The outcome of a major cross-border case: Peking University’s top student CEO was ordered to pay 1 billion yuan!

Today, Xunxing Co., Ltd. issued an announcement stating that the company has submitted an "Application for Compulsory Execution" to the Intermediate People's Court of Quanzhou City, Fujian Province, applying for compulsory execution against Gan Qingcao, Zhu Ling, and Shenzhen Common Dream Technology Enterprise (Limited Partnership), and has received a notice of acceptance.

To this day, the issue of the acquisition price chain of Xunxing Co., Ltd. is a mess.

Xunxing Co., Ltd.'s application for compulsory execution against Gan Qingcao and his wife was accepted

Today, Xunxing Co., Ltd. issued the "Announcement on the Company's Application for Compulsory Execution".

The announcement stated that it submitted an "Application for Compulsory Execution" to the Intermediate People's Court of Quanzhou City, Fujian Province on March 30, 2021, applying for compulsory execution against Gan Qingcao, Zhu Ling, and Shenzhen Common Dream Technology Enterprise (Limited Partnership); and received the "Notice of Acceptance of Application for Execution" issued by the Intermediate People's Court of Quanzhou City, Fujian Province on the same day.

In fact, this first cross-border e-commerce dispute case, which was filed in 2019, was closed as early as February 7 this year.

The " Announcement on the Progress of Arbitration Matters " issued by Xunxing Co., Ltd. on February 10 showed that the final ruling of the arbitration tribunal on this case was: Gan Qingcao and his wife shall pay Xunxing Co., Ltd. a performance commitment compensation totaling RMB 101,399 million , as well as overdue payment interest calculated at a daily rate of 0.3% based on RMB 101,399 million from May 16, 2020 (including that day) to the date when all the money is actually paid (the overdue payment interest as of March 9, 2021 (including that day) is approximately RMB 90.65 million , which should be accrued until the date of actual payment) ; Shenzhen Common Dream Technology Enterprise (Limited Partnership) shall bear joint and several liability for the above-mentioned payments.

However, more than a month has passed and Gan Qingcao and his wife have not made any movement.

Therefore, Xunxing Co., Ltd. requested in this compulsory execution application: 1. The debtor shall be forced to pay the double part of the debt interest calculated from March 10, 2021 (including that day) at a rate of 1.75 per day based on the performance commitment compensation and arbitration fees that the debtor has not yet paid (i.e. RMB 1,018,010,931.20) for the delayed performance period . 2. All expenses incurred in the execution procedure of this case shall be borne by the debtor. (The total amount of the above amounts is temporarily RMB 1,108,661,637.20)

From "a top student president" to "running away", what did the founder of Jiazhilian experience...

The story of why Gan Qingcao and his wife ended up in such a state began four years ago.

Gan Qingcao was born in 1981. He graduated from Peking University in 2004. He was recommended to study English and American literature as a graduate student in the same year and started his own business during his graduate studies . In 2016, he was already one of the "Internet celebrities" in the cross-border e-commerce industry. He was called the "academic tyrant president" in the industry. At the age of 27, he founded Shenzhen Ole Easy International Freight Forwarding Co., Ltd. in 2008, which was the predecessor of Jiazhilian.

When Gan Qingcao started his own trading company, he found that the price of an accessory on eBay could be more than 10 times higher than that on Taobao. He smelled the business opportunity of cross-border e-commerce, and then Jiazhilian was born.

Gan Qingcao said in a media interview in 2016: "All businesses are about making connections, and all business logic is about making connections. Jiazhilian wants to be the Alibaba in the cross-border e-commerce field, connecting global goods, services and people together. "

As the first company that positioned itself as an industry ecological service platform, Jiazhilian, known as the "first stock in the cross-border e-commerce ecosystem", attracted a lot of attention in 2016. From January to June 2016, Jiazhilian's operating income was 159 million, a year-on-year increase of 412.82%. Net profit was 21 million, a year-on-year increase of 1083%.

As early as 2015, Jiazhilian achieved Series A financing;

2016 was the blue ocean period of cross-border e-commerce. In the second half of the year, Jiazhilian was listed on the New Third Board and welcomed a financial sponsor, the listed company Xunxing Shares.

