According to the announcement of Yiwu Huading Nylon Co.Ltd(601113) ( Yiwu Huading Nylon Co.Ltd(601113) , SH) on March 29, Shenzhen tongtuo Technology Co., Ltd. (hereinafter referred to as tongtuo Technology), a wholly-owned subsidiary of the company, was deducted and frozen on the PayPal account bundled with its independent station (self operated website). As of March 28, the deducted funds were 54.245 million yuan and the frozen funds were 24.246 million yuan.
The reporter of “daily economic news” found that this is not the first time that tongtuo technology has been frozen. Since the middle and late July of 2021, the stores involved in many brands of tongtuo technology have been suspended by Amazon and the funds have been frozen.
was deducted and frozen, totaling 78.491 million yuan
According to the announcement, during the routine inspection, tongtuo technology found that part of the funds of the PayPal account bundled by its independent station were abnormal. At the same time, it received an email notice sent by the PayPal customer support center, and was deducted the liquidated damages for violating the rules for the fair use of PayPal.
Yiwu Huading Nylon Co.Ltd(601113) said that tongtuo technology is still communicating and investigating the specific reasons. The deducted amount is 54.245 million yuan, accounting for 5.59% of the audited monetary capital of the listed company at the end of 2020.
Meanwhile, the funds of PayPal account bundled by tongtuo technology independent station were frozen for 24.246 million yuan, mainly because the products sold on the independent station were suspected of infringing the trademark right of the prosecution.
It is reported that the clothing, toys and other products sold by tongtuo technology on the website of the independent station have been sued by many companies for infringement of their trademark rights. Tongtuo technology has entrusted an American lawyer to respond to the lawsuit and follow up the case.
The PayPal accounts bundled by tongtuo technology in the independent station, of which 29 accounts have been deducted; Six accounts were sued for infringing trademark rights for products sold by bound independent stations. For other accounts bundled with PayPal, according to the regulations of PayPal, after the withdrawal function of the account is closed, the last payment can be applied for normal collection after 180 days.
Yiwu Huading Nylon Co.Ltd(601113) said that tongtuo technology will immediately start the official negotiation with PayPal. For the account number of the allocated funds, send a letter of appeal to the official mailbox of PayPal, asking to explain the clear reasons and factual basis of the allocated funds. At the same time, contact the American lawyer to prepare relevant materials and promote the preparation for starting judicial proceedings.
In addition, the company will conduct self inspection on the association of PayPal account and strengthen the operation and supervision of sales divestment. Promote the classified processing of independent station business and carry out relevant public relations communication. The company will pay close attention to the above cases in the future, actively respond to the cases and unfreeze relevant funds, and entrust American lawyers to respond to and follow up.
has not been frozen for the first time
In fact, this is not the first time that tongtuo technology has been frozen. According to the announcement of Yiwu Huading Nylon Co.Ltd(601113) 2021 on August 5, since the middle and late July, the stores involved in many brands of tongtuo technology have been suspended by Amazon and the funds have been frozen.
After investigation, the reason may be improper comments on some products, suspected of violating Amazon platform rules. As of the date of the announcement, tongtuo technology has been banned from selling and closed a total of 54 stores, suspected of freezing 41.43 million yuan of funds, accounting for 4.27% of the monetary funds of the listed company at the end of 2020.
Yiwu Huading Nylon Co.Ltd(601113) at that time, tongtuo technology said that in view of the above industrial problems of cross-border e-commerce, tongtuo technology had lodged a complaint with Amazon platform, striving to restore the sales of relevant brand stores as soon as possible, lift the capital freeze, and hired professional lawyers to prepare for arbitration. At the same time, increase the sales proportion of other e-commerce platforms such as eBay, Wal Mart, express, lazada and so on, increase the investment in tongtuo technology self operated websites, and actively expand the offline physical store channels in Europe and the United States.
After the funds are frozen, Amazon platform can use the restricted funds to repay consumers’ after-sales compensation, return refund and other unpaid expenses of the seller.
On November 25, 2021, the listed company received a notification letter from tongtuo technology on the progress of relevant matters. Tongtuo technology has used a total of 15.69 million yuan to pay Amazon storage and logistics expenses, deal with early-stage consumer after-sales compensation and return refund. At that time, the balance of the above frozen funds was 25.74 million yuan, accounting for 2.65% of the monetary funds of the listed company at the end of 2020.
On March 29, the listed company received the progress notification letter again. Tongtuo technology has used a total of RMB 2007 million in the way of limited funds to pay Amazon storage and logistics expenses, deal with early-stage consumer after-sales compensation and return refund, and the frozen fund balance is RMB 21.36 million.
