What is Youkeshu? Youkeshu Review

Entrepreneurship Story

Xiao Siqing, the founder of Youkeshu, was once a member of the bustling crowd in Shenzhen's Huaqiangbei.

In 2010, he founded Youkeshu. At that time, the "prototype" of Youkeshu was a rented counter in Huaqiangbei. Later, the office was moved to an office building in Bantian, and it was an ordinary e-commerce company on eBay. It took advantage of Shenzhen's electronic product manufacturing industry and catered to the increasingly prosperous drone accessories business abroad, making a small profit.

After completing the initial wealth accumulation, Youkeshu transformed into a cross-border e-commerce export business and began to engage in cross-border import business in 2015.

Basic Introduction

Shenzhen Youkeshu Technology Co., Ltd. was established in 2010 with a registered capital of RMB 250 million. It currently has more than 2,000 employees worldwide and has successfully landed on the A-share market. Youkeshu is positioned in the Internet + cross-border trade, deeply deploys the entire cross-border e-commerce industry chain, and is committed to building a global commodity trade circulation system. Through mainstream cross-border e-commerce platforms (Amazon, eBay, AliExpress, Wish, Shopee, Shopify, etc.), China's high-quality products are sold to more than 200 countries and regions around the world. In 2018, the company's operating income was RMB 3.44 billion, net profit was RMB 267 million, and tax payment was RMB 12.2852 million, maintaining rapid growth for many consecutive years.

Organizational composition

Its four major business units include the cross-border e-commerce export business unit (directly selling Chinese-made daily necessities online to foreign consumers), the "Dolphin Supply Chain" business unit (cross-border e-commerce import business), the drone and robot business unit (Drone, aircraft model, robot parts research and development and manufacturing, and quality education robot teaching materials business), and the "Weicon" business unit (long-term health management).

(1) Cross-border e-commerce export division: Directly sells daily necessities made in China to foreign consumers online. It ranks among the top in the cross-border e-commerce export industry, has multiple private brands, and is a well-known leader in the cross-border e-commerce export industry.

(2) "Dolphin Supply Chain" Division: The largest supply chain enterprise for overseas shopping products, which ranks among the top in the cross-border e-commerce import industry, is a well-known brand recognized by the import overseas shopping industry. The main products include infant formula, infant food supplements, health products for pregnancy and postpartum recovery, health products for the middle-aged and elderly, sub-health health products, health products for chronic diseases, health foods, and women's skin care products.

(3) "Weikangshi" Division: Weikangshi is your health expert, committed to improving the health of China's consumers and focusing on the long-term health management of chronic diseases. We aim to build a health industry that combines products and services, with professional maternal and child care consultants and health and nutrition consultants as the core and world-renowned maternal and child care and health products as the foundation.

(4) UAV Robot Division: In the emerging UAV industry, it is the largest manufacturer and seller of UAV, model aircraft, and robot parts and components, and is the industry leader in the fields of UAV, model aircraft, and robot parts and components. The robot business focuses on quality education in China, providing various schools with a series of teaching materials and teaching laboratory equipment in the fields of robot teaching and quality education.

Revenue

In 2013, Youkeshu achieved operating income of RMB 0.007 billion and net profit of RMB 24,000.

In 2014, the company had revenue of 233 million yuan and net profit of 3.5261 million yuan.

In 2015, the revenue was 1.079 billion yuan and the profit was 64.8672 million yuan.

In 2016, the company had revenue of 2.486 billion yuan and profit of 105 million yuan.

In 2017, Youkeshu's operating income exceeded 2.3 billion yuan, an increase of 56.65%; net profit was approximately 160 million yuan, an increase of 134%.

From January to September 2018, Youkeshu achieved operating income of 2.166 billion yuan, close to the full-year income of 2017, and realized a net profit of 181 million yuan.

Awards

In 2011, Youkeshu was named one of the top 50 cross-border transaction companies in China by eBay and one of the most popular online merchants in Shenzhen of Alibaba.

In December 2015, it won the "Annual Innovation Enterprise", "Guangdong Province E-commerce Demonstration Enterprise", "Pinghu Street Taxpayer Over 10 Million Enterprise", "eBay Annual Outstanding Seller" and other awards at the 2015 China Cross-border E-commerce Conference.

