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Shenzhen Fushikang Intelligent Co., Ltd. (ST Fushikang, 873643), listed on China’s National Equities Exchange and Quotations (NEEQ), announced on August 11 that it is fully shutting down its cross-border e-commerce operations. Founded in 1996, the company had long been a key supplier in Amazon’s smart camera category, shipping overseas through OEM and ODM models since 2018. Since Amazon tightened compliance reviews in 2021, core ODM clients were successively banned from the platform. Combined with shrinking global consumer demand and rising operating costs, the cross-border segment had been loss-making for an extended period. The company’s 2025 annual report received a “disclaimer of opinion” from its auditor, triggering ST designation. Its manufacturing plant ceased production in June 2026. As of the announcement date, total market capitalization stood at approximately 37.31 million yuan (approximately $5.5 million). The company stated the shutdown only affects overseas online sales, while R&D, domestic sales, cloud platform operations, and other core functions continue normally. The prospect of resuming cross-border operations remains highly uncertain.
Key Elements
NEEQ-listed Shenzhen Fushikang Intelligent Co., Ltd. (stock abbreviation: ST Fushikang; stock code: 873643) issued a notice on August 11 announcing the complete shutdown of its cross-border e-commerce operations. The Shenzhen-based IoT company, founded in 1996, had long been deeply entrenched in Amazon’s smart camera category. Now, under multiple external shocks, it has chosen to divest its persistently loss-making overseas online business and refocus resources on its core smart cloud services.
According to the announcement, the company’s board of directors concluded after comprehensive assessment that the existing cross-border e-commerce business no longer has the conditions for sustained profitability. To optimize resource allocation and concentrate on the core smart cloud services business, the company decided to fully shut down all cross-border e-commerce operations, explicitly noting that resuming this business in the future carries significant uncertainty.
The announcement also emphasized that the shutdown applies only to overseas online sales through cross-border e-commerce. The company’s R&D system, domestic market sales, cloud platform operations, customer service, and core management team will continue normal operations. The corporate legal entity and existing customer relationships will remain unchanged.
From Core Amazon Supplier to Full Retreat
ST Fushikang’s predecessor was founded in 1996, specializing in smart cloud cameras, smart home hardware, and supporting IoT cloud services. It officially listed on the NEEQ in January 2022. As early as 2018, the company was supplying overseas distributors through OEM and ODM models, while its own-brand smart cameras were simultaneously listed on Amazon’s US, European, and Japanese marketplaces. With multiple international export certifications, it was once a core supplier in Amazon’s security camera category.
To reduce dependence on distribution channels, the company proactively adjusted its operating model in the second half of 2023, opening branded self-operated stores on overseas e-commerce platforms in an attempt to reach end consumers directly. However, this pivot failed to reverse losses. Overseas order volumes continued to shrink sharply, and the cross-border segment’s cash burn remained unaddressed.
A Business Predicament Under Compounding Pressures
The decision to shut down cross-border operations stems from the long-term accumulation of multiple adverse factors.
Since 2021, Amazon has comprehensively tightened compliance reviews for platform sellers. Several core ODM distribution clients working with ST Fushikang were successively hit with store bans, and some channel partners exited the camera category entirely. Because the company’s overseas shipments were heavily tied to Amazon channels, the mass loss of downstream customers directly triggered a cliff-like drop in orders.
Meanwhile, the global economic downturn led to persistently shrinking overseas end-consumer demand. Coupled with frequent changes in tariff policies across countries, comprehensive operating costs—including international logistics, overseas warehousing, platform commissions, and overseas after-sales service—rose year after year, continuously squeezing hardware profit margins. The cross-border segment remained loss-making for an extended period, keeping corporate cash flow under sustained pressure.
The deterioration of the company’s operating condition had already sent clear signals in capital markets and at the audit level. The company’s 2025 annual report received a “disclaimer of opinion” from its accounting firm, triggering other risk warnings and the ST designation. In June 2026, the company’s manufacturing plant ceased production. As of August 11, the announcement date, total market capitalization stood at only approximately 37.31 million yuan (approximately $5.5 million).
| Timeline | Key Event |
|---|---|
| 1996 | Company predecessor founded, focusing on smart cameras and IoT |
| 2018 | Entered Amazon’s US, European, and Japanese marketplaces via OEM/ODM |
| From 2021 | Amazon tightened compliance reviews; core ODM clients successively banned |
| January 2022 | Officially listed on the NEEQ |
| H2 2023 | Pivoted to self-operated stores, but failed to improve losses |
| FY2025 | Annual report received “disclaimer of opinion”; stock designated ST |
| June 2026 | Manufacturing plant ceased production |
| August 11, 2026 | Announced full shutdown of cross-border e-commerce operations |
Note: Timeline compiled from public announcements and publicly available information.
A Microcosm of Deep Industry Consolidation
ST Fushikang’s retreat is not an isolated case but a microcosm of the deep consolidation sweeping the cross-border e-commerce industry. If a listed company with mature supply chains and R&D credentials struggles to withstand multiple external shocks, the survival pressure facing small and medium-sized overseas sellers is even more severe.
For cross-border operators still in transition, how to adjust business models, build diversified revenue channels, and reduce dependence on a single platform is becoming the core question determining whether companies can weather the cycle. ST Fushikang’s case demonstrates that amid shifting platform rules and global trade uncertainty, business models relying solely on overseas online channels are facing unprecedented tests.
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