The road to a comeback is long! Youkeshu owed 400 million yuan and lost 300 million yuan

A tree that once stood on the top of a mountain is now mocked as a "sick tree" and a "dead tree". This former one of the "Four Young Masters of South China City" now owes a huge loan to the bank and is facing years of losses.

Owing nearly 400 million to the bank, Youkeshu is in deep cash flow crisis due to huge losses

Yesterday, Youkeshu released its 2022 annual report.

The annual report shows that Youkeshu's revenue in 2022 was 774 million yuan, a decrease of 56.11% from 2021 , and the net profit attributable to shareholders of the listed company was -366 million yuan , which means that Youkeshu is still losing money.

Among the reasons for its losses, Yien.com noted that as of the end of 2022, Youkeshu still had 307 million yuan in bank loan principal to be repaid, while accrued interest, penalty interest, etc. reached 24.8404 million yuan .

But in fact, as of April 26, Youkeshu’s bank loans (including guarantees) had reached 374 million yuan .

Youkeshu frankly stated that although the loss of the company's main cross-border e-commerce business narrowed year-on-year last year, it was still in an operating loss state. In addition, the large amount of frozen funds on Amazon had not been successfully unfrozen, resulting in a certain risk of cash flow shortage for the company.

In May 2019, Youkeshu (then known as "Tianze Information") signed a "M&A Loan Contract" with the Nanjing Branch of Shanghai Pudong Development Bank , borrowing 210 million yuan to pay the shareholder price for a period of three years . However, just one month before the repayment deadline ( April 2022), Shanghai Pudong Development Bank sued Youkeshu for failing to repay part of the principal on time. It is reported that Youkeshu was originally scheduled to repay 31.5 million yuan in principal in May 2021 .

In March 2020, Youkeshu borrowed another 60 million yuan from Shanghai Pudong Development Bank Nanjing Branch for a period of one year. However, after experiencing the wave of account closures, it was severely damaged and failed to repay the loan on time. After deducting the original deposit, until July 2022, Youkeshu still owed the bank a principal of 2.15 million yuan and interest, penalty interest, and compound interest of 5.26 million yuan . Therefore, Shanghai Pudong Development Bank once again went to court.

Unsurprisingly, the court ruled that Youkeshu must pay the principal of 185 million yuan and the corresponding interest, penalty interest, and compound interest of more than one million yuan to Pudong Development Bank within ten days of the date when the judgment came into effect . Although the second lawsuit has not yet been decided, Youkeshu cannot evade the debt.

In addition to these two loans, Youkeshu’s cash flow is also stuck in other problems.

For example, when the loan of the former subsidiary Yuanjiang Information was overdue, Youkeshu, as the guarantor, also assumed joint and several liability for repayment ; when the merger and acquisition loan with Minsheng Bank was overdue , the company's property Tianzexingwang Building was auctioned for the remaining loan principal of 89 million yuan and interest .

At present, Pudong Development Bank and China Minsheng Bank have transferred their claims against Youkeshu (including secured claims) to Jiangsu Huarong .

In addition, the impact of the account blocking wave is still there.

Last year, Youkeshu’s book balance on Amazon was about 104 million yuan, but its bad debt provision reached 103 million yuan, accounting for 99.20%. Most of the funds were frozen due to the wave of account bans, and there was no sign of unfreezing them.

It's not just Amazon. Walmart is also facing the dilemma of frozen funds. The book balance is 22.51 million, but the bad debt provision is 21.29 million, accounting for as high as 94.57%.

The cash flow of Youkeshu is in danger!

The company was suspended due to a continuous decline in revenue, and Youkeshu is trying its best to save itself

The macroeconomic growth rate has slowed down, the overseas core consumer market has suffered setbacks, and the competition in the cross-border e-commerce industry has intensified ... I believe all sellers have a deep understanding of how difficult cross-border e-commerce was last year. Youkeshu, which is trying its best to treat the "aftermath of account suspension", has even more grievances.

In order to cope with the market difficulties, Youkeshu reduced its business scale and changed its previous "crazy" business strategy. As a result, its core cross-border e-commerce business revenue fell 60.11% year-on-year last year .

Last year, Youkeshu’s online channel revenue was 625 million yuan, accounting for 98.79% of its cross-border e-commerce business revenue.

Among them, its sales on Amazon were 201 million yuan, down 61.28% from 2021; its sales on AliExpress were 182 million yuan, down 42.66% from 2021; its sales on other third-party platforms were 241 million yuan, down 65.31% from 2021.

Offline revenue also declined, reaching only 7.6957 million yuan, a decrease of 85.36% from 2021.

Youkeshu's revenue decline continues. In the first quarter of this year, its revenue was 120 million yuan, a year-on-year decrease of 47.56%; the net profit attributable to shareholders of the listed company was -21.1218 million yuan , and it has not yet turned losses into profits .

At the same time, it may also face a serious inventory backlog problem. In 2022, Youkeshu's cross-border e-commerce business had a cumulative purchase of only 473 million yuan, and in 2021 it reached 1.36 billion yuan . The gap in the middle is not just a "business scale contraction" that can be covered.

Under these unfavorable conditions, Youkeshu was issued a stock risk warning by the Shenzhen Stock Exchange.

Since the net profit before and after deducting non-recurring gains and losses in the last three fiscal years was negative, and the audit report for the most recent year showed that the company's ability to continue operations was uncertain , Youkeshu was issued a stock trading other risk warning by the Shenzhen Stock Exchange. Starting from the opening of the market on April 26, 2023 , Youkeshu's stock was suspended for one day, and on April 27 , it resumed trading and was issued a other risk warning . The company's stock name was changed from " Youkeshu " to "ST Youkeshu " .

Although it has suffered losses for three consecutive years, Youkeshu did not give up and actively tried to save itself.

As a large-scale distribution-type seller, Youkeshu is still insisting on pan-category operations, but the SKUs it sold in 2022 were only 190,500, and its SKUs were 350,000 in 2021. This may be related to its reduction in business scale and refinement of operations.

Although the total number of orders last year was only 9.9515 million, a decrease from 21.9694 million in 2021, the pain of the transformation period must be endured.

At the R&D level , Youkeshu 's R&D expenses in 2022 were 11.0033 million yuan, a year-on-year decrease of 51.95%, and the number of R&D personnel decreased from 121 in 2021 to 68. On the one hand, this may be related to the contraction of its software service business; on the other hand, compared with the development of new products, in a market full of uncertainty, Youkeshu trusts old products with high sales more.

In terms of team size, Youkeshu’s employee headcount decreased last year, resulting in a 40.66% year-on-year drop in its management expenses .

It can be seen that Youkeshu has optimized costs at all levels.

At the same time, in order to strengthen and refine its core business of cross-border e-commerce, Youkeshu recently transferred its 58% stake in Jiangsu Tianze Zhilian Information Technology Co., Ltd. to Xuzhou Geyuan Investment Management Co., Ltd.

Deeply hurt by the Amazon account ban, Youkeshu is now more eager to develop a multi-platform and multi-market strategy. At present, it has not only cultivated Europe, America, and Southeast Asia, but also opened a small number of stores in the Middle East market and has also settled in platforms such as Temu.

Looking ahead to 2023 , Youkeshu stated that this year it will continue to concentrate resources to fully focus on the development of cross-border e-commerce business , actively expand existing brands and categories with the help of industry development trends, strive to develop high-quality private brands, and enhance the company's market competitiveness and influence.

There is a tree

Loss

Debt