Another company under the top seller goes bankrupt!

Nowadays , the market is still cold, the global consumer market is in a precarious situation, and the once-hot fire of the cross-border e-commerce industry has gradually died down. I wonder how many sellers still remember the cross-border big brother who once stood at the top of the tower and was invincible - Cross-border Link. Since 2020, it has been hit by a series of setbacks, its performance has been damaged, its subsidiaries have been sold or bankrupted, and many independent sites have been closed one after another .

Nearly a year later, another company under Cross-Border Link declared bankruptcy and liquidation ...

Nearly a year after its parent company went bankrupt, Hong Kong Universal was also forced to liquidate

Recently, Cross-border Tongbao E-commerce Co., Ltd. (hereinafter referred to as " Cross-border Tong " ) 's wholly-owned subsidiary , Hong Kong Shenzhen Global E-commerce Co., Ltd. (hereinafter referred to as " Hong Kong Global " ) , announced that it will enter bankruptcy liquidation procedures.

Hong Kong Global is a wholly- owned subsidiary of Shenzhen Global E-Commerce Co., Ltd. (hereinafter referred to as "Shenzhen Global" ) , and Shenzhen Global is a wholly-owned subsidiary of Cross-Border Link . According to its announcement on September 29, Hong Kong Global has now entered into compulsory liquidation procedures and has appointed a provisional liquidator.

As for Hong Kong Global, cross-border sellers must have heard various news about this company and even its parent company.

In 2011, Hong Kong Global emerged when its parent company Shenzhen Global's performance was booming. Since then, it has followed the footsteps of its parent company Shenzhen Global and Cross-Border Link to conquer overseas markets and became the talk of the town.

Take its parent company Shenzhen Global as an example. Since its establishment in 2007 and its acquisition by the listed company Baiyuan Pants Industry (the predecessor of Cross-border Link) for RMB 1.03 billion in 2014 , it has embarked on a path of rapid development.

As the first generation of cross-border e-commerce integrators , the first cross-border e-commerce company in the industry to successfully complete a bet to achieve capital operation , and the earliest large-scale cross-border e-commerce company in China to form a complete ecosystem , Shenzhen Global has been a benchmark in the cross-border capital circle for a long time and is the envy of everyone in the cross-border industry.

Since the establishment of the company, Shenzhen Global has achieved full coverage of high, medium and low-end products, retail, small wholesale and bulk wholesale through the construction of multiple independent stations in the clothing and electronics categories. The wide market coverage shows the solid foundation of its development strength .

However, such a strong company went bankrupt in December 2021. At this point, the era of a king came to an end, and its parent company, Cross-Border Link, once the " strongest stock in cross-border e-commerce " , fell.

Now, 10 months after Shenzhen Global went bankrupt, its subsidiary Hong Kong Global has also announced that it will be forced into liquidation.

According to the information from Qichacha, since its establishment, Hong Kong Global has 428 pieces of information related to legal proceedings, including 112 cases. In addition, in the "operating risks" column, there are 27 pieces of information on debts and liabilities, 19 contract breaches, and 2 pieces of cooperation risks . It can be seen that this company has a very high frequency of bankruptcy.

In the face of turmoil both at home and abroad, can Cross-Border Link fight again?

Just one day before Hong Kong Global announced that it would be forcibly liquidated, Cross-Border Link issued an announcement stating that, subject to the approval of the Shenzhen Stock Exchange , the company's stock trading delisting risk warning and other risk warnings and suspension of trading have been revoked.

After more than a year, Cross-Border Link finally successfully removed the delisting risk.

On April 30 last year , Cross-border Communication issued an announcement stating that it would suspend trading for one day on May 6, 2021, and resume trading at the opening of the market on May 7, 2021. However , its stocks will be subject to special treatment of " delisting risk warning " and " other risk warnings " from May 7 , and the stock abbreviation will be changed from " Cross-border Communication " to " *ST Cross-border ".

In April of the same year , Cross-Border Link also issued a loss announcement, stating that due to the unsalable products of a large number of categories deployed by Shenzhen Global in 2020 , the continuous increase in logistics and warehousing costs, the shortage of operating capital, and the promotion, clearance and scrapping of defective products, as well as high severance costs for layoffs and other management business losses, Shenzhen Global's performance in 2020 declined sharply , which led to the company's losses.

To this end, Cross-Border Link attempts to revitalize its market by focusing on core businesses , optimizing product structure and SKU quantity , improving internal control system construction , combining the competitive advantages of various product markets , and expanding sales channels .

However, only two months after the announcement, Shenzhen Global was applied to the Shenzhen Intermediate Court for bankruptcy liquidation by its creditor, Industrial and Commercial Bank of China, Shenzhen Nanshan Branch, on the grounds that it could not repay its due debts and obviously lacked the ability to repay . Subsequently , it was officially declared bankrupt at the end of the year, and one of the sharpest "swords" under Cross-border Communication was broken.

Through the financial report of Cross-Border Link in the first half of this year, we can see that its current assets total 3.845 billion yuan and its liabilities total 2.383 billion yuan. In the first half of the year, Cross-Border Link's cross-border export e-commerce business revenue relying on Sateng, Alphabet and Baiyuan was 248 million yuan, a year-on-year decrease of 39.69%.

Among them, self-operated websites (including mobile terminals) achieved operating income of 133 million yuan, compared with 546 million yuan in the same period last year, a year-on-year decrease of 75.64%; third-party platforms achieved operating income of 110 million yuan, compared with 1.831 billion yuan in the same period last year, a year-on-year decrease of 94.01%.

The financial report shows the negative side of its performance vividly. From this point of view, if this cross-border big brother wants to return to the top, it is likely to face many difficulties. Moreover, affected by the economic downturn, the global consumer market is extremely pessimistic.

Consumer confidence in Europe and the United States is declining month by month, and the market is difficult to move

Recently, WTO Director-General Ngozi Okonjo-Iweala said that due to the impact of multiple crises, current global trade indicators are performing poorly and the global economy is entering a recession .

In April this year , the WTO lowered its forecast for global trade growth in 2022 from 4.7% to 3%, and it is expected that this forecast will be lowered again by October .

The World Bank said that due to the radical austerity policies implemented by many countries, the global economy may fall into recession in 2023 .

The " Trade and Development Report 2022" released by the United Nations Conference on Trade and Development pointed out that the world economy is expected to grow by only 2.5% in 2022 and will slow down to 2.2 % in 2023 .

In addition, investment research firm Ned Davis Research also predicts that the probability of the world entering a recession is 98.1%.

Taking Europe as an example, nearly 90% of economists now expect European growth to be very weak in 2023 due to low consumer confidence and pessimistic market performance.

Data from market research firm GfK showed that Germany's consumer confidence index fell to -36.8 in September and is expected to drop further to -42.5 in October . Consumer confidence has plummeted as Germans' income expectation index is at its lowest level since 1991 .

The Gfk data also showed that the UK consumer confidence index fell to -49 in September , the lowest since 1974.

Gfk said that consumer confidence in developed European countries such as Britain and Germany will continue to decline in the coming months.

Although the Conference Board's consumer confidence index rose to 108 in September , a five-month high, economists said that this growth is only short-term , and as long as inflation continues , the risk of recession still exists , and the consumer financial crisis is not resolved, consumer confidence will fall again.

Many economic forecasting models indicate that this global economic crisis will last for a long time, and the continued interest rate hikes by central banks of various countries will cause more serious economic damage than the 2008 international financial crisis and the 2020 COVID-19 pandemic.

The global consumer winter signal is still being sent, and there is still no sign of market recovery ...

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