Recently, the semi-annual reports of cross-border e-commerce listed companies have been disclosed.
As the industry ecology gradually recovers, the impact of Amazon’s “account ban wave” gradually subsides, the shipping cycle decreases, prices gradually fall from highs, the cross-border e-commerce industry gradually picks up, and the profits of leading sellers improve.
However, at the same time, overseas inflation remains high, the downward trend in consumption still exists, and companies still face challenges.
The reporter sorted out the semi-annual performance reports of nine leading cross-border e-commerce export sellers, including Anker Innovation, Huakai Yibai, Huading, Jihong, Xinghui, ST Youkeshu, LD Times, Zhiou Technology, and Zibuyu. Among them, 6 companies achieved revenue growth, 6 companies achieved net profit growth, and 4 companies including Anker Innovation and Huakai Yibai achieved double growth in revenue and profit.
Since 2022, shipping prices have gradually fallen from highs, reflecting the improvement in the tight relationship between market supply and demand. At the same time, the decline in shipping costs and the reduction in shipping cycles mean that companies can obtain more competitive transportation prices and significantly reduce single-batch procurement and stocking, improve inventory turnover efficiency, improve product price competitiveness, and significantly reduce overall operating costs and operational risks.
In addition to objective factors, various companies have also made more refined layouts and transformations after 2022. 2023 is also the year when initial results have been achieved, with many cross-border e-commerce sellers achieving double growth in revenue and profit.
As the leader in consumer electronics overseas, Anker Innovation’s performance is still impressive.
The financial report shows that during the reporting period, Anker Innovation achieved total operating income of 7.066 billion yuan, a year-on-year increase of 20.01%; net profit attributable to shareholders of listed companies was 820 million yuan, a year-on-year increase of 42.33%; net profit after deducting non-ownership was 545 million yuan, a year-on-year increase of 77.8%.
Among them, the company’s gross profit margin in the first half of the year was 43.18%, a year-on-year increase of 3.81%. Mainly due to the increase in exchange rates, reduced freight rates and optimization of brand supply chain channels, the gross profit margin in Q2 alone was 44.67%, a year-on-year increase of 4.15%, reaching the highest level in the past two years.
Huakai Yibai also achieved significant growth.
The financial report shows that the company achieved operating income of 2.992 billion yuan in the first half of the year, a year-on-year increase of 52.10%; it achieved a net profit attributable to the owners of the parent company of 208 million yuan, a year-on-year increase of 149.66%.
During the reporting period, the operating income of subsidiary Yibai Network increased significantly.
Yibai Network achieved operating income of 2.981 billion yuan, a year-on-year increase of 52.11%; net profit was 243 million yuan, a year-on-year increase of 116.96%.
The profit growth rate of Yibai Network is significantly higher than the revenue growth rate. This is mainly because the company continues to optimize cost-side factors such as favorable exchange rates and falling international shipping costs. Through the refined operation of Yibai Cloud’s information system, the company effectively achieves cost reduction and efficiency improvement, and its operating performance continues to improve.
At the same time, the performance of cross-border e-commerce companies that were previously affected by Amazon’s account suspension and Paypal account freezing will gradually recover in 2023, and their profits will improve.
Huading’s financial report shows that in the first half of the year, it achieved revenue of 4.041 billion yuan, a year-on-year increase of 17.72%; net profit attributable to shareholders of listed companies was 90.4343 million yuan, a year-on-year decrease of 80.51%; net profit attributable to shareholders of listed companies excluding non-recurring gains and losses was 81.2721 million yuan, a year-on-year increase of 145.57%, turning losses into profits, mainly due to the profitability of the cross-border e-commerce business segment.
In the first half of the year, the company’s cross-border e-commerce business segment achieved revenue of 1.676 billion yuan, a year-on-year decrease of 0.18%; total profit was 4.5458 million yuan, a year-on-year increase of 102.35%; net profit was 3.5078 million yuan, a year-on-year increase of 101.80%.
