Why Did Rich Birds Fail To Qualify For Bankruptcy?

According to the world clothing and shoe net, last year,

Thousands of shops are delisting, and the founder is away from the market.

Bankruptcy;

The shop is closed until it can not stop.

Here, once known as the "men's shoes in the county seat" and the favorite bird of fortune after 70, there is no qualification for bankruptcy.

The stock crash suddenly dropped from 103.8 yuan to 8 yuan 5.

More than 4 billion 900 million yuan of assets can not be recovered.

The total debt is more than 3 billion yuan.

Large enterprises have less than 100 million liquidity.

Suspected information disclosure and illegal use of bond raising funds were investigated by the SFC.

The government of Shishi has sent people to take over.

...

The truth is very sad.

1, big Fujian shoe king, from 40 thousand to 2 billion 300 million

Third of China's casual footwear manufacturers and sixth of its brand shoe manufacturers are the most brilliant achievements of 2012.

Fujian is the birthplace of many famous enterprises in China's shoes and clothing market. Among them, Jinjiang is famous for its sports brand. Shishi is famous for its casual wear for men, and Putian is a fake.

Birds of fortune come from stone lions.

In 1984, with the tide of reform and opening up, Shishi rose to build a factory fever. The predecessor of the Shishi bird and bird group was born under this background.

Lin's 19 cousins started at 40 thousand yuan, hired some workers, and dozens of people produced artificial leather sandals and slippers.

However, due to the lack of management, most of them are not optimistic about their prospects, and they have to withdraw their shares. Only Lin Ping (the current chairman of the board, the following figure), Lin and Shi, Lin Ronghe and Lin Guoqiang's 4 cousins are left.

In 1989, four people reorganized the board of directors and registered the "riches and birds" trademark, and began to produce leather shoes.

In 1991, the Shishi tourist souvenir factory was renamed the Fulin footwear industry. In 1992, the fortune bird group was born. It has 8 wholly-owned subsidiaries, including the Fulin shoes industry, the rich and precious bird shoes industry, the rich bird clothing and so on. The business involves shoes, clothing, leather goods and so on.

Since then, the fortune bird has entered a period of rapid development. In 2014, the bird of wealth reached its peak, with an annual revenue of 2 billion 323 million yuan and a net profit of 451 million yuan.

But the good momentum is too far.

2, broken shoe kiln "shoe king" become a bottomless pit, the boss is not willing to inherit sons.

What does the first rich bird rely on?

The answer is efficiency and quality.

Out of broken tile kiln

In 1990, Lin peace received the first Soviet Union's orders for more than 10000 pairs of shoes.

At that time, the factory workshop was pformed by a broken tile kiln, and the Nissan produced a maximum of 100 pairs.

Under such production conditions, delivery can be delivered on time and quality guaranteed.

Therefore, the "shoe king" is not a casual call. In 1993, at the first shoe Fair of the nation, the lucky bird was jointly evaluated by the AQSIQ, the quality inspection association and the leather industry association as the "first China shoe king". In the following 1998, 2000 and 2002, three was awarded the title of "China real leather shoes king".

From 1991 to 1996, the rich birds had few rivals in the country, reputation and market share. They could not deny the reasons for the success of the times. But at that time, the birds of fortune had become the targets of Shanzhai. Many manufacturers copied the birds of fortune and fakes.

Under the attack of fake and shoddy and imitators, rich birds still sing all the way.

Around 2000, the sales outlets of rich birds have been radiated to most counties and cities in the whole country.

According to publicly available data from the official website of the rich birds, as of June 30, 2015, the retail network of rich birds covers 31 provinces, autonomous regions and municipalities directly under the central government, with a total number of 3127 stores, of which 2879 retail outlets are owned and operated by distributors and three party retailers, and the remaining 248 outlets are direct battalions.

{page_break}

Rejected by his son

From 2014, there was a problem in the operation of fortune birds. The growth rate of revenue declined from 19% in 2013 to 1%, and has increased negatively in the first half of 2015.

Gross profit margin reached 41% in the first half of 2015 and 36% in the first half of 2017.

Moreover, in the first half of 2017, the revenue of fortune birds was 412 million yuan, a decrease of 48.09% compared with the same period last year. The net profit loss for the first time was 11 million yuan, and the annual ratio decreased by 107.7%.

In 2016, due to financial problems, the resumption of trading was resumed in March 1, 2018.

More than 4 billion 900 million yuan may be unrecoverable assets, 3 billion yuan, including bonds, bank loans, debt, only 4 years of listing, "shoe king" has become a big pit.

Grief!

In June 2017, Lin Guoqiang, co-founder and executive director of rich birds, died of illness. However, as a legal successor, his children publicly renounced the right of inheritance.

Chairman Lin Heping once said that his children would like to come back from abroad. Now?

3, make shoes to run to play usury?

Without focus, celebrity endorsement can't stop.

In 2013, the lucky birds were listed on the Hong Kong stock market, which was late in the shoe and clothing circles of Fujian. But sooner or later, the listing was at that time and the locality was the symbol of the success of the enterprises, not because of lack of money, just for the sake of comparison.

Many traditional enterprises are going downhill after listing. Because of past brilliance, blind confidence in the market is one of the reasons, and there is no way to do business. In the hands of more funds, they want to increase income outside the main business, and the highly leveraged financial sector is the first choice.

Homogenization not only products, but also sales mode.

As an old shoe clothing enterprise, they have mature and complete supply chain, but this advantage is no longer the core competitiveness.

