[Foreword] On December 11, Guirenniao added bankruptcy and reorganization information. The announcement shows that Guirenniao received the “Civil Ruling” from the Intermediate People’s Court of Quanzhou City, Fujian Province on December 10, 2020, ruling to accept the creditor Quanzhou Qihuangxing Hardware Products Co., Ltd. (hereinafter referred to as “Qihuangxing”) Reorganization application for Guirenniao.
On December 11, Guirenniao added bankruptcy and reorganization information
The announcement shows that Guirenniao received the “Civil Ruling” from the Intermediate People’s Court of Quanzhou City, Fujian Province on December 10, 2020, ruling to accept the creditor Quanzhou Qihuangxing Hardware Products Co., Ltd. (Part 2) (known as “Qihuangxing”) applied for reorganization of Guirenniao.
On the evening of December 10, *ST Guiren issued an announcement stating that Guireniao Co., Ltd. On December 10, 2020, I received the (2020) Min 05 Po Shen No. 18 Civil Ruling from the Quanzhou Intermediate People’s Court of Fujian Province, ruling to accept the creditor Quanzhou Qihuangxing Hardware Products Co., Ltd. (hereinafter referred to as “Qihuang Star”)’s reorganization application for Guirenniao.
The announcement stated that the court has ruled that the company has entered the reorganization process, but the company still faces the risk of being declared bankrupt due to failure of reorganization. If the company is declared bankrupt, the company’s shares will face the risk of being terminated from listing in accordance with Article 14.3.1(12) of the Listing Rules.
Information shows that Guirenniao Co., Ltd. was established in 2004 with a registered capital of 628.6 million yuan and its legal representative is Lin Tianfu. The company’s main business includes the research and development, design, production and sales of Guirenniao brand sports shoes and sportswear.
According to the announcement issued by Guireniao on August 13, Guireniao was applied for reorganization by Qihuangxing because it was unable to repay the 2.5073 million yuan payment. From August to October 2019, Guirenniao purchased shelves and atmosphere props from Qihuangxing for a total of 3.2573 million yuan. According to the contract, Guirenniao should pay the above-mentioned payment before April 24, 2020. However, Guireniao only paid 750,000 yuan of the aforementioned payment to the applicant through a designated third party, and the remaining payment of 2.5073 million yuan has not yet been paid. Therefore, Guirenniao was sued in court. .
Right now, Guirenniao is in a critical period of “preserving its shell”. In the first three quarters of this year, the company’s losses have reached 259 million yuan, and it is very difficult to turn around losses.
Guirenniao announced that the company still has the risk of being declared bankrupt due to failed reorganization. If the company is declared bankrupt, the company’s shares will face the risk of being delisted.
How Guireniao breaks the situation is still a question mark. “The leaders are still communicating. If there is a plan, we will announce it.” On December 11, a source from Guirenniao’s Board Secretary’s Office told a reporter from Time Weekly.
As of the close of trading on December 14, Guirenniao’s stock price was only 2.42 yuan/share, which had fallen by more than 96% from the highest price of 67.92 yuan/share. The market value was 1.521 billion yuan, which was less than a fraction of the peak market value.
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