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▲ Video account attention: cross-border navigation Cross-border e-commerce has been in turmoil in 2021. Many once-thriving cross-border sellers have lost their glory and suffered varying degrees of blows. Some have been blocked by Amazon, some have fallen into bankruptcy, and some have even been visited by suppliers to collect debts. In a blink of an eye, it is time to review the results of the first half of the year. Major retailers have released their first half reports. After a series of operating data were disclosed, their true picture was revealed to the public. As a former internet celebrity in the cross-border circle, Cross-Border Link released its 2021 semi-annual report last night. After its subsidiary was exposed to negative news such as bankruptcy reorganization and brand closure, how did Cross-Border Link perform in the first half of the year? Cross-border e-commerce's non-GAAP net profit fell by 113.14%, with a loss of 34.71 million The report shows that in the first half of 2021, Cross-Border Link's revenue was 5.599 billion yuan , a decrease of 38% from the same period last year. The reason for the change was a sharp drop in revenue from the sale of Paton and Global EasyBuy. ▲ The picture comes from the Cross-border Communication Financial Report During the reporting period, the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -34.71 million yuan, a year-on-year decrease of 113.14%. Note: The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses refers to the net profit of the listed company's consolidated financial statements after deducting minority shareholders' gains and losses and non-recurring gains and losses. In other words, in fact, Cross-border Link has already lost 34.71 million yuan in the first half of the year. In addition, the net cash flow generated by operating activities during the reporting period was -702 million yuan, a year-on-year decrease of 737.72%. ▲ The picture comes from the Cross-border Communication Financial Report The sharp decline in revenue and profit of Cross-border Link in the first half of the year is closely related to the development of its subsidiaries. The revenue of its main subsidiaries is as follows: Youyi E-commerce achieved operating income of RMB 3,185,245,800 , accounting for 56.89% of Cross-border E-commerce's operating income ;
Global Easy Shopping achieved operating income of RMB 250,650,400 , accounting for 4.48% of Cross-Border Link’s operating income;
Saton achieved operating income of RMB 411,174,400 , accounting for 7.34% of Cross-Border Link's operating income;
- Paton achieved operating income of RMB 171,746.69 million , of which Paton's data statistics period was from January to April 2021 and subsequent operating income was no longer included in Cross-Border Link, accounting for 30.68% of Cross-Border Link's operating income.
▲ The picture comes from the Cross-border Communication Financial Report During the reporting period, the cross-border export e-commerce business achieved operating income of RMB 2,377,062,100, a year-on-year decrease of 58.27% . However, the performance of both third-party platforms and its own websites was not satisfactory. It is learned that the self-operated website (including mobile terminal) achieved operating income of 546.131 million yuan, a year-on-year decrease of 81.00%; the third-party platform achieved operating income of 183,093.11 yuan, a year-on-year decrease of 35.10%. ▲ The picture comes from the Cross-border Communication Financial Report In addition, the Cross-Border Communication Financial Report shows that as of the end of June 2021, the company's inventory balance was 944 million yuan, a decrease of 43.71% from 1.676 billion yuan at the end of 2020. This year is a special year for Cross-Border Link. From the sale of Paton in March, to Global Easybuy's bankruptcy filing in June, to being involved in 66 lawsuits in August, various challenges have come, and the ups and downs of its subsidiaries are all reflected in the financial reports. In the financial report, Cross-Border Link also stated that the company is at risk of delisting, and on April 30 disclosed the "Announcement on the Implementation of Delisting Risk Warning, Other Risk Warnings and Suspension of Trading for the Company's Stock Trading". Among the several subsidiaries of Cross-border Communication, the most popular ones are Paton and Global Easybuy. However, these two companies, which were once the focus of investors, are no longer in the limelight. Is Paton a chess piece or a discarded piece? As a leading cross-border e-commerce company, Paton has achieved great success and has been sought after by many investors. In March this year, Cross-border E-commerce transferred 100% of Paton's