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author | liu junqun

editor: liu qinwen

source | yema finance

a floral dress for women, "starts" from a warehouse in foshan, guangdong, china, crosses the border, arrives at a transshipment warehouse in bangkok, thailand, then takes a thai express truck and finally arrives at the doorstep of a thai consumer.“cross-border social e-commerce enterprise”jihong sharesdaily business.

in 2023, xiamen jihong technology co., ltd. (hereinafter referred to as "jihong shares") relied on cross-border social e-commerce and other businesses.annual income: 6.695 billion yuan,becomethe second largest b2c export social media e-commerce company in chinait accounts for 2.3% of the market share.

this company did not become an overnight success. 2016 ， jihong shares have already landed on the main board of the shenzhen stock exchange. now it has submitted its prospectus to the hong kong stock exchange.trying to rush for an ipo on the hong kong stock market. if successfully listed, it will become the first“a+h” dual listing a cross-border social e-commerce company.

however, behind this dazzling report card, jihong shares have also gone through many detours. in the eight years since its listing on the a-share market, jihong shares (002803.sz) try to get involved in multiple hot fields , such as blockchain, metaverse, epidemic prevention materials, liquor and chatgpt, trying to find new growth points. unfortunately, most of these cross-border attempts have been loud but little.it did not cause much stir in the financial statements.

meanwhile, since 2019, the founder zhuang hao and his family behind the company havecashed out over 600 million yuan.

as of september 9, jihong co., ltd.'s share price closed at 9.99 yuan per share, with a total market value of 3.845 billion yuan.

selling goods to japanese, koreans, etc.

annual income: 6.6 billion yuan

a dress, a desk lamp, a signature pen, these products labeled "made in china" are now exported to the world in an endless stream.

since 2010, the rise of cross-border e-commerce platforms such as aliexpress and shein has promoted chinese manufacturing to the world. jihong shares is a pioneer in this wave. different from the e-commerce giants with global layout,jihong shares chose to focus on the asian market, especially south korea, japan and other countries。

however, the story of jihong shares did not begin with cross-border e-commerce. when it was founded in 2003,the company started out as a packaging business.it mainly provides colorful packaging boxes and environmentally friendly paper bags for well-known companies such as yili, luckin coffee, and mcdonald's.

although the customers are all big brands, the growth of the packaging business has gradually encountered bottlenecks over time. in 2016, the year of listing, the company's revenue was 570 million yuan, an increase of only 9.2% from 522 million yuan in 2015. after listing, jihong co., ltd. realized that it had to find another way, so itin 2017, we decisively turned to cross-border e-commerce.

image source: canned image library

in the field of cross-border e-commerce, jihong shares adopts the model of "goods find people". the company uses international social media platforms such as facebook, instagram, tiktok, youtube, line, snapchat and x (formerly twitter).through precise advertising, products made in china are pushed directly to the eyes of southeast asian consumers.after consumers click on the ad, they canjump directly to jihong co., ltd.'s product page to purchase.

where do these products come from?own supplier systempurchasing goods, the other side relies onalibaba's wholesale platform "1688.com"today, jihong's product library covers more than 60 categories including home furnishings, clothing, electronics, and beauty products, with more than 600,000 skus.

these products are mainly sold tojapan,south korea and other eastnorth asia,from 2021 to 2023, the company's revenue from northeast asia was rmb 1.398 billion, rmb 1.794 billion and rmb 2.527 billion, and the proportion of total revenue increased from 49.3% to 59.4%.

image source: prospectus

as forprofit modelthe secret of jihong co., ltd. is "buy low and sell high".according to cailianshe, citing industry insiders, jihong's cross-border e-commerce model is mainly to purchase goods in bulk at low prices from wholesale markets or suppliers, and then promote them through social media advertising before selling them to overseas consumers.ultimately, earn the difference by selling the goods.

now,jihong co., ltd. walks on two legs, one is the cross-border social e-commerce business, and the other is the paper packaging business.from 2021 to 2023 (hereinafter referred to as the "reporting period"), the revenue of cross-border e-commerce business increased from rmb 2.837 billion to rmb 4.257 billion, and the proportion of total revenue increased from 54.7% to 63.7%, while the revenue of paper packaging business increased slightly to rmb 2.097 billion, and the proportion decreased from 40.3% to 31.3%.

image source: prospectus

overall, the company's revenue will continue to grow from 2021 to 2023.

in 2021, jihong sharesrevenue exceeded 5 billion yuan for the first time.it increased by 17.4% year-on-year to 5.178 billion yuan.the growth rate will slow down significantly in 2022.with only a 3.83% increase, revenue rose to 5.376 billion yuan.in 2023, the company's revenue will accelerate again.an increase of 24.53% to 6.695 billion yuan.

in terms of net profit,in 2021, the company's net profit declined for the first time, falling by 62.61% to 209 million yuan.

in order to improve the situation, in 2022, jihong co., ltd. invested more than 40 million yuan to launch the saas service platform "jimiao cloud", which is dedicated to providing advertising, cross-border logistics and payment services for small and medium-sized enterprises. however, this platform has not yet brought substantial revenue and has brought little change to the company's performance.

