The Dilemma Of Expensive Birds: Asset Freeze And Diversification Investment

Recently, sports and leisure brand celebrity bird announced that the "noble bird" held the status of assets held by self-examination, and learned that the new part of real estate and land were frozen. The newly added frozen assets have a book value of about 105 million yuan, accounting for 2.21% of the latest audited assets of the company.

According to public information, in 2014, the list of "A shares sports brand first shares" has the highest total market value of more than 40 billion yuan. Not long after landing A shares, along with a series of negative news such as bond defaults, asset freeze, equity auctions and so on, the price of expensive bird went down all the way, and its market capitalization was less than 2 billion 300 million yuan.

About 1 billion 280 million yuan of assets were frozen.

In March 19th, the company announced that the company had added 84 million 266 thousand and 800 yuan to be frozen assets, and the company's total frozen assets had a book value of 1 billion 175 million yuan. Along with the announcement, there are also news that the company's stock may be implemented as a risk warning for delisting, and the 4 million 695 thousand shares held by the controlling shareholder of the company are sold by law.

According to the April 2nd announcement, the newly added book value of frozen assets was about 105 million yuan, accounting for 2.21% of the latest audited assets of the company. The reason for the freezing of assets is that, in consultation with the relevant organizations, the bird said that the assets were frozen. The main companies failed to pay the principal and interest of the "first time non-public directional debt financing tool of Limited by Share Ltd 2016" and "14 noble birds" bonds, and some creditors filed property preservation applications to the judiciary.

Up to now, the total value of the birds has been frozen, accounting for about 1 billion 280 million yuan, accounting for 26.93% of the latest audited assets of the company.

The company said that the company still faces big debt default risk in the future. Due to overdue debts, the company will continue to face uncertain matters such as litigation, arbitration, asset freeze and so on. The company will continue to actively cooperate with the trustee and creditors to communicate with each other, fully understand the creditors' ideas and demands, consult with the relevant creditors as soon as possible, and try to reach agreement on the debt solution and jointly solve the debt problem.

Judging from the current situation, these investments occupy a lot of money, but there is little synergy. For the "noble bird", 2020 will become the key year for shell preservation. Whether the new sales system can be accepted by the market is worth looking forward to.

The death of diversified investment

In January 21st, the precious birds released a notice of earnings loss. It is estimated that the net profit in 2019 will be 765 million yuan to 915 million yuan. In 2018, the birds of fortune had lost 686 million yuan.

According to public information, the debt of expensive birds is under pressure every year. In 2016 ~2018, the total liabilities amounted to 4 billion 791 million yuan, 4 billion 956 million yuan and 3 billion 223 million yuan respectively, and the corresponding asset liability ratios were 60.62%, 65.36% and 67.81% respectively. In 2019, the liabilities of the company continued to increase. As at the end of the three quarter of 2019, the total debt was 3 billion 342 million yuan, and the asset liability ratio expanded to 68.42%.

At the same time, the debt crisis of the great bird is closely related to its diversified investment. Xiaobian has learned that the company has put forward the strategic transformation of the sports industry group which is coordinated by the traditional sports shoes and clothing industry to the diversified sports industry form.

From 2015 to ~2017, you invested tiger hubs, Spanish football agency BOY, Kangpai sports, Jay trip and famous shoe store to buy the authorization of the US basketball equipment brand AND1 in the Chinese market. At the same time, the sports industry fund "Huai mobile domain" and "competitive domain" were established with huppu, and the total cost of the above projects was over 2 billion yuan RMB.

In order to achieve diversified development, the great bird has made great efforts to purchase investment, but the various industries involved in its investment have not been expected to return. On the contrary, blind expansion has led to serious financial burden on the group, and now the great bird is in debt black hole.

In this regard, insiders said that the main business of the company has not made any progress and diversification has not broken through, so the capital market is not optimistic. In the case of limited capacity, focusing on the main business is more reliable than diversification.

epilogue

The pace of diversification investment has gone too far. The birds and birds have not been able to plough through many fields. The huge "multi sports industry form" failed to bring benefits to the birds. The sinking market is also a red sea. The industry dividend has been separated by 7788 of competitors, and now there are few opportunities left for them.

In the case of frequent failures and brands in trouble, the precious birds begin to re examine their strategies and focus their attention on the main business.