While competitors rush to embrace emerging platforms in the booming cross-border e-commerce sector, Eaby Network stands out with its measured strategy. The company, known for its strength in general merchandise, has taken a notably prudent stance regarding cooperation with Temu, the cross-border platform operated by Pinduoduo.
Rather than aggressively expanding on Temu, Eaby Network prefers to consolidate its existing advantages. Huakai Eaby recently stated during investor relations activities that while the company has initiated cooperation with Temu, it has no immediate plans for large-scale participation. The company believes Temu's current operational model appears more focused on direct partnerships with suppliers, which differs from Eaby Network's established business approach.
Strategic Patience in Platform Expansion
As early as November last year, Huakai Eaby revealed it had opened a limited number of stores on the overseas version of Pinduoduo. While maintaining it would continue monitoring emerging e-commerce platforms for appropriate investment opportunities, current strategy shows Eaby Network isn't rushing to make Temu a primary growth driver.
This strategic patience stems from Eaby Network's deep expertise in general merchandise and its successful diversified market approach. Since the second half of 2022, the company's general merchandise business has regained growth momentum, driven by two key factors: expansion into emerging markets including Mexico, Poland, and Turkey—regions with relatively low e-commerce penetration but significant consumption potential—and its commitment to multi-category, multi-platform development that effectively mitigates risk while creating new growth avenues beyond Amazon.
Business Structure and Financial Performance
Huakai Eaby's operations currently comprise three main segments: general merchandise (contributing approximately 85% of total revenue), premium products, and integrated services. The general merchandise business remains the company's core profit generator.
According to its 2022 performance forecast, Huakai Eaby expects annual net profit attributable to shareholders between 210 million and 240 million yuan, marking a return to profitability. Eaby Network itself is projected to achieve approximately 4.3 billion yuan in revenue with net profits ranging from 270 million to 290 million yuan.
This strong financial performance provides solid support for Eaby Network's disciplined market strategy. Moving forward, the company plans to continue carefully evaluating cooperation models with emerging platforms while deepening its general merchandise operations and expanding into diversified markets to achieve sustainable growth.