net profit continued to decline by 17.07% to 172 million yuan in 2022, which the company attributed to the epidemic and rising raw material prices. it was not until 2023, when the epidemic ended, that the company's net profit rebounded strongly, increasing by 93.02% to 332 million yuan.

multiple transformations

only the stock price increases but not the performance?

in the context of the fluctuation of its main business, jihong shares have repeatedly tried to take the "express train" of various hot concepts, setting off waves in the market. since its listing, jihong shares seem to have become a "hot spot harvester", whether it is liquor, e-cigarettes, chatgpt, metaverse, blockchain, nft, it can be seen in almost any concept that is popular in the market.

in 2017, jihong co., ltd. boldly entered overseas social e-commerce and its performance soared.that year, the company's revenue increased by 98.74% year-on-year to 1.133 billion yuan, and it doubled to 2.269 billion yuan in 2018. net profit also rose accordingly, increasing by 86.14% year-on-year to 80.0343 million yuan in 2017, and soaring by 166.35% in 2018 to 213 million yuan.

as of december 28, 2018, the company's stock price closed at 8.03 yuan per share.after tasting the sweetness of transformation,jihong co., ltd. seems to see unlimited possibilities.

in 2019,taking advantage of the blockchain boom, jihong shares quickly entered the market.in october of that year, jihong co., ltd. signed a strategic cooperation agreement with a blockchain company, shanghai huoyu. however, at that time, shanghai huoyu had just been established for more than a year. in november, jihong co., ltd. also established its own blockchain company, "jichain blockchain".

however, this plan did not bear much fruit. although in the 2020 annual report, the company mentioned that the blockchain and supply chain business brought in 10.0481 million yuan in revenue, soon in the subsequent annual reports, the revenue data for the blockchain part "disappeared".

despite this,the company's stock price has been rising.from september 30, 201912.49 yuan/share, up to august 31, 202046.74 yuan per share, an increase of 289.5%.

image source: wind screenshot

in 2020,the covid-19 outbreak,the demand for medical supplies such as masks and protective clothing surged. that year, jihong holdings invested inmask manufacturer "evergreen health"(jihong supply chain holds a 40% stake).

in 2020, evergreen health's revenue was 1.05 yuan and its net profit was 25.9444 million yuan, contributing certain revenue and profits to jihong shares.

however, as the epidemic is gradually brought under control, market demand decreases, and evergreen healthperformance plummeted.in 2021 and 2022, evergreen health's revenue was rmb 23.5676 million and rmb 28.2874 million respectively, and its net profit was rmb -10.1422 million and rmb -406,300 respectively, which has become a "hot potato" for jihong holdings.

also in 2021, jihong holdingsnet profit declined for the first time.the decline was 62.61% to 209 million yuan. net profit continued to decline by 17.07% to 172 million yuan in 2022. the company attributed this to the epidemic and rising raw material prices.

during this period, jihong shares' stock price began to fluctuate downward.it fell from 46.74 yuan per share on august 31, 2020 to 25.89 yuan per share on may 31, 2021, a drop of about 44.61%.

in 2021, jihong shares set its sights onthe "moutai effect" in the liquor market.

on june 28, 2021, the company announced its plan to enter the liquor industry by indirectly acquiring 70% of the shares of gujiao liquor co., ltd. in maotai town, renhuai city, guizhou province.

but before the announcement, jihong sharesfour consecutive trading days of gains, which hit the daily limit on two days,the cumulative increase exceeded 30%this move triggered a rise in the stock price, which reached as high as 32.48 yuan per share on june 29.

image source: wind screenshot

june 29, 2021shenzhen stock exchange issued a letter of concern.the company is required to explain two main issues, namelywhether the stock price is being hyped up to cater to hot topics and whether there is insider trading.

on july 1, jihong shares explicitly denied the allegation. jihong shares stated:"the company strictly controls the scope of knowledge of this transaction, and the relevant parties have not leaked insider information or directly or indirectly traded the company's stocks."

however, this "white wine dream" ultimately failed to come true due to various reasons, the acquisition failed to take place, and the white wine business was stranded.

after june 29, 2021, the company's stock price fell rapidly. by october 28, the stock price had dropped to 13.81 yuan per share.the drop was 57.48%.

in 2023,as chatgpt exploded around the world, jihong holdings did not miss this hot topic.on march 16, the company responded to netizens on the investor communication platform "shenzhen stock exchange interactive" that it connected to chatgpt's api interface in january 2023, hoping to achieve "ai blessing" in its cross-border e-commerce business.

company share priceover the next five trading days, it surged more than 50%.on march 27, the stock price reached a peak of 23.58 yuan per share, and then fell back to 18.54 yuan per share on april 12. this wave of growth once again attracted the attention of the shenzhen stock exchange. on may 20, the shenzhen stock exchange issued a letter of concern, requiring jihong shares to explain its response on hudongyi.whether there are any misleading statements, and any behavior of cooperating with market hype and "riding on the hot spot".

