Paton was sued, the stock price fell to the limit, and it was executed... Cross-border communication is "difficult"

A chronic disease that is difficult to cure and a serious situation that is difficult to reverse, this is probably the most appropriate description of the current cross-border communication situation.

The stock price hit the limit again

Last Wednesday, Internet e-commerce concepts fell. Among them, the "No. 1 cross-border company" Cross-Border Link suffered a limit down, followed by Xinghui Shares and others.

After that, Cross-Border Link’s stock was judged to have abnormal trading fluctuations because the cumulative deviation of the closing price of Cross-Border Link’s stock reached -21.33% within three consecutive trading days ( June 4th to June 6th) .

In this regard, Cross-border Communication said:

1. No information disclosed previously was found to need correction or supplement;

2. No undisclosed material information has been reported by the media recently ;

3. There are no major changes in the current operating conditions;

4. There are no major events that should be disclosed but have not been disclosed or are in the planning stage;

5. The controlling shareholder, actual controller and the company's largest shareholder did not buy or sell the company's shares during this period .

Although Cross-Border Link stated that there is no problem with the company's operations, judging from the reactions of shareholders, many people are not optimistic about Cross-Border Link, and some even said, "There is a high probability that the stock will be delisted at par value without ST warning" and " This stock will not be delisted at par value . "

In December 2011, Cross-Border Link was not yet called Cross-Border Link, but "Baiyuan Pants Industry". However, after its listing, the company's performance declined and its stock price performance was also average.

The turning point began in 2014. At that time, Global Easy Shopping was thriving in the field of cross-border e-commerce. As the market size grew, it began to seek support from stock market capital. However, it was almost impossible for an e-commerce company that was purely engaged in distribution and had no R&D capabilities to embark on this path on its own.

So the founder of Global Easy Shopping began to plan for a backdoor listing, and Baiyuan Pants Industry was that shell.

From then on, the Baiyuan Pants Industry started a period of rapid development.

Judging from the stock price, around the time of its merger with the booming Global Easybuy in 2014 , Baiyuan Pants Industry was favored by investors and its stock price began to rise, even reaching its peak in October 2017, with the stock price soaring to 24.68 yuan per share . However, the highlight also came to an end. Since then, the stock price has begun to slide all the way, even hitting the limit down several times , until it hit the limit down again last week.

After more than 10 years of listing , taking advantage of the cross-border e-commerce boom, the share price of Cross-Border Link, which has taken off the name of Baiyuan Pants Industry, has skyrocketed, more than ten times at its peak . As of today when this article was sent out, the stock price has hit a low of 1.59 yuan per share, returning to the "Baiyuan Pants Industry" era.

Some people say that all myths begin and end with cross-border transactions. By acquiring Global Easybuy and investing in Paton, Baiyuan Pants Industry wants to be a steed in cross-border e-commerce. But now it seems that this steed is a little tired.

Cross-border notification to the actual controller of Paton

In 2014, after Global Easy Shopping completed its capital listing through a backdoor listing, it became the first listed company in cross-border e-commerce; in 2015, Baiyuan Pants Industry was renamed "Kuo-Kuo-Tong" and became the "first cross-border e-commerce stock" in the A-share market. In the same year, it also invested 300 million yuan in Paton, one of the "Three Heroes of Amazon".

Although Cross-Border E-Commerce's stock price failed to stop falling in 2017, it still made a profit. From 2014 to 2018, the revenue of Global Easybuy, a subsidiary of Cross-Border E-Commerce, increased from 1.4 billion yuan to 12.4 billion yuan, and its net profit also climbed steadily, making it a leading company in the cross-border e-commerce industry.

During the same period, the market value of Cross-Border Link soared to 38 billion yuan. Yang Jianxin , the founder of Baiyuan Pants Industry and the largest shareholder of Cross-Border Link, took advantage of this to become the richest man in Shanxi for three consecutive years.

Unfortunately, the good times were hard to last. After 2019, the inventory crisis of Global Easy Shopping, the "distribution king", was finally triggered, and Cross-Border Link began to suffer continuous losses.

