Fuguiniao, China’s famous trademark that has been famous for decades, has finally been listed as the brand capital Jinjiang.
On May 28, Fuguiniao’s new brand launch conference was held. After a series of turbulences such as delisting, bankruptcy and reorganization, the well-known Chinese trademark “Fuguiniao” was purchased by Jinjiang entrepreneurs at a public auction.
From glory to silence and then to “restart”, the development history of Fuguiniao, the former “shoe king” in Fujian, is worthy of deep thought by the industry, especially Jinjiang enterprises with similar industrial structure and corporate structure.
This time, Jinjiang entrepreneur Hong Dingchao takes over Fuguiniao. When many brands are looking for new paths, it may be expected to provide more directions for the revival of these brands and achieve “old trees blooming new branches.”
At the “Qiteng” ordering meeting after Fuguiniao’s “comeback”, many agents placed orders on site
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On May 28, under the spotlight, the wealthy bird returned with a new appearance of “Qiteng”. After Jinjiang entrepreneur Hong Dingchao took over, Fuguiniao, which had experienced ups and downs, restarted with a new look.
The story of the change of ownership begins on October 29, 2019.
On the morning of October 29, 2019, Fuguiniao Company launched its third bankruptcy auction on the Ali auction platform, with a starting price of 182 million yuan. At 9:50 in the morning that day, although more than 6,000 people gathered to watch Fuguiniao Company’s “three auctions”, only two people signed up for the auction at 9:53.
The two people who refused to give in kept bidding. Finally, the auction was finalized at 12:31 noon. The person with the bidding number “B9332” bought the bankruptcy property of Fuguiniao Company for 234.0808 million yuan, including about 1.2 Billions of receivables and prepaid claims, 52.6812 million yuan of raw material products and other inventories, 26.9759 million yuan of long-term equity investment, 1.2134 million yuan of machinery and equipment, and 82.1411 million yuan of trademarks and patents and other intangible assets. The buyer with the bidding number “B9332” is Jinjiang entrepreneur Hong Dingchao.
In fact, the starting price of Fuguiniao’s third bankruptcy auction was already “discounted”. On October 8, 2019, Fuguiniao Company held its first bankruptcy auction, with a starting price of 284 million yuan. 24 hours later, the first auction ended in a “failure”. On October 17, 2019, Fuguiniao Company restarted the auction. This time the starting price was lowered to 227 million yuan, which was equivalent to a “20% discount” compared with the first time, but it still ended in a failed auction.
The price of the third auction is “20% off” the second starting price. Therefore, the third starting price is equivalent to a “6.4% discount” on the basis of the first starting price. .
After three shoots, Fuguiniao finally received a takeover and officially entered the Jinjiang series. For Hong Dingchao, Fuguiniao’s “new owner”, what he values most is the “Fuguiniao” brand. Public information shows that Fuguiniao has 292 main trademark usage rights (154 Fuguiniao series, 88 Fuguiniao series, 20 Aniwalk series, and 30 other series), and 52 patents (utility model patents, appearance designs).
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On the morning of May 28, at home in Xiamen. Putting on a formal suit and tie is a ritual that Hong Dingchao, who is used to dressing casually on weekdays, gives himself on special occasions. In a few hours, he will go to Xiamen Guanyinshan Rongxinsheng Building to fulfill his boyhood brand dream – to unveil the new brand Fuguiniao and start the path to nirvana for a generation of shoe kings.
“At first, when everyone heard that I wanted to take pictures of rich birds, they all advised me to think again.”
Exclude public opinion and do Hong Dingchao was confident in his decision to take “Rich Bird” into his employ. Having been involved in textile, finance and other fields for decades, as the chairman of Xiamen Xindongsen Holdings Co., Ltd., he not only cherishes the sentiment of guarding a generation of national brands, but also conceived a new business model out of a rational judgment of brand value. , steadily moving towards the career map in your mind.
“234 million yuan, very valuable”
Hong Dingchao said: “What we hope to create is affordable for the public. It is a Chinese national brand with high quality, high quality and fashionable aesthetics. This is a century-old industry. We are confident and willing to invest time and energy to be recognized by the market and consumers.”
With “Qiteng” “At the Fuguiniao 2020 autumn and winter new product launch conference with the theme of “Fuguiniao”, Hong Dingchao brought the new Fuguiniao brand to the public for the first time.
At this time, it has been 7 months since the last time Fuguiniao was exposed in front of the public media.
On October 28, 2019, after launching the third bankruptcy auction, Fuguiniao finally ushered in a takeover. Previously, Fuguiniao’s bankrupt assets were auctioned, but no one took the auction twice.
Hong Dingchao submitted his application five minutes before the registration process for the third auction closed. The buzzer-beating admission was not sudden, but had been brewing for a long time. After paying attention to the bankruptcy and reorganization of Fuguiniao for several months, Hong Dingchao has been waiting for the best time to enter the game. The starting price of the first auction was 284 million yuan, with a price increase of 500,000 yuan. One week after the first auction ended in “unsuccessful”, Fuguiniao Company restarted the auction process, and the starting price of the second auction was lowered to 227 million yuan, which was a 20% discount compared to the first auction.
