Once For The "Pearl", Now Overdebt Has Been Bankrupt. 18 Billion 200 Million Why Did The Spinning Giant Of Shandong Fall?

In February 21st, another large spinning enterprise exposed debt default. Shandong Jinmao 1 billion yuan medium-term note was not paid on schedule.

The Shanghai Clearing House issued a notice on the evening of 21, saying that February 21, 2019 was the interest payment date for the first phase medium-term notes of Shandong Jinmao Textile Chemical Group Co., Ltd. in 2014.

As of 21, the company has not yet received the interest payment fund paid by Shandong Jinmao Textile Chemical Group Co., Ltd., temporarily unable to issue the issuer's interest payment.

The "14 Lu Jinmao MTN001" issue amount is 1 billion yuan, the issue period is 5 years, the interest rate bond interest rate is 9%, the main underwriter is Shanghai Pudong Development Bank.

The market parties were not surprised by the 1 billion yuan default of Shandong Jinmao, which was early prepared because the textile chemical giant had announced bankruptcy reorganization at the end of last year.

As Shandong Jinmao announced yesterday, in November 26, 2018, the Dongying intermediate people's Court of Shandong province decided to accept the application for bankruptcy reorganization of Jinmao, Shandong, which constituted the violation of the first phase medium-term prospectus prospectus issued by Shandong Jinmao Textile Chemical Group Co., Ltd. in 2014.

So how did the Shandong textile giant go to bankruptcy?

Highly indebted operation, is it desirable for a traditional industry enterprise?

Why do these regional enterprises guarantee each other?

The bankruptcy reorganization of the Shandong textile and chemical giant shows that in addition to the help of the government's bailout funds, to really get out of the predicament, it needs pformation and needs the pformation of new and old kinetic energy.

One

Shandong Jinmao has applied for bankruptcy reorganization, breaking two bonds in one day.

At the end of last year, Shandong Jinmao had applied for reorganization in Dongying intermediate people's Court of Shandong province.

The intermediate people's Court of Dongying, Shandong province ruled in November 26, 2018 to accept the application for reorganization of Shandong Jinmao.

Dagong rating lowered the rating and debt rating of Shandong Jinmao in a timely manner.

In November 28th, Shandong Jinmao broke two bond defaults within a day. "15 Jinmao debt" and "16 Jin Mao 01" were not paid on schedule.

The "15 Jinmao debt" issue scale is 1 billion yuan, the issuance period is 5 years (with the option of raising the coupon interest rate and the investor's right to sell back at the end of third), the bond interest rate is 8%, which is used to repay short-term financing debts and supplement working capital.

The issuing scale of "16 Jin Mao 01" is 500 million yuan, with a period of 5 (3+2), with a coupon rate of 6.97%, and raised funds for repayment of loans and supplementary liquidity.

In fact, investors have already extended the time to Jinmao group. In September 2018, Shandong Jinmao also issued a notice that "16 Jin Mao 01" funds have been put in place. The bond interest and interest payment will be handled properly. However, at last, investors did not wait.

Two

The Pearl of the Yellow River Delta: Jinmao group has a total assets of 18 billion 228 million yuan in 2017.

Jinmao group is "the top 100 private enterprises in Shandong in 2016" and "the top 500 manufacturing enterprises in China" in 2016.

Shandong Jinmao Textile Chemical Group Co., Ltd. is located in Dongying, the central city of the Yellow River Delta. The group was founded in April 2005, under Shandong Jinmao Textile Chemical Group Co., Ltd., Dongying Jinmao Aluminum High Technology Co., Ltd., Shandong Blue Electronic Technology Co., Ltd., Dongying Jinmao import and Export Co., Ltd.

2017 annual report shows that Jinmao group's total assets in 2017 amounted to 18 billion 228 million yuan, with a profit of 790 million, but the operating cash flow was -34 billion.

Jinmao group's controlling shareholder is Xu Pengming, with a shareholding ratio of 86.49%.

In the 2018 Hurun global rich list released by the Hurun Research Institute, 6 people in Dongying are on the list.

Wanda holdings is the 1178 richest man in Dongying.

Fangyuan metal Cui Zhixiang, Jin Mao Xu Pengming, Xingyuan Song Guangwen, sea Liu Fuhai, Jinling Zhao Yueling family are on the list.

Three

Why do billions of private enterprises fall?

Highly indebted operation, plus the magic of mutual insurance

We only see the financing difficulties of private enterprises, but we do not see the other side - excessive debt.

It turns out that many of the three major bankruptcy reorganization reports understand that their operations are generally highly leveraged. In fact, these private enterprises are over indebtedness.

According to the 2017 annual report of Jinmao group and a quarterly report in 2018, the company added 949 million yuan to other accounts receivable in 2017, and raised 913 million yuan in bad debts.

In addition, in the new century ratings, Jinmao group's cash flow situation deteriorated significantly and liquidity risk increased significantly.

In addition to the increased pressure on their own funds, the rating agencies pointed out that Jinmao group also provided a large amount of guarantee for a number of private enterprises in Dongying.

According to the annual report, the balance of external guarantee reached 2017 yuan at the end of 1 billion 658 million.

7 have entered bankruptcy reorganization process.

The 7 companies are Tianxin group, Tianyuan copper, Tianxin photovoltaic, Tianxin import and export, Tianze materials, Tianze logistics and aorna textile. The total liabilities amount to RMB 16 billion 340 million yuan, and the liabilities of Shandong Tianyuan Copper Co., Ltd., which has the largest liabilities, amounts to 10 billion 452 million yuan and liabilities ratio is 180.77%.

It is worth noting that the sea group and Jinmao group are the "brothers and sisters" of interconnection and mutual protection.

Shandong Sea Group Co., Ltd. also entered bankruptcy reorganization process together.

The sea group is located in Guangrao, which is called tire capital. It ranks twenty-fifth in the list of industrial 100 counties (cities) in 2018, but it is not easy for Guangrao enterprises.

In July 2nd 18, the people's Court of Guangrao County once ruled that 14 companies, including Shandong Jintai Group Limited, entered the bankruptcy reorganization process.