Best-selling brand Best Buy's revenue dropped by 17.16%. Is its high reliance on Amazon a pain point?

On August 30, the cross-border blockbuster Best Buy disclosed its financial report for the first half of 2021. According to the report, Best Buy achieved operating income of 91.168 million yuan in the first half of the year, a year-on-year decrease of 17.16% compared with 110 million yuan last year ; the net profit attributable to shareholders of the listed company was 10.148 million yuan, a year-on-year increase of 40.07%.

It is understood that Bestec is a company focusing on the research and development, production and sales of power supplies, smart power strips and home medical equipment products.

As a research and development company, Bestai attaches great importance to product research and development . Data shows that from January to June this year, Bestai added 20 patents , including 2 invention patents, 10 utility models, and 8 appearance designs. As of June 30, 2021, the company has obtained a total of 400 patents, including 38 invention patents, 102 utility models, and 260 appearance designs.

In addition to R&D efforts, Bestec has also actively laid out sales channels and has been involved in cross-border e-commerce F2C export business since 2009. As a veteran cross-border seller, Bestec 's main products are currently sold overseas, with key markets in the United States, Japan, Europe and other places. In the first half of 2021, the company's overseas sales revenue was 89.069 million, accounting for about 97.7% of the total revenue, of which the revenue realized through Amazon was 79.097 million , accounting for about 86.76% of the total revenue .

Its brand BESTEK is one of the most popular brands of automotive electronics, power supplies and digital peripheral accessories in North America, Europe and Asia.

However, Bestech pointed out that in the past year, the number of Chinese sellers entering the Amazon platform has increased dramatically, and the number of sellers of similar products has increased, resulting in fierce market competition, which may affect the company's performance.

At the same time, since sales are highly dependent on third-party platforms, especially the Amazon platform, Bestech said that the company's revenue may fluctuate significantly due to changes in platform systems or policies, such as this year's account blocking wave .

However, Bestec emphasized in the report that this is only a potential risk, and the company's business model has not undergone major changes, and no new directions for future development have been disclosed.

Best Thai

Financial Report