Fortune Birds Cannot Escape The Fate Of Delisting: 3 Billion Debt High 4 Billion 900 Million Asset Recovery Suspect

After nearly three years of suspension, the birds of fortune (01819, HK) still can not escape the robbery.

In August 12th, the latest news disclosed by the rich bird revealed that the final listing date of the company's shares will be August 23rd, and the listing status of the company will be cancelled at 9 a.m. in August 26th.

The company also said that it is seeking legal advice and that it may decide to cancel the listing status and submit it to the listing Review Committee for further and final review. Further announcements will be issued.

Rich birds are famous footwear brands in Fujian. They were founded in 1991 and listed on the Hongkong stock exchange in 2013. Once famous for its peak, it was once the third largest business casual shoes brand in China.

However, in March 2018, when the reporter went to Fujian Shishi Fu bird company's location, we found that some of the company's production lines had been shut down and the number of employees has also decreased significantly.

In August 13th, the reporter called Fu Fu bird investor phone, but no one answered.

Suspension for three years

Fu Gui bird is an old shoe and shoe giant. It was founded in 1991 in Shishi, Fujian province (Quanzhou city is a county level city). In 1995, after the establishment of Limited by Share Ltd, the bird of wealth became a modern enterprise integrating the development, production and sale of shoes and garments. In 2012, the company became the third largest manufacturer of business casual shoes and the sixth largest brand shoe product manufacturer in the country. In 2013, the company was listed on the Hongkong stock exchange.

Since September 1, 2016, the birds have been suspended for 6 years.

At that time, the reason for the suspension was that "additional time is required to complete the compilation of certain information for the interim performance". The board meeting was postponed and the interim results in 2016 were delayed. However, after waiting for more than 1000 days and nights, investors and so on came not a resumption of corporate stock but a delisting notice.

Some investors said that it was not surprising when they learned that the news about the delisting of rich birds was due to the "warning" from last year's suspension due to the new rules listed on the Hongkong stock exchange. According to public reports, Fu Fu bird had predicted that if the company had not yet reached the revised conditions for resumption of business and resumed share trading in July 31, 2019, the Hongkong stock exchange would recommend the listing committee to cancel the listing position of the company.

During the suspension period, the performance of rich birds declined linearly, and turnover and profits continued to fall. The turnover from over 2 billion yuan to 500 million yuan in 2017, and net profit in 2016 dropped by 50% to 163 million yuan. In the first half of 2017, the profit of the company changed from profit to loss and the loss was 10 million 890 thousand yuan. Since then, there has been no renewal of fortune birds.

Rich bird said that the main business of the group maintained normal operation, but the turnover declined, mainly due to the suspension of trading shares, and outstanding debts, affecting business operations.

In March 2018, reporters went to Fujian Shishi Fu bird company's location, and found that some of the company's production line has been shut down, the staff also greatly reduced. At that time, the workers interviewed at the scene told reporters that the company had only a few hundred employees.

In fact, according to the announcement issued by fortune bird, the number of employees in the peak period is close to 10 thousand. Reporters noted that after listing in 2013, looking at the complete annual report issued by the company over the years, we can see that the number of rich birds has been declining: in mid 2014, the company still had 5729 full-time employees; by the end of the year, this figure had decreased to 5170; and by the end of 2015, the company had employed 4401 full-time employees. No data have been released since 2016.

Huge debt ceiling

Performance declined year after year, or even net losses. However, the company's credit rating 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".

During the suspension period, Fu Fu bird was deeply involved in the debt crisis. At the same time, there were some problems such as violation guarantee and letter draping. The company and chairman of the board of directors were criticized and punished on the average.

So what is the debt situation of rich birds? According to the report issued by Guotai Junan in February 2018, there is a large amount of irregularities outside the guarantee for fortune birds and their subsidiaries. At least 4 billion 900 million yuan assets are likely to be uncollectible, including 165 million yuan in currency capital, 200 million yuan in accounts receivable, 200 million yuan in inventory, 4 billion 229 million yuan in other receivables, and 115 million yuan in fixed assets.

At the same time, the debt of the fortune birds was about 3 billion yuan at that time, including 800 million yuan of the "14 riches and birds" and the corresponding interest rate, "16 riches and honour 01" principal 1 billion 300 million yuan and corresponding interest, bank loans of about 500 million yuan, and other operating liabilities of about 300 million yuan.

In March 2018, the "14 riches and birds", which was issued in April 2015, was issued by the fortune bird in April 2015. The total issue amount is 800 million yuan, with a term of 5 years. At the end of third, the issuer raised the option to raise the coupon interest rate and the investor's option to sell back. The bond came back on sale in April this year.

On the eve of the resumption of "14 riches and birds", the bond rating agency orient Jincheng International Credit Assessment Limited disclosed "Orient Jin Cheng's announcement on reducing the Limited by Share Ltd's main body and the" 14 riches and birds "credit rating. It lowered the main credit rating of the birds to CC level, maintaining the rating outlook negative, and reducing the credit rating of" 14 riches and birds "bonds to CC level.

In this regard, the rich bird said that due to the existence of large external guarantees 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 substantial breach of the bonds.

As a bond trustee, Guotai Junan has applied to the Quanzhou intermediate people's court two times (hereinafter referred to as the Quanzhou intermediate people's court) to reorganize the fortune birds, but the draft plan of the birds of fortune has not been approved by the creditors.

But in July 26th of this year, the rich bird again submitted an application document to the Quanzhou intermediate people's court for ruling and approving the draft reorganization plan, and indicated that the company would arrange a resumption plan according to the progress of bankruptcy reorganization.

However, before waiting for the court's final audit results, the fortune bird has entered the countdown to the delisting. As for the subsequent arrangements for delisting, the birds of fortune have not yet been released.