The total amount of litigation involved is nearly 500 million, involving 66 lawsuits, and the listing is a big hit and it is in big trouble again

Hot sales after listing continue to collapse!

From selling Paton, to being collectively demanded by suppliers, to being filed for bankruptcy reorganization, the listed seller Cross-border Communication has provided a lot of gossip for the public in recent times. At present, the issue of Global Easybuy's arrears of payment to suppliers is still fermenting, and according to the latest announcement of Cross-border Communication, Cross-border Communication is also facing a major lawsuit ...

The amount involved in the lawsuit is nearly 500 million yuan, and 66 cases are involved

Yesterday ( August 4) afternoon, *ST Cross-border issued the "Major Litigation and Arbitration Announcement".

The announcement shows that Cross-border Tongbao E-commerce Co., Ltd. (hereinafter referred to as "Cross-border Tongbao") has added two major litigation and arbitration cases:

Case 1: In June 2021, the Zhaoqing Branch of China Construction Bank Corporation took Zhaoqing Global, Cross-border Tongbao, Shenzhen Global, Hong Kong Global and others to court due to financial loan contract disputes, with the amount involved reaching 368 million yuan.

Case 2: In July 2021, China National Nuclear Huatai Construction Co., Ltd. sued Zhaoqing Global due to a construction project dispute, with the amount involved in the lawsuit reaching 41.92 million yuan.

It is worth noting that the Zhaoqing Branch of China Construction Bank Corporation proposed in its lawsuit that it has the priority right to receive repayment for the proceeds from the auction and sale of a total of 11 mortgages and 2 plots of land provided by Zhaoqing Global within the scope of the mortgage . China National Nuclear Huatai Construction Co., Ltd. also proposed in its lawsuit that it has the priority right to receive repayment for the construction project funds within the scope of the unpaid project funds for the proceeds from the discount or auction price of the Guangdong Cross-border Communication (Zhaoqing) E-commerce Industrial Park Phase I project.

As we all know, Global Easy Shopping and its parent company Cross-Border Link have been pushed to the forefront because of overdue payments to suppliers.

On July 26, an investor asked the secretary of Cross-border Communication: "How is the company's internal control now? Does it have enough financial and legal personnel? To what extent have the supplier and warehouse debts been dealt with?"

Cross-border Communication responded: "In response to supplier-related issues, the company has set up a relevant debt clearance working group and is currently actively resolving historical issues."

If the money from the lawsuit is repaid first, it will become more difficult to collect payment from suppliers.

As of now, Cross-Border Link and its subsidiaries have a total of 66 new lawsuits, arbitrations, and labor disputes , involving a total litigation amount of 477 million yuan, accounting for 39.34% of its latest audited net assets.

In addition to the above-mentioned litigation matters, Shenzhen Global, a wholly-owned subsidiary of Cross-border Communication, has 38 undisclosed small litigation and arbitration matters , involving a total amount of 55.1999 million yuan ; 25 labor dispute cases , with a total amount of 7.2842 million yuan. Shanxi Baiyuan Pants Co., Ltd., a wholly-owned subsidiary of the company, has one undisclosed small litigation matter, involving an amount of 5.1 million yuan.

Previously, Cross-Border Link issued the "Announcement on the Progress of Share Repurchase", and Cross-Border Link formally passed the share repurchase proposal at the fourth shareholders' meeting in 2021. It is understood that the total number of shares repurchased this time is expected to be no less than 41,680,000 shares and no more than 83,360,000 shares . Cross-Border Link said that it will actively take measures to raise funds in the future.

After the above announcement came out, many netizens said that they had no money to buy back the shares, and they had to pay more than 400 million yuan in compensation. There was no hope, and they were on the verge of bankruptcy.

The comment section of the announcement was filled with wailing: "It will definitely hit the limit down, we're on a pirate ship", "It will be finished tomorrow", "Let it be delisted", "The buyback hasn't come yet, and bad news comes one after another", "All the bad news is unexpectedly still bad news".

Zaful operates independently as a subsidiary. What will Global Easybuy use to pay back its suppliers?

