The parent company of Jiazhilian has interest-bearing debt of 536 million yuan

The parent company of Jiazhilian has interest-bearing debt of 536 million yuan

Xunxing shares' interest-bearing liabilities reached 536 million yuan

 

In the announcement on the reply to the Shenzhen Stock Exchange's annual report inquiry letter, the amount of interest-bearing liabilities of Xunxing Co., Ltd. at the end of 2017-2020 were: 973.1614 million yuan, 905.20 million yuan, 869.80 million yuan, and 627.3233 million yuan, respectively. It seems that Xunxing Co., Ltd.'s interest-bearing liabilities are decreasing year by year.

 

As of May 31, 2021, the balance of interest-bearing liabilities of Xunxing Co., Ltd. was RMB 536,000,000 , and the company's cash balance was RMB 393,484,100, including: RMB 242,318,600 in restricted cash for various deposits, and RMB 151,165,500 in available cash.

 


Relevant data shows that the high balance of interest-bearing liabilities of Xunxing Co., Ltd. is closely related to the acquisition of 65% of the shares of Jiazhilian Cross-border E-commerce Co., Ltd. in 2017 , because the funds used for the acquisition mainly came from bank loans. Since the acquisition of Jiazhilian, its interest-bearing liabilities have increased significantly, and it has to use the net cash flow from operations to repay the principal and interest.

 

The later situation is also well known. Because Jiazhilian failed to meet its performance commitments in terms of profits attributable to the parent company for three consecutive years, its founder was forced to pay 1 billion yuan in compensation . He then fled abroad with his young son and has not returned since, resulting in the case being unable to be concluded.

 

Xunxing shares account was frozen due to non-compliance

 

Data shows that during the reporting period, Xunxing Co., Ltd. wrote off accounts receivable amounting to RMB 21.9394 million , of which: RMB 18.6597 million of accounts receivable were written off from the zipper business (RMB 17.7792 million of bad debt provisions had been made), and RMB 3.2797 million of accounts receivable were written off from the cross-border e-commerce business (RMB 2.3465 million of bad debt provisions had been made).

 

According to Xunxing Co., Ltd., the bad debts of the zipper account write-off business are mainly due to poor management and bankruptcy or being included in the list of dishonest persons. It is worth noting that the bad debts of its cross-border e-commerce business are mainly due to two reasons :

 

The first point is that due to the change in European VAT tax policy , the management team did not respond in time, resulting in the freezing of some accounts on Amazon Germany and the inability to recover the remaining sales proceeds;


The second point is that due to previous violations of the AliExpress platform operating rules , the relevant accounts were frozen. Later, the management team decided to withdraw from the AliExpress channel, and the remaining sales proceeds could not be recovered.

 


However, Xunxing Co., Ltd. stated that the company's current production and operation are normal , and it is expected that there will be sufficient net operating cash flow in the future to repay principal and interest and further reduce interest-bearing liabilities. If the relevant execution of the consideration chain goes smoothly, the estimated recoverable amount is 120.8345 million yuan , which will further improve the company's solvency.

 

Relevant cross-border sellers can pay special attention to avoid their accounts being frozen due to such reasons and causing unnecessary losses.


Xunxing Shares

Chain of Value

Liabilities

<<:  Amazon's warehouses are overflowing! Prime Day countdown is approaching, but sellers have no goods to sell...

>>:  Employees of Cross-border Communication received more than 8 million yuan in compensation for losing money on company stocks

Recommend

What is Ocean payment Qian Hai? Ocean payment Qian HaiReview, Features

Ocean Payment Qianhai (Shenzhen Qianhai Network T...

Coupang completed the Daegu logistics distribution center

According to foreign media reports, on March 24, ...

U.S. pet product sales surge 376%

Afterpay , a "buy now, pay later" servi...

What is AFirst Logistics? AFirst Logistics Review, Features

Meilida Overseas Warehouse Logistics Co., Ltd. was...

What is Twice? Twice Review, Features

Twice is a holistic oral health system that combin...

Port of Rotterdam becomes first European seaport to exceed 15 million TEUs

On December 22 , the Port of Rotterdam received i...

Quick Look! Amazon's 2022 Product Selection Trends Released

Product selection is crucial for cross-border sel...

Breaking news! A popular Amazon warehouse is temporarily closed

On July 19th local time, Amazon 's GYR3 wareh...

What is Tommy John? Tommy John Review, Features

Tommy John is an American apparel company that pr...

What is Hegong Logistics? Hegong Logistics Review, Features

Founded in 2015, Hegong Logistics is a large-scal...

What is FBM (Fulfillment by Merchant) & FBM (Fulfillment by Merchant) Review

FBM stands for fulfillment by merchant, which mea...

U.S. contact lens demand remains strong

The U.S. eye care industry — specifically sales o...