Might be restructured? There is a risk of bankruptcy for Cross-border e-commerce platform!

Risk of bankruptcy for Cross-border e-commerce platform due to possible restructuring

Since 2023, due to the decline in the overall environment, the cross-border e-commerce market has sunk, causing a certain decline in the performance of many cross-border sellers. However, at the same time, the cross-border export e-commerce industry still has market vitality and growth resilience, and the number of sellers entering the cross-border track is still increasing, and the industry competition is becoming increasingly fierce.

At the time of the transformation of the cross-border e-commerce industry, the once dominant cross-border Tong has also encountered a major crisis. Cross-border Tong may face restructuring and bankruptcy risks

BusinessDialogue has learned that on May 16, Cross-border Tong issued a notice stating that the company had received a “Notice Letter” from creditor Yin Jie. In the “Notice Letter”, the creditor applied to the Taiyuan Intermediate People’s Court (“Taiyuan Intermediate Court”) for the company’s restructuring based on the value of restructuring despite Cross-border Tong’s inability to repay its due debts and obvious lack of repayment ability, and applied for pre-restructuring registration. ▲ Picture source: Cross-border Tong announcement Cross-border Tong stated in the announcement that according to relevant regulations, if Taiyuan Intermediate Court ruled to accept the company’s restructuring application, Cross-border Tong would cooperate with Taiyuan Intermediate Court and the administrator to carry out relevant restructuring work in accordance with the law and fulfill the debtor’s legal obligations. It is worth noting that if Cross-border Tong successfully implements the restructuring and completes the restructuring plan, it will be conducive to optimizing the company’s asset-liability structure and enhancing the company’s continuous operating ability. However, if the restructuring fails, Cross-border Tong will face the risk of being declared bankrupt, and according to the relevant regulations of the “Shenzhen Stock Exchange Listing Rules”, the company’s stock will also face the risk of being delisted. According to the announcement, Cross-border Tong stated that as of May 16, the company had not received any notification from Taiyuan Intermediate Court, and there was uncertainty about whether the application could be accepted by Taiyuan Intermediate Court and whether the company could enter the pre-restructuring and restructuring program. Regardless of whether the company can enter the pre-restructuring and restructuring program, the company will actively do a good job in daily production and management based on the existing foundation. BusinessDialogue has learned that according to the first quarter financial report released by Cross-border Tong, the company achieved operating revenue of 1.586 billion yuan during the reporting period, an increase of 8.24% year-on-year, and the net profit attributable to shareholders of the listed company was only 1.2291 million yuan. ▲ Picture source: Cross-border Tong announcement From the growth data, the transformation of Cross-border Tong seems to have achieved some results, but it is still difficult to return to the high-growth channel of the past. Given the uncertainties mentioned above, BusinessDialogue will also closely monitor the follow-up progress of this matter. Overall, from the first cross-border e-commerce stock in the past to the current risk of restructuring and bankruptcy, the decline of Cross-border Tong is inevitably regrettable. However, in the turbulent environment of the cross-border e-commerce industry, the most concerning issue for cross-border sellers is still the series of account verification policies previously released by Amazon. Amazon’s individual account verification channel is now open

BusinessDialogue learned that in early May of this year, a large number of sellers received emails from Amazon requesting re-verification of their identity information. In the email, Amazon requested that relevant sellers provide documents within 60 days, including business information, identity information, government-issued photo ID, bank account or credit card statements, and business license (if applicable). ▲ Image Source: Seller Disclosure Afterwards, Amazon also released a notice about the U.S. “Consumer Notification Act”: Starting from June 27, 2023, high-volume third-party sellers on all U.S. market e-commerce platforms will face annual information verification. If the verification is not completed in time, the account will be suspended until the verification is completed. After these news came out, it caused a huge uproar in the cross-border e-commerce circle. One of the most troublesome issues for many sellers is that if they registered their account with a personal ID card, they have no individual business license to provide to Amazon. Recently, BusinessDialogue learned that Amazon seems to have received feedback from sellers and officially opened a verification channel for personal accounts. ▲ Image Source: Seller Disclosure In this channel, personal sellers only need to submit their ID card + credit card/bank statement, without the need to replace company information. The specific verification process is as follows: 1. Receive notification email from Amazon, informing the seller that they need to undergo identity verification; 2. Log in to the Amazon seller platform, click “Settings > Account Info > Begin Re-verification”, and find the individual business verification entrance; 3. Submit the required information, and the seller’s account information page will display “Your account is undergoing verification”; 4. If the verification is successful, the seller’s account information page will prompt “Verification Successful”. In addition, regarding the doubts of relevant sellers who did not receive the verification information for their accounts, Amazon Global Store also responded earlier: If you have not received the verification information, please verify whether your company information is still true and valid. If there are changes, please update the latest company information on the seller platform. Overall, the registration and verification process for cross-border e-commerce platforms is becoming increasingly strict. In order to avoid the suspension of account operation due to violations or information errors and affect subsequent major promotional sales, BusinessDialogue reminds all sellers to pay more attention to back-end messages and timely submit the correct relevant verification information as required.

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