With debts of over 700 million, Shenzhen Dama sells off 40 million assets to pay off debts?

Who still remembers the scenery of the tree in the past?

Youkeshu transferred the equity of the invested company for 40 million

On March 7, Youkeshu issued an announcement stating that it would transfer the equity of its joint venture company to focus on cross-border e-commerce business.

According to Qichacha information, on February 28, Youkeshu transferred its 17% equity in Jiangsu CCCC New Energy Technology Co., Ltd. (hereinafter referred to as " CCCC New Energy " ) to its wholly- owned subsidiary Nanjing Keshu Technology Co., Ltd. (hereinafter referred to as " Nanjing Keshu " ) .

On March 8, Nanjing Keshu transferred the equity to Mr. Lu Yicheng at a price of RMB 40 million (registered capital contribution of RMB 34 million). After the transfer was completed, Nanjing Keshu no longer held the equity of CCCC New Energy .

In 2017, China Communications New Energy was established. It is a new energy company under Wuxi Transportation Industry Group, specializing in investment, EPC engineering and operation and maintenance services of gas and oil power plants.

The following year ( 2018), Tianze Information (now changed to "Youkeshu") invested 34 million yuan and acquired a 17% stake in China Communications Construction New Energy .

After adding the approximately 17.65% premium for China Communications Construction New Energy ’s equity , Youkeshu now sold this part of the company’s assets for 40 million yuan, and the transfer amount was 6 million yuan more than the investment amount .

This is not the first time that Youkeshu has transferred the equity of a participating company. In December last year, it also transferred its 7% equity in Jiangsu Tianze Zhilian Information Technology Co., Ltd. to Xuzhou Geyuan Investment Management Co., Ltd., the controlling shareholder of Tianze Zhilian, for RMB 700,000.

As for these equity transfers, Youkeshu responded by saying that it would focus more on its main business , strengthen its core cross-border e-commerce export business , and further strengthen and refine its main cross-border e-commerce business. This is to further protect the company's investment returns, optimize the company's investment structure, and improve the asset quality and profitability of listed companies.

5 billion in revenue but can't pay back 400,000

Is this move really useful? Can it temporarily alleviate Youkeshu’s cash flow problem? Can Youkeshu really “refocus” on cross-border e-commerce and return to its former throne?

According to the financial report, Youkeshu's total liabilities reached 748 million yuan as of the third quarter of 2023. Based on this, some people believe that the above-mentioned equity transfer is actually to fill the debt hole.

People in the cross-border circle are joking that there is a tree now that is a "sick tree". What is wrong with it?

In February, Youkeshu issued another announcement about overdue bank loans. What was shocking was that the amount of the overdue loan was only 400,000 yuan.

It is reported that in 2019, Youkeshu borrowed 15 million yuan from the Chengzhong Branch of Jiangsu Zijin Rural Commercial Bank Co., Ltd. ( hereinafter referred to as " Zijin Rural Commercial Branch " ) .

It is worth noting that in the same year, Youkeshu's revenue and net profit increased several times. In terms of revenue, it soared from 896 million yuan in 2018 to 3.867 billion yuan, and net profit also rose from 15.35 million yuan to 48.8 million yuan .

But all the good times came to an abrupt end in the second half of 2020. In the first half of 2020, Youkeshu's net profit reached 78.95 million yuan in just half a year, nearly twice that of the whole year of 2019 .

However, with the subsequent impact of Amazon's account ban wave, Youkeshu was severely hurt, with a net loss of 871 million yuan in 2020. That is to say, Amazon's account ban directly or indirectly caused it to lose nearly 1 billion yuan in net profit, turning directly from profit to loss.

In the following years, there was a tree that was difficult to recover from its injuries and illness.

From 2020 to 2022 , Youkeshu 's revenue dropped from 5.027 billion yuan and 1.764 billion yuan to 774 million yuan, and its net loss dropped from 871 million yuan and 2.676 billion yuan to 367 million yuan .

In 2022, the revenue decreased and the loss margin also decreased, and the dead tree seemed to have a glimmer of life. However, judging from the 2023 financial report, it seems that it is still difficult to recover.

In the 2023 annual performance forecast released by Youkeshu, we can see that in the past year, Youkeshu’s net loss reached 270 million yuan to 360 million yuan. Although it is a decrease compared to the loss of 367 million yuan in 2022, it is not much.

From the revenue perspective , Youkeshu will only achieve RMB 450 million to RMB 500 million in 2023 , a decrease of RMB 274 million to RMB 324 million from 2022 .

It is not surprising that Youkeshu cannot repay its bank loans given its performance. In December last year, Youkeshu issued another announcement, saying that of the 30 million yuan it borrowed from the Nanjing Branch of China Everbright Bank in 2019 , 26.4 million yuan of bank loans were overdue .

According to Youkeshu ’s financial report for the first half of 2023, its bank loan principal was approximately 374 million yuan, and the overdue loan principal reached 338 million yuan.

These are the big expenses, but I never thought that there would be a tree with an overdue payment of even 400,000.

It is understood that Youkeshu borrowed 15 million yuan from Zijin Rural Commercial Bank in 2019. After extension and new loans to repay old loans , the remaining principal of the loan was 7.5 million yuan, and part of the principal of 400,000 yuan should be repaid on February 8, 2024. However, due to its inability to repay, this part of the loan became overdue.

The revenue in 2020 was still 5 billion yuan, but the sharp increase in losses meant that the "mere" 15 million yuan for Youkeshu in the past became a lingering debt.

The Changsha Intermediate People's Court approved the reorganization. Will one of the trees become a money tree again?

After four consecutive years of losses, Youkeshu’s total losses have exceeded 4 billion yuan . Failure to make a profit has led to a huge debt, and the 40 million yuan from selling equity cannot fill this huge hole.

As for the historical bank loans of Youkeshu , from 2019 to the present, for more than four years, Youkeshu has been overdue again and again, and the creditors have even gone to court with it.

At the same time, after being severely injured by Amazon's account blocking wave four years ago, Youkeshu has not seen any improvement in its recovery so far, and the hundreds of millions of yuan of funds frozen by Amazon have not yet been unfrozen .

In addition to debts, Youkeshu has also had its fair share of legal disputes, including sales contract disputes with cooperative suppliers , labor contract disputes with company employees , and other disputes such as patent infringement and financial loans .

Judging from its recent progress announcement on accumulated litigation and arbitration matters , five cases in which Youkeshu was the defendant were sentenced in 2023 alone, involving a total amount of nearly 600,000 yuan .

Due to various disputes, Youkeshu has been repeatedly applied for reorganization by creditors. However, recently, Youkeshu announced that the Changsha Intermediate People's Court has approved the creditors' application for pre-reorganization of Youkeshu .

*Note: Restructuring aims to save the debtor, retain the debtor's legal entity status and restore sustainable profitability. The debtor will conduct debt restructuring with creditors under the guidance of the court. By readjusting the debtor's assets and liabilities and rearranging its operations and management, the company can get out of financial difficulties and return to the track of sustainable development.

If Youkeshu successfully enters the reorganization, it may have a chance to be reborn. Regarding the release of this news, many shareholders said: Will Youkeshu become a fortune tree again ?

However, Youkeshu also stated that there is still significant uncertainty as to whether the company will be able to enter the reorganization process in the future , and it has not yet received any relevant legal documents regarding the company's formal entry into the reorganization process.

The continuous losses in performance have caused Youkeshu to be labeled as "ST". In addition, if the restructuring fails , Youkeshu may be declared bankrupt by the court .

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