Cross-Border Link is also facing major lawsuits . When will the suppliers be paid off?

It is understood that the proceeds from the sale of Paton by Cross-Border Link belong directly to the company. The first installment of the sale of Napason has been in place, and the second installment of the acquisition payment of 37 million is in place in due course .

"Will Cross-Border Link use the money from the sale of Paton to return to its suppliers?" This is a question that many people are concerned about.

Another industry insider raised a question to Cross-Border Link. The first link of cross-border e-commerce is the supply chain. Currently, Cross-Border Link has no credibility in the industry. Its subsidiary Global Easybuy can only purchase in cash. Does the company have plans to use its actual management capabilities to boost the industry's credit level ?

In fact, there are still many doubts about Cross-border Link and its subsidiary Global Easy Shopping:

How much is the amount of money involved in Global Easy Shopping’s current lawsuits and debts?

Does the company have clear financial accounts and are they announced to suppliers?

Have the existing shareholders of SAFU conducted any equity transactions with Global Easybuy?

Will SAFU still need to bear the previous debts of Global Easybuy?

"Whether the answer to this series of questions will be a happy ending or a mess depends entirely on the conscience of Cross-Border Link," said a supplier who was owed money by Cross-Border Link.

The editor learned that Zaful , the clothing division of Global Easy Shopping, is now operating independently as a subsidiary. Many suppliers are dissatisfied with this. They think that Cross-border Communication is transferring assets . " Global Easy Shopping maliciously transferred all high-quality assets to Shenzhen Safu Commercial Co., Ltd. The new team of Cross-border Communication Global Easy Shopping did not agree with the accounts of the old team and asked us to contact the old team members on our own. The old team members deliberately lost contact and were suspected of conspiracy to defraud and harm suppliers. " A supplier said that he had visited the door many times to defend his rights, but the effect was not great.

Cross-border estimating net profit of 450 million to 600 million in the first half of the year, netizens: liar, I don't believe it

In addition to being concerned about the payment dispute between Global Easybuy and its suppliers, industry insiders are also concerned about Cross-Border Link's performance in the first half of the year.

According to the announcement released by Cross-Border Link, Cross-Border Link expects its net profit in the first half of the year to be between 450 million and 600 million, an increase of 65% to 121% compared with the same period last year.

Cross-border Communication said that there are two main reasons for the performance changes :

1. During the reporting period, the business of the Company's subsidiary Shenzhen Global Easybuy E-Commerce Co., Ltd. declined significantly compared with the same period last year.

2. During the reporting period, the impact of non-recurring gains and losses on the net profit attributable to the parent company increased significantly year-on-year, mainly due to the company's sale of its subsidiary Shenzhen Qianhai Paton Network Technology Co., Ltd. The specific data shall be subject to the 2021 semi-annual report data to be disclosed subsequently .

At the same time, Cross-Border Communication also stated in the announcement that the financial data related to this performance forecast has not been audited by a certified public accountant. To put this in simple terms, Cross-Border Communication does not guarantee the authenticity of the above performance forecast .

This statement inevitably reminds people of the thundering financial report of Cross-Border Communication in 2020. In January this year, Cross-Border Communication stated in its 2020 performance forecast that it expected to make a profit of 100 million to 150 million in 2020, but a few months later, the performance suddenly changed drastically. Cross-Border Communication stated in the "Performance Forecast Correction Announcement" that the net profit was expected to lose 3 billion to 3.8 billion.

With the lessons learned from the past, when Cross-border Communication released its first half performance forecast, many investors expressed doubts:

"——Don't release earnings forecasts without reviewing them, okay? I stepped on your big bomb last time, and I will definitely not be fooled this time.

——Have you paid back the suppliers? Why don’t you disclose your operating income? Your net profit for half a year is as high as 600 million. Are you going to soar?

——This is a bloody lesson, liar, I won’t believe anything you say anymore.”

How much money Cross-Border Link earned (lost) in the first half of this year will be revealed on August 31st.

Cross-border communication

Global Shopping

supplier