Amazing! Amazon sold 4.2 billion in 9 months

Recently, several cross-border e-commerce giants announced their performance reports for the first three quarters, ushering in their performance highlights.

Zhiou Technology's net profit soared in the first three quarters, and its revenue exceeded 4 billion yuan!

According to the performance forecast released by Zhiou Technology, the company expects to achieve operating income of 4.1-4.2 billion yuan in the first three quarters of 2023, a change of -0.45%-1.98% compared with the same period last year. It is expected to achieve a net profit attributable to shareholders of the listed company of 280-300 million yuan, an increase of 63.38%-75.05% compared with the same period last year. The net profit after deducting non-recurring gains and losses is about 310-330 million yuan, an increase of 77.63%-89.09% compared with the same period last year.

Although Zhiou Technology's revenue growth rate slowed down in the first three quarters, its net profit maintained strong growth.

Zhiou Technology stated that during the reporting period, the main reasons for the company's net profit growth were a significant decrease in shipping costs compared with the same period last year, an improvement in exchange rates compared with the same period last year, and the excellent performance of new products.

Founded in 2011 and headquartered in Zhengzhou, Zhiou Technology is a world-renowned Internet home furnishing brand, mainly engaged in the research and development, design and sales of its own-brand home furnishing products. Its products are mainly divided into categories such as furniture, home furnishing, garden, pet series and other products. It has three own brands, SONGMICS, VASAGLE and FEANDREA, and sells its products to the world through well-known overseas e-commerce platforms such as Amazon, ManoMano, Cdiscount, eBay and its own official website platform, covering more than 60 countries and regions including Europe, North America and Japan.

With its differentiated brand image of "high cost-effectiveness, full-scenario, and fashionable design", Zhiou Technology has steadily grown into Amazon's largest home furnishing seller in Europe. Several of the company's own brands have also become popular home furnishing brands among consumers in the European and American markets.

Zhiou’s three own brands are SONGMICS, VASAGLE and FEANDREA. These three brands cover almost all products in the home scene and have been recognized in Europe, the United States and other places . Many products are always ranked at the top of the best-selling list of third-party e-commerce platforms such as Amazon.

In the course of more than ten years of development, Zhiou Technology has evolved from an initial trade distribution model to a product focus, and then continued to deepen its branding strategy, driving the company's continuous development and growth in overseas markets.

In recent years, with the rapid development of the home furnishing industry, Zhiou's performance has also maintained a high growth trend.

In June 2023, Zhiou Technology was officially listed on the Shenzhen Stock Exchange's Growth Enterprise Market, becoming the first Internet home furnishing listed company in Henan.

Zhiou Technology's stock code is 301376, with an issue price of 24.66 yuan per share, an issue price-earnings ratio of 39.58 times, a closing price of 26.34 yuan on the first day, and a market value of approximately 10.6 billion yuan. The total amount of funds raised is 990 million yuan, which will be mainly used for the construction of the R&D and design center, the expansion of the warehousing and logistics system, the construction of the Zhengzhou headquarters operation and management center, and to supplement working capital.

However, Zhiou Technology's road to listing was not smooth.

In June 2021, Zhiou Technology made its first attempt to list on the ChiNext. Three months later, the listing process was terminated due to expired financial information.

In December 2021, Zhiou Technology updated its financial data and restarted its IPO. In April 2022, its listing review was suspended again due to outdated financial information.

Zhiou Technology's two suspensions from listing were due to expired financial information, and the two changes in the IPO review committee had a direct impact.

Now, after its successful listing, Zhiou Technology is expected to further improve its R&D strength and product innovation, warehousing and logistics system, and operational management efficiency, and enter a new stage of development.

Jihong shares' net profit in the first three quarters exceeded 300 million yuan

Recently, another major seller, Jihong Holdings, also released its performance forecast for the first three quarters of 2023.

According to the performance forecast released by Jihong Shares, the company expects to achieve a net profit attributable to shareholders of listed companies of 314-323 million yuan in the first three quarters of 2023, an increase of 58.30%-62.50 % over the same period last year . The net profit after deducting non-recurring gains and losses is approximately 297-306 million yuan, an increase of 64.73%-69.34% over the same period last year.

Jihong shares stated that the company's net profit in the first three quarters increased rapidly mainly due to two reasons:

First, the target markets that benefit cross-border e-commerce continue to recover, consumers' purchasing power generally increases, and the company's digital-driven strategy becomes more efficient, which greatly helps the company's performance.

Second, the company’s packaging business implements refined group management, and its operational efficiency and profitability are continuously improving.

It is worth mentioning that Jihong Co., Ltd. has been deeply engaged in the RCEP region, while driving the efficiency of cross-border e-commerce business through digitalization.

Jihong shares is actively promoting the layout of the Middle East business and is optimistic about the development of this market. On the other hand, the company continues to increase its investment in research and development, and has invested more than 150 million yuan in research and development expenses to continuously iterate and upgrade its self-developed cross-border social e-commerce operation management system, which has now been upgraded to the third generation Giikin3.0.

In addition, relying on its own digital operations, Jihong Co., Ltd. has integrated cross-border social e-commerce application scenarios with the help of innovative cutting-edge technologies such as AI and ChatGPT, and gradually launched ChatGiiKin-6B, GiiAI and G-king, achieving a continuous increase in the scale of orders and profits of cross-border social e-commerce business.

Jihong Holdings stated at its earnings conference held on May 12 this year that since the company connected to ChatGPT, it has used ChatGPT to train and optimize its self-developed e-commerce management system and database, and the company's digital operation capabilities have been effectively improved. ChatGPT is specifically used in artificial intelligence product selection, graphic and video advertising material production/advertising slogan intelligent output, advertising intelligent delivery, intelligent customer service response, etc.

ChatGPT can train and enrich the data of the product label system, help the product selection optimization model to make product selection decisions in four main dimensions: route, platform, time, and product characteristics, and further improve the efficiency and quality of product selection. According to the latest data, ChatGPT has helped Jihong Co., Ltd. launch more than 20,000 new products.

On the other hand, ChatGPT can mine effective relationships. Jihong shares used the new demand concepts mined by ChatGPT to serve the company's NLP team. ChatGPT helped Jihong shares to mine the relationship between 1.5 million products (10 times the demand of e-commerce) among tens of millions of products, further promoting the discovery of relationships between products and enriching the company's association recommendation business.

ChatGPT has effectively empowered multiple business nodes of Jihong Co., Ltd. and is expected to promote the company's order receipt rate and advertising conversion rate in the future, thereby improving the company's business profitability. It will also be very helpful for expanding the business scale.

The emergence of ChatGPT has brought great convenience to cross-border people and greatly improved work efficiency.

In addition to Jihong Shares, cross-border sellers such as Anker Innovations, Lechuang Shares, Huakai Yibai, Giant Star Technology, and Hanwang Technology have also entered the market one after another. An investor in the industry said that in the future, e-commerce companies that first reach cooperation with OpenAI plug-ins are expected to achieve large-scale revenue growth.

In the future , more opportunities will emerge in the cross-border e-commerce market around technologies such as ChatGPT.

Third quarter results

Amazon Sells Well