The footwear and clothing enterprises that once used the advantage of the industrial chain cluster to occupy a place in the domestic market inevitably face the problem of homogenization, not only the homogenization of products, but also the marketing channel or the way of operation and promotion.

In addition to those products that are built on imitation of birds of fortune, there are many rising stars, and even foreign brands are grabbing the market with rich birds.

Now consumers are also very rational, or choose cost-effective products, or choose high added value, not because of celebrity endorsements to buy.

Compared with sports brand, the cycle period of regular shoes and clothing is longer, because the number of enterprises involved is more, the choice of market is mostly the same, and homogenization is very serious.

In other words, there are more and more brands on the market. At present, we are seeking to subdivide products according to consumers' preferences and needs.

Although rich birds had already set foot in e-commerce in 2011, set up an independent operation team, and at the end of 2014, it has achieved about 110 million yuan of online sales. However, the change of sales mode can not fundamentally solve the problem of brand itself, especially the problem of differentiation.

In order to pform the school uniform as a breakthrough, we gradually entered the market for children's shoes and children's clothing, and failed to open up their own breakthrough.

Shoes and clothing industry, the world is shuffling, the traditional advantage, or that the bonus period has long been exhausted, is no longer just rely on celebrity endorsement and television advertising world.

Blindly diversify and bury the root causes

Although it has not taken the road to invest in real estate, the blind involvement of rich birds in the financial sector is perhaps an important factor in its formation.

Because the gross profit of shoes and clothing business is lower and the investment cycle is longer, the high leverage in the financial field is very attractive.

In addition to owning its own mineral company, there are more than 10 enterprises under the name of Lin Ping, among which are Shishi rich silver small loan company limited, P2P company.

Ding Dong wallet is a typical example.

Ding Dong wallet was established in August 20, 2013 with a registered capital of 50 million yuan. Its business involves the supply chain finance, consumer finance, automobile finance, information management products and overseas funds of listed companies, and its main short-term business is 8%~12%.

In 2015, rich birds became big shareholders of Ding Dong.

After less than a year's cooperation, the fortune bird stock was declared suspended until March 2018.

{page_break}

Before joining the Ding Dong wallet, the rich bird also used tens of millions of dollars to invest in another mutual gold platform called "win win society".

What is interesting is that the top management team of Ding Dong wallet is the original team of the win win society. The company has not updated since its last repayment announcement in April 24, 2017, and the platform has been suspended.

In addition, Lin Guoqiang, executive director who died in 2017, is responsible for the guaranty loan of rich birds.

Now, if the rich birds are rich enough to come back or not, they will not be able to repay them. The money flow has dropped from 2 billion 900 million yuan at the end of 2016 to 2 billion yuan in 2017. In the recent disclosure, it shows that as of December 31, 2017, the current demand deposits and the working capital of rich birds are less than 100 million yuan.

Hundreds of millions of bonds that are due to expire in April, the rich birds are almost unable to pay.

Although the production and operation as usual, but the company's land, plant, machinery almost all mortgaged and sold, it has two land in stone lions, has been sold by the local government at 383 million yuan.

Internal chaos

At present, the birds of fortune have not stopped completely, and the factories still have jobs to do. But at present, the rich birds are faced with the embarrassing situation that the old staff can not keep up, and the new employees can not recruit.

At most, there were thousands of employees in 4 workshops at the headquarters of Fu's bird headquarters, and the employees were well paid. Some employees said that when they first entered the office, they were more than 1000, second months, more than 2000, and then rose to more than 3000 before long.

Now there are only two or three hundred people, the original workers can not stay, the new recruits do not come, the factory gate is playing the recruitment notice, but the salary is still two thousand or three thousand level, not as good as the next small factory.

The turmoil at its senior level makes it even more difficult to doubt that the "pluralism" of the rich birds has been in turmoil for a long time.

In early October 2016, Chen Weisheng (left one) resigned as Limited by Share Ltd secretary and authorized representative of fortune bird. Since November 2016, two independent non-executive directors have been removed from office, and KPMG Accounting Office of the original auditor has resigned. In 2017, the company secretary and authorized representatives resigned, chief financial officer resigned, director Long Xiao Ning and Chen Min Hua FA's resignation letter.

The resignation of these important personnel pointed to the finance, announcement and other issues of rich birds.

"Where has all the money gone" is a very serious problem for a listed company.

Inamori Kazuo once said: "as a business operator, it is very important for us to succeed in business. The most ideal business is to get a very high sales performance with only one commodity. This is the most efficient and the most profitable way."

Now many small and medium enterprises, start-ups, or traditional enterprises in pition, many people have realized this, that is, focus.

Focus is the key to success in this era. Many small businesses can achieve the turnover of over 100 million by focusing on a single category or even a single product.

This is indeed the characteristics of the times, but it also reflects the tradition of traditional enterprises.

Decentralized selection, for entity enterprises, is an unconfident performance, or is satisfied with the past achievements, and ignores the research and product grinding of the market.

Consumer escalation, explained from the consumer level, is also an increase in consumer cognition and demand for products, not just an increase in spending power.

There are many alternatives to consumers. Whether they become your customers depends on your attitude towards the product, whether there is a user's thinking, the feeling and response of consumers is the most direct.

Therefore, there is a caveat to the enterprises that make products nowadays: don't overestimate yourself, and do not underestimate customers.

More interesting reports, please pay attention to the world clothing shoes and hats net.