Chinese Company's 80% Stake Sells for $0.15, Raising Eyebrows and Sparking Debate
The recent online auction of an 80% stake in a Chinese company for a mere 1 yuan (approximately $0.15 USD) has raised eyebrows and sparked intense debate on social media. The auction, which took place on the Ali Assets platform, has been viewed with a mix of skepticism and curiosity, with many questioning the legitimacy and potential pitfalls of such a deal.
7 February 2025
The company in question, Salt City Quick Logistics Management Co., Ltd., is a relatively new entity, established in April 2023, with a registered capital of 1 million yuan. Its controlling shareholder, Wuxi Quick Culture Media Co., Ltd., holds an 80% stake, while a natural person, Geng Lin, holds the remaining 20%. However, what has raised concerns among observers is the lack of transparency regarding the company's financial situation, including its assets, liabilities, and potential debts. The auction page on the Ali Assets platform does not provide any information on these crucial aspects, leaving potential bidders in the dark.
A search on the Tianyancha database reveals that the company has a history of high-risk information and an outstanding tax payment notice, which could indicate underlying financial issues. In response to the public's concerns, the Wuxi Liangxi District People's Court, which supervised the auction, has stated that the bidding process was open and transparent, with proper notification procedures in place. Nevertheless, the court has cautioned that purchasing such a significant stake in a company carries considerable risk, especially when the price is as low as 1 yuan.
The court's warning suggests that there may be more to the story than meets the eye, and that potential buyers should exercise caution and carefully evaluate the company's financial situation and potential liabilities before making any investment decisions. Many netizens have expressed skepticism about the deal, with some pointing out that "there's no such thing as a free lunch" and that there must be some underlying issue or loophole that made this possible. Others have raised practical concerns, such as whether the buyer would be responsible for the company's debts, if any.
As the news continues to generate buzz on social media, experts warn that there may be more to the story than meets the eye. The lack of transparency and potential financial liabilities associated with the company have led many to speculate about the true nature of the auction and the motivations of the parties involved. The incident has highlighted the need for caution and due diligence when engaging in business transactions, especially when it comes to acquiring shares at unusually low prices. Despite the court's assurance of transparency, many remain skeptical about the legitimacy of the auction and the potential implications for the company's future.
