Decline In Performance, Equity Pledge High Bird Rating Was Downgraded To "Negative"

The development of the traditional footwear industry has aroused people's concern after the collapse of the "shoe king" and the bird of fortune.

Located in the "shoes capital" market, the 603555.SH is today announced that the company's main credit rating has been downgraded from "AA-" to "A" by the rating agency, and the rating outlook has been adjusted to "negative". Meanwhile, the credit rating of "14 noble birds" has been lowered from "AA-" to "A".

The current balance of "14 noble birds" is 647 million yuan, and the expiration date is December 3rd this year. At this time, the ratings of the birds were downgraded, triggering the concern of investors for the payment of "14 birds of honor".

You bird is a comprehensive enterprise that integrates research and development, production and marketing of sports shoes, clothing and supporting products.

To this end, the reporter called the relevant person in charge of the Ministry of human relations and securities.

Ratings were downgraded

In September 17th, the joint credit rating Company Limited (hereinafter referred to as "joint rating") announced that it would reduce the main credit rating from AA- to A, and the rating outlook was "negative". At the same time, the credit rating of "14 noble birds" was reduced from AA- to A.

On the downgrading reasons, the joint rating said that according to the August 27, 2019 annual report released by the company in August 27, 2019, the company's operating income in 2019 1-6 was 810 million yuan, down 47.27% from the same period last year, net profit from 34 million yuan in the same period last year to -0.59 billion yuan, and net cash in operating activities changed from 555 million yuan in the same period last year to -0.20 billion yuan. The sales pressure of the brand is increasing, and the company's provision for bad debts is increasing. Meanwhile, the sales cost has increased sharply due to the implementation of the direct sales mode.

At the same time, the joint rating said that taking into account the land and housing holdings of the company are mortgaged, the difficulty in disposing of non core assets and the tight liquidity of funds, the joint rating decided to reduce the company's main credit rating from AA- to A, and the rating outlook was adjusted to "negative". At the same time, the credit rating of "14 noble birds" was reduced from AA to A.

Decline in performance

In the first half of 2019, the company realized operating income of 810 million yuan, 47.27% less than that of the same period last year, and realized a net profit of -5837.07 million for shareholders belonging to the listed company, a decrease of 269.59% over the same period last year.

At the end of April, precious birds revealed a sharp decline in 2018. During the reporting period, the company achieved operating income of 2 billion 812 million yuan, representing a decrease of -13.52% compared with 3 billion 252 million yuan a year earlier, with a business cost of 2 billion 7 million yuan, a decrease of 5.87% compared with the same period last year, and a consolidated statement net profit of -6.94 billion, a decrease of 469.40% over the same period last year. The net profit of the shareholders belonging to the listed company was -6.86 billion yuan, down 536.01% from the same period last year.

In addition to the decline in performance, the joint rating released in June's 2019 tracking rating report said that the "noble bird" faces five major operational risks. First, the company's performance losses; second, the decline of the brand; third, the risk of accounts receivable recovery and the risk of inventory declines; fourth, the risk of new brand cultivation; fifth, the risk of debt default.

In 2018, the scale of financing of the precious birds was greatly reduced, and the liquidity of the funds became tense. At present, there are two bonds that are due to expire within one year: the amount of the first non-public directional bonds issued in 2016 is 500 million yuan and the amount of corporate bonds issued in 2014 is 647 million yuan, which will expire in November 10, 2019 and December 2, 2019 respectively.

The joint rating said that if the company failed to deal with non core assets in a timely manner or sought new financing channels to raise enough funds, the company would face the risk of default.

Major shareholder over 99% equity pledge

At present, the shareholding structure of the VIP bird is 76.22%, holding the company's controlling shareholder. Lin Tianfu, a natural person, owns 76.22% of the company's stake in the company through its wholly-owned holding company, and is the actual controller of the company.

On the one hand, the most important shareholder of the great bird is the risk of debt default. On the other hand, it is concerned that the stake of the bird of honor is over 99%.

The reporter inquired about Wind. At present, the largest shareholder of the company is holding 474 million 420 thousand shares, which account for 75.47% of the total share capital, accounting for 99.02% of the total number of shares held.

Behind the high pledge, reporters found many trust agencies and securities dealers.

Among them, in the unpledged share pledge, among the unpledged share holders, they include Shen Shen trust investment, international trust, Ping An Trust, Zhejiang merchants Jinhui trust, Zhongyuan trust, international trust, Huarong securities, and international trust.

The joint rating also indicated that all the shares held by the controlling shareholder of the company are all hypothecate, and the debt repayment pressure of the company's mature debts is very large, which is faced with great liquidity pressure.