① Zhiou Technology expects to achieve operating revenue of 6.02 billion yuan to 6.1 billion yuan in 2023, up 10.35%-11.82% year on year; net profit for the whole year is expected to be 400 million yuan to 420 million yuan, up 59.93%-67.92% year on year; ② Under the influence of the Red Sea crisis, European shipping costs have risen rapidly since December last year. At the same time, goods sent to Europe have taken a detour to the corner of good hope, which may affect product delivery in the European market.
Financial Services Association, January 30 (Reporter Wu Weiling) Shipping prices have dropped sharply, and the net profit of cross-border e-commerce to Europe Technology (301376.SZ) is expected to increase by more than 50% year-on-year for the whole year. However, since December of last year, the Red Sea incident has continued to affect European routes. European shipping rates have risen again, and the European freight cycle may be delayed.
According to this evening's announcement, Zhi Ou Technology expects to achieve operating income of 6.02 billion yuan to 6.1 billion yuan in 2023, an increase of 10.35%-11.82% over the previous year; net profit due to mother for the whole year is expected to be 400 million yuan to 420 million yuan, an increase of 59.93% to 67.92% year on year.
Regarding the year-on-year increase in net profit, Zhi Ou Technology said that on the one hand, shipping costs have declined sharply since the second half of 2022, compounding the impact of reduced procurement costs, and reduced main business costs; on the other hand, the exchange rates of the euro, US dollar and RMB have appreciated compared to the same period last year; in addition, the accelerated inventory turnover has saved storage fees.
According to data released by the Ningbo Shipping Exchange, from the beginning of June 2022 to the end of December 2023, the Ningbo Export Container Freight Index (NCFI) fell from 3538.13 points to 1451.33 points, a decrease of 58.98%. Among them, the European route index fell from 4272.51 points to 1792.42 points, a decrease of 58.05%.
However, it is worth noting that since December of last year, due to the Red Sea situation, shipping rates on European routes have risen rapidly. According to data from the Ningbo Shipping Exchange, since the beginning of December last year, NCFI European routes have risen from 573.16 points to 1889.98 points, an increase of 229.75%.
Regarding Zhi Ou Technology, the Financial Services Association reporter previously telephoned the company's securities department as an investor and learned that under the influence of the Red Sea incident, European shipping charges were indeed affected. The company usually signs a one-year long contract. Currently, the old price is still being enforced. The contract will end in April this year, and the new price is still being negotiated.
Furthermore, many shipping companies are currently choosing to bypass the Cape of Good Hope, which may affect the delivery of products in the European market. The Financial Services Association noticed that Zhi Ou Technology mentioned in Interactive Easy a few days ago that the goods sent by the company will bypass the Cape of Good Hope route and take into account the shipping company's cargo volume, and the freight cycle will be delayed by about 15-21 days. It is expected that some SKUs in the European and British markets will be out of stock in February and March.
Zhi Ou Technology also said that at present, some of the company's containers have been adjusted to transportation methods such as China-Europe trains and express ships to reduce the impact of outages caused by blocked shipping.
Looking at the company's semi-annual report, the European market accounted for 62% of revenue in the first half of last year.