After that, Global Easy Shopping was liquidated, its founder Xu Jiadong resigned as chairman, and Yang Jianxin started selling his shares. Moreover, for many years afterwards, Cross-border Link has been constantly cleaning up the mess left by Global Easy Shopping .

Qichacha data shows that from July 2023 to May this year, Cross-Border Link had five applications for resumption of execution, all of which were judged by courts located in Shenzhen, with a total execution amount of 148 million yuan .

Among them, the case number (2024) Yue 03 Zhi Hui 569, which was newly resumed for execution in May this year alone, reached 116 million yuan.

*Note: “Execution and resumption” means that the judgment has come into effect and one party has executed it for a period of time, but the execution was suspended due to other reasons. Later, the matter was concluded or resolved and the execution was resumed.

Judging from the historical data of persons subject to execution, there were 13 executions from May 2021 to September 2023, with a total execution amount of 433 million yuan.

In addition, from the information column of dishonest debtors, we can see that Cross-border Link is currently executing two cases, involving an amount of 219 million yuan. Among them, the case filed in September last year was a private loan dispute against Xu Jiadong, the founder of Global Easy Shopping. He has now been sentenced by the Jinhua Intermediate People's Court to restrict high consumption in an amount of 209 million yuan .

Judging from historical judgment documents, there were 174 cross-border cases, of which 133 were cases in which the defendant was the defendant, accounting for more than 76%, and the total amount of the cases reached 26.28 million yuan.

Recently, GF Securities also filed a lawsuit against Cross-Border Link for creditor's subrogation rights, and the People's Court of Yingze District, Taiyuan City, Shanxi Province held the first hearing on June 7; at the same time, Cross-Border Link also filed a lawsuit against Paton's directors Liu Yongcheng, Deng Shaowei, and Duan Shuli for "liability for damaging shareholder interests", which was accepted by the People's Court of Yingze District, Taiyuan City, Shanxi Province, and the case went to trial on June 3 .

Whether as a plaintiff or a defendant, Cross-Border Link has a history of 296 court appearances and has been imprisoned.

First quarter losses nearly double 2023 losses

He used to be very successful in the cross-border circle, but nowadays, who doesn’t sigh when talking about this former “No. 1 in cross-border business”?

In 2019, Cross-Border Link began to suffer losses, from a net profit of 623 million yuan in 2018 to a net loss of 2.7 billion yuan overnight . Since then , it has continued to lose money in 2020, with a loss of 2 billion yuan .

After two consecutive years of losses exceeding 2 billion yuan, Cross-border Communication was labeled as "ST" . In 2021, Cross-border Communication sold its shares in Paton for 2 billion yuan, which gave it a respite in terms of profits. That year, it "turned losses into profits" with a net profit of more than 673 million yuan .

Selling Paton shares to fill the deficit is only a temporary measure. In 2022, Cross-border Communication's hole could not be filled again, and its profit fell to only 17.95 million yuan . Fortunately, it has been "profitable" for two consecutive years , and it has successfully "taken off the hat" and become the "clean" Cross-border Communication again.

However, there will be no such good news in 2023. The financial report shows that in 2023, Cross-border Communication's annual revenue will reach 6.616 billion yuan, a decrease of 8.8% from 7.254 billion yuan in 2022; in terms of profit, it will drop from a net profit of 17.95 million yuan to a net loss of 9.69 million yuan, a drop of 154% .

Due to five consecutive years of declining revenue and negative net profit, Cross-Border Link also received inquiries from the Shenzhen Stock Exchange.

In the first quarter of this year, Cross-Border Link's revenue was 1.276 billion yuan and its net loss reached 17.41 million yuan. In just one quarter, the loss was nearly twice that of the whole year last year.

To this day, I wonder if the board of directors of Baiyuan Pants regrets acquiring Global Easybuy. After all, the mess has been difficult to clean up over the years. In the remaining three quarters, will Cross-border Link turn the tide or continue to fall? What kind of report card can it hand in in 2024?

Cross-border communication

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