Suspension For Nearly Three Years, Veteran Shoe Enterprises, Fortune Birds Entered The Delisting Countdown

After nearly 3 years' suspension, the announcement of the 12 night announcement of 01819.HK on August will be delisted after two weeks.

According to the notice of the Hongkong stock exchange, the listed company will usher in the final listing date in August 23rd, and the listing status of the shares will be cancelled on August 26th at nine a.m. The company said it is now seeking legal advice and may decide to cancel the listing status and submit it to the Listing Committee for further and final review, when the company will issue further announcements in due course.

Long term suspension

Fu Guiyu, as an old clothing and footwear giant, was founded in Shishi, Fujian in 1991. It mainly engaged in R & D, production and sales of leather accessories, such as men's leather shoes, men's business casual wear and leather goods. In 2012, it became the third largest brand business casual shoes manufacturer and the sixth largest brand shoe product manufacturer in the whole country. In 2013, the company was listed on the Hongkong stock exchange.

However, since September 1, 2016, the company's shares have been suspended. Fu Fu bird said that due to the extra time needed to complete the compilation of the interim results, the board postponed and the interim results in 2016 were also postponed.

In fact, according to the new rules listed on the Hongkong stock exchange, the bird has received a "warning" since last year's suspension. It is expected that if the company fails to reach the revised conditions and resume the trading of shares, the Hongkong exchange will recommend the listing committee to cancel the listing of the company by July 31, 2019.

During the period, fortune bird said that the main business of the group maintained normal operation, but the turnover declined. The main reason was that the shares were suspended from trading, and there were outstanding debts, which affected business operations.

E reporter noted that at present, the company's official website can still be opened normally, but the "memorabilia" is no longer updated, staying in 2015; and since the listing of the company, its performance has declined in 2015, and net profit has decreased year by year. In 2016, the downward trend has further expanded, and in the 2017 annual report issued by the replacement company, the net profit of the company was officially transferred from profit to loss, about -1089 million yuan.

Rich birds also experienced auditors' resignation and other disturbances. Among them, KPMG CPA said in its resignation letter, repeatedly requested the company's management to provide relevant documents and information for examination and examination, and the company did not provide any documents or information; KPMG's resignation also led to the delayed publication of the annual report.

Bankruptcy reorganization and other resumption

The rich and precious birds of the past were deeply involved in debt crisis, illegal guarantee, letter violation and so on. The company and chairman of the board of directors, Lin and he were criticized and punished on the average.

Fortune birds issued more than 2 billion corporate debt in 2014 and 2016 respectively (not yet expired), but in February 2018, the fortune birds were exposed to at least 4 billion 909 million yuan and the assets may not be recovered. Rating firm Dongfang Jincheng lowered the "14 rich birds" rating to CC, and the outlook was negative.

In March 1, 2018, after the resumption of "14 riches and birds" resumed, the bond market price of 100 yuan was dropped to 8.5 yuan in the two level market. Until April last year, the rich bird said that due to the large amount of external guarantee and capital lending in the early stage of the company, the related payments could not be recovered on time, and could not repay the principal and interest of the "14 riches and birds" in due course, resulting in a substantial breach of the bond.

As a trustee of creditor's rights, in July 26, 2018, Cathay Pacific Securities applied to the Quanzhou intermediate people's court for the revaluation of fortune birds. However, in May 9th of this year, the proposed restructuring plan was not passed by bondholders.

According to the plan, the plan put forward by the network includes the "debt to the shoe", that is, after the reorganization party receives the 60 million yuan debt of the rich and precious birds, it delivers to the creditors the equivalent value of the shopping vouchers which can be exchanged for the riches and birds' brand products, which are used to pay off the general creditor's rights, and the ordinary creditor's rights redemption rate is 1.6287%. The creditor can get the coupons to the designated direct store stores during the 3 years of obtaining the shopping voucher for 3 years.

The subsequent adjustment of the bird's wealth restructuring plan for the two vote was still unsuccessful. But the rich birds continue to apply for court approval. In July 26th this year, they submitted an application to the Quanzhou intermediate people's court for approval and approval of the application document of the draft reorganization plan, and indicated that the company would arrange a resumption plan according to the progress of bankruptcy reorganization.

However, until the court's final audit results had been completed, the birds and birds had begun to enter the countdown.