The Profitability Evaluation Of Chinese Cross-border E-commerce Public Enterprises

Since 2013,the state council has successively issued relevant policies on cross-border e-commerce.Under the dual effects of policy dividend and Internet,cross-border e-commerce has developed rapidly,with 38 companies listed in China,such as kjt.com,Aukey,bestek.com and Invogue.A general survey of domestic researches on cross-border e-commerce shows that most of them focus on the mode of cross-border ecommerce and seldom involve the analysis of profitability.Measuring profitability can explain the intrinsic value of an enterprise,which is very important for the healthy development of cross-border e-commerce industry,and also has practical significance for improving enterprises' operating conditions and efficiency.Therefore,this paper conducts a descriptive analysis on the current situation,policy environment,corporate profit model and profitability of China's cross-border e-commerce industry through literature review,data collection and collation,and academic or research reports.Ten indicators of the four major sectors,including business profitability,cost control,profit management and cash acquisition,are selected to build the profitability evaluation model.Based on the data of 2017,factor analysis method was used to analyze the profitability evaluation index of China's cross-border e-commerce listed enterprises,and three common factors were extracted and explained.The three common factors are related to core business(43.87%),profit management(23.84%)and profit sustainability(14.54%)respectively.It explains profitability with industry characteristics,which mainly comes from the main business,payback periods,marketing expenditure.On the whole,the profitability of listed cross-border e-commerce enterprises in China still has great room for improvement,and the comprehensive score of profitability is mostly between 0 and 0.1.The profitability evaluation of cross-border e-commerce NEEQ public enterprises has big variance.The profitability of Ashare public cross-border e-commerce enterprises is better than that of NEEQ enterprises,ranking in the top middle part,with little internal difference.A-share and neeq cross-border e-commerce listed enterprises have different degrees of profitability shortfalls.A-share enterprises are particularly weak in profit management,and are not outstanding in core business.The performance of neeq enterprises in terms of core business ability and profit management ability is not optimistic,both of which have negative mean value and large standard deviation.By analyzing China Coal Solution(the first place of A-share)and Aukey(the first place of NEEQ),it is known that e-commerce enterprises with their own brand advantages,business strategies closely following policies,industry competition barriers,and emphasis on supply chain management have also performed well in terms of profitability.