Saiwei Times' net profit stopped falling and rebounded last year, and the non-apparel accessories category returned to positive growth of 19.48%

21st Century Business Herald reporter Ou Xue reported from Shenzhen

On the evening of April 26, Shenzhen cross-border e-commerce big seller Saiwei Times (301381. SZ) disclosed its first annual report after listing.

In 2023, the company will achieve annual revenue of 6.564 billion yuan, a year-on-year increase of 33.70%, net profit attributable to the parent company of 336 million yuan, a year-on-year increase of 81.62%, net profit attributable to the parent company after deducting non-profits of 308 million yuan, a year-on-year increase of 78.80%, and basic earnings per share of 0.8907 yuan, an increase of 73.56% year-on-year.

On the whole, the first annual "report card" handed over by Saiwei Times after its listing is remarkable, with both revenue and net profit increasing, especially net profit ending the downward trend in 2022, with a year-on-year increase of 151 million yuan. In addition, the company's revenue contribution is still mainly from the apparel accessories category, but the revenue of the non-apparel accessories category has begun to return to positive growth.

Saiwei Times saw a decline in sales revenue in Europe and Asia last year, down 10.15% and 13.87% year-on-year, respectively. At the same time, the company's operating costs increased by 31.11% year-on-year, of which sales expenses increased by 35.03% year-on-year, mainly due to the impact of sales revenue growth and brand promotion expenses.

According to the analysis of Saiwei Times in its 2023 annual report, the overseas clothing market has a huge space, and the mainstream model at this stage is still offline store sales. However, with the gradual establishment of online consumption habits by overseas consumers and the further improvement of e-commerce infrastructure, the overseas online branded apparel market is expected to continue to grow.

As of the close of trading on April 26, Saiwei Times closed at 25.53 yuan, up 1.71%, with a turnover rate of 4.92%, a volume of 16,400 contracts, a turnover of 41.71 million yuan, and a total market value of 10.215 billion yuan.

The non-apparel accessories category returned to growth

According to public information, the product categories operated by Saiwei Times are mainly divided into two categories: clothing accessories and non-clothing accessories.

In 2023, the apparel and accessories category will still be the main category of Saiwei Times, with a revenue of 4.671 billion yuan, a year-on-year increase of 41.49%, accounting for 71.17% of the company's overall revenue, an increase of 3.92 percentage points over the same period of the previous year.

In terms of brands, four of the company's top five brands are from the apparel accessories category, and these four major apparel brands all achieved double-digit growth last year. Among them, the sales revenue of men's clothing brand Coofandy and home wear brand Ekouaer ranked first, with annual sales exceeding 1 billion yuan for the first time last year, while women's clothing Zeagoo grew the fastest, achieving revenue of 228 million yuan last year, a year-on-year increase of 85.14%.

In addition, it is worth noting that due to the gradual easing of unfavorable factors, the non-apparel accessories category of the Saiwei era finally returned to positive growth.

The prospectus previously showed that the company's revenue from goods such as department stores, home furnishings, sports entertainment, and digital automobiles and motorcycles will decline to varying degrees in 2021 and 2022 for two consecutive years, of which department stores and home furnishings have declined the most, shrinking from 1.096 billion yuan in 2020 to 633 million yuan in 2022.

Saiwei Times explained that since the second half of 2021, the peak of online consumption caused by its overseas phased factors has fallen, resulting in a greater impact on the short-term market demand of non-clothing accessories categories (such as home-related household products, office supplies, fitness equipment and other categories).

"The inventory hoarded in the short term during the peak consumption period needs to be quickly processed by discounts and promotions, and the high cost of the hoarded inventory due to factors such as high sea freight costs has caused the company's revenue and gross profit level of non-apparel accessories categories from the second half of 2021 to 2022 have been severely impacted. Saiwei Times said.

In 2023, the above-mentioned unfavorable factors will be significantly alleviated, and its non-apparel category will stop falling and rebound, achieving operating income of 1.736 billion yuan, a year-on-year increase of 19.48%, accounting for 26.45% of the company's total operating income.

According to the latest data of the first quarter report of Saiwei Times this year, the revenue growth still mainly comes from the clothing and accessories category, which accounts for 72.76% of the total revenue, a year-on-year increase of 50.09%, and the non-clothing accessories category maintains a positive growth trend, achieving a revenue of 428 million yuan, a year-on-year increase of 26.49%.

The company previously said in an institutional survey that the pressure on non-clothing categories to destock has been greatly reduced, and it can travel lightly this year. With the promotion of strategies such as category streamlining, business focus, R&D strengthening, and new product launches, it is expected that the non-apparel category can return to normal growth.

It is planned to build a "plug and play" intelligent business platform

According to the analysis of Saiwei Times, the overseas clothing market space is huge, and the mainstream model at this stage is still offline store sales, but with the gradual establishment of online consumption habits by overseas consumers and the further improvement of e-commerce infrastructure, the overseas online brand clothing market is expected to continue to grow.

"Doing branded clothing business online is more complicated, and Chinese companies face many challenges when engaging in overseas online branded clothing sales. "Saiwei Times believes that there are many elements that enterprises need to pay attention to in product development, production and supply, cross-border transportation, product sales and other links.

Among them, Saiwei Times emphasized in the report that clothing is the category with the most multi-threaded concurrency possibility, and the above-mentioned key links can be highly reused in multiple brands facing different styles, different application scenarios, and different consumer groups after being accumulated in the underlying digital system through digitization and standardization, so as to achieve large-scale empowerment, which is an important feature of clothing operation that is different from other non-clothing categories.

At present, Saiwei Times drives the development of the company's brand matrix strategy with the underlying and small front-end organization forms of full-link digital technology, and realizes comprehensive technology-driven in product development and design, supply chain management, brand incubation and operation.

It is worth noting that Saiwei Times is currently mainly engaged in cross-border export e-commerce and logistics services, but intends to do platform services. It said that the company plans to build the apparel flexible supply chain system into a "plug and play" intelligent business platform to empower the efficient link of upstream and downstream enterprises in the industry.

At present, garment production enterprises usually need to invest a lot of capital in manpower, machinery and equipment, plants, logistics, warehousing and other production factors to achieve scale effect. However, due to the requirements of the asset-heavy model on the size of orders, it cannot meet the demand for "small orders", resulting in a large number of small and medium-sized e-commerce companies lacking a stable and reliable supply chain.

Saiwei Times said that the company will meet the individual needs of each consumer through network-wide collaboration and data intelligence, and will also develop a more complex multilateral market and more vibrant ecological potential on the intelligent business platform, so as to lower the entry threshold of the industry and replace the scale effect with network collaboration.

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