Big sellers suffered a "Waterloo"? Net profit of the category dropped nearly 70 times

After cross-border giants such as Tongtuo, Zebao, and Anker Innovations announced their first-half financial reports, Xiamen Jihong Technology Co., Ltd. also announced its first-half performance!

According to the financial report, during the reporting period, Jihong Co., Ltd. achieved operating income of 249,117.26 million yuan, a year-on-year increase of 29.97%; net profit of 180 million yuan, a year-on-year decrease of 29.66%.

Among them, the market share of cross-border e-commerce further expanded, and the order scale increased by more than 60% compared with the same period last year. The cross-border e-commerce business achieved a net profit attributable to shareholders of 130 million yuan, a decrease of 21.5906 million yuan from 152 million yuan in the same period last year, a decrease of 14.16%.

Regarding the reasons for the decrease in cross-border e-commerce revenue, the report pointed out that in the first half of 2020, due to the catalysis of the epidemic, the demand for epidemic prevention materials was strong, and the net profit was nearly 20 million yuan. However, in the first half of this year, with the advancement of vaccination plans around the world, the sales of epidemic prevention materials declined, and the net profit fell significantly to less than 300,000 yuan.

All in all, Jihong Co., Ltd.'s profit from the sales of epidemic prevention materials in the first half of this year has dropped nearly 70 times compared with last year . The direction of the epidemic has a great impact on the sales of the company!

The report pointed out that while further expanding its e-commerce business, Jihong Co., Ltd. continued to adhere to the concept of cash is king, and actively divested or abandoned businesses or customers with collection risks. From January to June 2021, the company's net cash flow from operating activities was 192.535 million yuan, and its capital turnover was operating well.

In addition, in order to prevent the loss of talent, Jihong Co., Ltd. is also reserving strategic development talents and optimizing the talent structure, while also strengthening the construction of employee incentive mechanisms and implementing an employee restricted stock incentive plan, effectively combining the interests of shareholders, the company and the personal interests of the core team, enhancing the stability of the company's core team, and building a good and upward development atmosphere.

In addition, it is worth mentioning that in the first half of this year, Jihong Co., Ltd. invested a lot of energy in the cross-border e-commerce SaaS service platform (Jimiaoyun), with an R&D cost of more than 18 million yuan, and completed the internal test in May this year . In the long run, this will further enhance the core competitiveness of Jihong Co., Ltd. and complete the upgrade from a "gold digger" to a "water seller".

At present, Jihong Co., Ltd. has stated that it will place independent site advertisements through foreign social networking platforms such as Facebook, Google, Tik Tok, Line, YouTube, Instagram, etc., continue to deepen its main business of cross-border e-commerce, and sell cost-effective and distinctive Chinese products across borders to Southeast Asia and other countries or regions, maintaining its leading position in independent site e-commerce in Southeast Asia.

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