The cross-border e-commerce industry continues to evolve at a rapid pace, where companies must adapt or risk falling behind. This week saw contrasting developments—from companies facing delisting risks to industry giants expanding their market presence—highlighting both the fierce competition and the opportunities in this dynamic sector.
I. Corporate Warning: Zesun Technology Faces Delisting Risk
Wuxi Zesun Technology Co., Ltd. (Zesun Technology) has been suspended from trading since September 1, 2022, due to its failure to disclose its 2022 semi-annual report. According to regulations, if the company fails to submit the report by October 31, 2022, its shares may be delisted.
1. Company Overview
With 16 years of experience in apparel design and manufacturing, Zesun initially aimed to build a fast-fashion brand CHOIES, similar to SHEIN's model. However, its cross-border e-commerce performance has declined sharply, with revenue dropping from 297 million yuan in 2021 to 63.91 million yuan in 2022.
2. Risk Analysis
The failure to disclose financial reports typically indicates operational or financial difficulties. For publicly traded companies, timely disclosure is crucial for maintaining investor confidence. Delisting would eliminate Zesun's access to public financing, significantly impacting its future development.
II. Strategic Adjustment: Huakai Yibai Increases Share Buyback
Huakai Yibai Technology Co., Ltd. has announced it will raise its share repurchase limit from 100 million yuan to 200 million yuan.
1. Buyback Plan Details
The company initially approved the buyback plan in January 2022, intending to use its own funds to repurchase shares for employee incentive programs at no more than 23 yuan per share.
2. Current Progress
As of September 6, the company has repurchased 3.75 million shares (1.3% of total shares) at prices ranging from 13.45 to 18.50 yuan per share, totaling nearly 60 million yuan.
3. Financial Performance
The company reported strong first-half results with revenue reaching 1.97 billion yuan (up 2,453% year-over-year) and net profit of 83.67 million yuan, reversing from a loss in 2021. This robust performance supports the increased buyback.
III. Platform Policy Changes: Amazon Adjusts Fees and Returns
1. UK Fulfillment Fee Increase
Effective November 12, Amazon will raise Multi-Channel Fulfillment (MCF) fees in the UK, citing higher fuel and operational costs.
2. European Return Policy Update
Starting September 30, Amazon Europe will automatically refund buyers upon first scan of prepaid return labels for merchant-fulfilled orders, aiming to streamline the return process.
IV. Emerging Market: Shopee Launches Singapore Warehouse
Shopee plans to open its Singapore fulfillment center by late November, inviting sellers to begin onboarding in September. The local warehouse aims to improve logistics efficiency in Southeast Asia's key market.
V. Brand Expansion: TheMomsCo Targets Retail Growth
The DTC maternal care brand plans to expand its retail presence to 25,000 stores by year-end, targeting 50 billion rupees in revenue within two years. Its online sales have tripled since acquisition by The Good Glamm Group.
VI. Logistics Expansion: SHEIN Adds US Fulfillment Centers
The fast-fashion retailer will open two additional US fulfillment centers—a 1.8-million-square-foot facility in California in 2023 and another in the Northeast—to reduce delivery times to 3-4 days.
VII. Platform Partnership: Shopify and Pinterest Expand in Latin America
The collaboration extends to Chile, Argentina and Colombia, enabling Shopify merchants to sell via Pinterest's visual platform with new dynamic retargeting features.
VIII. Funding News: CapHillBrands Raises $100 Million
The Amazon aggregator secured Series B funding led by BlackRock, signaling continued investor confidence in the e-commerce roll-up model.
IX. Market Forecast: Japanese E-Commerce to Grow 6.9%
Japan's e-commerce market is projected to reach 22.4 trillion yen ($194.3 billion) in 2022, maintaining a 5.2% CAGR since 2018 as consumers shift from offline to online shopping.