Is it going to be a failure? All the properties of Shenzhen Dama were seized...

Will Global Easy Shopping eventually be unable to escape the fate of bankruptcy ?

The latest news shows that Global Easybuy, a wholly-owned subsidiary of Cross-border Communication, has been ruled to be liquidated. The Taiyuan Intermediate People's Court issued a "Civil Ruling" and ordered the seizure of all the assets of Shenzhen Global. The end of the cross-border giant is thought-provoking!

Global Easy Shopping was ordered by the court to accept bankruptcy liquidation, Shenzhen Stock Exchange asked 5 questions about Cross-border Communication

Recently, Cross-Border Link released an announcement that its wholly-owned subsidiary Global Easybuy was ordered by the court to undergo bankruptcy liquidation.

The announcement shows that on November 24, Shenzhen Zhongan Xunshi Technology Co., Ltd. applied to the Taiyuan Intermediate People's Court of Shanxi Province for bankruptcy liquidation of Shenzhen Global Easybuy on the grounds that it could not repay its due debts and obviously lacked the ability to repay. In the end, the Taiyuan Intermediate People's Court ruled to accept the bankruptcy liquidation application filed by the applicant Zhongan Video against the respondent Shenzhen Global.

Prior to this, Shenzhen Global and Zhongan Xunshi were issued a civil mediation document by the Nanshan District People's Court of Shenzhen City, Guangdong Province due to a sales contract dispute. However, Global Easybuy failed to fulfill its obligations under the civil mediation document, so Zhongan Xunshi applied to the Nanshan District People's Court of Shenzhen City for compulsory execution. It is reported that as of the date of the announcement, Global Easybuy has not repaid the loan, and the outstanding loan amount is about 2.6 million yuan.

Subsequently, the Taiyuan Intermediate Court issued a "Civil Ruling" and ordered the seizure of all the properties of Shenzhen Global. At the same time, the Taiyuan Intermediate Court notified Global Easy Shopping in a notice on November 30, requiring Global Easy Shopping to "submit to the court within 15 days of receipt of this notice a statement of property status, a list of debts, a list of claims, relevant financial and accounting reports, and the payment of employee wages and social insurance premiums."

On December 3, the Shenzhen Stock Exchange issued an inquiry letter, requiring Cross-border Link to provide the following explanations on the bankruptcy of its subsidiary Global Easybuy:

1. Whether the loss of control over Shenzhen Global by Cross-Border Link and its no longer being included in the scope of the merger will have a substantial impact on the elimination of matters on which the company cannot express an opinion in its annual report.

2. Cross-border E-Commerce needs to verify and provide additional explanations for the reasons why it failed to fulfill its information disclosure obligations in a timely manner regarding the "bankruptcy liquidation application for its subsidiary Global Easy Shopping".

3. Cross-border Communication must fully disclose the relevant risks and explain the substantive improvement measures and internal control rectification progress taken for the matters on which it is unable to express an opinion , and ask the independent directors to verify and express their opinions.

4. Cross-border Communication must disclose the insiders who are aware of the bankruptcy liquidation application for Shenzhen Global, and conduct self-inspections to determine whether the company's directors, supervisors, senior management, shareholders holding more than 5% of the shares, and relevant insiders have bought or sold the company's shares within one month before the announcement .

5. Cross-border Communication must conduct a self-examination to determine whether there are other major events that should be disclosed but have not been disclosed or are in the process of being planned. If so, the relevant specific circumstances should be explained .

In its inquiry letter, the Shenzhen Stock Exchange requested Cross-Border Link Company to make a written explanation on the above issues, and submit the relevant materials to the exchange and disclose them to the public before December 10, 2021, and copy them to the dispatching agency.

At the same time, the Shenzhen Stock Exchange also requires members of the Cross-Border Link Company to comply with relevant laws and regulations and fulfill their information disclosure obligations truthfully, accurately, completely, promptly and fairly.

Cross-border e-commerce responds to delisting claims

After experiencing such a series of turmoil, some investors and relevant parties may ask whether Cross-Border Link will be forced to delist?

In response, Cross-Border Link stated that if the company encounters one of the six circumstances stipulated in Article 14.3.11 of the "Shenzhen Stock Exchange Listing Rules (Revised in 2020)" in 2021, the company's shares will be at risk of delisting.