in response to this, on march 24, jihong shares responded that:the company is not involved in any insider trading, nor is it involved in hyping up stock prices to cater to market trends or cooperating with shareholders to reduce their holdings.

it can be seen on wind that from 2017 to 2023, the company has received5 servingsletter of concern from shenzhen stock exchange.

image source: wind

in the process of chasing these hot spots, jihong shares did not seem to bring the growth miracle imagined. now, jihong shares do not seem to be so eager to catch up with the hot spots.during the interaction with investors on the "shenzhen stock exchange interactive" in 2024, facing hot topics such as humanoid robots and new energy, the company directly stated that "there is no such business".

image source: interactive e screenshot

fu jian, director of henan zejin law firm, believes that it is not uncommon for listed companies to "take advantage of the trend".butwhether "talk nonsense" violates the regulations requires determining whether the speech published by the person concerned exceeds the necessary limit.。if there is false propaganda or exaggeration of facts to deliberately mislead investors, it constitutes illegal information disclosure.

“"riding on the hot topic" is mostly "fabricated out of thin air" or "exaggerated", which is unacceptable for the securities market that pursues truthful, accurate, complete, effective and timely information disclosure."said zheng yu, professor at the school of international financial law of east china university of political science and law.

zhuang hao family has reduced its holdings by more than 600 million in 5 years

behind the ups and downs of jihong shares' stock price,actual controller zhuang hao and his family membersalso began to reduce holdings several times.

founder of jihong holdingszhuang haois fromblessingthe 55-year-old entrepreneur who built zhangzhoushe was admitted to beijing institute of graphic communication at the age of 19. after graduation, she started her career. at the age of 23, she worked as a technician in the fujian zhangzhou printing general factory and was gradually promoted to the director of the plate-making branch factory.

since then, zhuang hao's career has been smooth and rapid. at the age of 34, she founded xiamen jihong technology co., ltd. and served as chairman and general manager.in 2016,47-year-old zhuang hao successfullyjihong shares were listed on the shenzhen stock exchange a-shares.it was the most popular time.

however, with the arrival of the lock-up period after jihong shares' listing, the actual controller zhuang hao began to reduce his holdings.

february 2019zhuang haoreduced holdings by 54,900 shares,the cash raised was approximately rmb 1.0091 million.

in 2020,jihong shares became the focus of the market because its subsidiary held shares in the mask manufacturer "evergreen health".december 22, zhuang hao reduced his holdings by 1.34 million shares,cashed out 37.6942 million yuan.

in 2020, when he sold off a large amount of shares to cash out, zhuang hao also made his first appearance on the hurun rich list.with a wealth of 4.1 billion yuan, she is the only female billionaire from zhangzhou, fujian on the list.

december 30, 2022，zhuang haofurther reduced holdings by 4.659 million shares,cash out about 65.9714 million yuan.enter2023as jihong shares introduced the chatgpt concept, the company's stock price soared.zhuang haoon january 6, it reduced its holdings by 2.5063 million shares.the cash raised was approximately rmb 37.3439 million.

image source: wind

according to wind data, from 2019 to 2023, the actual controller of jihong shareszhuang hao's total cash out in five years was approximately 434 million yuan.

behind the frequent reduction of holdings, zhuang hao's shareholding ratioit has dropped from 34.32% at the beginning of its listing to 18.1% today.today, zhuang hao and his associates including zhuang zhenhai, zhuang shu, he jingying, zhang heping, lu tashan, and tibet yongyue hold a total of approximately 32.1% of the company's shares.

it is worth mentioning that zhuang zhenhai is zhuang hao’s father, zhuang shu is zhuang hao’s brother, he jingying is zhuang shu’s wife, zhang heping is zhuang hao’s husband, and zhuang zhenhai holds 71.4% of tibet yongyue.

according to wind data, from 2019 to 2023, the above relatives also cashed out a total of about 184 million yuan in 5 years. it can be said that the zhuang family cashed out a total of about 618 million yuan.

at the same time, jihong shares also let the actual controller and major shareholders "taste more sweetness" through dividends. for example, in 2022, the company's net profit attributable to the parent company after deducting non-recurring items was 169 million yuan, but the dividend was nearly 99.5216 million yuan; in 2023, the company's net profit attributable to the parent company after deducting non-recurring items was 325 million yuan, and a cash dividend of 137 million yuan was planned.

nowadays, with the scattered layout of sideline businesses and insignificant results, jihong shares seem to bedeciderefocus on the core business, raise funds through listing on the hong kong stock market, and use the funds to expand overseas markets, upgrade logistics and warehousing, and enhance the research and development of ai and the "jimiao cloud" platform.trying to re-energize the core business.

the story of jihong shares is like a dramatic drama. from its start as a packaging carton company to its current cross-border e-commerce ipo, the company has experienced too many ups and downs and can easily switch to market hot spots.the founder and his family have been reducing their holdings and cashing out, and their shareholding ratio has declined.it now appears that jihong holdings is trying to create another stir in the hong kong stock market.