Unable to repay debts? 60% of Paton's shares were sold, Xiaomi and Zongteng took control!

Unable to repay debts? 60% of Paton's shares were sold, Xiaomi and Zongteng took control!


I still remember that the incident of Global Easy Shopping defaulting on payments to many suppliers caused a stir in the cross-border circle, and Global Easy Shopping's parent company, Cross-border Communication, was also pushed to the forefront . Now, a major decision made by Cross-border Communication has shocked the entire cross-border circle, and it seems that the Global Easy Shopping incident will be put to an end...


On January 28, Cross-Border Link issued an announcement regarding the proposed sale of equity in its subsidiary and the signing of a framework agreement.


▲ Screenshot from Cross-border Communication Announcement


According to the "Framework Agreement", Cross-Border Communication plans to sell no less than 60% of the equity of its subsidiary Paton, and sign the "Framework Agreement" with the founding team, Xiaomi, Shunwei Dollar Fund, Wuhan Shunying, Wuhan Shunhong, Xiamen Hanrui, Zongteng Network, Zhou Min (or its designated party), CDH Futao (or its designated party), Jiajun Noron, Beijing Zhidian, Shenzhen Paton and other transferees.

▲ Screenshot from Cross-border Communication Announcement

Simply put, Cross-border E-commerce is preparing to sell its subsidiary Paton, and the buyers include the founding team, industry logistics giant Zongteng, and Lei Jun's Xiaomi. Some sellers said that this is the most important and most popular transaction in the cross-border e-commerce circle in early 2021!

Paton was founded in 2012 and became a subsidiary of Cross-Border Link Holdings in December 2015. It is committed to selling high-quality Chinese products all over the world, relying on platforms such as Amazon, Ebay, and Wish.

On August 26, 2020, Cross-Border Link released its semi-annual financial report for the first half of 2020. According to the financial report, during the reporting period, its total revenue reached 9.08 billion yuan, an increase of 1.31% year-on-year; net profit was 270 million yuan, a decrease of more than 40% year-on-year.

▲ Screenshot from Cross-border Communication’s 2020 first half financial report


During the reporting period, Cross-Border E-commerce's cross-border export e-commerce business achieved operating income of approximately RMB 5.69 billion, a year-on-year decrease of 4.53%. This part of the operating income came from Global Easybuy and Paton.

▲ Screenshot from Cross-border Communication’s 2020 first half financial report


Among them, Paton has accumulated more than 606 Amazon Bestsellers , with operating income of 204,714.67 million yuan , a year-on-year increase of 29.39% . Net profit was 15,223.78 million yuan , a year-on-year increase of 31.99%.

It can be seen that Paton contributed 56% of the net profit of Cross-border Communication, which is less than 20% of its revenue. The importance of Paton to Cross-border Communication is self-evident.

So why does Cross-Border Link want to sell no less than 60% of Paton’s shares?

In this regard, Cross-Border Link stated that this transaction was a decision made based on the company's development plan to reasonably adjust the company's business structure, and to further meet the needs of the company's strategic development layout and improve the company's asset utilization.

Sellers have expressed their opinions on this.

A seller expressed regret: In my personal opinion, it can be said that Paton is a dark horse dragged down by the market value dilemma of Cross-Border Link.

But some sellers believe that this is a good thing for both Cross-Border Link and Paton.

The seller said: For Cross-Border Link, it can refund the money owed to suppliers and let the Global Easy Shopping incident pass as soon as possible.

For Paton, with the support of capital, there is huge room for future development!

In fact, looking back at this list of transferees, many sellers are indeed optimistic about the development prospects of Paton:



Deng Shaowei is the chairman and general manager of Paton and a director of Global Easybuy. Liu Yongcheng is a director of Paton, Global Easybuy, and Youyi E-Commerce. Both are members of Paton's founding team.


Xiaomi is the world's third largest mobile phone manufacturer, with a market value of HK$730 billion and annual revenue of more than HK$200 billion.


Shunwei Capital was co-founded by Lei Jun and other senior figures in the investment and Internet industries. It has invested in companies such as iQiyi, NIO, and Kuaishou. Its investment areas include the Internet, smart hardware and manufacturing, and overseas expansion.


Zongteng Network is a well-known logistics supply chain service provider in the cross-border e-commerce industry. Last year, it completed a C1 round of financing of 500 million yuan.


Jiajun Nuorong’s limited partner Feishu Shenno Digital Technology (Shanghai) Co., Ltd. is one of the company’s suppliers.


Zhou Min is the chairman and general manager of Youyi E-Commerce, a wholly-owned subsidiary of Cross-Border Link.



It can be said that this move by Cross-Border Communication not only retained employees and core members, but also allowed Paton to gain the support of a large number of capitals.


In fact, as more and more cross-border e-commerce companies have obtained financing and even gone public in recent years, it is not difficult to see that the cross-border e-commerce industry is developing rapidly and is increasingly favored by capital. What do sellers think about this? You are welcome to express your views in the comment section~


Text ✎ Xiyue/
Statement: When reprinting this article, the title and original text must not be modified, and the source and original link must be retained.


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