In the critical stage of restructuring the global trade pattern and the cross-border e-commerce industry shifting from barbaric growth to high-quality development, leading companies generally face five core problems: high inventory, pressure on profits, platform dependence, stricter compliance, and high costs.
As a leading A-share cross-border e-commerce company, Huakai Yibai has taken proactive destocking, enhanced cash flow, technology empowerment, model upgrading, and multi-platform balancing as the starting point to break the situation. It has achieved a significant reduction in inventory and a surge in operating cash flow. It has embarked on a high-quality development path and provided a replicable transformation sample for the entire industry.
This year’s first quarter report shows that Huakai Yibai’s net profit attributable to its parent company exceeded 71 million yuan, and its net profit after non-attributed profit exceeded 65 million yuan.
This is not only a recovery in financial data, but also a strong proof of its “highlighted resilience of general products and strong development of high-quality products”, marking that this leading cross-border e-commerce company is passing through the cycle and ushering in a new turning point in high-quality development.
Operating cash flow has reached a record high, and asset quality has improved significantly
In the past few years, domestic cross-border e-commerce has bid farewell to the golden era of “barbaric growth” and entered a period of adjustment full of challenges.
With the rise of global trade protectionism, the disappearance of policy dividends such as “small exemptions” in the United States, and the tightening of compliance requirements in the European Union and other places, companies are facing the double squeeze of tariffs and compliance costs.
Within the industry, the “distribution model” is unsustainable, and homogeneous competition has triggered fierce price wars, resulting in extremely compressed profit margins.
From “making money” to “involvement”, cross-border enterprises generally suffer from high inventories and declining revenue. The industry is undergoing a profound reshuffle from scale expansion to compliance and brand transformation.
In this context, Huakai Yibai decisively adjusted its business strategy and launched a profound “self-revolution” – proactively promoting the inventory optimization management plan.
Faced with industry-wide inventory pressure, the company did not choose to cover up the problem, but decisively concentrated on cleaning up unsalable, out-of-season or low-turnover products.
The financial report shows that the company’s net cash flow generated from operating activities in 2025 will be as high as 972 million yuan, a record high for the same period in history, a significant year-on-year increase of 394.88%.
Inventory is the life and death line of a company, and whether the inventory structure is healthy or not directly determines the company’s profit quality and risk resistance.
As of the end of 2025, the company’s inventory scale has been successfully reduced to less than 1 billion yuan, a sharp drop of more than 47% from the end of 2024, and continued to decline to 881 million yuan at the end of the first quarter of 2026.
The significant optimization of inventory not only effectively reduces the risk of inventory depreciation, but also significantly improves inventory turnover efficiency, laying a solid foundation for the subsequent restoration of profitability.
This series of actions marks that Huakai Yibai has completely shifted from “scale-oriented” to “quality-oriented”.
By sacrificing short-term profits in exchange for asset health, the company has successfully shed its historical burden and achieved a fundamental improvement in operating quality.
Abundant cash flow not only enhances the company’s ability to resist risks, but also provides sufficient “ammunition” for its subsequent high-quality layout and technological investment.
Hu Fanjin, chairman of Huakai Yibai, said that inventory turnover optimization is the company’s core achievement in 2025.
The company has accurately reduced its audited inventory from 1.9 billion yuan at the end of 2024 to less than 1 billion yuan at the end of 2025. It focused on clearing inventory and adjusting structure throughout the year, and resolutely divested unprofitable product lines, driving the proportion of warehouses aged within 90 days at home and abroad to a historical low, setting the best turnover level in ten years.
Although the early clearance of inventory resulted in profits of only 50 million yuan from January to September, the funds occupied by inventory continued to be released, and warehousing and impairment costs were significantly reduced, driving a significant rebound in profits in the fourth quarter.
This fully proves that inventory turnover is a “barometer” of profits. In the future, the company will incorporate inventory turnover rate into the core assessment to lay a solid foundation for performance growth and profit improvement in 2026 with refined inventory management.
Huakai Yibai’s asset quality is undergoing significant optimization. This positive trend is not only reflected in the clearance of inventory risks and the steady growth of cash flow, but is also confirmed by key financial indicators such as capital structure.
According to the latest quarterly report data, the company’s asset-liability ratio has dropped to 37.76%, achieving the sixth consecutive quarter-on-quarter decrease, and the capital structure continues to be optimized.
At the same time, the company’s solvency has been significantly enhanced, with the current ratio and quick ratio rising to 2.25 and 1.36 respectively at the end of the first quarter, which shows that the company has sufficient liquidity and its overall ability to resist risks has been significantly improved.
