The market value of “sports first share” plummeted by 97%, and noble bird’s debt default was on the verge of bankruptcy

On September 22, the domestic leisure sportswear brand guirenniao Co., Ltd. (hereinafter referred to as “* ST noble”, 603555. SH) said it had received litigation and arbitration due to its failure to fulfill its debt repayment obligation on schedule, involving a principal of 406 million yuan. The next day, * ST announced that it had received the enforcement ruling from Xiamen intermediate court and was listed as the person to be executed for failing to repay the “first phase of non-public directional debt financing instrument of 2016” on time, involving a principal of 80 million yuan. This is not the first debt default of * ST this year. According to the enterprise survey data, only in the first half of 2020, * ST dignitaries have been listed as Executees for many times, with a total amount of about 400 million yuan. < p > < p > on September 4, * ST announced that the company had entered the pre restructuring procedure because it could not repay the debts of 2.5 million yuan of Quanzhou qihuangxing Hardware Products Co., Ltd. on schedule. < p > < p > just because of the debt of 2.5 million yuan, * ST nobles have been pushed into the situation of bankruptcy and reorganization, which can not help but be lamented. At the same time, the market value ranking list of 16 similar listed enterprises released in July 2020 shows that the market value of * ST dignitaries with a market value of 42.7 billion yuan has shrunk to 1.081 billion yuan, which is in the bottom state. < / P > < p > the industry cycle and blind expansion led to successive outbreaks of debt crisis, which also dragged * ST nobles to the abyss. It can be predicted that if the future can not turn losses into profits, it will be waiting for a bottomless “abyss”. According to the enterprise survey data, in 2020, the number of legal proceedings faced by * ST dignitaries increased rapidly. Up to now, there are 14 legal proceedings, including information of 4 enforced persons, 8 judicial documents and 2 court announcements. In the past years, there were only three judicial documents at most. < p > < p > * according to the announcement on September 9, due to the shortage of capital liquidity, the balance of the company’s first non-public directional debt financing instruments in 2016 was 500 million yuan, the balance of “14 noble birds” corporate bonds issued in 2014 was 647 million yuan, and the bank loan balance was 1.410 billion yuan, all of which were overdue. Up to now, the company has not reached a specific debt settlement plan with all creditors. Due to overdue debts, some bank accounts including the company’s basic account, equity and equity investment funds of some subsidiaries, land and real estate have been frozen by the judiciary. In the future, the company will continue to face litigation, arbitration, assets frozen and other uncertainties. The announcement also shows that the number of shares held by the controlling shareholder of * ST noble bird group (Hong Kong) Co., Ltd. is 416 million shares, accounting for 66.2% of the total share capital of the company, which has been frozen and waiting to be frozen. < p > < p > with the aggravation of debt default, the * ST nobles enter the bankruptcy reorganization procedure. On September 4, * ST announced that the company received the decision from Quanzhou intermediate people’s Court of Fujian Province, and decided to start the pre reorganization procedure for the company. According to the decision, < / P > < p > on August 12, Quanzhou qihuangxing Hardware Products Co., Ltd. sued Quanzhou intermediate people’s law on the grounds that guirenniao Co., Ltd. was unable to pay off its due debts and was obviously lack of solvency The court applied for reorganization of guirenniao Co., Ltd. After the application of Quanzhou qihuangxing Hardware Products Co., Ltd., Quanzhou intermediate people’s court decided to start the pre reorganization procedure for the company from September 4, 2020, and appointed the liquidation group (mainly composed of Quanzhou Municipal government, Jinjiang Municipal government and intermediary agencies) of guirenniao Co., Ltd. as the temporary manager, the pre reorganization period is three months. The announcement also said that the decision of Quanzhou intermediate people’s court to start the pre reorganization of the company does not mean that Quanzhou intermediate people’s court finally accepts the company’s reorganization application, nor does it mean that the company officially enters the reorganization procedure. Even if the court formally accepts the reorganization application of the company, the company still has the risk of being declared bankrupt due to the failure of reorganization. < p > < p > with the increase of a series of debt default cases, * ST nobles are suffering from unprecedented credit crisis. On the evening of September 17, 2019, * ST noble announced that the company entrusted united credit rating Co., Ltd. to track the credit rating of “14 noble birds” corporate bonds issued by the company in 2014. The company’s main body and bond ratings were lowered from AA – to a, and the rating outlook was adjusted from “stable” to “negative”. < p > < p > on September 9, this year, * ST noble announced that the company’s stock has been subject to delisting risk warning since May 6, 2020. If the audited net profit attributable to the shareholders of the listed company in 2020 is still negative, the listing of the company’s shares may be suspended. < / P > < p > the data shows that the revenue of * ST noble in 2017-2019 is 3.252 billion yuan, 2.812 billion yuan and 1.581 billion yuan respectively, and the net profit is 157 million yuan, – 686 million yuan and-1.018 billion yuan respectively. Both the revenue and the net profit decrease greatly. < p > < p > in the first half of 2020, * ST noble’s profitability has not been improved: the revenue was 550 million yuan, down 31.74% compared with the same period; the net profit was – 160 million yuan, which further increased the loss compared with the same period. < / P > < p > “since the second half of 2018, due to the continuous decline of the company’s share price, the risk of equity pledge by major shareholders, the limited financing ability of the company and the decline of operating performance, the liquidity of listed companies has been strained. At present, the company can only maintain the stable operation of its main business.” *St noble person. At the same time, * ST’s debt is under pressure year by year. From 2017 to 2019, the total liabilities of the company were RMB 4.956 billion, RMB 3.223 billion and RMB 3.427 billion respectively, and the corresponding asset