Ruyi Group Shareholders Holding Shares Were Frozen Loans Over 1 Billion Spend 500 Million To Buy Financial Management

In May 27th, 002193.SZ announced that the shares of the 60 million 514 thousand and 700 companies held by the controlling shareholder Shandong Ruyi Technology Group Co., Ltd. (hereinafter referred to as "Ruyi technology") were frozen, accounting for 56.41% of the direct holdings and controlling shares of Ruyi technology, accounting for 23.12% of the total share capital of the company.

It is reported that the reason for the freeze is the sales contract dispute between Jiangsu and Jinsheng technology and related enterprises.

The announcement also said that Ruyi technology is actively negotiating with the other side of the case, and finally reached a settlement to ensure that there will be no adverse impact on the listed company.

Changjiang Commercial Daily reporter found that last year, the company short-term loans to 1 billion 37 million yuan, the company still spent 500 million yuan to do financial management.

And accounts receivable also increased rapidly. At the end of last year, the company receivables amounted to 678 million yuan. Last year, the impairment of assets caused by bad debt preparation and inventory depreciation was 14 million 314 thousand yuan.

60 million 510 thousand shares of controlling shareholders were frozen

In May 27th, Ruyi group announced that it had received a notice from its controlling shareholder, Ruyi technology, and was informed that Ruyi group's stake held by Ruyi technology was frozen.

It is reported that the reason for the freeze is due to the dispute between Jiangsu and Jinsheng industrial Limited by Share Ltd (hereinafter referred to as "Jinsheng industrial").

Jinsheng industries filed a civil lawsuit against the court and held litigation property preservation, freezing 60 million 510 thousand shares of Ruyi group holding the Ruyi group, accounting for 56.41% of the direct holding and controlling shares of Ruyi technology.

At the same time, Ruyi technology in order to effectively safeguard their legitimate rights and interests, freezing the other 94 million 290 thousand yuan capital and Jinsheng Industrial Holdings Zhuo Lang intelligent technology Limited by Share Ltd 27 million 990 thousand shares.

Public information shows that Ruyi science and technology is the only large domestic multinational enterprise integrating textile industry such as wool spinning, cotton spinning, printing and dyeing, chemical fiber, clothing retail, knitting, home textile and so on till the terminal brand operation. It has long been the top 500 in China's textile and garment industry.

In terms of financial data, the total assets of Ruyi technology in 2015 -2017 were 34 billion 439 million yuan, 55 billion 375 million yuan and 62 billion 344 million yuan respectively, with operating income of 22 billion 770 million yuan, 29 billion 87 million yuan and 35 billion 738 million yuan respectively, with net profit of 702 million yuan, 2 billion 496 million yuan and 2 billion 847 million yuan.

Last November, Ruyi technology premium 36.6% offer 30 million shares Ruyi group shares completed, Ruyi technology directly held 23.12% of the company's shares, the controlling shareholder of the company changed from Ruyi woolen Refco Group Ltd in Shandong to Ruyi technology; Qiu Yafu directly and indirectly held 41% of the total share capital of the company, and remained the actual controller of the company.

At that time, Ruyi technology said that the takeover system, Ruyi technology, based on the recognition of the value of Ruyi group and confidence in the sustained and steady development of the future, promoted long-term strategic stability and confidence in the capital market. At the same time, in order to enhance the shareholding ratio of Ruyi technology to Ruyi group, the controlling power of the actual controller was consolidated.

Now, the super half of companies held by Italian technology has been frozen.

However, the company said that Ruyi technology is actively communicating with the other side of the case, and finally reached a settlement to ensure that it will not have any adverse effects on the listed company.

Short-term borrowing increased by 79.41% over the past two years.

In December 2007, Shandong Ruyi listed on Shenzhen Stock Exchange, but after that, its performance declined sharply.

In 2014, Ruyi technology was pferred to Shandong Zhongyi group's 27.55% stake in Ruyi group. Shandong Ruyi started the integration of the garment industry, extended the whole industry chain to the high-end fashion industry, and then increased the added value of the company's products, opened the company's profit space and renamed Ruyi group.

In August 2016, the company completed a $1 billion 800 million fund-raising of non-public offering, using some fundraising funds to acquire apparel assets such as Ruyi technology clothing assets, Tai'an Ruyi science and technology fashion industry Co., Ltd. and other related apparel assets, and completed the layout of the whole industry chain of the wool textile industry.

The company has said that since its completion in 2016, its operating scale and profitability have continued to grow.

Although the company's performance in recent three years has been growing well, we find that the company's net profit is not high.

Ruyi group's annual report 2018 shows that the company achieved operating income of 1 billion 328 million yuan in 2018, an increase of 11.28% over the same period, and a net profit of 99 million 11 thousand and 900 yuan, an increase of 39.58% over the same period last year.

Last year, the company's financial revenue was 38 million 759 thousand and 200 yuan, and the impairment of assets was 14 million 314 thousand yuan. Excluding these non recurring gains and losses, the net profit of the company last year was only 48 million 511 thousand and 500 yuan, an increase of only 5 million 622 thousand and 400 yuan over last year.

Read the annual report, Ruyi group bought a total of 500 million yuan of financial products the year before last, and last year, it has purchased the financial products in batches of 500 million yuan that expired.

Correspondingly, the demand for corporate borrowing is also very large. Last year, the company's short-term borrowing was 1 billion 37 million yuan, while in 2016 it was only 578 million yuan, an increase of 459 million yuan, a 79.41% increase in two years.

The Yangtze River Commercial Daily reporter combed found that while the growth of performance, Ruyi group accounts receivable is also growing.

In the past 2016-2018 years, company accounts receivable were 440 million yuan, 525 million yuan and 678 million yuan, up 17.96%, 19.32% and 29.14%, which has exceeded the growth rate of the same period.

Accounts receivable and receivables increased significantly, and bad debts were increased, accounting for 9.33%, 9.60% and 22.81% over the same period. Over the past year, accounts receivable totaled 166 million yuan. Last year, the provision for bad debts was 51 million 829 thousand and 600 yuan, plus inventory depreciation, which resulted in a total loss of assets of 14 million 314 thousand yuan last year.

It is worth noting that Ruyi group's significant related pactions last year amounted to 477 million yuan, accounting for 35.92% of the total business revenue, of which the sales volume of goods was 368 million yuan, and the amount of procurement pactions to related parties was 109 million yuan.