This stop lasted nearly three years. During Fuguiniao’s six-year career in the Hong Kong stock market, its performance has continued to fall, with annual revenue falling from more than 2 billion to less than 500 million in the first half of 2017. In the first half of 2017, it suffered a loss of 10.8873 million yuan for the first time. Since the 2017 interim financial report, Fuguiniao has not disclosed any financial reports.
In June 2017, Lin Guoqiang, one of the main founders of Fuguiniao, passed away. What is regrettable is that in December of that year, his children announced in court that they would give up inheriting all their father’s property, which triggered a lot of speculation about Fuguiniao’s financial and operating conditions.
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Falling from a high place to here, what has happened to the rich bird?
Some people in the industry believe that the decline of Fuguiniao began with a misjudgment of the times. The problem that Fuguiniao encountered has been encountered by many companies, especially star companies, that is, inability to innovate after the main business encounters market changes. After the market changes in the main business of the shoe industry, Fuguiniao did not stick to the main business in time and carry out research and development and innovation, resulting in difficulties in sales of the shoe industry. The rapid development of e-commerce in 2013 had a severe impact on Fuguiniao’s traditional business model. When Fuguiniao saw changes in consumer preferences and the huge inventory pressure that e-commerce had brought to the traditional model, it did not go all out to embrace new trends and new models. Although it got involved in e-commerce in 2011 and stated in its 2014 financial report that e-commerce sales reached more than 100 million, this was just a drop in the bucket.
In order to restore its past glory, Fuguiniao once tried to “self-rescue” through cross-border transformation, but it “succumbed to illness and sought medical treatment.”
With the main business declining, Fuguiniao has turned its attention to the financial field in order to find new growth points. Because the board of directors believes that compared with the shoe industry, investment returns in the financial sector are obviously higher and faster.
In early 2015, Fuguiniao strategically invested US$10 million in the P2P platform “Win-Win Society”. In October 2015, Fuguiniao once again entered the financial management platform “Dingdong Wallet” and became its major shareholder. In addition, Fuguiniao also invested in Shishi Fuyin Small Loan Co., Ltd., but these ended in failure. In April 2017, there was no further news from “Win-Win Society” after its last repayment announcement, and “Dingdong Wallet” was also investigated by Xiamen police on August 22, 2019 for allegedly illegally absorbing public deposits. The two major mutual financial platforms for investment have exploded one after another, which is undoubtedly adding insult to injury for Fuguiniao, who is highly strapped for funds.
In order to solve the debt crisis, Fuguiniao issued a total of 2.1 billion yuan in corporate bonds and private placement bonds from 2014 to 2016. However, in April 2018, the “14 Fuguiniao” bond with a scale of 800 million yuan defaulted, which became the tip of the iceberg that revealed the debt mystery of Fuguiniao. As the lead underwriter of this bond, Guotai Junan issued a risk warning in February 2018 that Fuguiniao has at least 4.909 billion yuan in assets that may not be recovered, including 165 million yuan in monetary funds, 200 million yuan in accounts receivable, and 200 million yuan in inventory. 100 million yuan, other receivables 4.229 billion yuan, and fixed assets 115 million yuan.
The main business was sluggish and the investment was improper. Fuguiniao eventually went into bankruptcy. During this period, Fuguiniao submitted draft reorganization plans twice. The first draft of the reorganization plan was as follows: Reorganization investors invested 225 million yuan (of which 165 million yuan was cash and 60 million yuan was shopping vouchers); the second draft of the reorganization plan was as follows: The reorganization model of the second draft remains basically unchanged, and the settlement method is changed to all cash settlement. Since both drafts failed to pass the vote, the Quanzhou Intermediate People’s Court ruled to reject the Fuguiniao administrator’s application for approval of the draft reorganization plan and terminate the reorganization process. In desperation, the “shoe king” declared bankruptcy and became a “capital outcast”. At 9 a.m. on August 26, 2019, Fuguiniao was delisted.
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The Rich Bird “Road to Rebirth”
In 1991, the Fuguiniao brand was founded.
In 1995, Fuguiniao Co., Ltd. was established and integrated into a modern enterprise integrating R&D, production and sales of shoes and clothing. In the same year, it won the “1995 National Best-Selling Domestic Product Golden Bridge Award” and was awarded the title of “China’s Genuine Leather Shoes King”.
In 2013, Fuguiniao Co., Ltd. was listed on the Hong Kong Stock Exchange.
On September 1, 2016, Fuguiniao’s shares were suspended from trading.
In 2018, due to the default of “14 Rich Birds”, a debt black hole exploded. In the same year, the Quanzhou Intermediate People’s Court ruled in accordance with the law to accept the case of Guotai Junan Securities Co., Ltd.’s application for the reorganization of Fuguiniao.
On April 25, 2019, the administrator submitted the draft reorganization plan to Quanzhou Intermediate Court.
On July 31, 2019, Fuguiniao issued an announcement stating that the company was undergoing bankruptcy reorganization and would arrange a resumption plan based on the progress of bankruptcy reorganization.
On August 24, 2019, Fuguiniao Co., Ltd. went bankrupt.
On August 26, 2019, the listing status of Fuguiniao shares was cancelled.
On October 29, 2019, after two failed auctions, Fuguiniao finally received a takeover and changed hands for 234 million yuan. </p