Earned another 300 million in the first half of the year! The best-selling business with a market value of 4.4 billion

As August entered the second half of the year, many cross-border sellers recently announced their first half performance. As for the good news, Huakai Yibai's half-year revenue reached 2.992 billion yuan , a year-on-year increase of 52.1% , and its net profit more than doubled compared with the same period last year, reaching 208 million yuan .

But compared with Huakai Yibai, Lejia has achieved a greater harvest.

Net profit was 440 million, and Lechuang products sold 1 billion in half a year

In the first half of this year, the listed cross-border blockbuster Lechuang Co., Ltd. (hereinafter referred to as "Lechuang") continued its previous brilliant performance. In just 6 months, the revenue reached 1.678 billion yuan, an increase of 8.37% year-on-year; the net profit attributable to shareholders of the listed company reached 443 million yuan, an increase of 239.76% over the same period last year , earning an additional 310 million yuan .

You should know that although Lechuang's revenue for the whole year last year was 3.2 billion yuan, its net profit was only 219 million yuan. Now its net profit has doubled in half a year. It is no exaggeration to say that the net profit alone is almost twice the total revenue of Youkeshu in the first half of this year ( 235 million yuan) .

Excluding the revenue from overseas warehouse business, the ergonomic workstation series products, which is the main source of revenue, generated revenue of 1.051 billion yuan, accounting for 62.63% of total revenue.

This year, sellers generally reported bleak order volumes. However, against the backdrop of declining consumer purchasing power, Leckey bucked the trend and achieved sales of 1 billion yuan. It seems that its products are deeply trusted by consumers at home and abroad.

Relying on overseas e-commerce platforms such as Amazon, Home Depot, Walmart, Rakuten, and Yahoo , Leckey's own brand "Flexispot" lifting table has always been among the top sales in this category and has repeatedly won the first place .

Just taking the Amazon platform as an example, the product ratings under the Flexispot brand remain above 4 points, and some products even receive full marks.

Thanks to this, in the first half of the year, Leckey products sold 423 million yuan on Amazon, with the number of buyers reaching 255,500 and the average consumption per person being 1,746 yuan.

Lechuang also attributed the improvement in performance to three aspects:

1. Brand awareness and reputation have been greatly improved, and brand dividends have emerged;

2. Improve overseas warehouse business, reduce last-mile logistics costs, and boost sales of its own products;

3. The sharp drop in shipping costs and raw material prices has reduced product costs, and the significant rebound in the US dollar-RMB central parity rate has increased profits.

Among the financial report data, the most eye-catching is still the development of its independent station business.

The independent station business continues to grow, and traffic ranks first in the United States

For a long time after Amazon’s account ban, cross-border sellers began to think about the possibility of setting up independent websites.

But a long time ago, Lechuang Chairman Xiang Lehong talked about the necessity of independent sites, " If a company wants to develop healthily, it will have no future if it relies solely on third-party platforms. Independent sites must be built. Only by building independent sites can we truly get close to users and understand their needs . "

Therefore, since the establishment of its first independent website in 2016, Levo has been investing continuously and heavily in this sector.

In 2016, Lechuang moved its core site to the United States and set up a separate department to drive traffic to the independent site . After spending tens of millions on advertising through SEO, video delivery and other methods, Lechuang 's independent site ushered in a qualitative change in 2020.

*Note: Lechuang’s financial reports before 2019 did not disclose the revenue of specific platforms such as Amazon and independent stations, and the words related to independent stations did not appear in the 2019 financial report.

As for independent sites, their revenue has grown dramatically since 2020:

In 2020 , the revenue was 278 million yuan, accounting for 14.59% of the total revenue , a year-on-year increase of 580.64% . The number of buyers reached 153,700 , and the average consumption per person was 2330.83 yuan;

In 2021, the revenue was 527 million yuan, accounting for 18.35% of the total revenue, an increase of 89.19% year-on-year, the number of buyers reached 246,700 , and the average consumption per person was 2,356.24 yuan ;

In 2022 , the revenue was 575 million yuan, accounting for 18.04% of the total revenue, a year-on-year increase of 9.17% . The number of buyers reached 226,800 , and the per capita consumption soared to 3,155.01 yuan . Although the growth rate has slowed down, the momentum cannot be underestimated.

In the first half of this year, the revenue of this segment has reached 305 million yuan, accounting for 23.49% of the total revenue .

What is more noteworthy is that on independent websites, the per capita consumption of LESCHOOL products far exceeds that of other platforms. In the first half of this year, the per capita consumption on independent websites reached 2,863 yuan, while on Amazon it was only 1,746 yuan . This shows that users have a higher degree of stickiness and trust in independent websites, which is more conducive to the development of LESCHOOL's own brand "Flexispot" .

At present, the development of Lechuang's independent website has entered a stage of stable growth. According to similarweb data, in July, the monthly number of visitors to Lechuang's independent website flexispot.com reached 746,300 . In the past three months , the number of visitors has remained stable at more than 640,000 .

By insisting on developing independent channels, the advantages of Leckey's independent website layout have become apparent. In recent years, flexispot.com has been in the first echelon among the global independent e-commerce websites for linear drive application products. In the first half of this year, the company's independent website traffic in the United States surpassed its main competitors for the first time and ranked first.

Driven by multiple channels and multiple rounds, Lechuang is now ushering in the "spring" of development, but its cross-border journey has not been smooth along the way.

From losses to listing, with a market value of 4.4 billion, Lechuang has made solid efforts

In 2011 , Lechuang began to engage in cross-border e-commerce, becoming one of the earliest cross-border players.

At the beginning, they did not sell their own products, but like many novice sellers, they distributed products on third-party platforms such as Amazon and operated multiple brands. However, in four years, this "nonsense rush" caused them to lose more than 40 million yuan.

Therefore, in 2015 , Lechuang learned from its mistakes and readjusted its operating model , shifting its focus to vertical categories and a single brand . Its products focus on the field of ergonomics , with the brand centerpiece being FlexiSpot .

Since then, with its linear drive lifting system products such as smart lifting tables, Loctek's cross-border business has started to get on track and achieve profitability. After its launch in 2017, Loctek's products have been making great strides. In the first half of this year, this core product sold 621,900 units, with sales reaching 924 million yuan.

This outstanding achievement is of course inseparable from its research and development.

In recent years, Lechuang’s R&D investment has continued to grow, and its innovation level is at the forefront of the industry. In the first half of this year, it invested 67.1544 million yuan in R&D alone .

The huge investment has naturally yielded fruitful results . Today, Lechuang has a number of world-first linear drive technologies, and many of its products are independently developed and designed. As of June this year, Lechuang has added 22 invention patents, with a total of 1,291 valid patent technologies , covering major countries and regions around the world, including China, the United States, Japan, and Europe.

With the accelerated development of its own brands, FlexiSpot was twice selected into the Kantar BrandZ China Top 50 Global Brands rankings and won the special award for new global brands. Today, with its own brands, the sales revenue of Leckey has accounted for 71.29% of its main business revenue (excluding overseas warehouse revenue) .

Independent sites maintain their position in the first echelon, and sales on platforms such as Amazon continue to dominate. Even against the backdrop of sluggish global economic growth and intensified market competition, Levo has continued to report good news , and its market insight and adaptability are impressive.

Currently, Lectop's business has spread to 75 countries and regions around the world , and its smart home business is actively exploring the second and third world markets.

From a loss of 40 million to a current market value of 4.4 billion, every step taken by Lechuang has been solid and forward-looking. In the future, it will continue to enhance its R&D capabilities, focusing on building differentiated capabilities such as its own brands and channels.

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