The financial report of Xinghui Shares shows that during the reporting period, it achieved a total operating income of 849.0744 million yuan, a year-on-year decrease of 32.38%, a net loss attributable to shareholders of the listed company of 20.6182 million yuan, a year-on-year decrease of 88.86%, and a net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses of 18.689 million yuan, a year-on-year increase of 227.20%.
The company’s sales scale decreased year-on-year, but the profitability of its main business increased year-on-year. The decrease in net profit attributable to shareholders of listed companies was mainly due to the company’s provision of a large amount of estimated liabilities due to litigation.
After experiencing the decline in the peak of online consumption after the easing of overseas phased factors, the “wave of Amazon account bans” and Amazon price increases, the industry as a whole is facing severe inventory clearance and changes in the competitive situation. Some industry participants have significantly reduced their scale or completely withdraw from the market. The core competitiveness of industry sellers determines their ability to withstand risks and the speed of recovery.
In this process, the penetration of digitalization and intelligence is accelerating, and cross-border e-commerce companies are paying more attention to achieving refined transformation with the help of information systems, artificial intelligence, etc.
Saiwei Times stated in its financial report that the company attaches great importance to the construction of the underlying IT platform and the application of big data technology, and digitalization empowers multiple links such as product research and development, procurement, production, and logistics.
Zhiou Technology also said that the transformation of the planned delivery business process at the supply chain end and the construction and upgrade of the full-link information system have brought inventory turnover back to normal levels and saved warehousing costs.
Huakai Yibai’s financial report shows that as of June 30, 2023, the subsidiary Yibai Network’s technical R&D team specializes in system design and development and data algorithm research, with a total of 268 people, accounting for 10.30% of the company’s total number of people.
Against the backdrop of continued optimization of cost-side factors such as improving exchange rates and falling international shipping costs, the company has effectively achieved cost reduction and efficiency improvement through the refined operation of Yibai Cloud’s information system.
On the other hand, as the popularity of large models soars, a new round of artificial intelligence has extended to various industries, and cross-border e-commerce is a key track for the “implementation” of the new round of AI technology.
“In the new era of AI, relevant companies should make arrangements as early as possible, seize and make good use of advanced intelligent tools, and improve the competitiveness of companies in the new era.” said Zhang Zhouping, senior analyst of the B2B and Cross-border E-commerce Department of the Online Economics E-Commerce Research Center.
For example, Jihong shares attributed the growth of its cross-border e-commerce business during the reporting period to the empowerment of AI.
The financial report shows that the company uses innovative cutting-edge technologies such as AI and ChatGPT to integrate cross-border social e-commerce application scenarios, and continues to optimize cross-border social e-commerce business links, including intelligent product selection, intelligent design and material generation, intelligent advertising, intelligent translation, intelligent customer service and other social e-commerce full-link systems and intelligent functions, achieving cost reduction and efficiency improvement.
Intelligent and refined layout can help brands incubate efficiently.
Creating differentiation and strengthening brand power are the next steps for companies going overseas.
Anker Innovation is one of the few overseas companies that has built its brand power.
During the reporting period, the company’s six independent stations on its own platform achieved a total revenue of 456 million, a year-on-year increase of 112.59%.
The company’s R&D investment reached 599 million yuan, a year-on-year increase of 33.69%, and R&D investment accounted for 8.48% of total operating income.
In the early days of the Saiwei era, we deeply cultivated the brand, and the rewards gradually emerged.
Saiwei Times stated that the obvious reason for the gross profit increase in the first half of 2023 is mainly due to the long-term deep cultivation of the clothing accessories category. The underlying capabilities are highly reused in the clothing sub-categories to empower brand incubation and development. The improvement in operational efficiency and brand premium capabilities will promote the expansion of the gross profit space of the clothing accessories category in the first half of 2023. The gross profit margin of the clothing accessories category increased by 3.45% compared with the same period last year.
“In an increasingly competitive environment, building a strong brand is the key to long-term success.” Zhang Zhouping said, “Strong efforts in branding will help companies build their core competitiveness.”
