Paton's business changes, Xiaomi and SHEIN join the game

As a traffic star in the cross-border circle, Paton has been in the limelight recently . First, it was revealed that 60 % of its shares were sold, and then 100 % of its shares were transferred for 2.02 billion yuan . Now, Paton's industrial and commercial information has begun to change .

Xiaomi and SHEIN invest in Paton

On April 22, Shenzhen Qianhai Paton Network Technology Co., Ltd. changed its business registration , adding Xiaomi Technology Co., Ltd., SHEIN, and ByteDance - affiliated Beijing Quantum Leap Technology Co., Ltd. as shareholders, holding approximately 9.36%, 4.68%, and 5.30% of the company's shares, respectively . At the same time, the company 's registered capital also increased from RMB 12.2172 million to RMB 15.2715 million.

(Picture from Qichacha)

Another of its investors , SHEIN, is in the same cross-border e-commerce track as Paton . As a dark horse in the cross-border e-commerce industry, its IPO in the United States , its valuation of US$15 billion, and its continuous growth rate of more than 100% have attracted the attention of consumers .

Recently, the editor also found that SHEIN is developing third-party platforms and increasing its layout on Amazon. In general, SHEIN's move not only attracts potential users of the platform, but also makes the brand gain more exposure, forming a situation where both independent sites and platforms are flourishing.

Paton's business scope complements that of Xiaomi , and it mainly engages in the development and sales of 3C electronic products. Some industry insiders said that Xiaomi wants to use Paton's advantages to make up for its own technological shortcomings and lay the foundation for its supply chain, but why did ByteDance invest in Paton?

Why did ByteDance invest in Paton?

ByteDance is expanding across all channels in a borderless manner, relying on its two gold-digging machines, Douyin and Toutiao. By developing Douyin e-commerce, creating a Douyin version of Meituan, entering the entertainment field, and laying out hard-core technology, ByteDance seems to be planning a bigger territory.

Survey data shows that ByteDance's investment proportion is tilting towards artificial intelligence, especially e-commerce, new consumption and remote work . For example, its previous investments in Shenzhen Xiaokuo Technology specialize in the production and sales of electric toothbrushes, Singularity Cloud specializes in artificial intelligence, and Hangzhou Huanjun specializes in electronic products. This also makes people think that this investment in Paton may be to pave the way for its cross-border e-commerce business.

Survey data shows that as Amazon's top seller, Paton's operating income from 2017 to 2019 was 2.425 billion yuan, 3.417 billion yuan, and 3.439 billion yuan, and its net profit was 191 million yuan, 238 million yuan, and 178 million yuan, respectively.

It has to be said that high-quality sellers create high-quality brands. Its MPOW brand has been a high-quality brand of 3C products in North America and Europe for many years, and its products have accumulated more than 600 Best Sellers on Amazon.

In general, a group of bigwigs invested in Paton because of its super high rate of return. I believe that under the leadership of Xiaomi, ByteDance and many bigwigs in the cross-border circle, Paton will also usher in even better results.

Millet

SHEIN

Paton