Once upon a time, Guirenniao had an unparalleled reputation, “riding a crane to Yangzhou with a hundred thousand dollars in pockets” and became the most eye-catching sports brand in China. But people are not as good as a hundred days, and flowers are not as red as a hundred days. Today, the noble bird broke its wings and fell on the land it once loved.
A few days ago, the managers of Guireniao Co., Ltd. (hereinafter referred to as “Guirenniao”) issued an announcement on the progress of Guireniao’s reorganization.
The announcement pointed out that the first creditors meeting of the Guirenniao reorganization case was hosted by the Quanzhou Intermediate People’s Court and was held in the form of an online meeting at 9:30 am on January 14, 2021. This creditors meeting successfully completed the scheduled meeting agenda, and voted and approved the “Property Management and Valuation Plan (Draft) for the Reorganization Case of Guirenniao Co., Ltd.” and the “Proposal for Continuing Business During the Reorganization Period of the Reorganization Case of Guirenniao Co., Ltd.”. It is reported that as of January 11, 2021, the deadline for Guireniao’s creditor’s rights declaration, 154 creditors have declared their creditor’s rights to the administrator, with a total declared amount of RMB 4.0836 billion. Guireniao stated that the court has ruled that Guirenniao has entered the reorganization process, but there is still a risk of being declared bankrupt due to failure of reorganization. If Guirenniao is declared bankrupt, Guirenniao’s shares will face the risk of being terminated from listing.
1 Twice applied for bankruptcy and reorganization, and was executed 4 times
According to the official website of Tianyancha, Guireniao filed for bankruptcy on December 10, 2020 New bankruptcy and reorganization information was added on the same day. The applicant is Quanzhou Qihuang Hardware Products Co., Ltd. (hereinafter referred to as “Qihuangxing”), and Guirenniao is the respondent.
On the same day, *ST Guiren issued an announcement stating that the company received the (2020) Min 05 Po Shen No. 18 “Civil Ruling” served by the Intermediate People’s Court of Quanzhou City, Fujian Province on December 10, ruling that Accepted creditor Qihuangxing’s reorganization application against Guirenniao.
This is also the second time Guirenniao has been filed for bankruptcy and reorganization after it was filed for bankruptcy in August 2020. At that time, Qihuangxing applied to the Quanzhou Intermediate Court for the reorganization of Guireniao shares on the grounds that Guirenniao could not pay off its due debts and clearly lacked solvency.
The Quanzhou Intermediate People’s Court believed that based on the data on the balance sheet of Guireniao Shares, it should be determined that the assets of Guireniao Shares are no longer sufficient to pay off all debts. As a creditor, Qihuangxing Company has the right to apply for the reorganization of Guirenniao shares according to law.
Tianyancha information shows that as of now, *ST Guiren has 4 pieces of information on persons subject to execution, and the total amount currently being executed is approximately 269 million yuan.
On the road to bankruptcy and reorganization, Guirenniao also sounded the delisting alarm. Starting from May 6, 2020, Guirenniao implemented a delisting risk warning and was labeled “ST” in the capital market. In six years, Guirenniao has gone from a listed company with a market value of 42.7 billion yuan and a well-known domestic sports brand to a sports brand with a market value of 1.433 billion yuan that is no longer seen in the domestic market.
2 Guirenniao’s pre-planned loss in 2020 is 379 million yuan, with financial expenses as high as 200 million yuan
On January 28, Guirenniao Shares Co., Ltd. (hereinafter referred to as “Guirenniao”) disclosed its 2020 performance pre-loss announcement. Guirenniao expects net profit in 2020 to be about -379 million yuan, and net profit after non-profit is about -416 million yuan. In 2019, Guirenniao’s net profit and non-net profit were -1.096 billion yuan and -1.042 billion yuan.
In recent years, Guirenniao has been in deep operating difficulties, with frequent problems such as high debt, liquidity crises and debt defaults. On December 10 last year, Guireniao announced that the court had ruled to accept the applicant’s reorganization application against Guireniao. On December 11, Guirenniao received the relevant decision letter from the court-appointed administrator, ruling that the company entered the reorganization process.
According to this performance forecast, Guirenniao’s operating income in 2020 will decline year-on-year due to factors such as the COVID-19 epidemic, intensified market competition, debt defaults, and further combing of terminal sales channels. In order to promote terminal sales, Guirenniao has adjusted its sales policy. First, it lowers the supply price of dealers and increases dealers’ sales enthusiasm through profit sharing. Second, in order to digest the company’s inventory, speed up the return of funds, and increase the purchase of out-of-season goods. discount intensity.
The above reasons have led to a decrease in Guirenniao’s gross profit in 2020 compared with the same period last year.
At the same time, due to tight liquidity, Guirenniao was unable to repay PPN (non-public directional debt financing instruments) and bank loans. Debt default led to an increase in the company’s financial expenses such as interest and penalty interest. During the reporting period, Guirenniao’s financial expenses were approximately 200 million yuan, a year-on-year increase of approximately 52 million yuan, a year-on-year increase of approximately 35%.
In addition, due to intensified competition in the footwear and apparel industry, reduced advertising investment in sales terminals, and the COVID-19 epidemic, the operating difficulties of Guirenniao’s downstream dealers have intensified, and the company’s terminal market sales capabilities and payment collection progress have been affected to a certain extent. Due to the severe adverse impact, Guirenniao will accrue credit impairment losses in 2020, which is expected to reduce the current net profit by approximately 270 million yuan. </p
