"Unfair terms" cheat suppliers and attract new investors. There are too many tricks to sell big products!

The issue of Zhiyu’s arrears of payments to suppliers is still continuing to ferment.

After suppliers came to collect debts, Zhiyu sat down with several suppliers on July 20 to discuss solutions, but the discussion ended in a bad way.

The editor learned that Zhiyu was in arrears with payments to suppliers while actively recruiting investors and luring new investors into the trap.

In addition to being deeply in debt, another identity of Zhiyu’s founder is also intriguing: Qichacha shows that Zhiyu’s former legal representative Li Haiyan is the second largest shareholder of a company involved in a cross-border money laundering case!

Cross-border company suspected of money laundering, Li Haiyan is the second largest shareholder

Last August, a case involving "a 4 billion-level cross-border e-commerce seller in Hangzhou suspected of massive money laundering" shocked the entire cross-border circle.

At that time, the Taizhou Municipal Public Security Bureau announced that it had destroyed a "black and gray" criminal gang headed by Jiang from Linhai who was suspected of providing money laundering services to overseas fraud groups , with the funds involved reaching more than 50 million yuan.

The investigation found that since January 2020, a large number of funds involved in fraud gangs in northern Myanmar have been transferred through public accounts to Jiang's large water room account in Linhai - "Linhai Picheng Garment Factory", and then cashed out through the water room's POS machine.

After a thorough investigation, the media found that the "Linhai Picheng Garment Factory" was actually the Hangzhou Zhiyu Information Technology Co., Ltd. (hereinafter referred to as "Zhiyu"), a well-known shoe and clothing seller. (For details, please visit https://mp.weixin.qq.com/s/8LX52jYSJmnAImA_AUpB1Q)

Unexpectedly, after nearly a year, someone brought up this matter again and linked it to Li Haiyan, the founder of Zhiyu.

According to feedback from a supplier who recently sought payment from Zhiyu, Zhiyu’s founder Li Haiyan has close ties with Zhiyu, a cross-border e-commerce company that was suspected of massive money laundering a year ago.

The editor found through Qichacha that Li Haiyan is the second largest shareholder of Zhiyu, holding 25.8805% of the shares. In August 2011, the shareholder subscribed to a capital contribution of 112.99405 million yuan. He is currently a supervisor.

Zhiyu’s “tyrannical terms” have hurt suppliers, and the solution is insincere

In addition to the fact that Li Haiyan is the second largest shareholder of the company involved in the cross-border money laundering case, there are still many questions about Zhiyu.

Rumor has it that after the outbreak of the epidemic at the beginning of last year, the factory stopped production, and Zhiyu, which mainly operates its own business, was hit hard. After the domestic factory was finally restored, the epidemic broke out again abroad. Zhiyu's goods were all piled up in overseas warehouses. After the capital turnover became difficult, some of Zhiyu's self-operated cooperative merchants could not settle the payment. Since Zhiyu is the only cross-border seller in Jiangsu, Zhejiang and Shanghai that sells in the Middle East market, it received a 1 billion yuan subsidy. (The authenticity of the news has not been confirmed)

"If this news is true, then where did the 1 billion yuan in subsidies go?" Many suppliers have previously expressed the hope that during the negotiations on July 20, Zhiyu would disclose the company's internal financial situation, including current total assets, asset transfers in the past two years, and cash flow... However, these suppliers who wanted to get back their hard-earned money were once again disappointed.

Yien.com learned that after the intervention of the Hangzhou Bureau of Letters and Calls, at 10 a.m. on July 20, the police station, court, industry and commerce, industrial park and other government departments jointly held a coordination meeting to discuss solutions with the suppliers present!

According to feedback from suppliers on site, if they want to get paid on site, they have to accept the "unfair demand" of a 10% discount. If they do not accept the 10% discount, they can also choose to get a 50% discount and settle in 12 installments, or the full amount in 24 installments, but they have to sign another "unfair clause"... Suppliers have said that no matter which solution they choose, it is unacceptable.

From the contract of this historical account installment payment agreement (24 installments), Party A's entity has become Yiwu Zhiyu. Article 3 of the contract also shows that if Party A finds that Party B has any other breach of contract liability, compensation liability that it should bear but has not assumed during the performance of this agreement, or Party B should return to Party A any expenses already paid by Party A, Party A has the right to deduct them from the payables confirmed in Article 1. If the remaining unpaid amount is insufficient, Party B shall pay the difference to Party A within 5 natural days after receiving Party A's notice.