In 2017, Xunxing Co., Ltd. announced the acquisition of Jiazhilian and issued the "Major Asset Purchase Report (Draft)", investing about 1.01 billion yuan to purchase 65% of Jiazhilian's equity. According to the agreement, Gan Qingcao and his wife promised that the net profit of Jiazhilian would not be less than 100 million yuan, 160 million yuan and 250 million yuan respectively from 2017 to 2019.

But everyone knows the ending. In 2017, Jiazhilian achieved a net profit of 96.85 million yuan, which was close to the profit promised in 2017. However, in 2018, Jiazhilian's net profit plummeted, with a loss of 75.89 million yuan. In 2019, it continued to lose money, with a loss of about 58.58 million yuan.

In the first half of 2020, Jiazhilian "turned the tide" and made a profit of more than 8 million . In June 2020, Sun Hanshan, former partner of Tongtuo and former vice president of Global Easybuy and Dunhuang.com, took over as president of Jiazhilian.

Gan Qingcao, who promised to achieve a market value of 10 billion US dollars by 2020, was investigated by the public security bureau in 2019 for suspected contract fraud.

On May 31, 2019, Xunxing Co., Ltd. issued an "Announcement on the Reply to the Shenzhen Stock Exchange's Inquiry Letter on the 2018 Annual Report" - the announcement showed that the legal representative and general manager Gan Qingcao, who was responsible for business management, and deputy general manager Zhu Ling were stranded in the United States with their young son, which seriously affected business management. They sent letters to Gan Qingcao and others many times to ask them to explain the situation and provide further guarantees, but received no reply from Gan Qingcao. They also refused the financial director appointed by Xunxing Co., Ltd. to contact financial-related businesses, refused the normal supervision of the controlling shareholder and the Jiazhilian board of directors, and the governance and management levels failed to communicate in a timely and effective manner.

At that time, Xunxing Co., Ltd. stated that Gan Qingcao failed to complete the promised performance, breached the contract during the performance of the agreement, and misappropriated the funds in the co-managed account and stayed in the United States for a long time. Gan Qingcao and his wife were already stranded overseas, and until last year during the epidemic, they had no way to return to China.

On February 10 this year , the lawsuit between Xunxing Co., Ltd. and the founder of the cross-border e-commerce company Jiazhilian had an arbitration result. Gan Qingcao lost and needed to compensate the listed company 1.01 billion yuan. Jiazhilian has become a wholly-owned subsidiary of Xunxing Co., Ltd.

Xunxing shares' net profit has continued to grow in recent years

Although Xunxing Co., Ltd. caused a lot of trouble after the acquisition price chain in 2017, its net profit has increased in recent years.

The announcement showed that in 2018, Xunxing Co., Ltd.'s operating income was 2.275 billion yuan, a year-on-year increase of 22.29%, and the net profit attributable to shareholders of the listed company was -650 million yuan .

In 2019, the company achieved total operating revenue of 1.92 billion yuan, a year-on-year decrease of 15.5%; and achieved net profit attributable to shareholders of the parent company of 54.501 million yuan, turning losses into profits year-on-year.

According to the 2020 third quarter report, the announcement showed that the company achieved revenue of 1,124,662,829.47 yuan from January to September 2020, a year-on-year decrease of 16.69%; the net profit attributable to shareholders of the listed company was 61,554,909.65 yuan.

However , the 2020 performance forecast released by Xunxing Co., Ltd. a few days ago showed that in 2020, the net profit attributable to shareholders of listed companies of Xunxing Co., Ltd. was: 150 million yuan to 225 million yuan, and the profit in the same period last year was: 54.5008 million yuan, an increase of: 175.23% -312.84% over the same period last year; the net profit after deducting non-recurring gains and losses was: 25 million yuan to 37.5 million yuan, and the profit in the same period last year was: 50.5902 million yuan, a decrease of: 25.87% - 50.58% over the same period last year.

Xunxing shares attributed the change in performance to the dispute over the equity transfer agreement between the company and Gan Qingcao, Zhu Ling, and Shenzhen Common Dream Technology Enterprise (Limited Partnership). The announcement shows that according to the provisions of the enterprise accounting standards, combined with the arbitration results and the performance performance information of the performance compensation party available to the company, it is expected that performance compensation income of 194 million yuan can be recognized in 2020. Due to this matter, the company's performance in 2020 has changed significantly year-on-year .