Recently, CITS United issued a public response to the regulatory inquiry letter for the 2025 annual report, and the operating data of its cross-border e-commerce sector has become the focus of market attention.
Its cross-border e-commerce business is operated by its wholly-owned subsidiary Haijigou. In 2025, this segment contributed approximately 81.48 million yuan in revenue to the listed company, a year-on-year increase of 60.08%. However, the net profit during the same period was a loss of 12.19 million yuan. While the revenue increased significantly, the loss range further expanded, triggering multiple questions from the market and regulatory authorities.
Regulators focus on requiring companies to explain the specific basis for adopting the gross method or net method for e-commerce business accounting, and whether there are circumstances to avoid delisting risk warnings.
According to the information disclosed by the company, 78.967 million yuan of e-commerce business revenue in 2025 will be calculated using the gross method, including B2C self-operated direct sales and BBC platform distribution. The two types of revenue account for basically 50% each.
Among them, the top five customers in 2025 are all related entities of the leading cross-border e-commerce platform, with a total sales contribution of 76.9909 million yuan. Pinduoduo, JD.com, Tmall International, Alipay, and Vipshop rank among the top five.
From the perspective of business structure, the Nintendo Switch series products are the core hot-selling category of Haijigou. In the core self-operated stores of Pinduoduo platform alone, the cumulative sales of Nintendo-related products exceed 18 million yuan, becoming the core driving force for revenue growth.
The company responded that it has indeed seized the window period for the launch of new Nintendo Switch products in 2025 to achieve related revenue growth, but there is no high dependence on a single brand. This category of revenue accounts for less than 20% of total revenue. It has currently deployed in multiple tracks such as digital, milk powder, joint care, aromatherapy, beauty, and fast food. Products such as Mecozo milk powder, Yijie health products, and Samyang turkey noodles have also formed stable revenue contributions. The revenue share of Switch single products will continue to decline in 2026.
As for the question of continued losses despite high revenue growth, the company disclosed that the overall gross profit margin of the e-commerce business in 2025 will be 7.28%. It has gross profit space itself, and the losses do not come from traffic promotion.
The cost is too high, but it is caused by the superposition of multiple staged and one-time factors: first, one-time disposal losses caused by the closure of offline physical stores; second, bad debt provisions for previous historical transactions; third, some new products are still in the market cultivation period, and short-term scale effects have not yet been released.
In view of the follow-up turnaround plan, the company stated that it will focus on three major directions in 2026: First, strengthen the brand business, consolidate the advantages of core categories such as maternal and infant, and health care products, deepen direct supply cooperation with international leading brands, build a full industry chain guarantee system of authentic product traceability, bonded warehouse direct delivery, and full-process quality control, and improve user repurchase rates and brand premium capabilities; second, expand the platform direct supply business, deepen cooperation with leading brands such as Sam Global Shopping, Tmall, and JD.com
The platform’s all-area cooperation focuses on core channels such as Tmall’s self-operation, exploration, and Taobao distribution, optimizing the supply chain and contract fulfillment efficiency, and expanding market share; the third is to optimize the e-commerce retail business, expand high-potential segments such as health products through digital product selection and global refined traffic operations, build an ecological layout that is deeply coordinated with brand business and platform direct supply business, create the third growth curve of the e-commerce sector, and ultimately achieve large-scale growth and profitability upgrades in the cross-border e-commerce sector.
