Another "Shoe King" Accident! The Negative Ratings Of The Birds Are Downgraded.

A generation of "shoe king" Fu bird has just announced bankruptcy, and another shoe selling listed company has been bogged down.

Recently, the "expensive bird" bond and the main rating have been downgraded from AA- to A, and the rating outlook has been reduced from "stable" to "negative".

As a matter of fact, in recent years, the "bird of fortune" has been in a negative position. In addition to the downgrade of the bond rating, in recent years, it has also been exposed to bad news such as sustained losses in performance, equity pledge of controlling shareholders, and crazy shops.

　　 Both the bond and the ratings were frustrated.

Two times in 3 months.

Data show that the bond "14 noble bird" was listed on the Shanghai Stock Exchange in December 23, 2014, issuing a scale of 800 million yuan, with a term of 5 years. UBS Securities is the main underwriter and the next interest payment date is December 3, 2019. When issued, its bond and main rating are AA.

On the basis of the comprehensive analysis and evaluation of the company's operating conditions and financial status, the joint rating issued a notice in September 16, 2019 to reduce its main credit rating from "AA-" to "A". The rating rating was expected to be "negative". At the same time, the credit rating of "14 noble birds" was reduced from "AA-" to "A".

This is not the first time that a bird has been subject to debt and rating downgrades.

In June 21st this year, the joint rating for the first time lowered the "14 noble birds" bonds and the main rating, from "AA" to "AA-", but the rating outlook remained stable. In less than three months, the company's rating and corporate bonds were again downgraded by a joint rating.

In fact, in addition to the joint rating, the debt rating and Moodie company have also lowered the main rating of the bird. In December 2017, Moodie first gave the B1 rating to the "noble bird" and lowered it to B2 in June last year.

In August 2017, China's debt credit rating was first given to A+ rating, then reduced to A in April 2018. This year, the two reduction from May to June dropped to BBB, and then dropped to BB+, and the rating outlook dropped from "stable" to "rating observation".

　　 Market value rose more than 40 billion

More than 5000 stores nationwide

Founded in 1987, you have gathered from Anta, Fujian, Jinjiang and many other domestic sports brands, the "China Shoes Capital" in Jinjiang, to develop, produce and sell sports shoes, clothing and accessory products.

From 2011 to 2013, the first three years of listing, the annual revenue of the precious birds is basically stable at around 2 billion 500 million, close to half of the revenues of Lining, XTEP and 31st.

Despite the difference in performance, but benefiting from the valuation advantage of A shares, the market in January 2014 passed XTEP and 331 degrees in Hong Kong stock market for many years. A is the only sports brand listed company.

In 2015, A shares ushered in a big bull market. The price of expensive birds also surged, reaching a maximum of 69.37 yuan, and the market value once exceeded 40 billion yuan. Even with the fall of the big market, the stock market remained stable at about 15 billion, and it overshadowed the development of Lining.

It is worth noting that in the first few years before the listing, the precious birds of the peak period began to "smash money". On the one hand, they launched a lot of advertising and marketing. Andy Lau, Cecilia Cheung, Lin Chiling and other celebrities had endorsed the "noble birds". On the other hand, the online expansion was crazy, and the national stores reached 5560 at the end of 2013.

Some analysts believe that it is high expenditure that urges the birds to rush to the market. At that time, the pace of the great bird has already been very large. This also laid the foreshadow for the future crisis of the great bird.

In mergers and acquisitions, net profit continued to decline.

After the listing, the noble bird made a decision: to develop diversified through mergers and acquisitions. But it turns out that this step is wrong again.

At the beginning of 2014, the newly listed "noble bird" put forward the need to upgrade from "traditional sports shoes and clothing industry" to "sports industrialization group based on sports apparel manufacturing and coordinated development of various sports industry forms".

Under the guidance of this strategy, the birds again started to "burn money" crazily.

