With a net profit of over 300 million yuan a year, Shenzhen's big seller plans to give out 90 million yuan in bonuses

On January 17, the General Office of the Ministry of Commerce issued a notice, planning to organize the "Time-honored Brand Carnival" event in 2024. The event is mainly aimed at encouraging time-honored brand enterprises to use cross-border e-commerce platforms to expand international markets and explore in-depth cooperation with well-known overseas brands to promote the export of Chinese domestic "trendy products".

It can be seen that with the rapid development of cross-border e-commerce, brand globalization has become a general trend. Especially under the policy dividends, more and more companies and brands are going global.

Looking back at 2023, domestic large companies are competing to accelerate their overseas expansion plans, and Chinese merchants are able to rely on diversified channels to explore overseas markets and seize new growth. Performance is always the most powerful feedback, and many overseas companies have delivered impressive results in the past year.

Recently, Shenzhen big seller Huakai Yibai released its 2023 performance forecast.

The announcement shows that in 2023, Huakai Yibai expects the net profit attributable to shareholders of the listed company to be 320 million to 355 million, a year-on-year increase of 47.99% to 64.18%.

▲ The picture comes from Huakai Yibai’s announcement

The subsidiary Yibai Network is the undisputed growth engine of Huakai Yibai. While the parent company and its wholly-owned subsidiary Shanghai Huakai are expected to suffer a full-year loss of approximately RMB 43 million, the continued surge in Yibai Network has successfully driven overall performance growth.

During the reporting period, Yibai Network expects to achieve operating income of approximately RMB 6.4 billion to RMB 6.6 billion and a net profit of approximately RMB 490 million to RMB 510 million.

Under the gorgeous performance curve, Huakai Yibai is also generous with its employee benefits. According to the "Conditionally Effective Profit Forecast Compensation Agreement for Issuing Shares and Paying Cash to Purchase Assets", Yibai Network expects its net profit to exceed its 2023 performance commitment, so it will issue 90 million yuan of annual excess performance rewards to employees. After the provision, Yibai Network's cumulative net profit is about 400 million to 420 million yuan.

Yibai Network's strong performance growth is mainly due to its diversified development strategy. On the basis of implementing the three business synergy drive of "general products + fine products + Yimai ecological platform" , it fully utilizes the advantages of high cost-effective products for different product types and consumer preferences to adapt to the global consumption downgrade trend.

At the same time, Yibai Network has firmly grasped the new opportunities of AIGC, using artificial intelligence to empower and improve operational efficiency, optimize per capita output, and promote rapid growth in operating performance.

The brilliant acquisition of Yibai Networks enabled Huakai Yibai, which was originally "leaky", to regain the driving force to turn losses into profits, and its performance has been steadily increasing year by year.

Huakai Yibai, which is now on a roll, recently announced that it will acquire another Shenzhen big seller, Tongtuo Technology. Huakai Yibai hopes to leverage Tongtuo's 19 years of experience in the cross-border e-commerce industry to achieve complementary advantages in operating models, categories, product strength, etc., and enhance the comprehensive competitiveness of its cross-border e-commerce business.

Looking at the development of Tongtuo in 2023, according to the financial report released by its parent company Huading Co., Ltd., the cross-border e-commerce business led by Tongtuo achieved a net profit of 3.5078 million yuan in the first half of last year, a year-on-year increase of 101.80%, successfully turning losses into profits. Judging from the current stable and positive performance trend, there is still considerable development potential in the future to a certain extent.

It can be seen that the ambitious Huakai Yibai is moving forward. After Yibai Network, whether it can join forces with Tongtuo in 2024 to seize new growth points in performance remains to be seen.

The global online consumption boom triggered by the epidemic has fueled the explosive growth of cross-border e-commerce. Driven by this trend, countless Chinese merchants have rushed to the cross-border battlefield to seize new growth opportunities by relying on the advantages of Chinese manufacturing. In the past two years, with the overseas expansion and the accelerated layout of more domestic manufacturers, the overseas expansion track has become increasingly hot and crowded.

It is learned that according to an exclusive report by Tech Planet, Ren Lifeng, vice president of PICO, the virtual reality business of ByteDance, has officially resigned, and his entrepreneurial direction after resigning has chosen to enter the cross-border e-commerce field, perhaps in the form of an independent website.

Sources revealed that the startup project has received investment from Sequoia China and IDG, with a post-investment valuation of over 50 million US dollars. Ren Lifeng's startup project is still recruiting, and many of its initial team members are from Douyin, and even some of Douyin's veterans have joined.

Relevant information shows that Ren Lifeng is one of the veterans who built Douyin from scratch and was once the head of Douyin's product operations. In early 2020, he served as the president of Xigua Video and became the legal representative of Douyin in February 2022. Since April 2023, Ren Lifeng has transferred to PICO, responsible for content ecology-related businesses.

According to relevant information from Tianyancha, he resigned from his positions in several companies under the Douyin Group in the second half of last year.

When he returned to start a business, Ren Lifeng did not follow the trend of Internet giant executives to focus on the AI ​​track, but instead targeted the cross-border e-commerce industry. The reason behind this is mainly due to the huge incremental market behind cross-border expansion.

According to industry reports, Ren Lifeng believes that opportunities for cross-border e-commerce development are emerging under the trend of globalization . With the continuous upgrading of the domestic consumer market and the improvement of consumers' demand for quality and personalization, cross-border e-commerce will become an important channel to meet these needs. At the same time, he also sees the rise of Chinese brands in the process of globalization, and hopes to promote more Chinese brands to the world through his entrepreneurial projects.

It is learned that there are precedents for Internet giants to embrace the independent station overseas model. For example, Zhou Jingjin, the fourth employee of ByteDance, founded the DTC fast fashion brand Commense in 2021, and Zhang Lei, the former CEO of NetEase Kaola, founded the cross-border clothing independent station AHA SELECTED last year...

As domestic e-commerce growth gradually reaches its peak, competing overseas has become the best solution to leverage the second growth curve. In particular, as the four little dragons and more Chinese brands open up the market on the international stage, the overseas reputation of Chinese manufacturing is rising.

Now that many Internet celebrities have gathered in the overseas market, it is still unknown what sparks will be created in the future. But what is certain is that expanding into overseas markets is gradually changing from an option to a must.