The training business that sells billions of products has obtained a national certificate, but its annual sales are 10 billion but the profit is less than 10 million?

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It is learned that according to reports, from 0:00 to 24:00 on April 10, there were 1,164 new local confirmed cases and 26,345 asymptomatic infections in the country.

Under the severe epidemic situation, prevention and control measures in various places have continued to escalate. At present, 193 highway exits and service areas have been closed in Jiangsu and Zhejiang in East China . A large number of container trucks are stranded on the roadside due to control restrictions, and freight transportation is seriously blocked.

The chain effect of the epidemic is not limited to this. Factory production in many places in Jiangsu, Zhejiang, Guangdong and Anhui has fallen into a cold winter. Due to insufficient employee attendance rate, production capacity and orders cannot be restored in time, and they may face serious shortages in the future.

Frequent shutdowns have greatly affected the stability of exports. Many sellers have reported that orders have dropped sharply in recent months, and they seem to have been lost to other countries where production is gradually resuming.

In sharp contrast to the downward trend in sales is the ever-increasing operating costs. The visible upward trend in various costs in the past few years due to the epidemic has also caused a significant backlog in the profit margins of sellers, among which the sales of major sellers have plummeted by nearly 80% in one year.

At the end of January this year, Ningbo Damaichuangyuan Co., Ltd. released its 2021 performance forecast, with estimated revenue of 1.3 billion to 1.65 billion yuan in 2021, an increase of 19.65% to 47.31% over the same period last year; net profit of 13.5 million to 20.25 million yuan, a year-on-year decrease of 60.93% to 73.95%.

   ▲ The picture comes from the announcement of Chuangyuan Shares

Just recently, Chuangyuan Co., Ltd. once again issued an announcement to revise its 2021 performance, and the revised net profit further shrank compared with previous estimates.

According to the latest estimates, the net profit attributable to shareholders of Chuangyuan shares is approximately RMB 7.55 million to RMB 11 million, a decrease of 85.43% to 78.78% over the same period last year; the net profit after deducting non-recurring gains and losses is RMB 500,000 to RMB 750,000, a year-on-year decrease of 98.62% to 97.94%.

  ▲ The picture comes from the announcement of Chuangyuan Shares

Regarding the reasons for the profit reduction, Chuangyuan Co., Ltd. stated: Since its subsidiary Ruitfei is mainly engaged in cross-border e-commerce business, based on the consideration of ultimately realizing the sales entity, the shipping costs and taxes generated by the transit between warehouses in China and the United States are included in the inventory cost. After adjustment, the net profit was reduced by approximately 2.32 million.

At the same time, Chuangyuan shares made additional provisions for inventory impairment and deferred income tax assets, which had a total impact of approximately RMB 3.8 million on the net profit attributable to shareholders of the listed company.

It is understood that Chuangyuan Co., Ltd. mainly deals in six major categories, including fashion stationery, household goods, etc. Its current main sales markets are the North American market and parts of the European market. It relies on Amazon, its own websites, etc. to expand cross-border trade.

According to the third-quarter financial report released by Chuangyuan Co., Ltd. last year, Chuangyuan Co., Ltd. achieved revenue of approximately 1.04 billion yuan from January to September 2021, an increase of approximately 33.60% year-on-year; the net profit attributable to shareholders of listed companies was approximately 19.5441 million yuan, a year-on-year decrease of 59.94%.

  ▲ The picture comes from the announcement of Chuangyuan Shares

Although Chuangyuan's revenue has maintained steady growth, the downward trend in profits is obvious, which can be seen from the data disclosed in the financial report.

The current epidemic situation has dragged down the growth rate of China's foreign trade. Coupled with the unstable geopolitical and economic situation, Chuangyuan shares will face considerable challenges in the future if they want to alleviate the downward trend in profits.

The constant turbulence in the cross-border circle in the past two years has also prompted many big sellers to seek transformation and business expansion in order to break through the current performance bottleneck. Among them, Shenzhen big seller Tongtuo launched incubation and training services, and just recently, Tongtuo successfully obtained the qualification to independently carry out professional skill level certification.

Recently, according to the official announcement of Tongtuo, it has been successfully selected into the latest list of professional skill level certification companies announced by the Shenzhen Municipal Human Resources and Social Security Bureau, and obtained the qualification to independently carry out professional skill level certification. The approved professional skill level certification job is: cross-border e-commerce specialist .

  ▲ The picture comes from Tongtuo

This means that Tongtuo Technology can carry out professional skills training on its own and issue a national certificate - cross-border e-commerce specialist - to those who pass the assessment.

It is learned that in August last year, Tongtuo launched the "Tongtuo Cross-border E-Academy" and launched a one-stop cross-border incubation and training service.

It is reported that this service promotes two types of courses, namely the entry-level course - "Quick Start Class" and the intermediate course - "Incubation and Leading Class", importing resources such as product supply chain, logistics warehousing, etc., to provide professional guidance for cross-border sellers.

As soon as the news of Tongtuo's entry into the cross-border training industry came out, there were many different opinions in the circle, with mixed reviews. Some sellers questioned whether the training was really a fake to make money, while others speculated that this was a self-help measure sought by Tongtuo after it was hit hard by the wave of account closures.

According to the announcement released by Huading Holdings Group, Tongtuo Technology was banned from selling and had 54 stores closed during the account blocking wave, with suspected frozen funds of RMB 41.43 million. This further led to a significant decline in Tongtuo's operating income and gross profit in the second half of last year.

Recently, Tongtuo encountered another difficult problem. More than 590 million yuan of funds were occupied by Sanding Holdings, the controlling shareholder of the parent company, accounting for 13.5% of the company's latest audited net assets. However, Sanding Holdings' application for bankruptcy has been accepted by the Court of Compulsory Economics, and the occupied funds have not been recovered yet.

  ▲ The picture comes from Huading Shares’ announcement

Therefore, in the view of many sellers, for Tongtuo, which has experienced several shocks, expanding its business and seeking new points of strength may be a good way to break through the current performance bottleneck.

However, Tongtuo has responded before that as early as when it launched the "Ferry Plan" in 2018, it had quietly started practical training, and the layout of its training business has actually been laid for a long time.

At present, Tongtuo has been recognized by the country for its complete mechanism for cultivating skilled personnel and complete hardware facilities. Tongtuo also stated that it will continue to do a good job in professional skill level certification with the help of Tongtuo Cross-border E-Academy, and provide more high-skilled talents for the cross-border e-commerce industry.

Currently, there are good and bad training institutions on the market, and the participation of experienced sellers in the industry may provide more reliable guarantees for interested sellers. However, sellers also need to keep their eyes open and carefully identify them to avoid being harvested by unscrupulous institutions.