Recently, an announcement from Shenzhen-based cross-border enterprise Fushikang (ST Fushi) drew broad attention in cross-border e-commerce circles. Founded in 1996 and listed on China’s New Third Board, the company announced it would completely shut down its cross-border e-commerce operations.

The veteran security and smart hardware maker started as an ODM manufacturer and, around 2018, sold through both distributor and own-brand models on multiple Amazon marketplaces. However, due to shrinking global demand, tariff policy fluctuations, rising overseas operating costs and other factors, its cash flow remained under sustained pressure, forcing it to hit the pause button.

Financial data shows that in 2025, operating revenue was 38.386 million yuan, down 9.23% year over year, and net profit attributable to the parent was a loss of 12.065 million yuan. Alarmingly, this marks the fifth consecutive year of losses.

Many lament that a once-high-profile Shenzhen top seller, with a brand, products, and supply chain, ultimately fell under sustained losses and cash-flow strain.

This has also made cross-border sellers realize the importance of cash flow. The essence of cross-border business is profitability, not chasing revenue scale. Rather than blind expansion, calculating full-chain costs first and protecting cash flow are the underlying logic for cross-border enterprises to survive and go far.

Cross-border sellers’ capital pressure is hidden throughout the entire business chain. First-leg ocean freight, overseas warehouse storage fees, platform commissions, advertising spend, after-sales return losses, and tariff costs are all rigid expenses. Heavy-goods sellers, such as those in large-item, consumer electronics, and home goods categories, tie up capital even more seriously.

Many sellers appear to be selling well, but in reality they have “profits on the books, no cash in hand.” Once market conditions fluctuate, cash flow can easily breach the safety line.

To stabilize operations, refined cost accounting and efficient capital turnover are both indispensable.

(Source: Cifnews Flash)

SellerHome Review

Fushikang’s five consecutive years of losses and business shutdown serve as a warning to sellers: in cross-border business, no matter how good the revenue looks, solid cash flow matters more. Sellers are advised to promptly review their profit model and decisively cut business lines that have been losing money for a long time.

Source: Cifnews
Original link: https://www.cifnews.com/article/188837