In this regard, a supplier said that the new contract is full of pitfalls. For example, the main body of Party A changed from Zhejiang Zhiyu to Yiwu Zhiyu. The registered capital of the two parties is completely different, and the responsibilities they will bear will also be completely different.

At the same time, the new contract does not clearly state how to calculate the money when there is a shortage of goods. If problems arise and Zhiyu cheats and puts the blame on the supplier, in the end, Zhiyu may not get the money and may have to pay a lot of money to the supplier.

While owing money, Zhiyu is still recruiting new members.

Suppliers are not unfamiliar with the installment payment solutions offered by Zhiyu on July 20. According to feedback from suppliers, since the debt collection began last year, the other party has been fooling them by proposing installment payments after a discount. In order to get the payment as soon as possible, some suppliers accepted this unequal treaty. Unexpectedly, Zhiyu has not fulfilled its promise.

A supplier said that installment payment is useless. After signing the contract, Zhiyu only paid for the first few months. Moreover, when paying, it deliberately skipped large amounts and only paid a few hundred or tens of dollars for the goods.

In fact, Zhiyu has many other ways of cheating and not paying back the money or paying less.

A supplier said that Zhiyu owed him 100,000 yuan in payment for goods. When he went to Zhiyu to ask for the money, Zhiyu not only closed his account, but also said that after deducting the money based on the number of out-of-stock items, Zhiyu only needed to pay him more than 10,000 yuan.

There was also a supplier who was originally owed 320,000 yuan, but Zhiyu actually deleted the background data without permission, resulting in the final display that Zhiyu only needed to repay 230,000 yuan.

There are many suppliers who have similar experiences. According to incomplete statistics, the amount of money owed by Zhiyu to suppliers may have reached hundreds of millions.

Recently, there has been a constant stream of people going to Zhiyu to collect debts. One of the suppliers not only supplies Zhiyu, but also supplies Global Easybuy. After going to Zhiyu to collect the debt, he also went to Global Easybuy to check the situation. "The solution here is installment payment, and the solution there is bond stocks. This year is really too difficult."

The editor found that Zhiyu was in arrears with suppliers while actively recruiting new members.

Open the official WeChat account of Zhiyu, and you will see the following under the latest tweet: Zhiyu POP investment promotion is ongoing, and manufacturing and foreign trade companies interested in exporting to the Middle East are welcome to negotiate... After carefully reading every tweet of Zhiyu, we can find that Zhiyu, the king of the Middle East, is still maintaining his last bit of dignity, and his purpose is nothing more than to lure new investors into the trap!

Suppliers who suffered double damage: Never do cross-border e-commerce orders again

First there was Global Easybuy, then there was Zhiyu. Just a few days ago, Youkeshu, which was exposed to have 340 accounts blocked, also had suppliers come to its door to ask for payment. The relationship between big sellers and suppliers is a mess.

As big sellers went bankrupt one after another, some victimized suppliers gradually lost confidence in cross-border sellers.

A supplier who was owed money by both Global Easybuy and Zhiyu said helplessly: "I am really scared! I dare not accept any orders from cross-border e-commerce in the future."

Nowadays, when suppliers talk about cross-border e-commerce, most of the words they mention are: "arrears", "cash", and "high risk".

If you owe money to a seller, you must be prepared to pay the money and be visited by the seller to collect the debt. And there is a possibility that you will not get a penny back:

"Now, we are right but no one pays. We cannot win the lawsuit even if we have the law. Even if we win the lawsuit, no one enforces it. In the past, we could go anywhere if we were right. Now, we can go anywhere if we owe a debt."

Cash payment means no payment period:

"You can't do business that's in debt. You absolutely shouldn't do it, because it will end up in a dead end."

"I've suffered losses before. Now I'd rather earn less than have to suffer the hardship of collecting debts."

The risk is high, which means that cross-border e-commerce is easily affected by various factors:

"A large number of new sellers entered Amazon this year. Some of them took advantage of the short-term and paid off the accounts. They used the suppliers' goods to spiral and roll back the accounts to make strategic losses. Isn't this courting death?"

"It's too unstable. Amazon has closed many stores recently, and there will be more suppliers asking for debt repayment in the future."

After a series of incidents of big sellers defaulting on payments to suppliers were exposed, some small and medium-sized sellers also said that they were implicated.

Some sellers said that the factory has received a lot of orders in the past two years, and the manufacturing index is higher than in previous years, which makes cooperation more difficult. Now that the issue of overdue payments has come out, the difficulty has increased again. "

Some sellers also said that they needed to find new factories to cooperate with in order to develop new products, but many of the factories they found offered very short payment terms, and some even directly stated that they would not cooperate without cash.

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