Losses exceed 60 million! Another Amazon best-selling stock is suspended

Amazon, once a big seller, has quietly declined!

In the field of cross-border e-commerce, each category contains huge business opportunities. Batches of players continue to flock to cross-border e-commerce platforms such as Amazon. Some have stood firmly at the top of the category for many years by virtue of their first-mover advantage, while others have grown into consumers ' "new favorites" as latecomers. However, in the long river of time, many players have fallen behind quietly.

Recently, there is news that Mujia Home Furnishing, once the Amazon home textile, has applied for a stock suspension after its listing and sales have been booming. Data shows that the company lost more than 60 million in 2023.

Another cross-border company's stock is suspended

Recently, Zhejiang Mujia Home Furnishing Co., Ltd. (hereinafter referred to as Mujia Home Furnishing) issued a stock suspension announcement and proactively applied to the National Equities Exchange and Quotations to terminate its listing. The suspension date will start from May 27, 2024.

Mujia Furniture stated that based on the current industry development trends and the company's current operating conditions, in order to further improve the company's decision-making efficiency, reduce operating costs, effectively integrate internal and external resources of the company, focus on the company's own operations and development, and better maximize the interests of the company and all shareholders, after careful consideration, the company intends to apply for the company's shares to be delisted from the National Equities Exchange and Quotations.

After the termination of listing, the company will continue to strengthen its operational management capabilities and professional technical level, continue to standardize operations in accordance with relevant laws and regulations, continue to improve the corporate governance structure, improve the internal control system, continue to focus on its core business, continue to strengthen its operational management capabilities, and enhance the market competitiveness of the company's products and the company's sustainable operating capabilities.

When it comes to listed players in cross-border e-commerce companies, the words that come to our mind most often are Anker Innovations, Levo, and Zhiou, etc. In fact, on March 9, 2017, Mujia Home Furnishing was listed on the New Third Board .

Mujia Home Furnishing was established on December 23, 2004. Its main products include curtains, cushions, bedding, tablecloths, aprons, sofa covers, chair covers, placemats, bath towels, outdoor furniture covers and other household items and home outdoor products. Its products are mainly aimed at overseas consumers in many countries including the United States, Europe and Japan.

The company's main sales channels are sales on overseas e-commerce platforms such as Amazon and sales on traditional overseas general trade. Currently, Amazon sales account for more than 80% of the company's sales share, which can be said to be a mature cross-border e-commerce company.

The curtain brand Deconovo under Mujia Home Furnishing has very good sales on the Amazon platform, with a single model selling thousands of copies per month. In addition to Amazon, Mujia Home Furnishing has also entered the independent website.

Losses in 2023 will exceed 60 million! Mujia Home Furnishing has been losing money for two consecutive years

Looking at the revenue data of Mujia Furniture in the past three years, it can be found that the company has been making losses for two consecutive years.

In 2023, Mujia Furniture achieved operating income of 569 million yuan, a year-on-year decrease of 2.15%, and a net loss of 63.497 million yuan, with the loss expanding by 326.24% year-on-year, and basic earnings per share of -1.1190 yuan.

In 2022, Mujia Furniture achieved operating income of 581 million yuan, a year-on-year increase of 5.76%, and the net loss attributable to shareholders of the listed company was 14.9 million yuan, a year-on-year decrease of 505.94%.

The company believes that the main reason for the loss is the increase in costs due to fluctuations in shipping costs and rising raw material prices in this period. At the same time, long-term inventory was proactively discounted, resulting in a decrease in gross profit margin.

In 2021, Mujia Home Furnishing achieved operating income of 550 million yuan, a year-on-year increase of 10.49%, and net profit of 3.6698 million yuan, a year-on-year decrease of 92.41%, and basic earnings per share of 0.0700 yuan.

The operating profit in 2021 decreased by 53.0209 million yuan compared with 2020, a decrease of 90.09%. The main reasons are: in terms of revenue, the growth of operating income in 2021 slowed down due to factors such as the epidemic; in terms of operating costs, the cost of shipping costs, raw materials, and energy consumption costs increased significantly compared with the previous year; sales expenses increased significantly due to the high increase in Amazon platform fees; this combined led to a decline in net profit this year.

2020 will be a "watershed" in the changes in Mujia Home Furnishing's revenue and profits!

The home textile market is crowded with experts, and many sellers have achieved impressive sales

Home textiles (abbreviated as home textiles) can be divided into bedding, kitchen and dining supplies, living room decorations, bathroom supplies, etc. according to different functional areas of the home. Unlike Mujia Home Furnishing, which has been losing money for two consecutive years, a group of cross-border players have taken advantage of the situation in the home textile track.

Sanwen Home Furnishing : Sanwen Home Furnishing was founded in 2013. Its main products include cushions, blankets, and shawls for living rooms, bedding, bathrobes, and pajamas for bedrooms, as well as home leisure wear, sports leisure wear, accessories, etc. At the beginning, it was mainly engaged in traditional foreign trade, and then gradually began its cross-border e-commerce journey. In 2021, it was officially launched on Amazon. In 2022, its sales on Amazon exceeded US$7.8 million, and its popular products jumped into the top 5 of BEST SELLER.

Eskimo : Zhejiang Eskimo Technology Co., Ltd. was established in 2003 and is headquartered in Hangzhou, Zhejiang. It specializes in home textiles, home appliances, furniture, home decoration, daily necessities and other products of all categories. Its products are sold well in nearly 100 countries and regions around the world. It now has an elite team of more than 400 people and has accumulated rich experience in cross-border e-commerce. It has more than 20 platform channels such as Amazon, Meikeduo, eBay, Walmart, Cdiscount, etc.

In the first half of 2020, Eskimo successfully squeezed into the top five of Amazon's home textile category, with sales soaring and cross-border e-commerce transaction volume exceeding 300 million.

Shangbai Global : Shangbai Global is a subsidiary of Tianyi Industrial Group . It was established in 2016 and has achieved a compound growth rate of more than 100% for five consecutive years. It has more than 35 million users in Europe and the United States. In the context of the global epidemic outbreak in 2022, the company's revenue was approximately US$400 million .

The company has three major brand matrices: Bedsure, Lesure, and Double Stitch . Bedsure has ranked first in the US bedding category on Amazon for many years in a row . Its product line covers a variety of bedding products, such as sheets, quilt covers, pillowcases, blankets, and pillows.

In May 2024, Amazon US released a list of the top 100 sellers based on the number of positive reviews received by sellers in the past 30 days, and Bedsure ranked 15th.

The home textile track where Shangbai Global , Mujia Home Furnishing and others are located is a hot sales track in the field of cross-border e-commerce. The global home textile market size will be US$124.72 billion in 2023, and the compound annual growth rate is expected to be 6.0% from 2024 to 2030. The United States and Europe are the largest home textile consumption regions, accounting for 60% of the global home textile import market.

As a major home textile country, China exported a total of US$35.128 billion of home textile products in 2023, showing a relatively stable performance. Since the second half of 2023, the export situation of China's home textile products has continued to recover, with exports in December increasing by more than 6% year-on-year, further consolidating the momentum of stabilization.

In home textile industry belts such as Nantong, Jiangsu, Shaoxing, Hangzhou, Jinhua, Zhejiang, and Qingdao, Shandong, batches of traditional factories have transformed into cross-border e-commerce online sales. Although consumers in different countries and regions have unique preferences and considerations when choosing home textile products, these differentiated "hobbies" have also brought huge business opportunities to a large number of home textile players.