In August 2016, it attended the "China Cross-border E-commerce 50-person Forum" and was awarded the title of "China Cross-border E-commerce Key Enterprise".

In November 2016, it was awarded the "National High-tech Enterprise" certification.

In November 2017, Youkeshu was selected into the "Top 100 Chinese Internet Companies Revenue List" released by iResearch, ranking 60th in the overall list and second in the cross-border e-commerce industry, becoming one of the top 100 Chinese Internet companies in terms of revenue.

The 7th China Finance Summit was held in Beijing on July 19-20, 2018. Shenzhen Youkeshu Technology Co., Ltd. (hereinafter referred to as "Youkeshu") won two awards: Youkeshu was awarded "2018 (Industry) Influential Brand", and Youkeshu Chairman Mr. Xiao Siqing was awarded "2018 (Industry) Influential Person".

Financing

In 2014, the company raised RMB 100 million in Series A financing with a valuation of RMB 500 million. Investors included GF Securities, Shanghai Haihongtong, Yizheng Haizhichuang and Zhongshan Qi'en.

In June 2015, it completed a B round of financing of 400 million yuan with a valuation of 1.6 billion yuan. Investors included Jianyan Technology, By-Health, Zhongshan Yile, Haitong Innovation Fuze, Lianchuang Dayang, and Lianchuang Haowan.

In December 2016, Youkeshu raised RMB 400 million in its Series C round of financing, with a valuation of RMB 3 billion, laying the foundation for its listing on the main board. Investors included Founder Hesheng, CITIC Jinshi, Huayi Lucheng, Shengshijing, Tianxing Capital, and Shenwan Investment.

In May 2018, Youkeshu completed its Series D financing with an amount of RMB 102 million, and the investor was CDH Investments.

develop

In 2010, Youkeshu was officially established and started to engage in online cross-border e-commerce trade.

In 2012, YKS and other brands were registered in Europe and the United States and began to produce their own brand products.

In 2013, we started to deploy overseas warehouses: US warehouses, UK warehouses, etc., opening a new starting point for the overseas warehouse business model

In 2014, the group was reorganized and began standardized operations.

In March 2015, CFO Li Zhiqiang joined Youkeshu, starting Youkeshu’s journey to accelerate its development in the capital market.

In November 2015, it completed its shareholding restructuring and became a demonstration unit of e-commerce in Guangdong Province.

In December 2015, we completed the construction of overseas business branches or overseas warehouses in the United States, the United Kingdom, Poland and other places, and built warehouses with an area of ​​more than 120,000 square meters in cities such as Shenzhen, Suzhou, and Hangzhou. The cumulative global storage area exceeds 160,000 square meters.

It was listed on the New Third Board on April 6, 2016 with the trading code: 836586 and is known as the "first stock in cross-border e-commerce."

In May 2016, the first charter flight in the cross-border e-commerce industry was realized.

In August 2016, the main route of the China-Europe freight train was fully opened, realizing direct connection between China's inland areas and the European market, and promoting practical cooperation in various fields such as trade, investment, science and technology, and culture along the "Belt and Road".

In June 2017, Xiao Siqing, Chairman of Youkeshu, attended the World Overseas Chinese Entrepreneurs Convention, was cordially received by Premier Li Keqiang, and participated in the high-end dialogue of the Chinese Business and Cross-border E-commerce Development Forum.

In October 2018, Tianze Information successfully acquired Youkeshu.

News Events

The 2017 CCTV 3.15 Gala revealed that Shenzhen Dolphin Cross-border Technology Co., Ltd., a subsidiary of Shenzhen Youkeshu Technology Co., Ltd. (hereinafter referred to as "Youkeshu"), sold Calbee cereal from Japan's nuclear contaminated areas on the company's online store, which is banned from sale.

References

• 1. Youkeshu was exposed for selling food from nuclear contaminated areas. The company apologized and removed all Japanese food from its shelves: Sina Finance [cited on 2017-03-14T16:00:00.000Z]
• 2. Youkeshu's half-year operating data: revenue of 661 million yuan: Baidu [reference date 2019-08-29T16:00:00.000Z]
• 3. Youkeshu: China South City’s “cross-border e-commerce giant”: Shenzhen Evening News [cited on 2016-05-30T16:00:00.000Z]