The big seller has become a "regular at judicial auctions", and another 187 million yuan has been "sold"!

The largest shareholder’s shares were forcibly auctioned off three times in three years. Why did the former leader in cross-border e-commerce become a “ professional auctioneer ” ?

The third auction of shares

Recently, Cross-Border Link issued a new announcement, stating that part of the shares of the company's largest shareholder Yang Jianxin will be auctioned off by the court .

Judging from the specific content of the announcement, Cross-Border Link did not receive any prior notice of this auction .

It stated that it had recently learned through online inquiries that the 35,547,058 shares held by the company's largest shareholder, Yang Jianxin , would be publicly auctioned on the Taobao judicial auction network platform by the Guiyang Intermediate People's Court of Guizhou Province from 10:00 on March 20, 2025 to 10:00 on March 21, 2025 (excluding delays).

According to the auction page, the starting price is 4.76 yuan per share , but as of the close of this Friday, the stock price of Cross-border Communication has fallen to 4.20 yuan per share. After its listing, Cross-border Communication's stock price soared to 24.68 yuan per share on the back of the cross-border e-commerce boom, but then it continued to decline. Even the highest price in the past year was only 30% of the peak period, at 7.50 yuan per share.

The judicial auction was a securities repurchase dispute , and the target shares accounted for 23.56 % of the approximately 151 million shares of Cross-Border Communication held by Yang Jianxin , and 2.30% of the company's total share capital (after excluding the company's special repurchase account).

Calculated based on the starting price of 4.76 yuan per share, the final transaction price of this auction will be at least more than 187 million yuan , but the possibility of no one bidding and resulting in a failure of the auction cannot be ruled out.

Regarding this judicial auction, Cross-Border Link also stated that since the company has no controlling shareholder or actual controller, this auction will not lead to a change in the company's control .

As of the date of this announcement, Cross-Border Link is operating normally. This incident has not yet had a significant impact on the company's production and operation, corporate governance and other matters. The company's largest shareholder does not need to fulfill any performance compensation obligations.

Currently, the auctioned items are still in the public announcement stage. According to relevant regulations, the court has the right to suspend or withdraw the auction before or during the auction. The subsequent auction may involve bidding (or failure to sell), payment, equity change and transfer, etc., and the auction result is uncertain.

However, if the share auction is successful, it may lead to a change in the company's largest shareholder.

Shareholders become frequent buyers of judicial auctions

This is not the first time that Yang Jianxin’s shares in Cross-Border Communications have been auctioned.

In 2020, Dongzheng Ronghui Securities Asset Management Co., Ltd. (hereinafter referred to as "Dongzheng Ronghui") took Cross-Border Link to the Shanghai Higher People's Court because it was unable to repay its debts.

In 2021, the court ruled that Yang Jianxin , the largest shareholder of Cross-Border Link, should return the principal of 190 million yuan, interest of 4.0343 million yuan, and interest on arrears after March 21, 2020, as well as liquidated damages, and attorney fees of 200,000 yuan.

Later, because Yang Jianxin failed to repay the debt, on December 6, 2022, the Shanghai Financial Court conducted an online judicial auction of 39,322,952 shares held by Yang Jianxin on the grounds of stock pledge default . The final transaction price of the auction was RMB 162 million .

Later in 2023, Cross-Border Link again disclosed an announcement that the company shares held by Yang Jianxin were auctioned off by the court.

In 2019, Deng, the former legal representative of Paton, took An Rupeng, Shanxi Orejia Enterprise Management Consulting Co., Ltd. (hereinafter referred to as "Orejia Consulting", the largest shareholder is Yang Jianxin), Yang Yiming, Yang Jianxin, Fan Meihua and Wei Jianhua to court over a contract dispute.

After the court's ruling, the above defendants failed to repay their debts in a timely manner. In 2020, Deng and Wang Jiaqiang again applied to the court for Yang Jianxin and others to enforce the ruling, requiring the defendants to repay nearly 470 million yuan. At the same time, Orejia Consulting (legal representative: Yang Yiming), Yang Jianxin, and Fan Meihua were applied for restrictions on high consumption.

By the time the second case ended in 2021, Origa Consulting, Yang Jianxin and Fan Meihua had repaid a total of 253 million yuan, with a remaining outstanding balance of over 216 million yuan.

In 2022, Peng Guodong, Wang Jiaqiang and Deng again applied to the Shenzhen Intermediate People's Court for resumption of execution.

Therefore, in July 2023, the Shenzhen Intermediate People's Court commissioned JD.com to conduct an online judicial auction of 11.0512 million shares of the company held by Yang Jianxin. The auction price was RMB 40.722608 million .

In fact, in addition to Yang Jianxin, the shares held by Xu Jiadong, a shareholder of Cross-Border Communication, were also auctioned off by the court.

In 2021, Shenzhen Fengyinhe Microfinance Co., Ltd. applied to the court to require Xu Jiadong to execute the 7.9 million yuan debt. After that, Xu Jiadong's 1.707317 million shares of Cross-border Communication were auctioned off . The first auction was held on the Taobao auction platform in May of that year and eventually failed. A month later (June 2021), another judicial auction was held, and the final transaction price was about 4.26 million yuan .

Getting deeper and deeper into the quagmire

According to Qichacha data, from 2013 to 2024 , Cross-Border Link was involved in 290 judicial cases with a total amount of 537 million yuan, of which 127 cases were involved in 2021 alone .

In these cases, Kuaijietong was the defendant in 179 cases, most of which were "sales contract disputes", which may be related to Global Easy Shopping's suppliers . To this day , many suppliers still go to Kuaijietong's office in Qianhai, Shenzhen to ask for the money they owed to Global Easy Shopping .

In addition, Cross-border Communication also handles various financial loan disputes, private lending disputes, engineering construction disputes, securities false statement liability disputes, freight forwarding disputes, infringement disputes, etc.

Recently, Cross-Border Link also issued the " Announcement on the Progress of Creditors' Application to the Court for Company Reorganization and Pre-Reorganization ".

Since May 2023, when creditors applied to the Taiyuan Intermediate People's Court for reorganization on the grounds that Cross-Border Link obviously lacked repayment ability but still had reorganization value , and applied for pre-reorganization registration, Cross-Border Link has issued dozens of such announcements, an average of once a month.

And this debt is from 2021. After the original creditor won the lawsuit , Cross-Border Communication should have repaid the loan principal of more than 8.18 million yuan, paid liquidated damages or overdue interest, attorney fees, property preservation guarantee insurance premiums, etc., but Cross-Border Communication has been slow to repay the debt.

Judging from the above-mentioned judicial auction, its largest shareholder was also imprisoned due to debt disputes. Both the company and individual shareholders are unable to save themselves from the debt quagmire.

In January, Cross-Border Communication also released its 2024 performance forecast, which was quite ugly.

In the whole year of 2024, Cross-Border Link's revenue was 5.4 billion yuan to 5.8 billion yuan, a sharp drop from 6.6 billion yuan in the same period of the previous year; the net profit was even more unbearable to look at, with the net loss attributable to shareholders of the listed company reaching 380 million yuan to 480 million yuan, while the net loss in the previous year was only 9.69 million yuan .

How a big car has ended up in such a state today is really puzzling. Most brands are now rising on the wave of going overseas. Huakai Yibai, Saiwei Times and other big sellers continue to report good news. Even Youkeshu, which has entered restructuring, has turned a profit. However, it seems that even if Hua Tuo were reborn, it would be difficult to save Cross-Border Link.

Big Sell

Foreclosure