.

Lechuang 's full-year revenue in 2023 is 3.902 billion yuan . Considering that the second half of the year is the peak season for cross-border e-commerce sales, Lechuang's subsequent revenue data will continue to increase steadily. Therefore, it is a foregone conclusion that the full-year revenue in 2024 will exceed that in 2023.

Leckey mainly engages in smart home business and overseas warehouse business. Ergonomic products are still the main source of the company's operating income, with revenue of 1.337 billion yuan in the first half of the year, accounting for 55.07% of the operating income.

Yi Enjun learned that Loctek's smart home products include lift table series, ergonomic chair series, lift table series, electric functional sofa series, and smart electric bed series. Core categories such as smart lift tables are industry leaders both at home and abroad, and the "FlexiSpot" brand, which is the main brand abroad, has twice won the BrandZ China Top 50 Global Brands, ranking first in the furniture category.

The global market size of height-adjustable tables continues to expand. According to Credence Research data, the global market size of height-adjustable tables will be US$6.7 billion in 2022, and it is expected to reach US$11 billion by 2030, with a compound growth rate of approximately 7.2%. With the considerable growth in market size, Loctek may create higher sales figures in the future.

Lechuang has now established a complete sales channel, forming a multi-channel diversified sales model covering domestic, overseas, online, offline and self-owned channels. In the first half of the year, the company's self-branded product sales revenue accounted for 68.93% of the main business revenue (excluding overseas warehouse revenue). Among them, cross-border e-commerce sales revenue was 915 million yuan, a year-on-year increase of 20.36%, which was higher than the growth rate of the whole of last year.

Amazon and independent websites are the two main cross-border revenue channels for Leckey . Among cross-border e-commerce revenue, the proportion of independent website channel and Amazon channel revenue is 40.31% and 53.76% respectively.

In terms of independent station channels, the company's independent stations have developed rapidly in recent years. There are currently 12 independent stations. In the first half of 2024, the sales revenue of independent stations was 369 million yuan, a year-on-year increase of 20.87%, which was also higher than the growth rate of the whole year last year . The company's self-built independent website "flexispot.com" is in the first echelon among the global vertical independent e-commerce websites for linear drive application products. It is worth noting that the company's US independent station traffic ranks first among major competitors and maintains a stable leading position.

Lechuang said that compared with third-party platforms, independent sites have higher per capita consumption and faster revenue growth. In addition, independent sites can independently set marketing strategies and carry out marketing activities, such as the "May 25" Member Day.

In terms of third-party platforms, the sales of products on e-commerce platforms such as Amazon maintain a dominant position. The "FlexiSpot" brand height-adjustable table ranks first in sales of height-adjustable tables on e-commerce platforms such as Amazon, Home Depot, Walmart, Rakuten, and Yahoo.

Developing new products and entering new platforms are what most cross-border sellers have been doing, and Levo is no exception.

Leckey said that in the first half of the year, the penetration rate of healthy office and smart lift home products continued to rise, with sales revenue of new categories accounting for about 8%, and initial results in expanding product categories have been achieved.

In terms of developing new platforms, Leckey has opened stores on Temu and TikTok. The semi-hosting model for large items on the Temu platform only started in mid-to-late March this year, and has not brought much sales so far, and it will take more time to cultivate. In terms of developing new markets, in addition to traditional European and American markets, the company has increased its efforts to develop markets such as Australia, the Middle East and South America, and the current situation is not bad.

The ship built by Lege with RMB 200 million has started operation! Vigorously develop overseas warehouses

Unlike other home furnishing giants, Leckey is a rare cross-border company that " grasps both sales and logistics, and does both very well " . In the first half of 2024, the public overseas warehouse business developed rapidly, achieving revenue of 851 million yuan, accounting for 35.07% of operating income.

Since 2020, Lechuang has launched public overseas warehouse cross-border logistics services, and has continuously developed overseas warehouses and optimized warehouse layouts by "changing small warehouses for large warehouses". As of the disclosure date of the 2024 semi-annual report, the company has 17 self-operated overseas warehouses around the world, covering an area of ​​482,100 square meters.

It is actually very meaningful for Leckey to vigorously develop overseas warehouses. As we all know, household products are large in size and have high transportation costs. In addition, considering customs and other issues, logistics delays are inevitable. If the goods are shipped to overseas warehouses in advance , the shipping cost will be lower, and consumers can be responded to more quickly and the delivery speed will be faster.

Lechuang's cross-border e-commerce mainly adopts the FBM model, and a few adopt the FBA model to obtain platform support such as Amazon's traffic inclination . After all, the logistics costs under the FBA model will be higher.

In addition to buying land and building overseas warehouses , Lechuang also builds ships for maritime logistics . In 2022, Lechuang Co., Ltd. announced that it plans to sign a contract with a first-class domestic shipyard to build a 1,800TEU container ship for a total price of US$32.6 million (approximately RMB 207 million). The container ship has now been put into use, and the ship leasing business achieved a revenue of RMB 7 million in the first half of 2023. It is understood that the container ship's transportation cycle from Ningbo to the west coast of the United States is only 15 days, which is half the time of large liner ships.

Shipping prices have skyrocketed this year, and the operating profit margins of many sellers' cross-border e-commerce businesses have been affected to a certain extent . However, the 1,800TEU container ship owned by Leckey has begun to "return positively". Through leasing , Leckey said that the container ship has hedged part of the shipping costs .

The prospects are broad and the smart home market continues to develop!

In recent years, a large number of excellent and popular companies have emerged in the smart home track, such as Henglin Co., Ltd. and Zhiou. With the frequent emergence of excellent players, the smart home market is also continuing to "soar"!

According to Statista data, the global smart home market size in 2022 is expected to be approximately US$108 billion, a year-on-year increase of 10.3%. It is expected to maintain a high growth trend in the next five years, with a compound growth rate of approximately 12.5%, and will grow to US$233 billion in 2027; the global smart home penetration rate has increased from 8.10% in 2018 to 14.19% in 2022, and is expected to increase to 28.84% in 2027.

The size of the global office furniture market is also growing steadily. According to IMARC data, the size of the global office furniture market was US$60.8 billion in 2022, and it is expected to grow to US$77.4 billion by 2028, with a compound growth rate of approximately 4.05%.

Cross-border e-commerce is continuing to develop. With more factory-type sellers, domestic sellers, etc. entering the cross-border track, more outstanding players will appear in the smart home field in the future.

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