Net profit increased by 263% year-on-year, and Shenzhen sold out last year

At the beginning of the new year, many listed companies have released their performance forecasts. Among them, Zhiou Technology and Daotong Technology have both produced good report cards, but the performance forecasts of some listed and popular companies are not so optimistic.

Daotong Technology's 2023 non-GAAP net profit increased by 263% year-on-year

Founded in 2004, Daotong Technology is a comprehensive solution provider of automotive intelligent diagnosis, testing and TPMS (tire pressure monitoring system) products and services, and also a cross-border auto parts seller headquartered in Shenzhen.

It is understood that in December last year, Daotong Technology issued an announcement stating that it had compensated the other party for an infringement case with US$33.62 million, equivalent to about RMB 240 million.

You know, in the first three quarters of this year, the net profit attributable to shareholders of the listed company of Daotong Technology was only 267 million yuan. It can be seen that the amount of compensation has almost caught up with the net profit in the first three quarters, and basically the first nine months of 2023 are in vain.

However, after experiencing this black swan event, Daotong Technology 's full-year net profit attributable to shareholders of the parent company in 2023 still achieved year-on-year growth.

According to its recently announced 2023 performance forecast, Daotong Technology expects to achieve a net profit attributable to shareholders of 183 million yuan in 2023, an increase of 80.89 million yuan, a year-on-year increase of 79%; the non-net profit is 368 million yuan, an increase of 266 million yuan, a year-on-year increase of 263%.

To achieve such results, Daotong Technology's investment in category innovation has contributed greatly. It is understood that in 2023, Daotong Technology will further explore the potential of the market segments, enrich product categories, and consolidate its technology and market advantages in the global diagnosis and testing fields. At the same time, Daotong Technology also focuses on new energy business and launches a number of full-scenario charging equipment to achieve double growth in traditional and new energy businesses.

Zhiou Technology's net profit exceeded 400 million last year

As one of the leading overseas online home furnishing companies, Zhiou Technology has been focusing on cross-border home furnishing e-commerce for more than ten years and is committed to building a one-stop online home furnishing brand . It has formed a matrix of furniture, home furnishings, garden and pet products covered by three major brands: Songmics, Vasagle and Feandrea.

Since 2018, Zhiou Technology has completed multiple rounds of financing, with investment institutions including IDG Capital, Joy Capital, Qianhai Seed Fund, China Merchants Capital, Anker Innovations, Muqiao Investment, and Keying Investment.

According to the information in its prospectus, the company's revenue compound growth rate will reach 36% from 2018 to 2022, and Zhiou Technology will achieve revenue of 5.46 billion yuan in 2022.

Although the revenue data is very impressive, Zhiou Technology's road to listing has not been smooth. As early as June 2021, Zhiou Technology submitted its application for listing on the Growth Enterprise Market for the first time, but it was not until June last year that Zhiou Technology was successfully listed on the Growth Enterprise Market, with a gap of two years in between.

According to its latest released 2023 performance forecast, during the reporting period from January 1, 2023 to December 31, 2023, Zhiou Technology's net profit attributable to shareholders of the parent was 400 million yuan to 420 million yuan, an increase of 59.93%-67.92% over the same period last year; non-net profit reached 420 million yuan to 440 million yuan, an increase of 67.10%-75.06% over the same period last year.

Zhiou Technology's net profit in 2023 increased significantly year-on-year. Industry insiders believe that there may be three main reasons: First, shipping costs have dropped significantly since the second half of 2022, resulting in lower costs for main business. Second, the exchange rates of the euro, the US dollar and the RMB have appreciated compared with the same period last year. Finally, the accelerated inventory turnover has saved storage fees and further reduced costs.

In the general environment of the industry's cooling down, the answer sheet that Zhiou Technology delivered in 2023 is indeed eye-catching.

Cross-border e-commerce turned from profit to loss

Different people have different fates. The old cross-border e-commerce company Cross-border Link is not so lucky.

Recently, Cross-Border Communication also announced its performance forecast for 2023. The performance forecast shows that during the reporting period, Cross-Border Communication expects its net profit attributable to the parent company to be -15 million yuan to -8 million yuan, compared with a profit of 17.8423 million yuan in the same period last year, and its non-net profit to be -95 million yuan to -65 million yuan, compared with a loss of 69.7942 million yuan in the same period last year, and it is expected to suffer an operating loss.

It is understood that Cross-Border Link was listed on the Shenzhen Stock Exchange as early as 2011. In July 2014, it entered the cross-border e-commerce field through a major asset reorganization and made cross-border e-commerce business a key area of ​​the company's development.

In the year after the transformation, Cross-border Link's revenue soared from 842 million to 3.961 billion yuan. Between 2015 and 2018, with the help of Amazon, Cross-border Link's scale skyrocketed. Its revenue peaked at over 20 billion (21.5 billion in 2018), and its market value peaked at nearly 40 billion.

However, the massive distribution model that blindly pursues scale has led to a large amount of inventory. As platform rules continue to change, Amazon has paid more and more attention to specialization and branding, with more traffic leaning towards branded and boutique model sellers, and less and less traffic allocated by the traditional model.

After 2020, Cross-border Link continued to lose money. Global Easy Shopping, the main revenue earner, was also mired in overdue payments due to unsold inventory.

After learning from its mistakes, Cross-Border Link decided to transform and save itself. However , since 2021, its revenue has continued to decline, and although its net profit attributable to the parent company has narrowed, it is still difficult to reverse the trend of losses.

Youkeshu suffered a net loss of 270 million yuan

At the end of January this year, Youkeshu also released its performance forecast for last year. As a veteran cross-border giant, Youkeshu's situation is not optimistic either.

According to this performance forecast, Youkeshu expects to achieve operating income of 450 million to 500 million yuan in 2023, and net profit attributable to shareholders of listed companies will be -270 million to -360 million yuan, an increase of 2% to 26% over the same period last year. The net profit after deducting non-recurring gains and losses will reach -270 million to -360 million yuan, an increase of 1% to 26% over the same period last year.

As for the reasons for the loss, Youkeshu was mainly affected by internal factors such as historical debts and financial pressure. In addition, external unfavorable factors such as the increasingly fierce competition in the cross-border e-commerce industry also had a significant impact on Youkeshu.

In fact, Youkeshu has not been able to get out of the situation since the account blocking storm in 2021. It is understood that about 340 stores or sites of Youkeshu were blocked or frozen that year, and the suspected frozen funds were about 130 million yuan.

Affected by this ban, Amazon is no longer the main source of revenue for Youkeshu, which is also the main reason why it has not recovered to this day.

From the performance forecasts released by the listed big sellers, small players can also get a glimpse of the great changes that the cross-border industry is currently undergoing. If they want to continue to survive in this industry, small and medium-sized sellers must be keenly aware of changes and embrace them, so as not to be easily washed away by the tide of the times.

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