Loss of 1 billion in one year! Is the well-known cross-border seller going out of business?

According to the "2020 Annual Performance Forecast of Shenzhen Yinzhijie Technology Co., Ltd.", Yinzhijie's expected performance is to rise in the same direction. During the reporting period, the net profit attributable to shareholders of the listed company will be 20 million yuan to 26 million yuan . In the same period last year, the net profit was only 4.9179 million yuan, an increase of 306.68% to 428.68% year-on-year.

According to the data, Xinghui Precision's profit may exceed 250 million yuan , an increase of more than 79% compared with last year.

There are three main reasons:

In the 2020 performance forecast released by Lechuang Holdings, the company expects to achieve a net profit attributable to shareholders of listed companies of 210 million yuan to 230 million yuan in 2020 , an increase of 233.44% to 265.19% over the same period last year; basic earnings per share of 1.52 yuan per share to 1.66 yuan per share.

In 2020, Lechuang achieved operating income of 1.936 billion yuan , a year-on-year increase of 97.96%, of which the fourth quarter achieved operating income of 717 million yuan, a year-on-year increase of 162%. Lechuang said that since the second half of 2020, especially the fourth quarter, the rapid appreciation of the RMB exchange rate, the continued surge in international container freight rates, and the rise in raw material prices have had an adverse impact on the company's profits.

According to the Tianze Information report, the net profit attributable to shareholders of the listed company was a loss of 1 billion to 1.3 billion yuan , a decrease of 2119% to 2725% over the same period last year, and a profit of 49.53 million yuan. After deducting non-recurring gains and losses, the net profit was a loss of 1.02 billion to 1.32 billion yuan, a decrease of 77763% to 100663% over the same period last year, and a loss of 1.31 million yuan.

The operating income in 2020 is 4.3 billion yuan to 5.5 billion yuan, with a profit of 390 million yuan; after deduction, the operating income is 4.3 billion yuan to 5.5 billion yuan, with a profit of 390 million yuan. The basic earnings per share loss is 2.38 yuan/share to 3.1 yuan/share.

Tianze Information said that the company's cross-border e-commerce business has achieved significant growth (Youkeshu), but the overall performance in 2020 has dropped significantly compared with the same period last year. It is estimated that the impact of non-recurring gains and losses on net profit in 2020 will be approximately RMB 22 million.

According to preliminary estimates by Huading Shares' financial department, the net profit attributable to shareholders of the listed company in 2020 is expected to be between -170 million yuan and -280 million yuan , compared with the same period last year (statutory disclosure data), with a reduction in losses . The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses in 2020 is expected to be between -197 million yuan and -328 million yuan.

Compared with the performance in the same period of 2019, the revenue in this reporting period has generally improved. The 2019 performance report data shows that the net profit attributable to shareholders of the listed company was -1.3 billion yuan.

Huading shares also disclosed the reasons for its performance loss: the expected performance loss was mainly due to the large amount of goodwill impairment .

It is reported that according to preliminary estimates by the financial department of Huading Company, the amount of impairment provision for goodwill generated by the acquisition of Shenzhen Tongtuo Technology Co., Ltd. (hereinafter referred to as "Tongtuo Technology") is expected to be approximately RMB 320 million to 420 million in 2020. The final amount of impairment provision for goodwill will be determined after evaluation and audit by the appraisal agency and auditing agency hired by the company with securities and futures qualifications.

As one of the top sellers in the cross-border circle, after being acquired by Huading, Tongtuo’s achievements in 2020 have successfully reduced Huading’s losses significantly.

(Source: Cross-border Live)