More than 1.4 billion loans are overdue, and the risk of delisting is suspended. Can *ST you still be rescued?
The former “Almighty King” *ST nobleman, is experiencing a long “water retrograde”.
On the evening of June 22, *ST Guiren issued an announcement stating that the company held the 2018 Annual General Meeting of Shareholders on June 26, 2019, to deliberate and approve the “Proposal on the Company and its Subsidiaries Applying for Credit Lines from Banks”, that is, the company applies to each bank for a total A comprehensive credit line of 2.5 billion yuan. As of May 31, 2020, the company’s loan balance in various banks was 1.410 billion yuan.
Up to now, the real estate, land, equity of subsidiaries and participating companies and equity investment funds held by *ST you are basically in a frozen state due to debt default and property preservation before the creditor sued; at the same time, due to tight liquidity, the company Failed to pay the loan interest of various banks on schedule, and the company’s loan principal from various banks totaled 1.410 billion yuan and all were overdue.
More than 2.5 billion debts to be resolved, less than 30 million yuan on the account
The *ST nobleman who has worn stars and hats is facing tricky overdue debts and bank loans.
*ST Guiren stated in the latest announcement that the company’s real estate, land, subsidiary and equity holding company equity and equity investment funds held by the company are basically frozen due to debt default and property preservation before the creditor’s suit. After the loan expired, it was unable to renew the loan from the bank; at the same time, due to the tight liquidity, the company failed to pay the interest of the bank loan on schedule, and the total loan principal of the company at each bank was 1.410 billion yuan and all were overdue.
Up to now, the company’s overdue loans and bond principals totaled 2.557 billion yuan, accounting for 65.07% of the company’s total audited assets last year.
Earlier, the Beijing News Shell Finance reported that in November and December last year, *ST Guiren’s bonds “16 Guirenniao PPN001” and “14 Guirenniao” matured successively, but the company was unable to pay the principal and interest in full on time, which constituted substantial Breach of contract.
Guirenniao issued the “14 Guirenniao” bonds on December 3, 2014, with a total issuance of RMB 800 million. As of June, 14 Guirenniao bonds have a balance of 647 million, with a bond interest rate of 7%, and have matured on 12th, 2019.
Since last year, *ST Guiren has been downgraded many times. On June 21 last year, United Ratings announced that Guirenniao’s main long-term credit rating was lowered from AA to AA- due to large losses in its net profit in 2018 and great pressure on concentrated repayment; on September 16, Guirenniao’s The entity’s long-term credit rating was downgraded to A again. On November 5, Guirenniao’s corporate credit rating was further downgraded to BBB, with a “negative” rating outlook.
Currently, the company’s subject credit rating is C.
The company explained that the company’s financing channels are severely restricted, its debt solvency continues to deteriorate, liquidity is tightening, and it is difficult to dispose of related assets in the short term to raise debt redemption funds.
It is worth noting that on June 13, the *ST distinguished person disclosed that the Xiamen Intermediate People’s Court ruled that Guoyuan Securities applied for a limit of RMB 84,266,800 to preserve the company’s corresponding property. The main reason was that the company failed to pay the principal and interest to holders of non-public targeted debt financing instruments on November 12, 2019. The book value of the frozen assets this time is 693 million yuan, accounting for 17.61% of the company’s total audited assets in the most recent period. Up to now, the company’s accumulated book value of frozen assets is 1.655 billion yuan, accounting for the company’s total audited assets in the most recent period. 42.10% of the total.
Choice data shows that as of the first quarter of this year, Guirenniao’s total liabilities were 3.377 billion yuan, and the debt-to-asset ratio soared to 91.74% from 87.20% at the end of last year. In contrast, as of March 30, Guirenniao had only 27.98 million yuan in monetary funds on its books.
However, *ST nobles are still struggling. In the announcement, the company stated that at present, the company is actively negotiating a settlement plan with the relevant creditors, and strives to reach an agreement with the creditors on the debt settlement plan as soon as possible. In a reply to the Shanghai Stock Exchange on June 20, *ST Guiren stated that the company is obtaining an understanding through negotiations with creditors. Up to now, excluding individual investors, 14 Guirenniao bonds have signed debt settlement agreements of 39 million yuan, accounting for 5.96% of the total debt; PPN signed a harmony agreement of 170 million yuan, accounting for 34% of the total.
With frequent store closures and a market value from 40 billion to 1 billion, *ST’s capital ambitions became a “bubble”
On January 24, 2014, *ST Guiren successfully landed in A shares, ushering in a bright moment for the company. Choice data shows that in 2015, Guirenniao’s stock price rocketed to a peak of 65 yuan per share, and the total market value rapidly increased to 40 billion.
Inflated with the market value, there is also the ambition of the nobleman. After listing, Guirenniao began to implement the company’s comprehensive strategic upgrade, hoping to transform from “traditional sports shoes and apparel industry management” to “sports industrialization group based on sports apparel manufacturing and coordinated development of multiple sports industry forms”, using capital means to quickly transform Expand the territory of its own sports industry.
In 2015, Guirenniao invested 240 million in Hupu Sports and became the company’s second largest shareholder, and used Hupu to make up for its shortcomings in the sports industry. After that, it invested and set up a sports industry fund Shanghai Huidongyu Investment Center (Limited Partnership) with a scale of 2 billion yuan with Hupu. Listed companies began to look for bids in the sports industry through the power of capital.
Tianyan Check shows that as of now, Huidongyu Investment has invested in 13 companies abroad, covering hot sports such as football, basketball, running, fitness, outdoor, and Internet + projects such as e-sports and sports lottery.
However, since its listing, *ST Guiren’s net profit has gradually shrunk and has recorded losses in the past two years. From 2015 to 2017, the company achieved attributable net profits of 330 million, 326 million, and 188 million respectively. In 2018, *ST Guiren suffered a huge loss of 686 million, and the loss in 2019 increased to 1.02 billion.
The company stated that the decline in performance was mainly due to the changes in the scope of the company’s consolidated statements during the reporting period compared to the same period last year, and the atomic company Jiezhixing and BOY were no longer included in the scope of the company’s consolidated statements. In addition, the company’s asset impairment losses and credit impairment losses were 829 million yuan, which resulted in relatively large losses in net profits attributable to shareholders of listed companies.
It is worth noting that since the beginning of this year, affected by the new crown pneumonia epidemic, the performance of *ST nobles still shows no signs of improvement. According to the report for the first quarter of 2020 released by *ST Guiren, the company achieved revenue of 173 million yuan, a year-on-year decrease of 66.92%; net profit loss attributable to shareholders of listed companies was 200 million yuan, a year-on-year decrease of 1543.56%.
Cheng Weixiong, a textile and apparel brand management expert and general manager of Shanghai Liangqi Brand Management Co., Ltd., believes that Guirenniao’s main business has not made any progress, and diversification has not broken through, so the capital market is not promising. The best outcome for Guirenniao is to find a taker and combine capital operation and debt restructuring. At present, Guirenniao’s biggest problem is the poor liquidity of listed companies. However, because Guirenniao’s burden is too heavy, I am afraid it is difficult for anyone to accept it.
Beijing News Shell Finance reporter Zhang Zeyan edited by Zhao Ze to proofread Li Shihui