Exceeding the performance bet! Big sales get over 40 million in rewards

Yibai Network is awesome!

It can be said that many sellers have a dream of going public, but whether they can realize the dream varies from person to person. Many big sellers gambled against capital and ended up with a mess. Of course, there are also some excellent examples of successful listings, and Yibai Network is one of the best.

The latest third-quarter report for 2023 released by Huakai Yibai, the parent company of Yibai Network, shows that the operating income in the first three quarters was 4.75 billion yuan, a year-on-year increase of 55.29%; the net profit attributable to shareholders of the listed company was 299 million yuan, a year-on-year increase of 109.02%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 282 million yuan, a year-on-year increase of 111.43%; basic earnings per share was 1.0604 yuan.

Yibai Network can be said to account for the vast majority of the parent company's revenue sources. Due to exceeding the performance bet, it received an excess performance reward of 42.5 million to 52.5 million yuan.

Revenue and profit both increased significantly! Yibai Network exceeded its performance bet

Data shows that in the first three quarters of this year, Yibai Network achieved operating income of 4.7 billion yuan , total profit of about 410 million yuan , and net profit of 350 million yuan . Among them, the operating income in the third quarter was 1.74 billion yuan , total profit of 120 million yuan , and net profit of 100 million yuan (after deducting excess performance rewards).

What is the excess performance reward? Yi Enjun learned that according to the "Asset Purchase Profit Forecast Compensation Agreement" and its supplementary agreement signed by Huakai Yibai and the performance commitment parties Mangliduo, Luo Ye, Chaoran Mailun, and Yichuanghuihuang:

The net profit attributable to the owners of the parent company after deducting non-recurring gains and losses in the consolidated financial statements of Yibai Network in 2019, 2020, 2021, 2022 and 2023 shall not be less than RMB141 million, RMB170 million, RMB204 million, RMB251 million and RMB290 million respectively. If the performance commitment period expires, and the cumulative net profit achieved by Yibai Network during the performance commitment period exceeds the cumulative committed net profit and meets the relevant conditions, it can receive certain performance rewards.

Pursuant to the "Profit Forecast Compensation Agreement for the Issuance of Shares and Payment of Cash for the Purchase of Assets with Conditional Effectiveness", Yibai Network expects its net profit to exceed the performance commitment for 2023, and has set aside excess performance rewards of RMB 42.50 million to RMB 52.50 million during the reporting period .

The editor learned that Yibai Network 's non-GAAP net profit in 2019-2022 was 175 million yuan, 364 million yuan, 216 million yuan and 281 million yuan respectively . It has completed the performance betting agreement with Huakai Yibai for four consecutive years, which further strengthened the parent company's strategy of continuing to focus on cross-border e-commerce business.

Make a fortune by distributing products! It is predicted that Yibai Network’s revenue will exceed 10 billion in 2025

According to forecasts, Huakai Yibai's operating income in 2023-2025 is expected to be 6.496 billion, 8.397 billion, and 10.861 billion yuan, respectively, with YOY growth rates of 47.07%, 29.26%, and 29.35%, respectively; EPS are 1.37, 1.76, and 2.33 yuan, respectively.

There is no doubt that Yibai Network is the key to the parent company's revenue growth. According to data, Yibai Network was founded in 2011 and is headquartered in Shenzhen. It has branches in Wuhan, Chengdu, and Changsha, domestic warehouses in Dongguan, and overseas warehouses in Latin America. It has more than 2,000 employees worldwide. It mainly sells home gardening, industrial and commercial supplies, automobile and motorcycle accessories, health and beauty, 3C electronic products, outdoor sports and other categories ; it mainly sells goods to overseas end consumers by opening online stores on third-party platforms.

Yibai Network sells its products on third-party platforms such as Amazon, eBay , AliExpress, Cdiscount, and Walmart , but Amazon is the main source of revenue.

In the first half of this year, Yibai Network achieved sales revenue of 227,560.21 million yuan through cross-border export e-commerce business through the Amazon platform, accounting for 76.05% of operating income, with a total of 16,639,200 Amazon orders and an average order amount of 136.76 yuan. It is worth noting that during the reporting period, Yibai Network had 720 online stores on Amazon, 54 of which were newly added and 7 were closed during the period.

Except for Amazon, the sales revenue achieved by Yibai Network through other third-party platforms accounted for no more than 10% of its operating income from January to June 2023.

As we all know, Yibai Network is a typical representative of early-stage mass-market products. However, through transformation and upgrading, it has now identified three strategic business models: "general products + high-quality products + Yimai ecological service platform".

As of the first half of this year, the general product business has more than 950,000 SKUs on sale. The general product business generally shows the characteristics of low unit price and low brand recognition, with a sales unit price of 103.53 yuan; the number of SKUs on sale in the boutique business is 376, with a sales unit price of 441.13 yuan. The sales platform is mainly Amazon, and it is also exploring platforms such as Walmart; EasySeller is a cross-border e-commerce comprehensive service ecological platform, covering "supply chain management, Amazon incubation, Meikeduo incubation, EasySeller cloud warehouse, Latin American overseas warehouse, value-added services" six core businesses, which can meet the differentiated needs of sellers at different development stages. Although Yibai Network has not disclosed the specific revenue situation of EasySeller, its sales are growing rapidly.

Summarizing the pattern of Yibai Network's revenue and net profit that have been gratifying year after year, it can be found that it is undoubtedly in line with the development trend of the times. Now the "fine and beautiful" operation strategy has gradually become the mainstream, and it is a major trend for cross-border sellers to also provide agency operations, logistics and other services, and these points are all the key layouts of Yibai Network.

Yibai Network’s Journey to Listing

Compared with other cross-border sellers, Yibai Network's journey to listing has been very smooth.

In 2019, A-share listed company Huakai Creative (formerly known as Huakai Yibai) plans to purchase 90% of the equity of cross-border export e-commerce Shenzhen Yibai Network Technology Co., Ltd. through a combination of issuing shares, convertible bonds and paying cash.

In 2021, Huakai Creative completed a major asset reorganization of Shenzhen Yibai Network Technology Co., Ltd. ("Yibai Network"), acquired 90% of Yibai Network's shares, and carried out a strategic transformation. While transforming into a cross-border e-commerce company, Huakai Creative's original main exhibition hall business is gradually shrinking.

On May 30, 2022, Huakai Creative announced a name change, with the company's stock name changed from "Huakai Creative" to "Huakai Yibai", which is undoubtedly of great significance, and it also shows Huakai's recognition of Yibai Network. It is understood that since the acquisition of Yibai Network, Huakai Creative's original exhibition hall business has gradually shrunk. At present, cross-border export e-commerce has become the company's core business.

Based on the company's future development strategy and the operating conditions of Yibai Network, after friendly negotiations, Huakai Yibai, Mang Liduo and Chaoran Mailun signed the "Share Transfer Agreement" on April 24, 2023. The company intends to use its own or self-raised funds totaling RMB 360,000,000 to acquire the 10% equity of Yibai Network held by Mang Liduo and Chaoran Mailun (hereinafter referred to as the "target assets").

After the completion of this transaction, Huakai Yibai's shareholding ratio in Yibai Network increased from 90% to 100%, and Yibai Network became a wholly-owned subsidiary of Huakai.