In 2015, 240 million yuan was invested in tiger sports and became the second largest shareholder. It invested 20 million euros to The Best Of You Sports, a Spanish football brokerage company, and nearly 200 million yuan invested in Kang Pai Si sports.

In 2016, it won the exclusive operation rights of the US basketball equipment brand AND1 in Greater China. Under the holding line, the retailing channel merchants Jay and the famous shoe store were invested with 15 million 105 thousand yuan to enjoy the insurance, and the 260 million joint venture was set up to establish Ankang insurance.

In 2017, 367 million 500 thousand acquired the remaining 49% stake in the shoe store. Through Jay's trip, it subscribed for 45.45% yuan in Hubei Sheng Dao sports for 150 million yuan; 20 million euros bought the right to use PRINCE in China and South Korea; it also planned to buy a 100% stake in Wei Kang Sheng at a high price of 2 billion 700 million yuan, but it ended in failure. At that time, the birds once wanted to be renamed "all-round sports".

A series of actions did not open up a new prospect for the "noble birds". Instead, "backyard fires" and net profits continued to slide.

In 2016, GUI bird earned 2 billion 279 million yuan, up 15.74% compared to the same period last year, but net profit fell to 11.81% yuan to 293 million yuan compared with the same period last year. In 2017, the net profit of Gui Gui bird fell to 46.25% yuan to 157 million yuan.

Returning to the main industry is hard to save performance, and has been losing since 2018.

In 2018, the noble birds, whose performance was no improvement, began to adjust the medium and long term strategic plan to "return to the main business".

In August last year, the "bird bird announcement" indicated that it would "choose some parts of the sports industry to arrange assets, revitalize the stock assets, ensure the sound operation of the core brand sports equipment business", and then transferred the shares of the sports such as the Kang Pai Si sports and tiger sports.

In October last year, the company said it would build a strategic partnership with Jingdong, and conduct in-depth cooperation in intelligent logistics and supply chain, intelligent manufacturing and brand operation. You hope to further tap the company's internal driving force, improve the main business, enhance business performance and influence.

However, the performance of the noble bird is still in the doldrums. In 2018, the birds earned 2 billion 812 million yuan in revenue, a decrease of 13.52% over the same period last year, and net profit to -6.86 billion yuan, down 536.01% from the same period last year.

A few days ago, the medium-term performance report released by Gui Ren revealed that in the first half of 2019, GUI bird's revenue was 810 million yuan, down 47.27% from the same period last year, and net profit of -5837.07 million yuan, a sharp decrease of 269.59% over the same period last year.

Performance continued to decline, so the birds had to close a lot. Data show that in 2017, the brand of "noble bird" brand decreased by 376, and in 2018, it decreased by 857. In 2019, half a year later, it closed 188 stores with no vitality or loss. In two and a half years, the number of "Guan bird net" has reached 1421.

The stock price has dropped to 90% higher, and the stock has fallen through the open line.

Failure in transformation, decline in performance, large number of stores... Under a series of bad profits, the price of expensive birds has also been falling all the way.

At the end of 8 this year, the price of expensive bird has just hit a record low of 4.1 yuan. Compared with the high point in May 2015, the stock price fell more than 94%, and the market value evaporated about 38 billion yuan. Today's closing price is 4.47 yuan.

The decline in share prices, in turn, exacerbated the danger of the birds. In August 3rd, the announcement issued by the famous bird bird said that the 426 million shares were frozen, accounting for 67.86% of the total share capital.

It is also indicated that if the frozen shares of the company are subject to judicial disposal, it may lead to a change in the actual controller of the company. At present, the pledge rate of noble birds is more than 75%.

By the end of 6, the currency of the expensive bird account was only 125 million yuan, while the short-term loan of the company was as high as 899 million yuan, and the non current liabilities due within one year were 1 billion 270 million yuan.

In 3 months, the "14 noble bird" bond that has been downgraded will be expired. It is still unknown whether the honored bird can pay on schedule.