Yihua Lu's Dilemma: Overdue Debt and a Pre-loss of Over 6.9 Billion Yuan in Three Years

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On the evening of April 2, EasyWay (“易华录”) released an announcement stating that, as of the date of the announcement, the company’s total overdue debts due at maturity that have not yet been repaid amounted to 63.4817 million yuan.

EasyWay has suffered consecutive losses in 2023 and 2024. In 2025, the company is expected to incur losses of 2.18B yuan–2.79B yuan; over three years, cumulative losses are expected to total 6.93B yuan–7.55B yuan.

63.4817 million yuan of overdue debt

EasyWay is a centrally administered enterprise (SOE) listed company controlled by China Electronics Technology Group Corporation, serving as a provider of transportation data services.

In its announcement released on the evening of April 2, EasyWay said that, based on the statistics and verification conducted by the relevant company departments as of the date of the announcement, the company’s total overdue debts due at maturity that have not yet been repaid amounted to 63.4817 million yuan, accounting for 8.71% of the company’s net assets audited for 2024.

EasyWay’s total overdue debt of 63.4817 million yuan involves 14 receivables, and the creditors include CGN International Financial Leasing (Tianjin) Co., Ltd., Hesheng Financial Leasing (Shanghai) Co., Ltd., AVIC International Financial Leasing Co., Ltd., and Beijing Bank Co., Ltd. Zhongguancun Sub-branch, among others. Of these, the Beijing Bank Co., Ltd. Zhongguancun Sub-branch has the highest amount involved, with 9 contracts totaling 38.5776 million yuan.

Image source: Company announcement

In response, EasyWay said the company will continue to actively negotiate with its creditors, develop relevant response plans, and strive to reach a consensus with the creditors as soon as possible on debt resolution solutions. At the same time, the company will make every effort to raise funds for debt repayment, such as by strengthening cost controls and accelerating the collection of accounts receivable, in order to resolve the issue of overdue debts as soon as possible.

EasyWay also said that, due to the overdue debt matter, the aforementioned creditors may take property preservation measures, including but not limited to freezing assets. The company may need to pay related default-related fees and other expenses arising from this, and may also face risks such as lawsuits or arbitration.

In addition, on March 20, EasyWay released an announcement regarding the company and its legal representative being subject to restrictions on high consumption.

EasyWay’s announcement stated that, in the case of the dispute between Shidai Lingyu and the company over a services contract, after trial by the People’s Court of Shijingshan District, Beijing, the court ruled that the company must pay Shidai Lingyu 2.14 million yuan in contract payments and other items such as litigation fees. Because the company did not pay the above amounts within the period specified in the enforcement notice, upon Shidai Lingyu’s application for enforcement, the court took measures to restrict consumption by the company and its legal representative, Xiao Yi.

In addition, EasyWay said that within a consecutive period of 12 months, the company and its controlling subsidiaries, as defendants, cumulatively had lawsuits and arbitrations involving a total amount of 57.1165 million yuan, involving 22 cases.

May face the risk of delisting and being flagged

On January 30, EasyWay released a pre-loss announcement, stating that it expects a net loss in 2025 of 2.18B yuan–2.79B yuan; after deducting non-recurring items, the net loss is expected to be 2.24B yuan–2.81B yuan.

Regarding the performance losses, EasyWay said that because the company has relatively large fixed expenditures such as financial expenses, it has not yet achieved a turnaround in operations from losses. According to the enterprise accounting standards, the company conducts impairment tests for assets related to the data lake business, and for equity investments in which the investment situations and certain operating conditions have changed. Based on the results of these tests, the company recognizes asset impairment provisions, which is the main reason for the company’s large losses.

The company said it will increase efforts in improving quality and efficiency, expand its advantageous businesses, and explore emerging businesses. At the same time, it will further enhance cost reduction and efficiency gains, reform the organizational structure, control and reduce cost expenditures, and strive to achieve a turnaround in operations from losses as soon as possible.

Worth noting is that EasyWay recorded losses of 1.89 billion yuan and 2.87B yuan in 2023 and 2024, respectively. For the three-year period from 2023 to 2025, cumulative losses are expected to total 6.93B yuan–7.55B yuan.

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Responsible editor: Yang Hongbu

【Source: China Securities Journal—China Securities Network】