The prediction made by Wei Zhe, founder and chairman of Vision Capital, in 2022—that “China’s capital market will soon welcome a new sector dedicated to cross-border e-commerce brands”—is now unfolding before our eyes. The wave of IPOs among Chinese cross-border e-commerce companies has intensified, signaling a pivotal transformation in the industry’s evolution.
In June 2023, ZEBO Technology rang the bell on China’s A-share market with a market cap exceeding $1 billion. In July, Semir E-Commerce entered the Shenzhen Stock Exchange’s ChiNext board with a P/E ratio of 47.4 and saw its stock price surge over 115% on its first trading day. By September, Senta Technology released its initial public offering announcement for listing on ChiNext. Meanwhile, Ruilian Technology and Ugreen Group, both having cleared regulatory reviews, are poised to join the ranks of publicly traded firms. This surge isn’t just about numbers—it reflects a strategic shift from generic sellers to branded players.
While early entrants were largely inventory-driven “big sellers,” the new IPO cohort increasingly features brand-focused enterprises. Their ascent has reinvigorated investor confidence amid global economic uncertainty and underscored the sector’s maturation toward branding and compliance. Yet, as momentum builds, critical questions emerge:
- Where lies the breakthrough for companies stuck in the "revenue growth without profit" trap?
- Beyond headline-grabbing names, which under-the-radar players achieved unexpected growth in 2023?
- How does the rise of “full-management” platforms challenge both legacy and emerging sellers?
To explore these dynamics, we analyze the financial performance of publicly listed cross-border e-commerce firms since 2023, uncovering insights into survival strategies and sustainable growth models.
Publicly Traded Cross-Border E-Commerce Firms: Who’s Leading, Who’s Lagging?
Over the past three years, the IPO landscape has expanded beyond pure-play retailers like Anker Innovation, Huabao New Energy, Zibuyu, ZEBO, and Semir E-Commerce. It now includes enablers such as Yimobile and GigaCloud. Earlier pioneers like LightInTheBox, Xinghui Entertainment, Huading Shares, Huakaibaiyi, YouShuKe, and Global Egret laid the groundwork but face mounting challenges today.
After a volatile three-year cycle of boom and bust, the 2023 mid-year reports offer a clear lens into post-pandemic resilience.
Anker Innovation stands out with RMB 7 billion ($970 million) in revenue—up 20.01% year-over-year—and net profit reaching RMB 820 million, a 42.33% increase. Notably, its six direct-to-consumer (DTC) brand websites saw an astonishing 112.59% revenue jump during the reporting period.
Unlike many peers relying on scale alone, Anker prioritizes R&D investment. In H1 2023, it allocated RMB 599 million to research—up 33.69% YoY—accounting for 8.48% of total revenue. This commitment fuels product innovation and strengthens brand equity across markets.
Beyond Anker, several others delivered strong results:
- Huakaibaiyi: Revenue grew 52.1%, while net profit soared 149.66%.
- GigaCloud: Achieved RMB 2.04 billion in revenue and a remarkable 216.73% net profit growth.
- Loctek: Though revenue growth was moderate, net profit surged 239.8%.
However, nearly half of the 16 firms analyzed are struggling. Five reported over 80% net profit declines; Huabao New Energy’s profits plunged by 132%. Companies like Huading Shares and Zibuyu experienced “growing without profiting”—high revenue but collapsing margins.
Others, including Lianluo Interactive and Xinghui Shares, saw both revenue and profits decline sharply—some nearing 90% drops—highlighting structural vulnerabilities in outdated business models.
👉 Discover how leading brands maintain profitability despite market headwinds.
Hidden Gems: Three Companies Doubling Down on Growth
While Anker dominates headlines, three lesser-known firms have outperformed expectations in H1 2023: GigaCloud, Huakaibaiyi, and Loctek.
GigaCloud: The First B2B Exporter for Large-Item Furniture
Founded in 2006, GigaCloud specializes in cross-border B2B logistics for bulky goods—furniture, fitness equipment, and home appliances—offering end-to-end services from sourcing to delivery.
Large items pose unique challenges: high damage rates, complex shipping logistics, costly returns, and inventory risks due to low purchase frequency. GigaCloud addresses these through three core models:
- GigaCloud 1P: Direct retail model where GigaCloud buys and resells products.
- GigaCloud 3P: A B2B marketplace connecting manufacturers with global retailers (akin to an overseas version of Alibaba’s 1688).
