The market value of Shenzhen Dasai has evaporated by more than 10 billion in three years since its listing, and it has been "defeated" in the red ocean.

Inconspicuous mobile phone cases, chargers and simple data cables have supported the IPO road of several companies. For many years, the mobile phone accessories market has been a "bloodbath".

Anker Innovations, UGREEN, PISEN and others have established their footholds in the cross-border e-commerce circle with their charging products. CableCreation has also sold more than 300 million data cables alone , making it one of the top 100 Chinese overseas brands on Amazon's list.

In the mobile phone case business, the overseas brand CASETiFY sells 3 million pieces a year , PITAKA has an annual revenue of over 100 million, and even international luxury brands such as LV, Hermes, and Chanel have launched mobile phone case products. Obviously, this is a profitable business, but JMET, known as the "first stock of mobile phone cases", has suffered a series of setbacks.

JMET's revenue in 2023 will exceed 700 million yuan, with a loss of nearly 100 million yuan

Under the negative economic impact of major global trading bodies , the mobile smart terminal product market, like other product markets, seems to be performing worse than usual .

Under such background, the performance of 3C hot seller Gemtek has been in trouble. Today, Gemtek has not been able to turn losses into profits.

According to the 2023 annual performance forecast issued by Gemtek , its revenue in the past year reached 644 million to 711 million yuan , while the full-year revenue in 2022 was 719 million yuan , a decrease of 1.13% to 10.45% . In terms of operating income after deduction, Gemtek had 640 million to 707 million yuan last year .

*Note: Post-deduction operating income refers to the operating income obtained by an enterprise after deducting business income unrelated to the main business and income without commercial substance. This data can more truly reflect the actual operating conditions of the enterprise, because it excludes non-core or non-recurring income, making comparison and analysis more objective and accurate.

In terms of net profit, last year, Gemtek suffered a loss of 69 million to 99.5 million yuan , a positive growth of 14.17% to 40.48% compared to the net loss of 116 million yuan in 2022. Although the loss margin has decreased, it is not large. The non-net profit loss was 96 million to 139 million yuan , which was slower than the 158 million yuan in the previous year , but the magnitude was still not high.

As for the fact that its profits are still in the red, Gemtek attributed it to gross profit margin, exchange rate and uncollected accounts receivable .

Specifically, last year, due to changes in the overall consumption trends at home and abroad, Gemtek's revenue structure changed. The proportion of overseas business revenue, which has had a higher gross profit margin for a long time, decreased, which in turn led to a decline in the overall gross profit margin.

In addition, due to the impact of exchange rate fluctuations, financial expenses have increased. Although sales expenses, administrative expenses and R&D expenses have decreased compared to 2022 , financial expenses have increased .

Last year, there was still no progress in the accounts receivable litigation cases against Incipio Technologies, Inc. and Vinci Brands LLC. After comprehensive evaluation , it was believed that the possibility of recovering the accounts receivable was further reduced and the expected credit losses might further increase. Therefore, Gemtek increased the provision for bad debts for these two accounts receivable.

Three and a half years after listing, Gemtek suffered losses for two consecutive years

This year marks the fourth year that Gemtek has been listed.

In 2006, JMET was established in Shenzhen . Initially , it was engaged in the research and development, design and production of mobile phone accessories , with mobile phone cases being its core product . Over the past decade, JMET has carried out in-depth cooperation with major mobile phone manufacturers such as Huawei, Samsung, and Apple through its mobile phone cases, and has also completed the process of entering the capital market, becoming a hot seller on the market and becoming the "first stock of mobile phone cases."

In the early days, most of the cross-border sellers we are familiar with started with ODM/OEM business , and JMET was no exception.

In 2014, Huawei's purchases accounted for 8.2% of Gemtek's sales. In 2015, this figure doubled to 20.15%.

Between 2016 and 2019, Gemtek's sales to Huawei reached RMB 95 million, RMB 127 million, RMB 265 million and RMB 377 million, accounting for 17%, 23.47%, 40.99% and 45.47% of the total revenue, increasing year by year.

With the support of Huawei, Gemtek has the confidence to enter the capital market in 2020 .

On August 24, 2020, Gemtek rang the bell and entered the capital market on the same day as Anker Innovations, another big seller in the 3C track today .

At the beginning of its listing, Gemtek's stock price soared all the way , from 41.26 yuan per share at the beginning of issuance to 95.22 yuan per share at its peak, and its market value once reached 12.3 billion yuan.

But the glory did not last long.

In 2020, Gemtek's revenue was 855 million yuan and its net profit was 106 million yuan;

In 2021, revenue dropped to 715 million yuan, net profit was only 28.22 million yuan, and non-net profit was a loss of 5.7 million yuan ;

In 2022, revenue was 719 million yuan and net loss was 116 million yuan;

In 2023, revenue will be RMB 644 million to RMB 711 million , and net loss will be RMB 69 million to RMB 99.5 million .

The loss situation is out of control.

In the first half of last year , Gemtek had a revenue of 244 million yuan and a loss of 27.34 million yuan. That is to say, in the traditional peak season in the second half of the year, although Gemtek had a revenue of 400 million yuan to 467 million yuan, it suffered a loss of 41.66 million yuan to 72.16 million yuan. The more it sold, the more it lost .

Listed on the same day as Anker, market value evaporated by over 10 billion

It was mentioned above that Gemtek and Anker were listed on the same day, but now it seems that the two have taken completely different paths.

Today, Anker has an annual revenue of 10 billion yuan, and almost everyone in the cross-border circle knows about its big sales. If Anker is still running wildly on the sunny avenue, then Gemtek is struggling in the mud.

In the three and a half years since its listing, Gemtek has suffered losses for more than two consecutive years.

On February 7, the share price of Gemtek hit a record low . By the close of the day, the share price of Gemtek was only 9.87 yuan per share , a 89.6% drop from the peak of 95.22 yuan per share . As of press time, the share price of Gemtek was 11.95 yuan per share , still 71 % lower than the issue price , and a 87 % drop from the peak . The market value also fell from 12.3 billion at its peak to 1.533 billion yuan, a full reduction of 10.767 billion yuan .

Deeply binding partners is very risky for cross-border e-commerce companies. Gemtek's decline began in 2020 when its major customer Huawei encountered a series of obstacles in the international market.

Today, Gemtek's ODM/OEM business still accounts for the majority of its revenue. In the first half of 2023, its overall revenue was 244 million yuan, and its ODM/OEM business revenue reached 197 million yuan, accounting for 80.87% of its revenue, which was an increase from 75.11% in the same period of 2022.

In contrast , its own brand X-doria had revenue of 46.63 million yuan, accounting for only 19.13% of total revenue, compared with 24.89% in the same period of 2022.

At present, many cross-border e-commerce companies are branding and cultivating consumers' brand awareness and stickiness. Anker has incubated a brand matrix of different products such as Anker , Eufy , NEBULA , Soundcore , etc., while JMET's X-doria still seems to be ignored and its revenue performance is really weak.

In 2020 , JMET's own brands accounted for 34.23% of total revenue , 34.77% in 2021 , 23.21 % in 2022 , and only 19.13% in the first half of 2023.

GMT doesn't want to go branding? But compared with ODM/OEM business, the gross profit margin of GMT's own brand business is relatively high. In the first half of last year , the gross profit margin of GMT's ODM/OEM business was only 8.15%, but the gross profit margin of its own brand reached 60.26% , which is a far cry.

Go for branding or continue to rely on OEM? What will be the next move for Gemtek?

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