①Suntech's net income from revenue increased in the first half of the year; ②In terms of channels, emerging platforms have shown significant growth; ③The company has responded to the rise in shipping prices through premium accumulation and cooperation with Amazon's first-mile service.
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Caixin News on August 23rd (Reporter Wu Weiling) Under the advantage of cost-effectiveness, cross-border e-commerce companies are enjoying the benefits of going global. In the first half of the year, Suntech (301381.SZ) achieved growth in both revenue and net income, with accelerated growth in the non-fashion accessories category after product simplification and focus.
The company's financial report disclosed in the evening shows that in the first half of the year, Suntech achieved revenue of 4.177 billion yuan, a year-on-year increase of 50.65%; net income attributable to shareholders was 0.236 billion yuan, a year-on-year increase of 56.69%; and net income attributable to shareholders after non-recurring items was 0.21 billion yuan, a year-on-year increase of 47.21%.
In the first half of the year, both the fashion accessories category and the non-fashion accessories category of the company achieved year-on-year growth. Among them, the revenue of the fashion accessories category was 3.002 billion yuan, a year-on-year increase of 53.62%; the revenue of the non-fashion accessories category was 1.014 billion yuan, a year-on-year increase of 34.43%. The financial report also mentioned that while clearing the historical inventory of the non-fashion accessories category last year, the company also carried out product simplification and focus, and this year the category has shown accelerated recovery and development, with a year-on-year growth of 26.49% in the first quarter and 40.88% in the second quarter.
Under the trend of downgraded overseas consumption, consumers' preference for high-cost-effective products has increased, and cross-border e-commerce has ushered in development opportunities. In terms of the industry, according to preliminary calculations by the customs, China's cross-border e-commerce import and export in the first half of this year reached 1.22 trillion yuan, a year-on-year increase of 10.5%. At the same time, domestic emerging platforms have performed well, driving further development of cross-border e-commerce companies. According to reports, PDD Holdings' subsidiary Temu achieved a sales volume of approximately $20 billion in the first half of this year, exceeding the full-year total of $18 billion for 2023.
Suntech has also hopped on the emerging channel "Kuai Che".
The financial report shows that in the first half of the year, TikTok platform sales of the company soared from 0.2198 million yuan in the same period last year to 23.7407 million yuan, and the newly established Temu platform achieved sales revenue of 60.6285 million yuan. In addition, Amazon is still the main sales channel for the company's B2C business, with sales revenue of 3.49 billion yuan in the first half of the year, accounting for 84.01% of the main operating income, a year-on-year increase of 43.11%.
Suntech Era also stated that it will continue to implement omni-channel research in the future and explore development opportunities in different channels based on the different stages of the brand for channel expansion or layout.
The fluctuation of marine transportation fees is also worthy of attention. In the financial report of Suntech Era, it is mentioned that the rapid and high increase in marine transportation fees in the first half of the year has put certain pressure on the costs and inventory turnover of export-oriented enterprises.
Regarding the increase in freight rates, the company mentioned in an institutional survey in June of this year that, on the one hand, the company has accumulated the ability to digest some stage cost fluctuations through its premium capabilities, and at the same time, some trinket categories have gradually accessed Amazon's headhaul services, which have significantly optimized the company's headhaul rates.