On November 12th, Guiren Bird announced that it issued a total of 500 million yuan, and the debt financing tool of the three-year period of 16 PNG001 could not pay the principal and interest on time, which constituted a substantial breach of contract.
In addition, since June 2019, the rating results of 14 expensive bird company bonds issued by the noble birds have been lowered. At present, 14 VIP bird bond ratings and subject ratings have dropped from AA- in June to CC.
The decline in debt defaults and bond ratings highlights the increased risk of cash flow and the deterioration of solvency. In addition, the company also faces problems such as a sharp decline in performance, a continuous decline in operating capacity, and a high percentage of controlling shareholders' pledge of shares.
Performance pressures tighter
In the first three quarters of 2019, the company's operating income reached 1.169 billion yuan, a year-on-year decrease of 49.20%. Considering the impact of the current report on Jiezhixing and BOY, the bird revenue decreased by 14.28% year-on-year. In the current period, a net profit of -1.667 billion yuan was recorded, which was a loss from profit to profit of 28.8743 million yuan in the same period of 2018.
Although the current trip will eliminate the merger report, BOY, but the expense rate of the expensive bird is rising. The total expense ratio increased from 27.78% in the third quarter of 2018 to 36.06% in the third quarter of 2019, with sales expenses increasing the most, up 4.9 percentage points from the same period of the previous year. The increase in sales expenses of the VIP bird is mainly due to the increase in sales rebates and the increase in sales staff and the increase in work benefits caused by the adjustment of sales models.
From the perspective of operational capability, the inventory turnover days and accounts receivable turnover days of the VIP birds have reached the highest value in the past five years. The inventory turnover days increased from 69.54 days in the 2015 third quarter report to 189.69 days in the third quarter of 2019; the accounts receivable turnover days increased from 282.66 days in the 2015 third quarter report to 335.34 days in the third quarter of 2019.
Choice Financial Terminal
In fact, the increase in the expense ratio and the decline in operational capacity are closely related to the tight mobility of the noble birds. According to the third quarterly report, the balance of the monetary funds of the VIP bird is only 15.2891 million yuan, while the short-term borrowing is 1.177 billion yuan. The non-current liabilities due within one year (including long-term loans and bonds payable within one year) are 1.302 billion yuan. The gap is as high as 2.464 billion yuan.
The China Daily disclosed that the VIPs could not seek new financing channels. Some financial companies continued to lend money, pressure on loans or increase credit conditions, and the land and housing assets held were mortgaged. In terms of payment, the amount of accounts receivable in the third quarter was 1.421 billion yuan, accounting for 29.10% of the total assets. Due to the payment difficulties of some dealers and customers, the payment was unfavorable, resulting in credit impairment losses (including bad debt provision for other receivables) of RMB 102 million.
At present, the production and operation of the noble bird has been affected. Due to the extension of the settlement period of the upstream suppliers, some suppliers have terminated the cooperation with the noble birds. The noble birds have to purchase the raw materials through the intermediary, resulting in an increase in costs. At the same time, the VIP bird adjusted the sales model, implemented the new franchisee policy, and promoted the sale of the VIP bird brand-type direct store, which increased the sales staff and caused the cost to rise.
From January to September 2019, the number of shops closed 587, and 225 new stores were opened. The total number of stores was 2,516, a decrease of 362. Among them, the VIP bird brand direct store closed 402, and only 91 new ones were opened.
Was warned for using "financial skills"
In December 2018, the VIPs issued a notice on the company and related personnel receiving the warning letter from the Fujian Securities Regulatory Bureau. The Fujian Securities Regulatory Bureau warned the listed company and related responsible persons.
From 2015 to 2017, Guiren Bird provided financial assistance to dealers totaling 1.942 billion yuan, 1.745 billion yuan, and 1.419 billion yuan. The listed companies were not disclosed in time for the granting of the company, and they were not submitted to the shareholders' meeting for consideration. Until April 28, 2018, the company disclosed the financial assistance for 2017; on May 18, 2018, the company held the 2017 Annual General Meeting of Shareholders before considering the financial assistance for 2017; the company disclosed the 2015 annual report on May 18, 2018. And 2016 financial aid matters.
The listed company did not account for the above amount through other receivables, but accounted for through accounts receivable. Leading to the 2015 and 2016 financial reports, the provision for bad debts was 5,680,100 yuan and 2,738,500 yuan respectively, and the net profit was 3.422 million yuan and 1.532 million yuan.
In addition, in 2017, the listed company confirmed the disposal income of 4,561,100 yuan in advance if the land transaction was not completed.
Part of the controlling shareholder was frozen by the judiciary
According to the relevant announcement, the VIP Bird Group holds 4,791,150,000 shares of noble birds, accounting for 76.22%. As of August 3, 2019, the number of shares frozen by the government was 426,543,300 shares, accounting for 67.86% of the total share capital of the listed company. As the stock price has fallen below the closing line set by the VIP Bird Group and the relevant financial institutions, the shares held by the VIP Bird Group still have the risk of being frozen. And if the frozen shares are disposed of by the judiciary, it may result in a change in the actual controller of the bird.
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