Suspension 19 Months, Hongxing Sports When To Resume Trading?

China's Hongxing sporting goods Co., Ltd. (hereinafter referred to as "Hongxing sports") is one of the earliest listed companies in sporting goods enterprises in China. It was listed in Singapore in 2005 and is ahead of others.

The brand of Anta, XTEP and 361 degree is also one of the earliest companies in China to decide to abandon the foundry business and create their own brand.

However, due to the problem of data in the 2010 financial report, it has been suspended for 19 months since February 18, 2011.

After the suspension, Hongxing sports hired an independent audit institution nTan for financial accounting, and nTan gave an audit report in July 20, 2012.

According to the report, the cash and bank deposits in Hongxing sports financial year 2010 financial statements are 1 billion 417 million yuan (RMB, the same below), which is actually only 263 million yuan, with a cash increase and a bank deposit of 1 billion 154 million yuan.

This conclusion came out for a while, public opinion was in an uproar, Hongxing sports and Hongxing Erke brand were pushed onto the cusp.

In early August, Wu Rongzhao, chief executive of Hongxing sports, resigned for "personal reasons".

Analysts said that in less than two weeks after the nTan audit report came out, hung Xing sports was resigned from CEO to pay the bill. This is a move to cut the Gordian knot and hope to resume trading as soon as possible.

After Wu Rongzhao's resignation, his brother Wu Rongguang will temporarily serve as CEO.

Because Wu Rongguang had previously held Hongxing sports CEO, the change did not affect the management structure of Hongxing sports.

Insiders said that the long-term suspension of the listing of Hong Xing sports is expected to give full play to the financing function, plus

And other issues, Hongxing sports and other domestic sporting goods companies, the cash flow is also facing some pressure, the significance of early resumption will not only mean the healthy return of the company's internal management.

In addition to Wu Rongzhao's resignation, Hongxing sports also announced a number of rectification measures, including: the appointment of new internal auditors to conduct a thorough and thorough review of the internal control procedures of the group, assessment of the company's financial and accounting functional departments and reporting processes, and suggestions for improvement and revision, looking for possible omissions in the internal control process; hiring PWC accounting firm to audit the consolidated financial statements of the company in fiscal 2010 and fiscal year 2011, and asking PWC to review the performance of the first half of 2012.

Hongxing sports said publicly that with the launch of a series of rectification measures including CEO substitution, the application of the company's stock resumption will have a "certain foundation".

The industry believes that despite the poor performance of Hongxing sports in recent years, there are still many innovations in marketing, such as the sword going forward, the sponsorship of Iran (4 gold, 5 silver and 3 copper), South Africa (3 gold, 2 silver and 1 copper), and Uzbekistan (1 gold 3 copper).

The setbacks that had happened before were mainly too much expansion in sales channels and confusion in management. If future product development and marketing integration is better, there is still hope.

It is reported that Hongxing sports in the first three quarters of this year, the order amount amounted to 3 billion 709 million yuan.

The company has announced that despite the challenges and pressures of growth, it will still seek opportunities to expand its coverage of the domestic market and expand the influence of Hongxing Erke brand through strategic sponsorship activities and marketing. "But in the current economic situation, business expansion plans will be carefully implemented."

Netizens comment:

1, @ Jin width -EdoLee (ZEGDA apparel brand manager): once the big media reports, once the suspension becomes fixed, Hongxing Erke estimated that it will withdraw from the competition of China's sporting goods industry in advance.

2, @ song is thin and weak: financial fraud leads to falling share prices, investment banks empty, CEO laid-off and other issues should not be misread as "bad luck", but this kind of behavior will inevitably lead to the above consequences. If Chinese enterprises do not change, they will take shortcuts, and use their wrong ways to make improper or false behavior.

3, @ no longer participate in the Senate: fake TO BE NO.1 is unacceptable.

It is doubtful whether other sports leisure brands in Fujian have similar operations.

I hope it's just an individual case.