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"Shoes King" Bird Company May Be Implemented Risk Warning For Delisting

2020/3/23 17:17:00 0

DelhiDelisting

On the evening of March 19th, the "A share movement brand first stock" - Limited by Share Ltd (hereinafter referred to as "noble bird") issued a risk warning notice. The company's net profit attributable to 2018 is negative. It is estimated that the net profit attributable to 2019 will remain negative, and the company's stock can be implemented as a warning of delisting risks.

The precious birds issued a performance notice earlier. It is estimated that the net profit attributable to shareholders of listed companies will be -7.65 billion yuan to -9.15 billion in 2019. The net profit attributable to shareholders of listed companies after deducting non recurring items is -7.1 billion yuan to -8.6 billion yuan.

Along with the announcement, there are also news of the company's new assets freeze and some of its shares held by the controlling shareholder.

The announcement indicates that the VIP bird holding shareholder VIP bird group (Hongkong) Co., Ltd. (hereinafter referred to as "the noble bird group") has the enforcement effect of notarization letter of credit with the Xiamen International Trust Co., Ltd., and the Xiamen intermediate people's court will freeze the 37 million 695 thousand shares of the company's unlimited sale of conditional shares held by the noble bird group, of which 33 million shares have been pledged. The other 4 million 695 thousand shares of the unlimited sale of tradable shares were auctioned second times at the Jingdong judicial auction platform (sifa.jd.com) from 10 hours in January 22, 2020 to 10 hours in January 23, 2020. According to the auction results displayed on the Jingdong judicial auction platform, the auction was taken.

Recently, the company received a notice from the guinen group that the intermediate people's Court of Xiamen, Fujian Province issued a "sale notice" to the guinen bird group. It intends to sell 4 million 695 thousand shares of the above unlimited sale shares in guinen bird group for second auction reserve price of RMB 4.20 yuan / share by selling the total stock price of 19 million 719 thousand yuan as the selling price.

You see, the shares sold by the judiciary are 4 million 695 thousand tradable shares of the company held by controlling shareholders, accounting for 0.75% of the total share capital of the company, accounting for 0.98% of the shares held by the controlling shareholders. The sale will not lead to changes in the controlling shareholders and actual controllers of the company.

    In addition, the civil ruling issued by the Jinjiang people's Court of Fujian province showed that the 27.682% stake held by the company's Quanzhou Quan Xiang Investment Center (limited partnership) (hereinafter referred to as "Quan Xiang investment") was frozen by law. As of now, the company's total frozen assets have a Book value of 1 billion 174 million yuan, accounting for 24.72 of the latest audited assets of the company. %. Some of the assets of the company are frozen as the property preservation measures adopted by the relevant parties, which only have a limited impact on the disposition of the equity assets, and have not yet had a significant impact on the daily production and operation activities of the company and its subsidiaries. The company will resolve the above assets freeze as soon as possible, and reduce the impact on listed companies.

At present, the noble bird is still facing the risk of large debt default. Due to overdue debts, the future will continue to face uncertainties such as litigation, arbitration and assets freeze. The company will continue to actively cooperate with the trustee and creditors to communicate with each other, fully understand the creditors' ideas and demands, consult with the relevant creditors as soon as possible, and try to reach agreement on the debt solution and jointly solve the debt problem.

According to public information, the bird was founded in July 2004. The largest shareholder of the company is the precious bird group (Hongkong) Limited. Its shareholding ratio is 76.22%, and the company's actual control is Lin Tianfu. The company issued shares on the main board of the Shanghai Stock Exchange in January 2014.

Taking inventory of the history of the birds, we should start from 1986. At that time, Lin Tianfu, a Chinese Hongkong, came to Fujian to do business. In the form of "shoe capital", Quanzhou Jinjiang successively took the production, processing, OEM and export trade of sports shoes in the form of individual industrial and commercial households, Fujian Jinjiang shoe and Clothing Co., Ltd. and Fujian Guizhou bird Sports Products Co., Ltd.

Like most of the "Jinjiang Department" enterprises, after years of OEM for international sports brands, the great bird has developed into an independent brand since 2002.

In order to enhance brand awareness, Lin Tianfu invited Andy Lau, Cecilia Cheung and other entertainment stars as spokesmen, and won fame in the three or four tier city market. In 2007, the precious man bird sponsored the Hunan TV's "Happy Men's voice" program. With the explosion of the program, the brand of "noble bird" became famous.

However, since 2014, the company has been struggling for a long time. The net profit of the company was 312 million yuan, down 26.27% from the same period last year. In 2018, the total operating income of the company was 2 billion 812 million yuan, down 13.52% from the same period last year, and the gross gross profit margin was 28.65%, down 5.80% compared with the same period last year. Among them, the sports shoes and clothing were reduced to 2 billion 545 million yuan, down 16.48% from the same period last year, and the gross profit rate was 26.18%, down by 6.58% compared with the same period last year. In the first three quarters of 2019, the company's operating income was 1 billion 169 million yuan, down 49.20% from the same period last year.

