Recently, the news that Shenzhen Fushikang Intelligent Co., Ltd. (hereinafter referred to as "ST Fushi") officially announced the full shutdown of its cross-border e-commerce operations has drawn widespread attention in cross-border circles.

Founded in 1996, this veteran security and IoT company was listed on the New Third Board in 2022 and was once an important player in Amazon's smart camera category. Now, with a calm and restrained announcement, it has drawn a close to its cross-border journey.

Many sellers lamented: "Even listed companies with advantages in capital, R&D, and supply chains could not exit unscathed; the survival environment for ordinary sellers on Amazon is far harsher than imagined."

The Exit of a Veteran Company with Nearly Three Decades of History

ST Fushi's cross-border e-commerce business was not a spur-of-the-moment venture.

In its early years, the company mainly served distributors through the ODM model, and its customers' final sales channels mostly relied on Amazon. In 2018, its AI smart camera products were sold on Amazon in Europe, the United States, Japan, and other markets. The company already had OEM/ODM capabilities and multiple international certifications. On the track of smart hardware going overseas, ST Fushi started earlier than many sellers.

But the turning point came faster than expected.

Fushikang stated in the announcement that due to the global economic downturn, shrinking overseas market demand, fluctuating overseas trade tariff policies, rising overseas channel operating costs, and multiple external force majeure factors, overseas order volumes continued to shrink significantly, the cross-border e-commerce segment suffered long-term losses, and cash flow was under severe pressure.

After comprehensive assessment, the company determined that the existing cross-border e-commerce business no longer had sustainable profitability. To optimize resource allocation and focus on the core cloud services business, the company decided to fully shut down cross-border e-commerce operations, with the timing of any future restart highly uncertain.

The smart security track has long been regarded as a golden track with high average order value and high repurchase rates, but competition is equally fierce. On one side are numerous public-mold and white-label factories in Shenzhen and nearby areas, pricing at near cost and dragging the category into extreme price competition; on the other side are traditional giants such as Hikvision and Dahua, as well as native internet brands like Reolink and Eufy, squeezing from all directions.

Although Fushikang had its own brand and technology reserves, it was stuck in an awkward middle ground: it could not abandon profits to chase traffic like white-label brands, nor could it sustain the brand recognition needed to make consumers pay a premium. In addition, the global economic downturn compressed overseas consumers' purchasing power, frequent tariff policy fluctuations eroded product price advantages, and rising overseas channel operating costs continued to drain the company's cash flow.

More notably, this was not ST Fushi's first retreat. In 2025, the company's annual report received a "disclaimer of opinion" audit report from ShineWing Certified Public Accountants, and the sponsor broker subsequently issued a risk warning. The stock was therefore subject to other risk alerts and given the ST designation.

Before this cross-border e-commerce shutdown, Fushikang's production plant had already ceased operations in June, and the workforce shrank from 96 at the start of the year to 60. As of August 11, the company's total market value was approximately 37.31 million yuan.

From factory shutdown to cross-border e-commerce closure, the contraction path of this veteran company is clear and heavy.

Preserving Cash Flow During an Economic Downturn

Commentators pointed out that from OEM giant to ST warning, ST Fushi's exit is a true microcosm of countless Shenzhen hardware manufacturers. This example of "actively cutting off an arm despite having in-house technology" reflects how, with traffic, warehousing, and compliance costs layered on top of weak demand, even established hardware exporters are reassessing the input-output ratio of online retail.

For a long time, cross-border sellers were keen on chasing the story of "one hit product supporting the whole team" and were willing to endure months of upfront losses. Now, with dual pressure from traffic costs and fulfillment fees, more and more mature sellers are beginning to believe that the first condition for survival is not book profit, but cash flow.

The announcement noted that this shutdown only covers cross-border e-commerce online sales overseas; the company's main businesses, including R&D, domestic market sales, cloud platform operation and maintenance, and customer service, as well as the core management team, are all operating normally.

However, the direct impact of the shutdown cannot be ignored: fully closing cross-border e-commerce operations will directly reduce Fushikang's overseas product sales revenue and have a certain adverse impact on the company's short-term operating revenue and overall financial condition. At the same time, the shutdown will incur one-time disposal expenses such as inventory clearance, termination of overseas warehouse contracts, and termination of channel cooperation, which will drag on the company's operating profit in the short term.

As of the announcement date, the company has decided to stop operating its cross-border e-commerce business, and the timing of resuming this segment is highly uncertain.

For sellers currently operating on Amazon, it may be time to pause and reflect: When platform rules change, is your business model resilient enough? When external costs keep rising, do you still have room to maneuver on margins? When market demand shrinks, can your cash flow sustain you through the cycle? And adjust your operational strategy accordingly.

Going overseas has never been a smooth path. Some choose to exit, some choose to hold on, and some are looking for new directions. Behind every choice is a rational assessment of one's own resources and the external environment.