The property was seized and the Shenzhen seller was caught in a financial whirlpool!

It has been more than a year since the account blocking incident, but the impact has not completely subsided. As one of the parties involved, Youkeshu's parent company Tianze Information has also been greatly affected. Not only are hundreds of millions of yuan in loans overdue, but it is also burdened with multiple lawsuits and has had multiple real estates seized.

Many properties of Youkeshu’s parent company were seized

Recently, Tianze Information, the parent company of Youkeshu, issued an announcement: the company received a "subpoena" and related litigation materials from the Nanjing Intermediate People's Court of Jiangsu Province (hereinafter referred to as the "Nanjing Intermediate Court"). Due to the failure to repay the short-term working capital loan provided by Shanghai Pudong Development Bank to the company on time, Shanghai Pudong Development Bank Nanjing Branch filed a lawsuit with the Nanjing Intermediate Court regarding the following remaining overdue bank loan principal and interest.

In the lawsuit filed by Pufa Bank, it requested that Tianze Information be ordered to immediately repay the loan principal of 2.151573 million yuan and interest, penalty interest, and compound interest of 5.2597 million yuan; and pay its attorney fees of 50,000 yuan.

In response to the lawsuit filed by Pudong Development Bank, the Nanjing Intermediate People's Court has issued a civil ruling and notice, deciding to seal up two properties of the company, namely the real estate located at No. *, Yunlongshan Road, Jianye District, Nanjing , and the real estate located at No. *, West Third Ring Road, High-tech Industrial Development Zone, Zhengzhou .

In fact, this loan started as early as March 2020, when Tianze Information signed a working capital loan contract with Pudong Development Bank Nanjing Branch. Tianze Information borrowed 60 million yuan from Pudong Development Bank for operation, and the repayment deadline was set as March 6, 2021. Tianze Information's subsidiary TIZA Co. , Ltd. will use 1.17 billion yen in its name as a deposit to provide collateral guarantee for this loan.

This loan was also one of the funds used by Tianze Information to acquire Youkeshu. In December 2018, Tianze Information officially acquired Youkeshu. In the acquisition agreement, Tianze Information's acquisition of Youkeshu was calculated as RMB 3.4 billion, and Tianze Information paid RMB 421 million in cash at that time.

In 2019, 99.9991% of Youkeshu's equity had been transferred, but the acquisition funds had not actually arrived at that time. Later, Tianze Information obtained acquisition loans of 210 million yuan each from Minsheng Bank and Shanghai Pudong Development Bank, and signed relevant pledge contracts and guarantee contracts, and completed the registration procedures for the pledge of Youkeshu's pledged equity.

But we also saw the situation last year. Youkeshu was severely affected by the account suspension incident, and the blow to the parent company cannot be ignored, which led to the company's increasingly tight funds for maintaining basic operations. Under such circumstances, Tianze Information failed to repay on time, and the loans from the two banks were also overdue to varying degrees.

Therefore, at the end of June this year , Shanghai Pudong Development Bank handled the foreign exchange settlement procedures for the deposit, but due to the depreciation of the Japanese yen, the deposit could not repay the entire loan principal after the settlement , which led to the scene we mentioned at the beginning. The 89 million overdue acquisition funds and related interests of Minsheng Bank have ended up being auctioned off the Tianze Star Network Building to repay the company's overdue acquisition loans.

It has been more than three years since Tianze Information acquired Youkeshu. Although it is entangled in lawsuits, Youkeshu is about to complete the last step of backdoor listing. A few days ago, Tianze Information said: "In order to more clearly reflect the company's main business structure and corporate development strategy, and highlight the corporate brand of Youkeshu, the listed company intends to change the existing company name." That is, Tianze Information will be renamed Youkeshu.

Although the name has changed, the challenges faced by Youkeshu cannot be underestimated.

Tianze Information's overdue loan principal is nearly 300 million

As of now, Tianze Information is burdened with a lot of debt. As of the first half of this year, Tianze Information has overdue loan principal of 271 million yuan, and is also entangled in multiple lawsuits . Its revenue in the first half of the year was 423 million yuan, a decrease of 64.05% compared with the same period last year; the net profit attributable to shareholders of listed companies was -83.83 million yuan, a significant decrease compared with 948 million yuan in the same period last year. However, the impact of the account blocking wave has not been completely eliminated, and the company has not been able to turn losses into profits.

In fact, affected by cash flow, not only the parent company of Youkeshu and the bank have legal disputes over overdue loans, but disputes over overdue payments between many big sellers and suppliers are also intensifying .

Due to the significant year-on-year decline in the scale of purchases and sales, Shenzhen Dama was unable to make ends meet, resulting in the situation that some purchase orders were no longer executed and the payment of suppliers was overdue. However, this made it difficult for suppliers. Due to their own high inventory, suppliers could not afford the sellers' overdue payments, and they would go bankrupt if they were not careful. In desperation, the suppliers chose to sue Dama.

It is reported that a communications electronics company in Dongguan is a supplier of a large seller in Shenzhen. It believed that the seller had not paid for the goods as agreed, so it sued the seller and its two subsidiaries in the Longhua District Court of Shenzhen. In addition to payment of the goods and liquidated damages, its lawsuit also required the seller to pay the corresponding finished product inventory, raw material inventory, inventory storage fees , etc. The amount involved has exceeded one million.

In the cross-border industry, there have been more than 10 cases of huge loan disputes with suppliers, with the amount of claims exceeding one million in almost every case. The disputes between big sellers and suppliers in the past two years have also made suppliers more stringent in their payment terms to big sellers.

Whether it is a dispute over overdue loans with banks or a dispute over overdue payments with suppliers, this also indirectly reflects a fact: sellers' cash flow problems are more prominent.

In the two years before the pandemic, China's manufacturing industry recovered rapidly, in stark contrast to the slow recovery of overseas supply chains, which gave Chinese companies many opportunities. China's cross-border e-commerce also saw a bonus period from the pandemic, with explosive growth in both home furnishings and home appliances. However, with the recurrence of the pandemic and other unstable factors, many small and medium-sized enterprises have also been caught in waves of turmoil.

Under the general environment, most companies are already having a hard time, but some companies have chosen to reduce prices or even sell at a loss in order to increase sales, which has intensified the already fiercely competitive market and increased operating costs. Some industry insiders also pointed out that for companies, rent costs and personnel expenses need to be solved through cash on the books or profits . The prominent cash flow problem naturally led to an increase in layoffs.

For some sellers, cash flow is the key to their survival in 2022. Making timely adjustments to internal business according to changes in the external cross-border e-commerce environment, maintaining profits, and stabilizing cash flow are the correct ways for sellers to cross the off-season and welcome the peak season.

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