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▶ Video account attention cross-border navigation With the end of the first quarter, the first earnings season of 2022 has arrived. Recently, Amazon also announced that it will disclose its first quarter 2022 financial results on April 28.
According to analysts' predictions, Amazon's AWS division remains a cash cow, and its advertising business is also a strong growth point. However, in comparison, its e-commerce performance is under pressure from both ends, and macroeconomic headwinds have weakened its profitability in a short period of time. In addition to Amazon, major cross-border sellers have also recently disclosed their financial reports for 2021 and the first quarter of 2022. Some have exceeded expectations with strong revenue and net profit growth, while others have been slightly weak and the growth rate has declined. Among them, Zebao, which suffered heavy losses in last year's account closure wave, has a less optimistic performance. Xinghui shares suffered a loss of 1.5 billion due to the aftermath of Zebao’s account being banned! It is learned that recently, Xinghui Shares, the parent company of Zebao, released its 2021 financial report. During the reporting period, Xinghui Shares achieved revenue of 3.66 billion yuan, a year-on-year decrease of 33.74%; the net profit attributable to shareholders of the listed company was -1.524 billion yuan. Among them, the cross-border e-commerce business achieved revenue of 577 million yuan, a year-on-year decrease of 46.02%.
▲ The picture comes from the announcement of Xinghui Shares Compared with 212 million in 2020, Xinghui Co., Ltd.'s net profit has not increased but decreased, and even suffered a substantial loss. This is mainly due to the performance fluctuations of Zebao, its subsidiary which is its main source of income. Zebao's performance review It is learned that the sales of the three main categories of Zebao are as follows: 1. Smart home appliances: achieved sales revenue of RMB 1.039 billion, accounting for 40.34% of the company's e-commerce business revenue. 2. Power supplies and 3C peripheral products: achieved sales revenue of RMB 694 million, accounting for 26.97% of the company's e-commerce business revenue. 3. Bluetooth audio products: The products achieved sales revenue of RMB 344 million, accounting for 13.36% of the company’s e-commerce business revenue. ▲ The picture comes from the announcement of Xinghui Shares From the perspective of sales by channel, Zebao's main income comes from the Amazon platform, with sales of 1.972 billion yuan, accounting for 76.54% of total operating income. ▲ The picture comes from the announcement of Xinghui Shares The culprit for the decline in performance: the wave of account bans has seriously damaged the company's vitality In 2021, Amazon closed 367 sites of ZEBO in total, and the balance of funds frozen at the above sites was equivalent to RMB 32.2301 million by the end of 2021. Although ZEBO actively appealed and adjusted its business strategy, it was still unable to get rid of the negative impact in the short term, resulting in a decline in both revenue and profit in the second half of 2021. The devastating blow of the account blocking wave has made Zebao more determined to get rid of its high dependence on Amazon. It has accelerated the implementation of its multi-platform business strategy, expanded online sales on third-party platforms such as Walmart and eBay and sales on independent sites, and increased its offline channel promotion efforts. It is reported that Zebao achieved revenue of 605 million yuan through non-Amazon channels in 2021, a year-on-year increase of 92.06% compared to 2020; accounting for 23.47% of total operating income, an increase of 16.87 percentage points year-on-year, further reducing its dependence on Amazon's single platform. 2022 Q1 Financial Report: Not Yet Away from the "Aftermath of Account Blocking" In the first quarter of 2022, Xinghui Co., Ltd. achieved revenue of 588 million yuan, a year-on-year decrease of 54.98%; and achieved a net profit attributable to the parent company's owners of -26.8003 million yuan, a year-on-year decrease of 54.98%. ▲ The picture comes from the announcement of Xinghui Shares In terms of cross-border e-commerce business, the cross-border e-commerce business achieved operating income of 318 million yuan in the first quarter of 2022, an increase of 29.18% over the same period last year, and a total profit of -27.0584 million yuan. Although Zebao actively promoted multi-platform and multi-channel development, developed a new joint operation model, acquired other brands and continuously optimized internal construction after the Amazon account ban, the "aftermath of the ban" cannot be eliminated in a short period of time, and there is still a long way to go to turn losses into profits. I still remember that in April last year, Xinghui Co., Ltd. announced that Zebao had successfully completed the three-year performance bet, but it was hit by a wave of account closures soon after. Recently, there was also a big seller that exceeded the performance bet. What is its future? Yibai Network: It’s an old business now, can it still make money? Recently, Huakai Creative, the parent company of Yibai Network, disclosed its 2021 annual report. The financial report shows that Huakai Creative achieved revenue of 2.075 billion in 2021, a year-on-year surge of 1435.08%; the net profit attributable to shareholders of the listed company was -87.4038 million, a year-on-year decrease of 39.88%.
