The chill is chilling! The big seller was forced to suspend trading

Today, the Federal Reserve announced another violent 75 basis point rate hike , the fifth time this year, the largest intensive rate hike since 1981. Federal Reserve Chairman Powell said that although the supply chain has improved to a certain extent, consumer inflation remains high.

At this time of weak consumption, the peak sales season in Europe and the United States in previous years failed to arrive as expected, making life even more difficult for cross-border sellers.

The company was forced to suspend trading due to failure to disclose financial reports

Recently, Wuxi ZeShang Technology Co., Ltd. issued an announcement stating that due to its failure to disclose the 2022 semi-annual report before August 31, 2022, in accordance with the "National Small and Medium Enterprise Equity Transfer System Business Rules ( Trial ) " and other relevant regulations, the company's stock will be suspended from September 1, 2022.

According to Article 17 of Chapter 3 of the "Implementation Rules for the Termination of Listing of Stocks of Companies Listed on the National Equities Exchange and Quotations" ( Stock Transfer System Announcement [ 2021] No. 1021 ) , if a listed company " fails to disclose its annual report or interim report within the statutory period, and has not disclosed or corrected it within two months from the expiration of the statutory period " , the National Equities Exchange and Quotations will terminate the listing of its stocks .

That is to say, if ZeShang Technology fails to disclose the "2022 Semi-annual Report" before October 31, 2022, its shares will face the risk of being delisted.

"Termination of listing" can be understood by sellers as delisting. Generally speaking, stocks listed on the New Third Board are called "listing", and termination of listing means that stocks on the New Third Board are withdrawn from the New Third Board trading market. There are generally two situations for termination of listing: one is because it meets the requirements for transfer to another board, or it is withdrawn from the New Third Board and no longer traded.

Wuxi ZeShang Technology Co., Ltd. was established in 2009 and listed in 2015. Its main businesses are traditional clothing trade export business and cross-border export e-commerce retail business.

As a cross-border e-commerce company that integrates fast fashion products "Made in China", ZeShang sells more than ten fashion categories such as clothing, accessories, shoes and hats, luggage, etc. to the world through its independent website and multiple online channels such as AliExpress, Amazon, and Wish. It has a wide range of sales and a huge market scale.

Regarding the suspension of Zeshang, although it responded that the company's annual report preparation work has not been completed, resulting in the inability to disclose it on schedule, there are many speculations in the industry. After all, the global market has been cold this year and has even intensified. In order to maintain its foundation, layoffs and store closures have become the norm for many big sellers.

Performance declined, Zeshangsan reported losses

As an integrated industrial and trade enterprise with 16 years of experience in clothing brand design and processing, ZeShang Technology has always maintained a steady growth pace. Adhering to the concept of being a fast fashion brand, it has been trying to become a strong competitor of SHEIN.

However, due to the impact on market adaptability after the transformation, ZeShang has started reporting losses since last year.

Under the influence of factors such as the contraction of independent station business, changes in the policy environment of the Amazon platform, fierce competition in the European and American markets , and the global market winter , ZeShang 's cross-border e-commerce operating performance has declined sharply since last year, from 297 million yuan to 63.91 million yuan.

From April last year to the present, ZeShang has issued three " Announcements on the Company's Unrecovered Losses Reaching One-Third of the Total Paid-in Capital ".

The announcements all stated that due to the epidemic, cross-border logistics costs have increased significantly .

At the same time, competition in the cross-border e-commerce industry intensified, and policies on advertising and sales platforms were tightened . The company closed all independent site businesses except Choies and focused on third-party platform business mainly based on Amazon . However, it never expected that since the change in sales model, the policies of various platforms have become increasingly stringent , resulting in a serious decline in sales and an accelerated decline in operating income and profits.

Based on this, ZeShang stated that it will launch a series of measures to turn losses into profits , including: 1. Optimizing internal management, strictly controlling quality control at all links, and improving the turnover rate of funds and inventory ; 2. Integrating advantageous resources, shrinking business lines, and continuously promoting platform business transformation ; 3. Reducing costs and increasing efficiency, cutting unnecessary management cost expenditures, optimizing personnel structure and organizational structure, and improving unit labor efficiency.

In the past year, ZeShang has issued three loss announcements. It can be seen that as the industry environment has tightened , its measures to shrink independent station business and integrate business lines have not achieved much results, and the industry's chill has hit the core of its business .

The cold weather is getting worse, and the "spring" for sellers is still a long way off

It is still unknown whether the company has not disclosed its financial report as scheduled due to lack of time or poor performance. However, the cross-border industry is indeed facing a cold snap this year.

Since last year, affected by the wave of account bans, big sellers including Youkeshu have suffered losses one after another, and Zeshang is no exception.

Since the beginning of this year, inflation has intensified and consumer purchasing desire has fallen to the bottom. According to incomplete data, in China, in just three months, about 1,000 cross-border companies have closed down, and many cross-border supply factories have gone bankrupt , which shows that the current situation of cross-border is tragic.

Some sellers said that they thought the order volume would pick up after the peak sales season in Europe and the United States started in September, but the reality is that compared with August, the overall order volume has dropped by nearly 30% , and the order level is extremely unstable.

Some Amazon sellers told Ennet that their product rankings moved up despite a decrease in sales.

When asked about sales so far this year, most sellers responded with one question: What do you think?

As the epidemic continues to break out, cross-border e-commerce has become popular. Although many places have announced the unlocking of the market this year, with the change of consumption habits, e-commerce should have continued to develop rapidly. However, the conflict between Russia and Ukraine, the supply crisis and the increase in inflation have led to the global economy falling into a downturn , and insufficient consumption has generally become the current market situation around the world .

According to trade data from the General Administration of Customs, China's export growth to the United States turned sharply negative in August, the first negative growth since May 2020, which was the main drag on export growth . The growth rate of exports to Europe, ASEAN and Japan also declined, but exports to ASEAN still maintained high growth.

Currently, powerful economies such as the United States, Britain, Germany, and Japan are mired in the quagmire of high inflation.

Through the financial reports of several cross-border bestsellers in the first half of this year, we can also see that the current consumer market is not satisfactory.

According to the financial report of Santai Co., Ltd. , its operating income in the first half of this year was 817 million yuan , a year-on-year decrease of 33.53%, and its net profit attributable to shareholders was 70.2834 million yuan, a year-on-year decrease of 28.56% . Its commodity sales business decreased by 26.79% year-on-year.

Zhiou’s financial report also estimated that its operating income in the first half of 2022 will be 2.8 billion yuan, a decrease of 12.22% compared with the same period last year ; the net profit attributable to the parent company’s owners will be 110 million yuan, a decrease of 21.4 % compared with the same period last year .

Suntech expects its operating income in the first half of 2022 to be between 2.2 billion and 2.38 billion yuan, a year-on-year decrease of up to 22.84%. Its net profit is expected to be between 110 million and 144 million yuan, a year-on-year decrease of up to 55% . Both revenue and net profit have declined.

Not only that, this year many leading cross-border sellers have reduced their scale or even gone bankrupt, and many well-known downstream cross-border suppliers such as Cooper Electronics have also announced their closure.

The cold air has hit directly, and retail giants such as Amazon and Walmart have also successively laid off employees, closed warehouse construction, and shut down stores. It can be seen that in this difficult time, everyone is "cutting off their arms" to survive.

The cold winter is still going on, and economists have said that measures to curb inflation will inevitably lead to a global economic recession in the future. So can sellers still wait until "spring"?

Big Sell

Suspension