Revenue and net profit plummeted! Many cross-border sellers were hit

Recently, major cross-border sellers have successively released their semi-annual financial reports.

Some people’s performance is booming and they are making a lot of money, while others’ performance is plummeting and they are complaining bitterly.

The editor found that many well-known big sellers in the industry saw both a decline in revenue and net profit, which was surprising.

Xinghui shares' net profit fell sharply by nearly 90%

Xinghui Co., Ltd. is the parent company of Zebao, a well-known big seller in the industry. Its main business is the research and development, production and sales of precision metal connectors and the research and development, design and sales of its own brand of consumer electronic products such as smart small household appliances, computer and mobile phone peripherals, power supplies, etc.

The dispute between Xinghui Shares and Yuanzebao's founding shareholders has attracted widespread attention in the industry. In addition to the dispute over the right to sell shares, there is also a dispute over the transfer of shares, involving an amount of more than 1 billion yuan. The long-term litigation has also had a certain impact on the company's operations.

According to the financial report data released by Zebao's parent company, Xinghui Co., Ltd., in the first half of 2023, Xinghui Co., Ltd. achieved a total operating income of 849 million yuan, a decrease of 32.38% compared with the same period last year.

Xinghui Co., Ltd. achieved a net profit attributable to shareholders of the listed company of -20.6182 million yuan, a decrease of 88.86% compared with the same period last year. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 18.6890 million yuan, an increase of 227.20% compared with the same period last year.

Regarding the reasons for the sharp decline in performance and net profit in the first half of 2023, Xinghui Co., Ltd. stated that although the company's sales scale has declined, the profitability of its main business has increased. The main reason for the decline in net profit attributable to shareholders of listed companies is the company's large amount of estimated liabilities for litigation.

In fact, in 2022, Xinghui Co., Ltd.'s revenue showed a significant decline.

The report shows that in 2022, Xinghui Co., Ltd. achieved revenue of 2.351 billion yuan, a year-on-year decrease of 35.76%.

Among them, Zebao's performance was halved year-on-year, with operating income of 1.225 billion yuan in 2022, a year-on-year decrease of 52.39%.

According to the financial report information, under the influence of multiple factors such as intensified inflation and declining overseas consumption, Zebao's inventory backlog processing in the first half of 2022 was lower than expected, processing costs increased, sales volume declined, and sales gross profit was low.

After going public, Greebo suffered losses, which aroused doubts from shareholders!

Greebo is a well-known gardening brand in East China. Since 2007, it has been engaged in the research and development, design, production and sales of new energy gardening machinery. After more than ten years of deep cultivation in the vertical category, it has now become one of the leading companies in the global new energy gardening machinery industry. Greebo's annual revenue exceeds 5 billion yuan, ranking among the top three brands in the European and American industry, and is expected to continue to maintain its growth trend. Its greenworks brand lawn mowers, hair dryers and other products are always among the "Best Sellers" on the Amazon platform.

According to the financial report data released by Greebo, in the first half of 2023, Greebo achieved operating income of approximately 2.581 billion yuan, a decrease of 18.79% compared with the same period in 2022, and the net profit attributable to shareholders of the listed company was -53.91 million yuan, a decrease of 121.24% compared with the same period in 2022.

In February this year , Greebo was listed on the Shenzhen Stock Exchange's Growth Enterprise Market, issuing 121.54 million shares at an issue price of 30.85 yuan, raising 3.75 billion yuan in new shares.

Greebo is known as the "first new energy OPE stock" on the ChiNext and has gained a first-mover advantage in the capital market.

However, the company suffered losses after its listing, which inevitably raised doubts.

During the company's interactive Q&A session, a shareholder raised questions about the losses after the listing.

In response to the poor performance, Greebo said that due to the impact of retailers' inventory reduction in North America, the company faced severe market conditions in the first half of the year.

In the first half of 2023, major retailers and wholesalers began to actively reduce inventory, thus slowing down the pace of purchasing from suppliers. Under this influence, Greebo's product sales declined, thus affecting the company's revenue.

In order to seize a favorable position in the market, the company continued to increase its efforts in brand building and increased sales staff and marketing expenses. At the same time, as the company's scale and inventory increased, storage costs also increased. The significant increase in various investments led to the company's losses.

Sanboshuo's net profit plummeted by nearly 90%

Sanboshuo is an enterprise focusing on the research and development, design, production and sales of sports and fitness products. The company is headquartered in Qingdao, Shandong. Its main products include two categories: leisure sports equipment and fitness equipment. Leisure sports equipment mainly includes various types of trampolines, and fitness equipment includes treadmills, elliptical machines, exercise bikes, comprehensive training machines and barbell racks.

Among them, trampolines account for half of Sanbo Shuo's main business, and Sanbo Shuo is therefore known as the "King of Trampolines" in the industry. In October 2022, Sanbo Shuo successfully listed on the main board of the Shenzhen Stock Exchange, becoming the "first cross-border trampoline stock."

According to the semi-annual performance report data released by Sanboshuo, the company achieved operating income of approximately 188 million yuan in the first half of 2023, a decrease of 53.41% compared with the same period in 2022; the net profit attributable to shareholders of listed companies was approximately 8.81 million yuan, a decrease of 87.65% compared with the same period in 2022; basic earnings per share was 0.0361 yuan, a year-on-year decrease of 90.75%.

Regarding the reasons for the decline in the company's revenue and net profit, Sanboshuo said that in the first half of 2023, overseas inflation intensified and consumer purchasing power declined. At the same time, related international brands continued to destock. Multiple factors led to a slow recovery in purchases by the company's major customers, and the company's overall revenue declined.

Weak demand in overseas markets causes decline in net profit of Yuanfei Pet

Yuanfei Pet has been deeply involved in the pet products foreign trade market for more than 20 years, focusing on the research and development, production and sales of pet products and pet food. Its main products include pet traction equipment, pet injection toys and pet snacks and other products, among which pet traction equipment accounts for the largest proportion of Yuanfei Pet's main business. The company's customers are concentrated in the United States, the European Union, Japan and other countries. It has long-term and stable cooperation with internationally renowned professional pet product chain stores and large international chain retailers, and overseas sales revenue accounts for more than 90%.

In August 2022, Yuanfei Pet officially listed on the Shenzhen Stock Exchange, becoming the fifth A-share listed company in China's pet industry.

According to the semi-annual financial report data released by Yuanfei Pet, Yuanfei Pet achieved operating income of approximately RMB 431 million in the first half of 2023, a decrease of 21.43% compared with the first half of 2022, and net profit attributable to shareholders of listed companies was approximately RMB 65.859 million, a decrease of 35.55% compared with the first half of 2022. Basic earnings per share were RMB 0.3450, a year-on-year decrease of 47.06%.

Regarding the reasons for the decline in revenue and profits, Yuanfei Pet said that the current external environment is becoming more complex and severe, and the domestic economic development is also facing pressure. It will take time for the demand for pet products to be transmitted and recover. Under the influence of the market environment, consumers of pet products are beginning to prefer basic products, and the demand for products with high customer unit prices is showing a weak trend.

Judging from the reasons for the decline in performance announced by major sellers, the overseas economy has shown a weak trend due to high inflation, resulting in a decline in the overall consumption capacity of overseas consumers. The performance of many major sellers has generally fallen short of expectations. How to reverse the current downward trend has become an important issue that many sellers need to face.

Big Sell

Semi-annual report