News on March 11, Tianyancha showed that Shandong Ruyi Technology Group Co., Ltd. (hereinafter referred to as “Shandong Ruyi”) was seized by Jining City on March 10 The Intermediate People’s Court listed the person subject to execution, the case number is (2021) Lu 08 Zhi No. 109, and the execution target is 206 million yuan. As of now, the cumulative total amount of Shandong Ruyi’s execution targets has been nearly 5.132 billion yuan.
Public information display , Shandong Ruyi is the only large-scale multinational enterprise in China that integrates wool spinning, cotton spinning, printing and dyeing, chemical fiber, clothing retail, knitting, home textiles and other textile industries to complete terminal brand operations. Its brands include Swiss luxury brand Bally, Japanese RENOWN, German Peine Gruppe, French luxury group SMCP, British brand Aquascutum, Hong Kong Trinity, and American LYCRA.
Under the epidemic, Shandong Ruyi has become increasingly unruly. According to the third quarterly report disclosed by Ruyi Group on October 29, the company’s net profit attributable to the parent company in the first three quarters Then it fell 70.9% year-on-year to 20.636 million, and non-net profit after deducting it fell 161.48% year-on-year.
Libon Holdings Co., Ltd. (“Libon”), a high-end men’s clothing retailer controlled by Shandong Ruyi Group, announced that due to the epidemic, the company is located in The markets in the group’s main operating regions such as Mainland China, Hong Kong, Macau, Taiwan, France and the United Kingdom continue to be weak, and consumer sentiment for high-end men’s clothing products is sluggish. The company expects to make a profit compared with HK$50.353 million in the same period last year. Turning into a loss, the company suffered a loss of HK$200 million in the year ended December 31, 2020.
Previously Trinity’s 2020 interim report showed that during the reporting period, the company achieved operating income of HK$393 million, a year-on-year decrease of approximately 61.86%. The net profit attributable to the parent company The profit loss was approximately HK$161 million, compared with a profit of HK$76.596 million in the same period last year. At that time, the company explained that the decline in operating income was mainly due to the severe impact of the epidemic.
From an industry perspective, industry insiders believe that since the beginning of 2020, terminal retail has been affected by the epidemic, and various segments of the apparel industry have shown different terminal recovery ability. Among them, the sports shoes and apparel sector is relatively at a high level of prosperity, and the terminal recovery elasticity is relatively large. The mass apparel and mid-to-high-end apparel sectors are still recovering, but the performance of different companies is different.
However, Ruyi Group showed that the company had liquidity problems long before the epidemic, and there were major Debt repayment pressure. The epidemic is more like a fuse that suddenly detonated the crisis of the entire Ruyi Group.
According to China Business News, after Shandong Ruyi acquired 41.53% of Renown’s shares for 4 billion yen (approximately 310 million yuan) in 2010, ” As of 2019, it has spent more than 35 billion yuan on acquiring international brands.
Data show that Shandong Ruyi’s latest public acquisition information is also the largest capital consumption in the company’s history. Pen, which occurred in February last year, acquired 100% equity in the US Invista apparel and advanced textiles business for US$2.6 billion (approximately 17.9 billion yuan). The company owns the famous fabric brand LYCRA.
Because of these large-scale acquisitions, Shandong Ruyi was placed in the top 20 of the “Top 100 Global Luxury Products in 2017” compiled by Deloitte. In 2018, Bloomberg also wrote a report on Shandong Ruyi with “Beware, the Chinese version of LVMH is coming”.
Due to the acquisition of multiple overseas fashion brands, Shandong Ruyi has become an important player in the field of affordable luxury, and was once recognized by the industry as the “Chinese version of LVMH” . However, large-scale acquisitions in the past decade have also gradually exposed the company’s debt crisis.
As early as March 11, 2020, Dagong International issued an announcement stating that in view of the increased legal and financial risks faced by Shandong Ruyi, short-term debt repayment pressure is very high. It is large, and its refinancing ability is limited and its debt repayment ability has declined. It was decided to lower its main credit rating from “AA+” to “AA-“, and the rating outlook was adjusted to “negative”.
On February 20, 2021, the National Association of Financial Market Institutional Investors issued self-disciplinary punishment information stating that Shandong Ruyi failed to disclose the first half of 2020 and the third Third quarter financial information, and the default of the company’s debt financing instruments is a situation that should be dealt with seriously or aggravatedly, it was decided to take self-disciplinary measures of notifying and criticizing it, and ordering it to carry out comprehensive and in-depth rectification of the problems exposed in this incident .