*St Carey (002072): Apply For Pre Reorganization And Settle In Hubei, Looking Forward To Rebirth

Recently, * ST Carey (002072. SZ) announced that the company had applied to Jingmen intermediate court of Hubei Province on October 14 for pre reorganization of the company. At present, Jingmen intermediate people's court has decided to start the pre reorganization of the company. The listed company, which moved to Hubei Province only last year, officially started the rebirth mode.

Repeated changes of ownership and heavy setbacks in transformation

Kairuide Holding Co., Ltd. (hereinafter referred to as "kairuide") was established in Dezhou, Shandong Province in 2000. Its predecessor was German cotton Co., Ltd., and its main business was textile business. It was listed on Shenzhen Stock Exchange in 2006. In the year of listing, the operating revenue was 952 million yuan, the net profit attributable was 27 million yuan, and the non net profit was 25 million yuan. However, since then, carred's performance has been declining, resulting in losses and facing delisting crisis.

In 2011, Shandong Demian group, the former controlling shareholder of kairuide, transferred the corresponding equity to Zhejiang fifth quarter Industrial Co., Ltd., and the company began to transform.

In 2016, kairuide sold the textile assets with serious loss to German cotton group at the transaction consideration of 819 million yuan, and invested 249 million yuan to complete the acquisition of 100% equity of Beijing Yili youdata Co., Ltd., and generated a goodwill of 198 million yuan. Since then, kairuide's main business has changed from textile business to Internet related business.

According to the plan, kairuide plans to expand its business and industry on the basis of the Internet accelerated service business, and plans to establish an Internet business platform company to build an intermodal platform for Pan entertainment products, e-commerce products and financial products. However, in the year of transformation, Wu lianmo, the actual controller of the company, was investigated by the CSRC for being suspected of violating the rules, and the performance of Yili has also turned from data.

In 2018, Zhang Peifeng, Wu lianmo's successor, was also investigated by China Securities Regulatory Commission (CSRC), and was subjected to residential surveillance by the public security organ at the designated residence for suspected manipulation of the securities market. Since then, karead has no controlling shareholder and actual controller.

In the same year, kairuide achieved only 16.3355 million yuan of operating revenue and 7.0807 million yuan of net profit loss, a sharp decrease year on year. During this period, the goodwill of RMB 198 million generated by the data was fully withdrawn, and the company lost 250 million yuan in that year. By the end of that year, nearly 300 million yuan had not been recovered from the transaction consideration for the sale of textile assets.

Since then, Wang Jian, the successor, has become the largest shareholder of kairuide by increasing the shareholding for several times, and changed the company's main business into coal trading business in 2019, and then added Housing leasing business on the basis of this business in 2020. However, affected by heavy debt and insufficient funds, the two businesses are small in scale and have little effect on performance.

The last opportunity to enter Hubei

In June 2020, Wang Jian once again sought opportunities to sign a strategic cooperation framework agreement with Hubei Jingmen Municipal government, hoping to jointly promote the upgrading of Jingmen health industry and promote the strategic transformation of kairuide.

With the support of Jingmen Municipal government, kairuide has carried out in-depth cooperation with local high-quality green and healthy food enterprises, and Jingmen City has also given its financial and taxation, land use, industrial fund and other policy support. The two sides cooperated to build a large health industry ecological project in Jingmen and jointly built a digital and specialized food industrial park with health care and leisure food characteristics in Jingmen.

Therefore, in July of the same year, kairuide changed its registered place from Dezhou, Shandong Province to Jingmen, Hubei Province, and officially became a listed company in Hubei Province. The next month, the office address was changed from Chaoyang District to Jingmen high tech Zone.

However, due to the deep debt crisis, in December last year, creditors applied to the Jingmen intermediate people's court to restructure kaireid. At the same time, as the end of 2020, the net assets are negative, the net profit is negative, and the operating income is less than 100 million yuan. Since February this year, the carread stock exchange has been subject to delisting risk warning. In addition, due to the illegal provision of guarantee and the negative deduction of non net profit in the latest three accounting years, and the uncertainty of the company's ability to continue as a going concern in the annual audit report of 2020, kairuide stock trading was also subject to other risk warnings.

In order to speed up the company's restructuring work progress and improve the success rate of reorganization, CareAD recently applied to the court for pre reorganization of the company.

In recent years, it has become a trend for listed companies to restructure when they have financial difficulties. If the company successfully implements the reorganization and completes the reorganization plan, it will help to improve the assets and liabilities status and operation status, and promote the company to return to the track of sustainable development; If it can not be implemented smoothly, the company will be declared bankrupt. Being declared bankrupt means that the company's shares will face termination of listing.

According to the 2021 semi annual report released by kairuide, the company has realized an operating income of 14.3282 million yuan, a loss of 2.9656 million yuan of attributable net profit, a loss of 1.8575 million yuan of non net profit, and a net asset of - 177 million yuan.

In view of the existing debt, the company is cooperating with creditors, government departments and regulatory authorities to actively promote the judicial restructuring of the company, so as to eliminate the debt crisis to the greatest extent, get rid of the operating difficulties, restore the refinancing ability and the platform advantages of listed companies.

At present, with the start of the pre restructuring, carread hopes that the judicial means and local government can help the company out of its predicament and hope to regain its vitality in Hubei.