As of June 30, 2019, the brand marketing network of the noble bird has covered 31 provinces, autonomous regions and municipalities directly under the central government. The number of retail terminals is 2685, and the total retail terminal area is 217772 square meters. According to the classification of cities, there are 287 retail outlets in the first tier cities, 568 retail outlets in second tier cities, and 1 retail outlets in three cities. There are 746 retail outlets in 084 cities and four line cities. According to the regional division, there are 286 in East China, 498 in the southwest, 310 in Central China, 306 in Southern China, 552 in the northeast, 480 in North China, and 253 in the northwest.

By the second half of 2019, the brand competition of sports shoes and clothing industry is fierce, and the terminal sales pressure is still great. It still takes a certain time to optimize the channel structure and operation mode.

Yu Xuhui, an analyst with Changjiang Securities, has said that the "single brand store" is the main retail mode of sports shoes and clothing products in the local market, while in the developed economies, the "multi brand store" is the majority. This is related to the different retail environment at home and abroad, the starting time of sports brand in different markets, and the maturity of sports development. Comparatively speaking, the advantage of a single brand store is that it can better display the brand image. As a physical extension of brand value proposition, it can provide customers with better brand image and experience. At the same time, the store area and shop investment are low, and it can achieve rapid expansion in the early stage of development. The advantages of multi brand store are more reflected in providing one-stop shopping convenience for consumers, but the shortcoming is that the products are slower and show less brand image, and can not achieve more in-depth information transmission and communication with consumers.

In recent years, with the rapid development of efficient e-commerce channels, the flow of traditional sports retailers has declined. Meanwhile, in order to enhance interaction with consumers, brand operators are gradually increasing the proportion of self operated channels, and the advantages of single brand stores are further highlighted. Against this background, multi brand stores have been hit first. Since 2016, many foreign sports retailers including SportsAuthority and MCSports have applied for bankruptcy.

In view of Xu Hui's view, the local sports brand at the early stage of development is weak and the profitability is not guaranteed. Therefore, the distributor system is mainly based on some small distributors, and can not be connected to the retailers with better operation ability. However, with the gradual improvement of brand strength, the Distribution Department is also gradually optimizing and gradually eliminating some small dealers with less efficiency in operation. Retail sales promotion. Unlike the suppliers and brands in the industry chain, retailers, as the last link of the industry chain, directly connect with consumers. The terminal discount rate, dynamic sales and inventory level directly affect the retailer's profitability and operation level, and the business risk is relatively high. At the same time, in the context of the increasingly declining channels of electricity supplier channels, brand operators have increased the proportion of direct sales to achieve direct docking with consumers, the pressure of traditional retailers is also gradually increasing, from the traditional rugged development to meticulous upgrading is imminent.

Zhou Guannan, an analyst with Huachang securities, said that since 2016, the debt of the precious birds has increased significantly, and the debt burden has continued to increase. In 2016 -2018, the total debt of the company was 4 billion 791 million yuan, 4 billion 956 million yuan and 3 billion 223 million yuan respectively. Meanwhile, the asset liability ratio increased year by year, 60.62%, 65.36% and 67.81% respectively. In 2019, corporate debt continued to grow. At the end of the three quarter, the total debt was 3 billion 342 million yuan, and the asset liability ratio increased to 68.42%. The debt burden has been heavy for a long time and is facing greater pressure of short-term debt repayment. At the same time, the share pledge ratio of the controlling shareholders of the company has reached 100%. Since August 2014, the shares held by the controlling shareholder of the company have been continuously pledged. By the end of 2018, the controlling shareholders held a total share of the company's shares, all of which had been mortgaged, accounting for 76.22% of the total share capital of the company. By August 3, 2019, the number of shares held by controlling shareholders was 67.86% of the total share capital of the company, and there was a risk of waiting freeze. On the whole, the debt pressure of the company is heavy and the channel of refinancing is limited. The company is in serious liquidity crisis.

Zhou Guannan thinks that capital operation is frequent, and investment field is extensive and more radical. It brings the risk of goodwill impairment, and has a greater negative impact on the performance of the company. Since 2015, there have been ten capital operations, involving sports brokers, sports games, events hosting and Internet + sports. Since 2016, the company has spent 810 million yuan to acquire the controlling power of 3 subsidiaries and generate 575 million goodwill, which has hidden danger for the company's performance. In June 2016, GUI Ren bird invested 383 million yuan to buy Jay's 50.01% stake and increased its capital. Jay's main business scope involved sporting goods, daily general merchandise, sports venues investment and sports events planning. In the following three years, Jay's performance was not fulfilled, and the transfer of 50.01% of the shares held by 2018 people at the end of 2018 would result in a total investment loss of 112 million yuan. In August 2016, the 383 million yuan purchase of the precious bird contributed to 51% of the shares of the famous shoe store, which was provided by the sports brand business to provide the electronic business operation service and collect the service fee mode. In 2017, it also invested in the remaining 49% of the shoe stock, and then the shoe store also failed to complete its performance pledge. The bird made 93 million 200 thousand yuan in the 2018 earnings report.

Zhou Guannan said that the situation of "noble birds" also shows that companies with large short-term debt may face a lot of concentrated repayment pressure, and easily fall into the liquidity crisis. When observing the debt burden of a company, they should not only pay attention to the absolute amount of their debts, but also pay more attention to the relative value of different types of debt, especially the high short-term debt and the total debt. Companies that are on the rise will be more likely to get into a liquidity crisis.

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