Bombshell! Revenue of top 500 cross-border enterprises plummeted by 99%!

Although we had previously predicted that many cross-border e-commerce companies would fail this year, we did not expect such a big failure this time. The companies we talked about earlier pale in comparison to this one.

Pegasus International Supply Chain Co., Ltd.

(hereinafter referred to as Pegasus)

This is a cross-border logistics giant that has ranked 124th among China's top 500 companies and has a peak revenue of over 60 billion. All the companies listed on the same list are monster-level companies.

On this monster list, Tencent ranked 7th and Sunshine Insurance ranked 12th, and Pegasus ranked 20th.

Such a cross-border logistics giant has recently been exposed to major problems. Not only has its funds been frozen , but it also faces the risk of being forced to delist .

What happened to Pegasus?

Is it the suppression from my brother-in-law? Or the anger from the seller?

Let's

To summarize a few things that happened to Pegasus,

First , the China Securities Regulatory Commission opened an investigation into Pegasus for suspected violations of laws and regulations in information disclosure, and released an announcement at the end of last month, revealing that if the investigation results show that Pegasus has violated regulations, it will be suspended from listing on the Shenzhen Stock Exchange.

Second , Pegasus’ actual controller, Huang Zhuangmian, was listed on the list of dishonest debtors by the Shenzhen Intermediate People’s Court and his consumption behavior was restricted.

Third , due to tight cash flow, litigation matters and overdue commercial bills, Pegasus’ multiple bank accounts were frozen and its equity stake in some subsidiaries was frozen.

As of May, a total of 21 bank accounts of Pegasus and its subsidiaries had been frozen, with frozen funds of approximately 53.68 million yuan.

The fourth and most serious incident is that Pegasus was issued a " delisting risk warning " by the Shenzhen Stock Exchange on May 6. Not only was the securities name changed from "Pegasus International" to "*ST Pegasus", but the price fluctuation range was also limited to 5%.

In addition, Pegasus’ stock will be suspended after 30 trading days starting from May 6. The Shenzhen Stock Exchange will decide whether to suspend Pegasus’ stock listing within 15 trading days after the suspension, and may even directly force Pegasus to delist.

How did Pegasus end up in such a predicament? In summary, there is only one reason: the capital flow was cut off.

Last year's annual report revealed that the cross-border logistics giant's operating income had plummeted by one-third.

The net profit attributable to shareholders of the listed company was -2.208 billion yuan, which means a loss of 2.2 billion yuan. The data in 2017 showed a profit of 305 million yuan.

The huge losses brought about a series of chain negative effects, the first of which was various financial loan disputes, trade disputes and labor disputes, involving as many as 41 lawsuits.

We can see that there are many lawsuits initiated by various banks, involving amounts of hundreds of millions.

Because of these lawsuits, Pegasus' actual controller Huang Zhuangmian and his investment holding company were included in the blacklist of dishonest persons, and most of the Pegasus shares they held were pledged or frozen.

The liquidity difficulties and declining guarantee capacity of the controlling shareholder directly dealt a fatal blow to Pegasus. In the first quarter of this year, Pegasus' operating income plummeted by 99.36%.

No wonder it was investigated by the China Securities Regulatory Commission and the Shenzhen Stock Exchange issued a "delisting risk warning". Once the capital flow was cut off, various events followed one after another and directly brought Pegasus down.

From husband-and-wife teams to Fortune 500 companies, no company can withstand the chain reaction brought about by a broken capital chain.

At present, Pegasus’ chances of making a comeback are very slim. We should still take this as a warning and manage the account terms, collection of payments and other links that directly affect the flow of funds to avoid the risk of capital interruption.

I have prepared some benefits for you on how to manage your cash flow. You can scan the QR code to get them from me~

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

Source: Cross-border Business School

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