- Third-party platform sales: Sells curated products via Amazon, Walmart, Wayfair, and Rakuten.
Its proprietary warehouse and logistics system supports operations across North America, Europe, and Japan. With 24 self-operated warehouses totaling over 480,000 sqm, GigaCloud ensures fast fulfillment and cost efficiency.
From 2019 to 2021, active suppliers grew at a CAGR of 132%, while retailers rose by 184.4%. In H1 2023 alone, revenue hit RMB 2.04 billion (+18.82%), with net profit jumping to RMB 249 million (+216.73%).
Huakaibaiyi: The Powerhouse Among Mass-Market Sellers
Among fading generalist sellers, Huakaibaiyi shines: H1 revenue reached RMB 2.99 billion (+52.1%), with net profit up 149.66% to RMB 208 million.
After acquiring Yibai Network in 2021—a move that reversed years of losses—the company transformed its strategy. By operating over 950,000 SKUs across Amazon, eBay, and AliExpress through more than 700 Amazon stores, it leverages economies of scale.
It balances broad product coverage with targeted premium lines in home appliances, pet supplies, lighting, and cleaning tech—offering just 376 SKUs but achieving an average order value of RMB 441.
This hybrid approach—mass-market reach combined with selective branding—has proven resilient even as competitors falter.
Loctek: Full Supply Chain Control Fuels Brand Independence
Listed in 2017 as China’s first ergonomic tech stock, Loctek has expanded beyond standing desks to smart office and home solutions under its global brand FlexiSpot.
FlexiSpot consistently ranks #1 on Amazon and Walmart for adjustable desks. Its independent website flexispot.com leads in vertical DTC traffic for linear motion products.
But Loctek doesn’t stop at manufacturing or branding—it operates as a service provider too. Through 12 public overseas warehouses totaling 275,800 sqm globally, it offers logistics support to SME exporters.
By integrating production (with facilities in Ningbo and Vietnam), warehousing, and last-mile delivery, Loctek locks in cost advantages. Strategic land acquisitions—48 million sq ft in key U.S. regions—ensure long-term warehouse cost control.
Over half of its overseas warehouses now feature automation upgrades. In H1 2023, third-party logistics services generated RMB 366 million in revenue—emerging as a vital second growth engine.
👉 See how vertical integration drives long-term profitability in e-commerce.
From "Big Seller" Decline to Brand Ascendancy
Market conditions vary widely by category. Take portable energy storage: once red-hot, now intensely competitive.
Huabao New Energy reported H1 revenue of RMB 921 million (-29.93%) and turned from profit to loss—its market cap halved from peak levels.
Why? Persistent inflation and rate hikes weakened overseas demand. Inventory clearance took longer than expected—especially in Europe due to war-related disruptions. Competitors like EcoFlow, Bluetti, and Anker ramped up promotions, forcing price wars.
Yet Huabao retains brand strength through Jackery and Geneverse—global names built over years. It plans to expand offline channels and target emerging markets like Southeast Asia and Africa.
This contrast reveals a broader trend: opportunistic growth fueled by traffic arbitrage is fading. Sustainable success requires strategic depth—R&D investment, supply chain control, brand equity.
As full-management platforms like Temu, SHEIN, and TikTok Shop dominate with ultra-low prices via deep supply chain control, traditional traders face shrinking margins.
Only those who evolve—from commoditized sellers into branded innovators—will thrive.
Frequently Asked Questions (FAQ)
Q: What defines a successful cross-border e-commerce brand today?
A: Modern success hinges on vertical integration—controlling design, manufacturing, logistics, and customer experience—combined with strong R&D and digital branding capabilities.
Q: Why are so many big sellers failing despite high revenue?
A: Many relied on platform traffic booms or short-term trends without building real value chains or brand loyalty—making them vulnerable when competition intensifies or consumer demand shifts.
Q: Is the “full-management” model a threat or opportunity?
A: It’s both. While it pressures independent sellers on pricing, it also pushes them to innovate—either by enhancing operational efficiency or pivoting to niche branding strategies.
Q: Which regions show the most potential for new entrants?
A: Emerging markets—including Latin America, Southeast Asia, the Middle East—are seeing rising digital adoption and underserved consumer bases ideal for targeted brand expansion.
Q: Can small players compete with giants?
A: Yes—if they focus on specialization: unique product design, localized marketing, or agile supply chains that large organizations can’t easily replicate.
👉 Explore tools that help brands scale efficiently across borders.