1. Overview
Cross-border Tongbao E-commerce Co., Ltd. (hereinafter referred to as "Cross-border Tong") is a company originally established in Taiyuan, Shanxi, starting from making pants, and then entering the cross-border e-commerce industry through capital operation, and is now mainly engaged in cross-border e-commerce business, covering cross-border export e-commerce business and cross-border import e-commerce business. The company released its annual report in March 2024, and this article attempts to provide a brief analysis of its financial situation from the "2023 Annual Report" provided by Cross-border Connect, hoping to give a glimpse to those who are interested in the cross-border e-commerce industry.
2. Analysis of financial situation
1 Operating income and profit
In 2023, Cross-border Connect will achieve operating income of 6616.4119 million yuan, a decrease of 8.80% from 7254.4929 million yuan in 2022.
The net profit attributable to shareholders of the listed company was -9,688,216.46 yuan, a decrease of 153.98% from 17,949,175.92 yuan in the previous year, turning from profit to loss.
2 Assets and liabilities
The total assets at the end of 2023 were 3,742,087,769.84 yuan, a decrease of 6.19% from 3,989,135,888.94 yuan at the beginning of the year.
The total liabilities are 2,401,082,847.72 yuan, and the total owner's equity is 1,341,004,922.12 yuan, showing that the company's capital structure is relatively stable.
3 Cash flow
The net cash flow from operating activities was -120,627,350.99 yuan, a decrease of 16.41% from -103,619,718.83 yuan in the previous year, and the cash flow situation deteriorated.
4 Changes in shareholders' equity
During the reporting period, the company did not distribute cash dividends, did not give bonus shares, and did not convert provident fund into share capital.
5 Non-recurring gains and losses
During the reporting period, the company recognized the amount of non-recurring profit and loss items as 75,589,233.59 yuan, which had a significant impact on net profit.
3. Analysis of business conditions
1. Business Composition
The operating income of cross-border import e-commerce business was 610,020.32 million yuan, accounting for 92.20% of the total operating income, a year-on-year decrease of 9.04%.
The operating income of cross-border export e-commerce business was 461.1652 million yuan, accounting for 6.97% of the total operating income, a year-on-year decrease of 6.08%.
2. Marketing & Sales
The Asian market accounted for 93.20% of the operating revenue, which is the company's main market.
Online sales is the company's main sales channel, of which the third-party platform accounts for 85.97% of the operating income.
3. R&D investment
During the reporting period, the company did not clearly disclose the R&D investment.
Fourth, risk factor analysis
1. Market competition
The cross-border e-commerce industry is highly competitive, and companies are facing the pressure of brain drain, slowing growth in emerging markets and industry adjustment.
2. Operational Risks
The company is uncertain about its ability to continue as a going concern, and the net profit before and after deducting non-recurring gains and losses in the last three fiscal years is negative.
3. International environment
Changes in the international political and economic situation may have an impact on the company's import and export business.
5. Future prospects
- The company plans not to distribute cash dividends, not to give bonus shares, and not to use provident fund to increase share capital. By enhancing the soundness of the financial system, optimizing cash flow management, strengthening the building of its own brand, and focusing on its core business, we will improve the quality of operation and the comprehensive anti-risk ability in the process of business development.
- Risks faced by the company include the risk of volatility caused by the unstable international environment, the risk of brain drain and the risk of increased competition in the industry.
Sixth, the status of the industry
As one of the earliest enterprises in the domestic cross-border e-commerce industry to enter the capital market, Cross-border has its own website platform and has accumulated rich experience in marketing and operation.
7. Development strategy
- The company plans to enhance the robustness and sustainability of its financial system and optimize cash flow management.
- Adhere to the route of self-owned brand building and enhance the brand image.
- Focusing on the core business, the export and import business go hand in hand.
- In line with the policy opportunities of cross-border e-commerce, we actively explore new business growth opportunities.
8. Conclusion
In 2023, Cross-border Connect will face a decline in both operating revenue and net profit, and its cash flow position will also deteriorate. Although the company has a certain market position and brand influence in the field of cross-border e-commerce, the current financial situation and market environment pose challenges to its operation. Companies need to take effective measures to improve their financial position and enhance their market competitiveness in order to cope with the risks and uncertainties that may arise in the future.
Note: This report is only a simple analysis based on the annual report data provided, the actual situation may be more complex and requires more in-depth financial analysis and market research.
The author of this article is Mr. Mark, Chief Economist of Easy Tax Link
Disclaimer: This article is the original article of cross-border easy tax pass, and you are welcome to contact us for authorization to reprint.