▲ The picture comes from Huakai Creative Announcement Huakai Creative's revenue has achieved a substantial increase, and its acquisition of Yibai Network last year was undoubtedly a stroke of genius. After Huakai Creative acquired Yibai Network on July 1, 2021, it achieved sales revenue of 1.463 billion through Amazon, accounting for 70.52% of its operating income. Yibai Network's annual revenue in 2021 was 3.465 billion, a year-on-year increase of 32.80%. ▲ The picture comes from Huakai Creative Announcement Previously, Yibai Network had signed a five-year performance betting agreement, and now Yibai Network has exceeded the target for three consecutive years. In the current environment where distribution is at its end, how does Yibai Network, as a distribution company, go against the tide? Focus on blue ocean: Accumulate differentiated advantages Yibai Network spans multiple categories such as home gardening, outdoor sports, etc., and implements a differentiated product selection strategy, strategically avoiding the red ocean market and giving priority to expanding categories that are still in the blue ocean market, with relatively long product life cycles and relatively slow updates. In terms of product development model, we implement the management and control logic of "small batches, multiple batches, low cost and rapid trial and error" to improve the overall turnover efficiency of products from development and launch, procurement and sales to inventory management. Dispersing risks: three parallel logistics models In terms of warehousing models, the two types of warehousing models, overseas warehouses and domestic warehouses, develop in a coordinated manner. Taking the domestic warehouse as the starting point for stocking testing, the scale of stocking in overseas warehouses is gradually increased through small quantities and multiple batches, and dynamic adjustments are made based on market demand to maintain good inventory turnover. In terms of logistics model, Yibai Network adopts a three-line parallel strategy of overseas warehouse delivery, FBA warehouse delivery, and domestic warehouse delivery to maximize the advantages and characteristics of various models and effectively disperse business risks. Intelligent drive: from quantitative change to qualitative change Yibai Network continuously improves its automation and intelligent operation level through independent research and development of information systems to address the drawbacks of the distribution model. (1) Intelligent price adjustment: Based on dimensions such as inventory and inventory age, the optimal selling price is calculated for a large number of product sales pages, and price increases and decreases can be adjusted in batches and quickly. (2) Intelligent Publishing: Hundreds of differentiated title copy and image combinations can be generated in batches for each SKU, automatically matching the platform's subcategories. (3) Intelligent stocking: Set up refined system parameter configuration and implement automated algorithm analysis, comprehensively consider the historical sales volume and expected future sales trend of each SKU, and realize intelligent and refined management and control of key links in the supply chain. As a distribution company, Yibai Network does not follow the usual distribution path. It uses smart technology as its core driving force to resolve the drawbacks of distribution companies' broad categories and broad SKUs, and achieve qualitative change from quantitative change. According to the Q1 2021 financial report recently released by Huakai Creative, its revenue and net profit achieved explosive growth of 2619.13% and 1063.84% respectively, which shows that the "Yibai Effect" is still continuing. ▲ The picture comes from Huakai Creative Announcement In the era of the end of mass-market goods and the rule of high-quality products, Yibai Network has taken a different approach in category development, logistics model, and technology research and development, creating a unique way of survival and providing some transformation experience for cross-border sellers. What do you want to say about this? Welcome to leave a message in the comment area~
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