It is learned that just last week, East China's cross-border e-commerce giant Chuangyuan Co., Ltd. released its 2022 semi-annual performance forecast. The company expects to achieve a net profit attributable to shareholders of listed companies of 49.5 million yuan to 69.5 million yuan, an increase of 1892.91% to 2698.13% over last year.

▲The picture comes from Juchao Information Network

Chuangyuan shares also stated that the company's performance increased mainly because the company actively expanded its business, with gross profit margin increasing year-on-year compared with last year, and affected by the appreciation of the US dollar against the RMB, exchange gains were generated in this period.

It is reported that in March this year, Chuangyuan shares completed a major change in the company's equity. Ningbo State-owned Assets Supervision and Administration Commission took over the company and became the actual controller of the company, and Ningbo Cultural Tourism Investment Group became the company's Heli Management Consulting shareholder. Since the end of April, Chuangyuan shares' A-share price has achieved three consecutive months of growth, with an increase of up to 47%.

Half of 2022 has passed, and cross-border sellers who were hit by the wave of account bans have gradually recovered. In addition to Chuangyuan Co., Ltd., another major cross-border seller has also emerged from the shadow of losses.

Huakai Yibai's half-year performance forecast announced, Yibai Network's profit grew steadily

It is learned that on July 12, Huakai Yibai, the parent company of the cross-border seller Yibai Network, announced its 2022 semi-annual performance forecast. The company expects to achieve a net profit attributable to shareholders of listed companies of 83 million to 101 million yuan in the first half of the year, while the net profit in the same period last year was -22.13 million yuan, which is in a loss state.

▲The picture comes from Juchao Information Network

The report shows that the company's net profit has increased significantly, thanks to the growth in revenue of its holding subsidiary Yibai Network. In the first half of the year, Yibai Network achieved operating income of approximately 1.9 billion to 2 billion yuan. After deducting non-recurring gains and losses, the profit attributable to the listed company was approximately 93 million to 113 million yuan.

The net profit generated by Yibai Network alone exceeded the total net profit of the parent company, which shows that its cross-border e-commerce business has become the company's revenue pillar. In addition, due to its ideal performance, Yibai Network also issued an excess performance bonus of more than 60 million yuan last year.

It was also learned that when Huakai Creative acquired Yibai Network, the two parties signed a profit betting agreement and made performance commitments: from 2019 to 2023, the net profit attributable to the parent company's owners after deducting non-recurring gains and losses in the consolidated financial statements of Yibai Network will be no less than 141 million yuan, 170 million yuan, 204 million yuan, 251 million yuan and 290 million yuan respectively, and Yibai Network has completed the performance betting agreement for three consecutive years.

The steady growth of Yibai Network's revenue has made the parent company more determined to continue its strategy centered on cross-border e-commerce business. As early as June 13, Huakai Yibai planned to acquire the remaining 10% equity of Yibai Network to complete 100% control of Yibai Network. The two parties negotiated and determined that the value of 100% equity of Yibai Network was 3.381 billion yuan , which is nearly double the valuation in 2020!

Although many people think that cross-border e-commerce is a red ocean, there are still many sellers like Yibai Network who are brave enough to forge ahead in such a high-pressure environment. Recently, a clothing seller that originally focused on the domestic market resolutely chose to enter the cross-border e-commerce market.

Hongxing shares announced the layout of cross-border business and will be a strategic project

Recently, Hongxing Co., Ltd., the first domestic homewear stock, announced its entry into the cross-border e-commerce field and officially joined the ranks of overseas brands. Chairman Guo Wuwen clearly stated that cross-border business will be listed as a strategic project of the company and will report directly to him, with the goal of making cross-border business the company's second growth curve.

Industrial and commercial data show that Guangzhou Hongxing Clothing, a wholly-owned subsidiary of Hongxing Co., Ltd., has become the majority shareholder of Guangzhou Ciyu E-Commerce Co., Ltd. , holding 80% of the shares. In the six years since its establishment, Guangzhou Ciyu has been focusing on the operation of cross-border business and has rich experience in overseas markets.

It has been observed that Fenteng, the core brand of Hongxing Holdings, has opened stores on Amazon, and currently has three sites in the United States, Canada, and Japan.

▲The picture comes from Amazon US

From the product details page of the US site, the products are mainly women's pajamas, and the price is generally no more than 20 US dollars. According to the disclosure of Hongxing Shares, the overall strategy of cross-border e-commerce business is to lead the whole from the point: in the early stage, some single products with high cost performance and strong market adaptability are used as breakthrough points, gradually accumulating good reviews, and in the later stage, forming the effect of " reputation improvement-traffic influx-sales increase ".

In fact, there have been many successful cases in China on the road to overseas expansion of home clothes, such as Ekouaer , a home clothes brand under Savi Times, whose many products are among the top five Amazon Best Sellers in their subcategories.

▲The picture comes from Amazon US

Guo Wuwen believes that many advantages, such as proprietary flexible supply chain resources, product segmentation, and an online business proportion of over 70%, have provided sufficient conditions for the company to "go overseas."

In terms of specific implementation, systematic business design, point-to-surface breakthrough methods and gradual accumulation of brand influence have become the main strategies for Hongxing Co., Ltd. to operate cross-border business.

"Branding overseas" has become one of the hottest topics in the cross-border e-commerce industry. However, it is not easy for ordinary sellers to do a good job in branding. In this process, they will face many difficulties: How to manage exchange rate risks? How to position brands going overseas? How can data enable brands to reach consumers directly? How to do brand marketing under the new traffic thinking?

If you want to solve the above problems, you must not miss the [Amazon Web Services Global Innovation Conference] on July 19. At this conference, Amazon Web Services will work with pioneer representatives to invite you to explore the new trends of Chinese companies going global in multiple industries such as games, independent brands, smart manufacturing, and new forces going global, and help overseas companies go global, walk steadily, and go far.

Sellers who are interested in building a DTC brand can scan the QR code in the picture below to register for the conference~