equity to 20 transferees including Xiaomi, Shunwei, and CDH Investments for 2.02 billion yuan in order to recover funds. However, the wave of account bans has cast a shadow on Paton. Although the sale proceeds were 2.02 billion yuan, due to the banning of some of its Amazon accounts, only 1.392 billion yuan has been received so far. (The reasons for many data changes of Cross-border Communication are related to the sale of Paton) It is learned that since Paton has been sold, the data statistical period is January-April 2021 and the subsequent revenue is no longer included in Cross-border Communication. During the reporting period, Paton achieved operating income of 171,746.69 million yuan and net profit of 81.8458 million yuan. Judging from this data, Paton's performance is still impressive. The time point of the above data also happens to be before Paton was banned. In early May, Paton was exposed that the Mpow brand registration was cancelled and all funds were frozen. In the following months, it was reported that some positions were suspended without pay. The financial report also did not disclose Paton's revenue data for the past few months, which means that we may not be able to know whether Paton's revenue data increased or decreased during the three months when the account was blocked. Negative news continued to come, and there were even rumors that Paton was defunded by ByteDance and Xiaomi, and was safely out based on a series of protection agreements. Although the authenticity of the matter has yet to be verified, one thing can be said: in just the past few months, Paton's value has shrunk significantly. So will Paton become a pawn or a discarded piece of investors? Looking back at this blockbuster transaction at the beginning of the year, Paton was sold as a high-quality asset in order to recover cash flow. Xiaomi, Shunwei and other capitals that took over also took a fancy to Paton's brand value and cross-border e-commerce track at the time. Before the ban, Paton's performance and influence were at the top level in the industry. No one had expected that Amazon would "deal with it" and ban its brand. The story of Global Easy Shopping, another subsidiary of Cross-Border Link, is even more regrettable. Global Easy Shopping or Global Easy “go”? It is learned that Global Easy Shopping mainly operates its own channels, with third-party channel operations as an important supplement. During the reporting period, Global Easy Shopping achieved operating income of 250.6504 million yuan , a year-on-year decrease of 93.70% ; net profit was -138.4490 million yuan , a year-on-year decrease of 242.97% . The report shows that the main reason for the decline in revenue is that Global Easy Shopping has been facing tight capital chains in recent years, with a large number of business talents leaving the company. The company has huge arrears in various expenses such as commodity procurement, logistics warehousing, etc. that are necessary for its business operations, and lacks marketing and other expenses necessary for the company's main sales of independent stations and third-party platform businesses , resulting in a sharp decline in Global Easy Shopping's business. In fact, Global Easy Shopping’s performance crisis has existed for a long time. Previous financial reports showed that Global Easy Shopping had liabilities of more than 3.3 billion yuan and a net asset of negative 1.7 billion yuan in 2020. In addition to the plummeting performance, what is even more suffocating is that Global Easy Shopping is also deeply mired in bankruptcy and debt crisis. In June this year, Global Easy Shopping was declared bankrupt by the Shenzhen Nanshan Branch of Industrial and Commercial Bank of China Limited. In its financial report, Cross-Border Link also responded to the bankruptcy crisis faced by Global Easy Shopping: If the Shenzhen Intermediate People's Court of Guangdong Province accepts the bankruptcy application of Shenzhen Global, Shenzhen Global will enter bankruptcy proceedings. After entering bankruptcy proceedings, the company will lose control of it, and Shenzhen Global will no longer be included in the company's consolidated financial statements. Under the dual pressure of facing huge debts and capital turnover, Global Easy Shopping was also exposed to the news that suppliers came to collect debts many times and laid off large numbers of employees. A seller lamented: The once glorious Global Shopping has now become Global Shopping "go", giving a feeling of "people have left and the tea has gotten cold". Cross-border e-commerce is changing rapidly. Has Cross-border E-commerce and its subsidiaries entered the sunset? What do you think about this? Please share in the comments section~
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