Unable to repay debts! Shares of Cross-border Communication's largest shareholder were auctioned off by the court

Speaking of today's Cross-border Link, who can help but sigh? Today, it is an unscrupulous company in the eyes of suppliers and a has-been in the eyes of sellers.

It is heavily in debt and has to tear down the east wall to pay the west wall. If it cannot pay off the debt, it will use judicial auction of shares to repay the debt. However, with a heavy mountain of debt on its shoulders, can Cross-border Communication use its shares to auction off the debt every time to ease the pressure of debt?

The shares of Yang Jianxin, the largest shareholder of Cross-border Communication , were auctioned off by the court , with the transaction price exceeding 40 million

Yesterday, Cross-Border Link issued a new announcement on the securities platform, announcing that the judicial auction of part of the shares held by the company's largest shareholder Yang Jianxin had been completed.

Previously ( July 8), Cross-Border Link disclosed the "Reminder Announcement on the Judicial Auction of Part of the Shares of the Largest Shareholder", stating that from July 27 to July 28 , 2023 , 11.0512 million shares held by Yang Jianxin, the largest shareholder of Cross-Border Link , will be auctioned online by the Shenzhen Intermediate People's Court of Guangdong Province on the JD.com judicial auction platform .

On July 28, the auction of part of the shares held by Yang Jianxin was completed as scheduled.

On July 31, Cross-border Communication released a new announcement disclosing the auction results. The announcement showed that after an open bidding, the bidder Li Jiemin won the auction target of 11.0512 million shares of Cross -border Communication at the highest bid on the JD.com online auction platform , and the auction transaction price was RMB 40.722608 million .

Cross-Border Link also stated that the judicial auction of shares will not lead to changes in the company's control and will not affect the company's continued operations.

It is reported that as the largest shareholder of Cross-border Communication, the shares auctioned this time only account for 6.4% of Yang Jianxin's total shares in Cross-border Communication and 0.71% of the company's total share capital. The shares were auctioned this time due to a debt dispute.

Judicial auction refers to the public disposal of the debtor's property by the People's Court itself or by entrusting an auction company to handle the debtor's property in accordance with the procedures during the compulsory execution procedure of civil cases in order to repay the creditors' claims and equity .

In fact, the debts involved in this judicial auction have a long history.

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

After the court’s ruling, the above-mentioned defendants failed to repay the debt in a timely manner. In 2020, Deng Shaowei 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 subject to 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   , Deng Shaowei again applied to the Shenzhen Intermediate People's Court for resumption of execution, which led to this auction.

This is not the first time that Yang Jianxin’s shares have been auctioned off by the court to repay debts.

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, Yang Jianxin was ordered to 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 200,000 yuan in attorney fees to Dongzheng Ronghui .

Later, because Yang Jianxin failed to repay the debt, on December 6, 2022, the 39.322952 million cross - border shares held by Yang Jianxin were auctioned off by the court.

As of July 28 , Yang Jianxin held 172,805,848 shares in Cross-Border Link , accounting for 11.09% of the shares , while the total number of shares auctioned was 50,374,152 shares , accounting for 29.15% of his shares and 3.23% of the company's total share capital .

274 legal cases , Cross-border Communication is deeply mired in debt and litigation

Not only 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 pay off the 7.9 million yuan debt. Subsequently, Xu Jiadong's 1.707317 million shares of Cross-Border Communication were auctioned off by the court to repay the debt.

Cross-border Communication was heavily in debt and had to rob Peter to pay Paul. When it was unable to repay, it had to be forced by the court to auction its shares in order to gain a little breathing space.

From 2014 to 2021, in order to obtain loans, Yang Jianxin alone pledged his equity to multiple securities companies and banks 167 times . Between 2014 and 2022, shareholders of Cross-Border Link, including Xu Jiadong and Yang Jianxin, pledged their equity for the company a total of 345 times , and the pledge ratio remained high.

As of now, there are still 248 million pledged shares , with a pledged market value of 944 million yuan , and 85 shares have not been released from pledge.

While being burdened with debt, Cross-Border Communications was also plagued by lawsuits.

According to Qichacha data, from 2014 to the date of this article, Kuaishou has been involved in 274 legal cases . Among them, there were 71 cases in 2017, and the company was slightly "calm" in 2018 and 2019. In 2020, it was involved in 41 lawsuits, and in 2021, it was even more mired in lawsuits, involving 129 cases in 2021 alone .

Among them, out of 274 cases, Cross-Border Link was the defendant in 168 cases, with the most common cause of the case being " sales contract disputes ", which should be initiated by Cross-Border Link's suppliers.

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.

To this day, many suppliers still go to Cross-Border Link’s office in Qianhai, Shenzhen to ask for the money they are owed from the Global Easy Shopping period.

At the same time, Cross-Border Link was also administratively punished by the Shenzhen Stock Exchange and the Shanxi Regulatory Bureau of the China Securities Regulatory Commission for reasons such as dishonest disclosure of financial reports .

Sale of subsidiaries, bankruptcy, conflicts among senior executives, lawsuits ... All kinds of troubles have been happening to Cross-Border Link, the once glorious "No. 1 cross-border company", making it difficult to associate it with its past glory.

As for the largest shareholder Yang Jianxin, between 2021 and 2023, the equity of 29 companies under his name was frozen, he was restricted from high consumption 12 times, and became the subject of execution 20 times, with a total amount of 2.786 billion yuan. Now he still has an execution amount of 1.642 billion yuan.

Although Cross-border Communication has removed the "ST " label last year , its profitability is difficult to return to its previous level . According to the financial report , in the first quarter of this year, Cross-border Communication's revenue was 1.587 billion yuan, and the net profit attributable to shareholders of the listed company was only 1.2292 million yuan , with a net profit margin of less than 1% . Compared with the peak net profit of 600 million yuan in 2018, the net profit for the whole year of 2022 was only 17.8423 million yuan.

The decline in profitability is also a heavy blow to its debt. Currently, Cross-Border Link 's debt situation is still very serious , with its total debt reaching 2.539 billion yuan in 2022.

How can Cross-Border Link, which is now heavily in debt, increase its net profit and pay off its debts in the current situation of sluggish market, intensified competition and the emergence of new players?

Cross-border communication

Judicial Auction