liability ratios were 65.36%, 67.81% and 87.20%, respectively. In the first half of 2020, the company’s asset liability ratio had expanded to 91.15%, while the asset liability ratio of Li Ning and Anta in 2019 was 43.22% and 48.9%, respectively, showing a significant difference. Due to the shortage of funds, it is more difficult for * st to repay the loan and interest on schedule. According to the data, the loan repayment rate of the company in the first half of 2020 is 6.36%, which is 33.13% lower than 39.49% at the end of 2019. < p > < p > according to the online annual report, * ST VIP’s sales network covers 31 provinces, autonomous regions and municipalities directly under the central government, and 5560 * ST noble brand retail terminals are in operation. By the first half of 2020, the number of stores will be 1958, with a decrease of 3602, or 64%. The poor performance of < / P > < p > is also obvious in the stock price. By the end of October 9, the company’s P / E ratio was – 1.12%, and the P / B ratio was 3.88. Compared with the same industry, the profitability was weak. < p > < p > looking back on the historical trend chart of stock price, at the end of May 2015, the stock price and market value of * ST Guiren had reached the high level of RMB 67.92/share and RMB 42.7 billion respectively; as of October 9, 2020, the stock price and market value were RMB 2 / share and RMB 1.257 billion, with a decrease of 97%. < p > < p > from the industry point of view, in the first half of 2020 market value list of sports and leisure clothing listed companies released in July 2020, Li Ning and Anta ranked first and second with 167.348 billion yuan and 55.104 billion yuan respectively, while * ST noble people ranked last with 1.081 billion yuan. < / P > < p > from the subversion moment of the first share of A-share sports to the present, it took only 6 years for the noble bird to be heavily debt ridden and be ranked the bottom of the performance by the capped St. the changes among them are deplorable. < p > < p > founded in 1987, * ST noble is mainly engaged in the R & D, production and sales of brand sports shoes and clothing, and also acts as sales agent for Nike, Adidas, converse, Li Ning, Puma and other well-known sports shoes and clothing. < p > < p > the founder Lin Tianfu started his business as a self-employed OEM. Like all the Fujian individual bosses who “love to fight, they dare to think and dare to rush.”. Since 2002, * ST noble people began to develop their own brands, focusing on the R & D, production and sales of brand sports shoes and sportswear. In January 2014, * ST nobles struck the bell on the Shanghai Stock Exchange, with a market value of more than 40 billion yuan, far higher than that of Tebu and Li Ning. Lin Tianfu also became the richest man in Quanzhou with a price of 19 billion yuan. However, after the listing, * ST noble people were not satisfied with only developing a single business, but began to march towards the direction of “all-round sports”, and then began to go downhill. According to the data, the net profit has not increased from 312 million yuan in 2014 to 332 million yuan in 2015 and 293 million yuan in 2016. < / P > < p > since the * ST noble person invested 240 million shares in Hupu sports in 2015, he has been on the road of diversification. In 2016, the company started business expansion, spent 810 million yuan to acquire the controlling rights of three subsidiaries, and generated 575 million yuan of goodwill. In 2017, the company invested 367.5 million yuan to acquire the remaining 49% equity of mingshoku, and also subscribed for 45.45% equity of Hubei Shengdao sports. < p > < p > in just a few years, * ST has made more than ten acquisitions, involving sports competition and entertainment, sports consumption, college students’ sports, sports industry investment, football brokerage, insurance and other fields, which has laid a huge hidden danger for the company’s performance. < / P > < p > in 2017, the company’s profit was only 157 million, with a year-on-year decrease of 46.42%. In 2018, the company’s profit now lost for the first time, reaching 686 million yuan, a year-on-year decrease of 536.01%, and the loss in 2019 will continue to increase. < / P > < p > the main business has not been consolidated, and the acquisition business has not achieved the expected synergy effect. At this time, the revenue of Anta and Li Ning has already crossed the threshold of 20 billion yuan and 10 billion yuan, while the largest revenue of * ST noble remained at 3.252 billion yuan in 2017. < / P > < p > at this time, * ST’s talents woke up from a dream and began to sell the business they had acquired before in order to return to the main business. However, the company has been dragged to the brink of death by the outbreak of debt default. At this time, it seems that it is too late to return. In addition, the distribution model has also been criticized. The previous sales model was to provide financial support for dealers. According to the data, from 2015 to 2017, * ST provided a total of 1.942 billion yuan, 1.745 billion yuan and 1.419 billion yuan to dealers, accounting for 86.85%, 73.2% and 50.9% of the company’s latest audited net assets, respectively. < / P > < p > the above-mentioned subsidies were not submitted to the general meeting of shareholders for deliberation and information disclosure. Therefore, the then CFO of the company was criticized by the Shanghai Stock Exchange at that time. In 2018, * ST began to adjust the dealer system, but the performance was not obvious from the increase of performance loss in the past two years. < p > < p > in addition, * ST’s sports shoes and clothing market competition is fierce. On the one hand, foreign giants Nike and Adidas attack the domestic market strongly; on the other hand, domestic brands Anta, 361 degree, special step, etc. have always been in the competition. Under the internal and external troubles, their own advantages in product design, brand recognition, price and other aspects are not obvious, resulting in the loss of offline products increasing year by year. < / P > < p > in the face of debt distress and declining performance, * ST how can you help yourself? Some people in the market believe that the best way out for * ST dignitaries is to find a buyer and combine capital operation with debt restructuring. < p > < p > looking at the plight of * ST, its development track is the same as that of some famous shoe enterprises in Jinjiang. This year is very important for the * ST nobles. Will the salted fish turn over or withdraw from the A-share market? “Investor net” will continue to pay attention. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. 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