Old Shoe Enterprises - Rich Birds: About 4000000000 Debt, Not Yet.

Known as "China's real leather shoes king" Hong Kong stock listed old shoe enterprises - rich birds welcome the "darkest moment".

In August 12th, the latest news disclosed by the company showed that the final listing date of the company's shares will be August 23, 2019, and the listing status of the shares will be cancelled at nine a.m. in August 26, 2019.

Prior to that, the bird died for nearly 3 years. During the period, fortune and bird turnover and profits continued to fall: from nearly 3 billion of turnover to less than 5 hundred million in 2017, net profit also shifted from profit to loss and then no update. The company said that it was mainly due to the suspension of shares and unpaid debts, which affected business operations.

The data show that the debt of rich birds is at least 4 billion 229 million yuan.

Bird of fortune has been cancelled.

After nearly 3 years of suspension, the former "shoe king" plan failed to resume listing.

In August 12th, fortune bird announced that in August 9, 2019, the stock exchange sent a letter to the company to inform the company that the final listing date of the company's shares would be August 23, 2019, and that the listing status of the shares would be cancelled at nine a.m. August 26, 2019. The company is now seeking legal advice and may make further and final review on the cancellation of listing status according to chapter 2B of the listing rules.

Prior to that, the bird has issued a notice saying that due to the suspension of trading shares, and outstanding debts, affecting business operations, the company is in bankruptcy reorganization, according to the progress of the reorganization of bankruptcy reorganization plan.

From 40 thousand yuan to "China real leather shoes king".

The story of rich birds begins with Lin Heping, the founder.

Born in 1957, Lin was born with poor economic conditions. When he was 10 years old, he dropped out to help his parents do farm work. In 1976, the villagers set up a tile kiln agricultural association together. Lin Ping became a cashier in the agricultural community and was elected director of the factory in 1982.

In 1984, Lin Heping, the founder of fortune bird, founded the Shishi tourist souvenir factory with 19 cousins, which is the predecessor of the group of birds and birds, with only 40 thousand yuan. It lasted for 5 years, and only 4 cousins headed by Lin peace were left.

After the painful experience, the 4 brothers began to change their strategy, and devoted themselves to the production of footwear products and registered the "riches and birds" brand.

In 1990, fortune bird received an export order for the first more than 10000 pairs of shoes. At that time, the workshop of the factory was changed from a broken tile kiln to a maximum of one hundred pairs of shoes a day. I did not expect that under such production conditions, Lin Ping could deliver the goods on schedule and guarantee the quality. The first year of the adjusted enterprises achieved a good start. At that time, 100 thousand pairs of casual leather shoes were sold, equivalent to 10 times the annual planned production and sales volume.

In 1991, the "bird of wealth" was formally established. In 1995, men began to produce men's leather shoes and extended their production lines to women's shoes in 1997. During the period from 1998 to 2012, the company's leather shoes products have won many titles and awards such as "China genuine leather shoes king", "China famous trademark" and "the most competitive brand".

During this period, the rich birds also invited the Chinese National Women's volleyball team coach Chen Zhonghe and star Lu Yi as brand spokesmen to expand their popularity. According to the industry report, based on the retail revenue in 2012, the company is the third largest brand of Chinese business casual footwear manufacturer and the six largest brand shoe product manufacturer in China.

In December 2013, birds of fortune were listed on the main board of Hongkong. The above 4 brothers accounted for 68.9% of the shares.

Before the suspension, the shares of fortune bird were quoted at HK $3.88 / share, with a total market value of HK $5 billion 189 million.

Suspension in 2016

Revenues and performance encounters Waterloo

Since September 1, 2016, the company has suspended its stock. Since the time needed to complete the mid term results, the company postponed the issuance of the board of directors and the interim results in 2016. Since then, investors have been waiting for a long time to resume.

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.

Previously, the rich and new year suspended for nearly 3 years. During the period, fortune and bird turnover and profits continued to fall: from nearly 3 billion of turnover to less than 5 hundred million in 2017; net profit in 2016 decreased by over 50% to 195 million; in the first half of 2017, profits and losses were eliminated and no update was followed.

Compared with the same industry, it is at the bottom of the situation.

The company said that it was mainly due to the suspension of shares and unpaid debts, which affected business operations.

　　 Staff cut rapidly from 10 thousand.

Half of the workshop was shut down.

The number of employees in the company is close to 10 thousand at the peak. The complete annual report released after the listing in 2013 found that the number of rich birds has been on the decline. In June 30, 2014, the number of full-time employees was 5729. By the end of the year, this figure had been reduced to 5170. By December 31, 2015, the company had employed 4401 full-time employees, and the 2017 data have not yet been released.

Last year, the media visited the factory of the birds and found half of the plants shut down.

Liabilities exceed 4 billion yuan

Performance declined year after year, or even net losses. But the credit rating of the birds has been reduced to CC by route AA. The CC level indicates that "protection in bankruptcy or reorganization is small, and there is no guarantee of debt repayment".

But the decline of the fortune bird business has led to an avalanche of its bond prices. In March 1st last year, 14 riches and birds fell 83.14%, fell 14.29% again the next day, and dropped 12.53% and 34.76% respectively in March 5th and 6th. On just four trading days, the 100 yuan face value product dropped from 8.56 yuan per unit to 8.56 yuan, while the cumulative decline of 91.75%, at the same time, created the lowest corporate bond product record in China's capital market history at one fell swoop.

A large number of public funds, brokerages and other institutional investors have stepped on because of the sharp fall in bonds.

Up to now, the above three bonds, 16 of which are 01 of the riches and 01 of which have been substantially defaulted.

Guotai Junan, a trustee of creditor's rights, issued a notice in February last year that there were large amounts of illegal foreign guarantees and funds borrowed from Fortune birds and their subsidiaries. As of February 28, 2018, the total amount of loans made by fortune birds was at least 4 billion 229 million yuan, and the issuer had at least 4 billion 909 million yuan in assets, which could not be recovered. As of December 31, 2017, the demand deposits and liquidity of issuers can be less than 100 million yuan. If the issuer can not recover and liquidate the relevant assets before the sale date, there will be significant uncertainties in the redemption of the refunds.

Once a generation of shoe king, to this stage, it is sad.

For some of the founders of the rich birds, they once thought that their children could inherit their families. Lin peace has said in an interview: "although it will not deliberately ask their children to engage in footwear industry, but also hope that Lin Jiayou's children can take over." But in reality, children's inheritance of family property has long been far from being avoided in order to avoid inheriting huge debts.

In June 2017, Lin Guoqiang, co-founder of fortune bird, died accidentally. In December of that year, the children of Lin Guoqiang renounced their father's property and shocked the business community. It is reported that Lin Guoqiang made a guarantor in the 11 cases of financial loan contract of the rich birds, involving a sum of up to 290 million yuan. The bank filed a lawsuit request to investigate their spouse and children as the first successor to inherit the inheritance within the scope of the joint liability.