The cross-border e-commerce industry has been shaken by the financial troubles of Youkeshu, once a star performer in the sector. Parent company Tianze Information recently defaulted on a 60 million yuan ($8.4 million) loan, resulting in two of its properties being seized by courts—a dramatic fall from grace for the former industry leader.
The Debt Crisis Unfolds
According to Tianze Information's public disclosures, the crisis stems from a loan agreement signed with SPD Bank's Nanjing branch on March 5, 2020. The 60 million yuan loan was originally due on March 6, 2021, but the company failed to repay on time. While partial repayment was made using deposit funds, 2.15 million yuan in principal remains outstanding, along with 5.26 million yuan in accumulated interest, penalties, and compound charges.
The Nanjing Intermediate People's Court has accepted the bank's lawsuit and ordered the seizure of two properties—one in Nanjing's Jianye District and another in Zhengzhou's High-Tech Industrial Development Zone.
A Pattern of Financial Troubles
This isn't Tianze's first liquidity crisis. Last year, the company suffered massive losses from Amazon store suspensions and defaulted on loans totaling 89 million yuan. To settle those debts, Tianze auctioned its Tianze Xingwang building in Nanjing. The current property seizures mark a worrying repeat of this pattern.
The Exchange Rate Factor
The loan's collateral arrangement has compounded the problem. Tianze pledged 1.17 billion yen ($7 million at 2020 rates) from its Japanese subsidiary TIZA Co. as offshore collateral. However, the yen's 30% depreciation against the yuan since 2020 has dramatically reduced the collateral's value—from covering the full loan to now being insufficient.
Industry Challenges Mount
Analysts note Tianze's struggles reflect both internal management issues and broader industry headwinds. Intensifying competition, rising operational costs, fading pandemic-era e-commerce booms, and Amazon's stricter policies have created a perfect storm for cross-border sellers.
In contrast, top performers like Everbright and Anker have adapted to platform changes, demonstrating that strategic agility remains key to survival. Tianze's predicament serves as a cautionary tale about over-reliance on single platforms and the importance of hedging against currency risks.
As the post-pandemic e-commerce landscape evolves, 2022 presents unprecedented challenges for cross-border sellers. Companies must balance growth ambitions with robust risk management to navigate this volatile environment.