The net profit in the first quarter report turned around sharply, and the operating inflection point was officially established
Thanks to the adjustment of the business strategy, Huakai Yibai’s performance in the fourth quarter of 2025 showed a significant improvement trend. In the quarter, the net profit attributable to the parent company was nearly 100 million yuan, and the net profit after deducting non-attributable profits to the parent company exceeded 100 million yuan, achieving a year-on-year turnaround.
The company’s operations continued to improve in the first quarter of this year.
According to financial report data, in the first quarter of 2026, Huakai Yibai achieved a net profit of 71.5433 million yuan attributable to shareholders of the listed company, and a net profit of 65.6819 million yuan after deducting non-attributable profits to shareholders, achieving a substantial performance turnaround.
This change is mainly due to the recovery in gross profit margin brought about by the optimization of inventory structure and the effective control of sales expense ratio.
The financial report shows that Huakai Yibai’s overall gross profit margin in the first quarter of this year was 35.85%, a significant increase of more than 4 percentage points compared with the first quarter of 2025, returning to a relatively high level in history.
The strong rebound in financial data verified the continuity of the company’s operating turning point.
The impact of destocking that the market had previously worried about has gradually subsided, and the growth momentum of new business has begun to appear.
In particular, the operating conditions of the wholly-owned subsidiary Tongtuo Technology continued to improve after the merger, becoming a new profit growth point for the company.
The dividend rate will reach a record high in 2025
While promoting strategic transformation, Huakai Yibai always attaches great importance to shareholder returns and shares development results with investors through stable dividends and share repurchases.
The company’s profit distribution plan for 2025 is as follows: a cash dividend of 2.5 yuan (tax included) will be distributed to all shareholders for every 10 shares, with a total cash dividend of 96,307,332.25 yuan (tax included). The dividend amount will account for 65.64% of the net profit attributable to the parent company in 2025, and the dividend rate has reached a record high.
In addition, the company plans to change the purpose of the 5.0113 million shares repurchased out of the 11.0113 million shares that have been repurchased in 2025 and have not yet been used: from the original plan “for equity incentives and/or employee stock ownership plans” to “used to reduce the company’s registered capital”, and will be canceled in accordance with the law.
Further improve the company’s core financial indicators such as earnings per share, and enhance capital return capabilities and investment value.
Future Outlook: Anchoring three major strategies, value travels through cycles
Standing at a new starting point in 2026, Huakai Yibai has clearly defined the strategic direction of “focusing on the main business, improving quality and efficiency, AI empowerment, and diversified layout” to comprehensively promote high-quality and sustainable development.
At the same time, through the in-depth optimization and synergy of the three major business models of general products, premium products and Yimai, we will forge the five-in-one core competitiveness of “de-stocking, branding, internationalization, localization and technology”, and ultimately achieve the ultimate goal of high-quality development of the enterprise.
In the general product business, the company will continue to rely on the AI intelligent management system to optimize supply chain efficiency and consolidate the basic market; in the premium business, through the two-wheel drive of “self-construction + mergers and acquisitions”, it will accelerate the construction of the brand matrix and achieve a leap from “category success” to “brand success”; in the Yimai platform business, it will continue to help small and medium-sized cross-border e-commerce sellers and suppliers achieve global layout.
Recently, Huakai Yibai announced that its wholly-owned subsidiary Yibai Network plans to invest 46.55 million yuan in Shenzhen Mipinsheng to acquire 70% of its equity; at the same time, Shenzhen Mipinsheng will invest 66.5 million yuan to acquire core operating assets such as inventory, stores and intangible assets held by related party Hong Kong Nurig.
This external investment and acquisition is another important step in the company’s strategy of deepening its premium business. It shows that the company is continuing to find and integrate high-quality targets through the two-wheel drive of “endogenous cultivation + external mergers and acquisitions”, aiming to continuously expand the scale of its premium business, improve profitability, and inject new impetus into the company’s long-term high-quality development.
Institutions are generally optimistic about Huakai Yibai’s future performance growth.
According to consensus forecasts by institutions, the company’s net profit growth rate this year and next will reach 89.56% and 42.97% respectively.
In addition, from a valuation perspective, with the restoration of profitability and improvement in cash flow conditions, institutions have unanimously predicted that Huakai Yibai’s price-to-earnings ratio in 2027 has returned to below 17 times. It is in a relatively underestimated position in the industry, and its long-term investment value has become increasingly prominent.
Hu Fanjin further pointed out that in 2026, the company will use innovation as its edge to break the shackles of involution; use product technology as its foundation to build strong value barriers; and use collaborative ecology as its wings to achieve symbiosis and mutual prosperity.
The company will adhere to the strategic determination of “doing the right thing”, adhere to the business logic of “improving quality and efficiency”, use “anchoring value” as the compass calibration direction, and “crossing the cycle” as the course to move forward firmly, and jointly embark on a new journey of innovative development of cross-border e-commerce!