However, it also mentioned that since the change in actual control of the company, the company has been actively adding board members, strengthening management team building, optimizing the company's asset structure, improving corporate governance, strengthening internal control and financial management, integrating existing assets and businesses, and stabilizing the company's operations and management to eliminate the company's historical problems to the greatest extent possible.

Under the double shock waves of the epidemic and Amazon, companies are facing numerous difficulties and generally do not choose to put all their eggs in one basket.

Recently, the editor saw from the Enterprise Insight APP that Alphabet Brand Management (Shenzhen) Co., Ltd. was established on December 2 with a registered capital of RMB 3 million and its legal representative is Pei Hailiang.

Upon inspection, it was found that in addition to engaging in general business management consulting, information consulting, marketing planning, brand management and trade agency, the company can also independently engage in import and export of goods, import and export of technology, import and export agency and Internet information services in accordance with the law with its business license.

Judging from the equity penetration data of Enterprise Insight, it is not difficult to find that the company is a wholly-owned subsidiary of Cross-Border Link, which is another measure for Cross-Border Link to avoid risks and reduce losses.

Global Easy Shopping is caught in a negative storm

There have been many negative rumors about Global Easybuy this year. As early as mid-January, Global Easybuy was unable to repay the money due to poor management, and suppliers came to collect debts. After many unsuccessful debt collections, several suppliers who were forced to do so collectively attempted to jump off the building in front of Qianhai No. 1 Building A, and some suppliers had physical conflicts with Global Easybuy security guards. Due to the seriousness of the situation, the local police station was alerted.

At the end of August, Global Easy Shopping was exposed for owing wages and starting to lay off employees on a large scale. According to a notice released by Global Easy Shopping, due to the company's operating difficulties, 151 employees will be on leave starting from August 24, and the time of returning to work will be determined depending on the company's operating conditions.

Global Easy Shopping has also been applied for bankruptcy liquidation by creditors several times this year. Earlier, the creditor Industrial and Commercial Bank of China Shenzhen Nanshan Branch applied to the Shenzhen Intermediate People's Court for bankruptcy liquidation of Shenzhen Global on the grounds that Shenzhen Global could not repay its due debts and obviously lacked repayment ability.

Public data shows that as of September 30, 2021, Shenzhen Global had total assets of 172,729.06 million yuan, total liabilities of 335,790.15 million yuan, net assets of -163,061.09 million yuan, operating income of 33,525.17 million yuan from January to September 2021, total profit of -21,052.02 million yuan, and net profit of -21,031.69 million yuan. (Not audited by an accounting firm)

In September, the Shenzhen Intermediate People's Court ruled not to accept the bankruptcy liquidation application filed by the Nanshan Branch of the Industrial and Commercial Bank of China against Shenzhen Global due to insufficient relevant evidence. Now, with the ruling of the Taiyuan Intermediate People's Court, the fate of Global Easybuy has also surfaced.

"I watched him build a tall building, I watched him entertain guests, and I watched his building collapse," said an industry insider. Although Cross-Border Link has not yet been delisted, in his opinion it will be difficult for Cross-Border Link to make a comeback . It is really sad that the once glorious cross-border leader has come to such an end.

In fact, many cross-border sellers have had a hard time this year. In the blink of an eye, 2021 is already the end of the year. Looking back on the journey of cross-border sellers in 2021, it can be said that they are like a lone boat in the wind and rain, and they will be completely knocked down if they are not careful. Perhaps, for cross-border sellers, being able to go smoothly to the end of this year is a different kind of victory.

Looking back at the middle of the year, Amazon’s account suspension wave caught many sellers off guard. Whether they were small and medium-sized sellers or big sellers with unlimited glory, they were inevitably caught in this vortex. Some sellers are still struggling to find a way out, while some sellers have already left the market ...

However, in the turbulent cross-border e-commerce industry, sellers such as Global Easybuy have been trapped in business difficulties, while new sellers have broken through and reborn. How the cross-border e-commerce industry will change in the future remains to be seen.

Bankruptcy

Global Shopping

Cross-border communication

Big Sell