In The First Three Quarters Of The First Quarter, The Loss Of $166 Million Was Nearly 100 Million Yuan, And The Guarantee Loan Was Overdue.

In October 29th, the 603555 quarterly report (SH) revealed three quarterly reports. Earnings data showed that in the first three quarters of the first quarter, the business income of the birds reached 1 billion 169 million yuan, down 49.20% compared with the same period last year. The net profit attributable to shareholders of the listed companies was 166 million yuan, compared with a profit of 16 million 60 thousand yuan in the same period last year.

Reporters noted that in addition to the sharp decline in net profit, the bird also suffered a breach of contract due to the sale of its subsidiary, resulting in the failure of the listed company to lift the guarantee for nearly 100 million yuan overdue loans.

Losses in the first three quarters of 166 million yuan

This year's shoe industry is facing no small challenges.

The three quarterly report shows that the net profit of its mother has dropped sharply, and the loss in the first three quarters of this year was 166 million yuan, compared with 16 million 60 thousand yuan in the same period last year.

In this regard, the bird explained in the three quarter: "as the company's main business income has declined, the company's sales expenses and provision for bad debts have increased substantially, and the net profit of the Company attributable to shareholders of listed companies has decreased considerably."

The three quarterly report shows that excluding the influence of the scope of the consolidated statements (that is, excluding Jay and BOY two companies, because they are no longer included in the scope of the report), the business income of the first three quarters of this year has dropped by 14.28%, which is mainly adjusted by the sales mode, and the sales revenue of the main brand "noble bird" has declined.

Reporters noted that the adjustment of the sales mode here is that since last year, the "noble bird" has been consulting with some of the brand customers, or dealers, to transform the original part of the traditional noble bird brand distribution and authorization cooperation mode into a direct sales mode.

Under the direct selling mode, franchisees legally have the right to use the shop / market stalls, and the franchisee entrusts the store's internal management to the responsible or responsible person, but the franchisee does not bear the risk of unsalable inventory. After the final sale of the goods, the franchisees and the birds are divided according to the agreement.

As a matter of fact, this mode has led to a substantial increase in sales expenses of expensive birds. In the first three quarters of 2019, the sales cost of the company reached 211 million yuan, up 97.78% from the same period last year (excluding the financial data of JE and BOY).

A secured loan is overdue.

The house is leaking for a rainy night. In addition to the sharp decline in net profit and losses, there is another overdue guarantee loan.

The company involved in the loan overdue is Hubei Jay's sports industry development Limited by Share Ltd (hereinafter referred to as Jay's trip). It was once a controlling subsidiary of the noble bird, and was included in the list of "bird of honor".

In September 20, 2018, the most valuable guarantee contract was signed between the noble bird and the branch bank of the contractor, providing guarantee for the bank's 130 million yuan credit.

At the end of 2018, the Chen Guangxiong and other parties signed the agreement on the transfer of equity in Limited by Share Ltd's sports industry in Hubei (hereinafter referred to as the "equity transfer agreement"). The 50.01% stake of the hero's trip to 300 million yuan will be transferred to Chen Guang Xiong for two times.

If the transfer is successful, you will no longer hold the shares of Jay, and will no longer be included in the list. Therefore, the foregoing guarantee matters need to be solved urgently.

According to the precious birds, there is a convention in the "equity transfer agreement" between the noble bird and Jay's trip: "the trip to Jay should ensure that the guaranty liability of the company is guaranteed until October 10, 2019."

Reporters also consulted lawyers on this issue. Cao Zhuping, a senior partner of the law firm, told reporters: "the dissolution of a guaranty relationship is subject to the consent of creditors."

In the end, Jie Xing did not fulfil his agreement in the equity transfer agreement, and the debt hero's trip did not reach a consensus with the creditor's Bank on the waived of the guaranty. According to the precious birds, Jie Xing Xing failed to repay the balance of the loans due to the package bank on schedule to nearly 100 million yuan.

Up to now, the bird has received the "collection notice" of the Contractor's Bank, and the bank asked the bird to fulfill its guarantee responsibility in time.

The reporter noted that the cash balance of cash and cash equivalents at the end of the year was only 15 million 290 thousand yuan, and the amount of money collected by the contractor bank was nearly 100 million yuan, and the $three bond issued by the owner of the company will expire in December 3rd this year.

Due to a breach of contract by Fang Chen, a rival trader, Chen Guangxiong and Jay did not complete the equity trading in Jay's trip. Up to now, the company has 30.01% stake in Jay. In the face of these predicament, the precious birds have to continue to guarantee the trip to Jay.

In order to prevent the risk of devaluation of shares and promote the smooth implementation of the company's original asset sale plan, the company agreed to steadily replenish the liquidity of the company. The company agreed to continue to provide guarantees for the bank's credit to the bank under the counter guarantee measures.

According to the announcement issued by the noble bird on the guarantee of related parties, the total amount of guarantee that the company continues to guarantee for the company is as high as 310 million yuan, including 100 million yuan from the package bank, 90 million yuan from China Merchants Bank, and 120 million yuan from Nike sports (China) Limited.

As a matter of fact, the transfer price between the noble bird and Chen Guangxiong on the trip to Jay has long been established. However, the bird said that the reason why it will continue to guarantee is "to prevent the risk of depreciation of equity". In response, the reporter sent an interview letter to the birds, asking whether the listed company judged Chen Guangxiong had difficulty in fulfilling the transfer agreement, and then transferred the remaining shares of Jay's Bank to other parties, but the company did not respond to the issue as of press release.