The stock was suspended after it was launched and sold well

Some people used to say that it was a rising star in the overseas fast fashion industry and a "little SHEIN", but a few years have passed and now it is struggling.

It has repeatedly done "subtraction", repeatedly saved itself , and sought various " remedies to stop the bleeding " , but unfortunately, it is now facing the fate of being acquired and suspended.

The "East China version of SHEIN" was suspended again

Recently, Wuxi ZeShang Technology Co., Ltd. ( hereinafter referred to as "ZeShang Technology" ) , a Jiangsu cross-border retailer known as the " East China version of SHEIN " , issued a new announcement stating that its stock will be suspended due to the "difficult delivery" of the annual report .

Specifically, because ZeShang Technology failed to disclose its 2023 annual report before April 30, 2024, the company's stock was suspended from trading on May 6, 2024 in accordance with the "National Small and Medium Enterprise Equity Transfer System Business Rules (Trial)" and other relevant regulations.

According to specific regulations , if a listed company " fails to disclose its annual report or interim report within the statutory period, and still fails to disclose or correct it within two months from the expiration of the statutory period " , the National Equities Exchange and Quotations will terminate its stock listing .

That is to say, if ZeShang Technology fails to disclose the "2023 Annual Report" before June 28, 2024 (inclusive), the company's stock may be delisted .

Without mentioning the specific performance, it can be seen from the announcement of ZeShang Technology that its internal organizational structure has changed frequently in the past six months.

Last September, ZeShang Technology issued a "Report on Changes in Equity (Reduction of Holdings)" announcement, stating that the company's founder and largest shareholder Zou Zheng and other major shareholders signed a "Share Transfer Agreement" with Qingdao Olive Tree Intelligent Manufacturing Co., Ltd.

At a price of 0.108 yuan per share , Qingdao Olive Tree Intelligent Manufacturing Co., Ltd. spent only 1.25 million yuan to gain actual control of ZeShang Technology .

Afterwards, Zou Zheng resigned as a director of ZeShang Technology, and Zhang Yingying, a director of Qingdao Olive Tree Intelligent Manufacturing Co., Ltd., was nominated as the new director .

Judging from recent appointment announcements, Zou Zheng, the founder of ZeShang Technology , has completely left the company.

Since its listing, Zeshan Technology has been suspended many times, the most recent time being in September 2022. In more than a year , Zeshan Technology has been suspended , acquired , and suspended again , and its cross-border journey has become increasingly difficult .

Performance has been in the red for many years

It is mentioned above that the reason why ZeShang Technology was suspended this time was because it could not provide an annual report. In fact, let alone the annual financial report for 2023, ZeShang Technology did not release its business performance in the third quarter of last year, and the latest financial report was only updated to the first half of 2023.

But why can't they give it? Zeshang Technology didn't say, but it may be related to poor performance.

Judging from the annual financial reports released after its listing, ZeShang Technology has been on a downward trend for a long time.

In 2015, ZeShang Technology's revenue was 115 million yuan, up 388.06% from 2014, and its net profit reached 2.43 million yuan, up 211.15% (net loss was 2.19 million yuan in 2014) ; in 2016, its revenue increased by another 163.02% to 302 million yuan, and its net profit increased by 274.04% to 9.1 million yuan.

In the first two years after its listing, Zeshang Technology's market performance was commendable and its profits increased steadily. However , starting from 2017, Zeshang Technology's performance plummeted.

In 2017, ZeShang Technology's revenue was cut by more than half ( -59.41%) to only 123 million yuan, and its profit also turned from positive net profit to a loss of 4.03 million yuan .

This downward trend has not subsided since then.

From 2018 to 2022, ZeShang Technology's revenue was RMB 131 million, RMB 204 million, RMB 297 million, RMB 64 million, and RMB 49 million, respectively .

During the same five years, only in 2019 did it make a net profit of 1.63 million yuan, while the rest of the years suffered losses of 18.26 million yuan, 7.31 million yuan, 3.10 million yuan and 10.31 million yuan respectively.

In the first half of last year , ZeShang Technology's revenue was only 14 million yuan and its loss reached 2.76 million yuan.

From 2021 to the first half of 2023 alone , ZeShang Technology issued five "Announcements on the Company's Unrecovered Losses Reaching One-Third of the Total Paid-in Capital".

In the past, ZeShang Technology went public with great fanfare, and its stock price reached 12.1 yuan per share at its peak . However, since then, the stock price has been declining along with its performance, and its glory was gone forever. Until May 6, it was suspended from trading for a long time, and the stock price was only 0.2 yuan per share .

Yien.com noticed that at the end of last year, Zeshang Technology also issued an announcement to set up a subsidiary in Qingdao, but did not disclose the specific business of the subsidiary and the specific establishment time. However, in the middle of last year, Zeshang Technology sold several subsidiaries.

Cutting down insolvent subsidiaries

ZeShang Technology was founded in 2009. Six years later ( 2015 ) , relying on traditional clothing trade exports and cross-border export e-commerce retail business , it was officially listed on the National Small and Medium Enterprise Equity Transfer System as the country's first cross-border export e-commerce company.

It was mentioned above that it is known as the " East China version of SHEIN " . First of all, it also makes clothing products, and with its fast fashion brand CHOIES , it is doing very well on Amazon , and its market also covers more than 100 countries and regions including North America, Europe, the Middle East, and Asia .

In addition , ZeShang Technology also makes good use of a flexible supply chain. Through its self-developed ERP system, it integrates and manages suppliers, logistics providers and overseas end customers .

Based on this, ZeShang Technology has a lot of SHEIN's shadow.

But its development and that of SHEIN have become two extremes. Now SHEIN has become famous all over the world and has become one of the fastest-growing unicorns in the world.

However, the development of Zeshang Technology was increasingly hindered , and it also sought to be acquired many times. In 2017, the overseas company Anto Technology Inc (USA) commissioned Zhishang Zhuoji Technology (Hong Kong) Co., Ltd. to conduct two due diligences on Zeshang Technology, but the acquisition was eventually terminated due to a sharp decline in performance .

In 2018, ZeShang Technology (having cooperated with Hongye Holdings in 2016) once again announced that it had signed a strategic cooperation agreement on cross-border e-commerce operations with the latter, with the intention of achieving model innovation in the integration of cross-border export e-commerce and foreign trade supply chains, improving performance and brand image, etc. , but with minimal success.

In an attempt to save itself, ZeShang Technology also cut its arms and sold several of its subsidiaries for RMB 0.

According to an announcement in June last year , Wuxi Taiping Industry and Trade Co., Ltd., Nanjing Interjet Software Technology Co., Ltd., V-SHANGS SCIENCE AND TECHNOLOGY (HK) CO., LIMITED (all 100% wholly-owned), and INVOGUE ECOMMERCE TECHNOLOGY INC (holding 60% of the shares) under ZeShang Technology were transferred to others for RMB 0.

The announcement stated that as of April 30, 2023, the net assets of the four subsidiaries sold above were all negative, totaling -15.08 million yuan, and the net assets of one wholly-owned subsidiary were even as high as -11.10 million yuan .

The company was insolvent, and the sale for RMB 0 actually reduced the debt pressure of ZeShang Technology .

With 15 years of experience in overseas expansion of clothing brands , Zeshang Technology has been up and down in the fast fashion industry . Through independent websites such as choies.com, as well as third-party e-commerce platforms such as Amazon, AliExpress, and Wayfair, Zeshang Technology 's brand CHOIES has been running in hundreds of markets, but now it seems that there is no way to see the light .

Big Sell

Suspension