Another cross-border seller successfully passed the review

Santai shares successfully passed the review, bringing it one step closer to listing.

The 58th review meeting of the GEM Listing Committee in 2022 was held on August 30, 2022. According to the results of the meeting, the initial public offering of Shenzhen Santai E-Commerce Co., Ltd. was approved and met the issuance conditions, listing conditions and information disclosure requirements.

Shenzhen Santai E-commerce Co., Ltd. is a comprehensive enterprise engaged in export cross-border e-commerce retail and third-party export cross-border logistics. Since 2007, it has focused on export cross-border e-commerce retail business. Currently, there are about 670,000 SKUs on sale, with nearly 100 subcategories. The main types of goods sold include fashion, tool accessories, home life, digital technology, hobbies and other 5 major categories and 17 subcategories; in 2009, it derived export cross-border e-commerce logistics business, mainly including international dedicated lines, international postal services, commercial express delivery and warehousing services.

As a cross-border export giant, San Tai's products account for more than 99.99% of sales on third-party e-commerce platforms such as Amazon and eBay. From 2019 to 2021, the compound annual growth rates of San Tai's commodity sales revenue and logistics warehousing revenue were 21.71% and 15.88% respectively, showing good growth and revenue growth potential. However, the growth rate in the first half of this year declined year-on-year.

From January to June 2022, the operating income was 816.9913 million yuan, a year-on-year decrease of 33.53%; the net profit attributable to the parent was 70.2834 million yuan, a year-on-year decrease of 28.56%. San Tai shares stated that the main reasons for the decline in both operating income and net profit were the repeated epidemics and the Russia-Ukraine war.

Based on the current business plan, market environment, changes in the aforementioned factors, and the relevant performance in the first half of 2022, San Tai shares forecasted its performance from January to September 2022, as shown in the following figure:

As shown in the table above, from January to September 2022, the revenue of Santai Co., Ltd.'s commodity sales business and logistics service business both declined compared with the same period in 2021, but Santai Co., Ltd. stated that the decline rate has improved to a certain extent compared with the first half of 2022 overall.

Overall, with the easing of relevant external factors and the boost to consumption from major festivals, San Tai shares expects that its operating performance will continue to improve in the second half of 2022. San Tai shares said that it expects that as the situation of the Russian-Ukrainian war eases, the European economy returns to stability, the Federal Reserve's interest rate hike policy is introduced, air freight rates fall, exchange rate fluctuations stabilize, and market confidence gradually recovers, overseas consumer demand will gradually recover. In addition, the company's normal sales peak season is in the third and fourth quarters. The main reason is that the major statutory holidays and shopping festivals in Europe and the United States are relatively concentrated in the fourth quarter, such as Thanksgiving, Halloween, Black Friday, Christmas, etc. Therefore, the company's operating income in the second half of the year is usually higher than that in the first half of the year.

Three State Shares

After a meeting