LeapZipBlog: yucherrty's blog: Armani: 8 years and 17 mergers and acquisitions specialize in loss-making business

Armani: 8 years and 17 mergers and acquisitions specialize in loss-making business

December 7, 2018 by yucherrty  

Shenzhen Hemei Group Co., Ltd. (hereinafter referred to as Hemei Group), which is bent to build the first channel of China's high-quality brand omni-channel, has to sever the Armani agent sales assets, and the proposed sale price is not higher than 210 million yuan. A book loss of approximately 25 million yuan.


In other words, the Hemei Group also wants to clear Armani at a loss. According to its public reasons, the operation of Armani business did not achieve the expected results, and did not form a good economic benefit for the company, which affected the company's layout and planning of the international brand operation strategy to a certain extent. However, those who are careful have found that the funds of Hemei Group are under pressure, and this money has the meaning of emergency.


Around June of this year, a sudden "financial drop lever" made the company into a financial dilemma. In the context of the financial de-lost policy, banks generally tightened the loan quota for SMEs, and the situation of lending is not uncommon. At the same time, the financing channels such as equity pledge and bond issuance are no longer as smooth as before. The Hemei Group's capital chain, which has frequent asset operations, is suddenly tight.


A notice from China's executive information disclosure network shows that Hemei Group has been listed as "Lao Lai". The enforcement court is the People's Court of Jiang'an District of Wuhan City. The reason is that Beijing Shouhe Investment Co., Ltd. still owes a loan of 10 million yuan to Wuhan Credit Microfinance Co., Ltd., and is therefore listed as the untrustworthy enforcer.


Hemei Group, formerly known as Shenzhen Haoningda Instrument Co., Ltd., was established in 1994. At the beginning of the listing, the company's business still belongs to the field of smart meters. After changing the lanes from diamond jewelry to financial services to clothing and apparel, it has been carried out for 8 years. 17 mergers and acquisitions, and frequently sell profitable projects, buy loss-making companies, and personally push themselves into the crisis.


Troublesome


According to the semi-annual report of 2018, the total amount of short-term loans that Hemei Group has overdue is 46.35 million yuan. Moreover, according to the "China Business News" survey, since June 2018, the group and its shareholders, affiliates and legal persons have been applied for freezing property 13 times, involving more than 370 million yuan.


Hemei Group's subsidiary Shenzhen Hemei Wisdom Technology Co., Ltd. (hereinafter referred to as “Hermizhike”) said on November 14 that the company began to have temporary liquidity difficulties in June. “The company used all the profits since its founding to advance. Until October 2018, due to the gradual increase in the gap, our rigid payment of investors is unsustainable."


Performance has also declined since 2017. In 2017, the non-net profit of Hemei Group's shareholders attributable to listed companies began to show a negative value of -67.35 million yuan. This decline continued in the first three quarters of 2018. In the first three quarters, the revenue was 1.589 billion yuan, down 15.83% year-on-year; the corresponding net profit loss was about 250 million yuan, down 318.1% year-on-year; the net profit attributable to deduction was about 274 million yuan, down 429.31% year-on-year.


It is worth noting that the net cash flow generated by Hemei Group's operating activities has been negative for many years. From 2013 to 2017, the net cash flow was -499.33 million yuan, -954.26 million yuan, -179 million yuan, 52.256 million yuan and -249 million yuan; the net cash flow for the first three quarters of 2018 was -2.48. 100 million yuan.


At the same time as the performance declines, the liabilities of the Hemei Group continue to rise. The asset-liability ratio from 2015 to 2017 increased year by year, with 38.58%, 60.26% and 68.80% respectively. Moreover, the debt structure is not friendly. As of June 30, 2018, Hemei Group's long-term borrowings were about 400 million yuan, accounting for 6.38% of total assets, while short-term borrowings were as high as 1.417 billion yuan, accounting for 22.61% of total assets. .


In the future, Hemei Group expects its net profit attributable to the whole year of 2018 to be approximately -395 million yuan to -4.66 billion yuan. Regarding the reasons for the change in performance, Hemei Group said that “the financial market policy and other factors will affect the difficulty of financing, and the financing costs will increase, which will affect the company's business segments. It is expected that the company's future performance will decline.


The disaster is not alone, the Hemei Group is also concerned about the exchange because it has not disclosed the related party transactions. It is reported that the Hemei Group's 5 electronic commercial acceptance bills with a total of 10 million yuan on October 18, 2017 have not been paid for one month. Due to the overdue of the above-mentioned bills, Hemei Group, Hemei Group Huizhou Branch and Wang Lei were brought to court by the holder of Shenzhen Yi'an Factoring Co., Ltd. (hereinafter referred to as “Yi'an Factoring”).


According to the bill information, the commercial acceptance bill for the financing of the factoring company by Huizhou Branch of Shenzhen Hemei Group Co., Ltd. was issued by its parent company Hemei Group. Because the branch is under the jurisdiction of the company in terms of business, capital, and personnel, it does not have legal personality and is a branch. For formal commercial factoring, it is generally required to provide basic transaction contracts and corresponding supporting documents, such as cargo transportation documents and invoices. Therefore, the authenticity of the bill was questioned.


The existence of bills between the Hermione Group and its subsidiaries has also caused trouble for the listed company Hermi Group: whether there are related transactions in the Hermi Group. On November 8, Hemei Group issued a notice acknowledging that the company and its subsidiaries and some related parties have daily related transactions such as procurement and sales. As of October 2018, it was 24,459,400 yuan, but the company did not deal with the above related transactions. Perform the corresponding approval procedures and disclose them in a timely manner.


To this end, the management department of the small and medium-sized board company also sent a letter of concern, indicating that the company's behavior violated the relevant regulations, the company's board of directors should pay full attention to the above issues, learn lessons, timely rectification, to prevent the recurrence of the above problems.


In addition, the mutual fund platform and small loan company of Hemei Group have already had loan items overdue, and the subsidiary company cannot assume the guarantee responsibility due to liquidity difficulties.


Buying loss-making assets exclusively?


Hemei Group is in a position to be inseparable from its frequent capital operations.


It is understood that at the beginning of the listing in 2010, Hemei was a meter instrument production company named “Hao Ning Da”, but its performance in the past few years was average. In 2014, Hemei obtained a 100% stake in each carat (Beijing) Diamond Mall Co., Ltd. through private placement of shares, and officially entered the jewelry industry.


Mergers and acquisitions per carat have allowed Hermi to taste the sweetness, with an estimated value-added rate of 526.53%. The 2015 semi-annual report showed that the company achieved operating income of 518 million yuan, a year-on-year increase of 170.03%, and realized a net profit of 5,762,290 yuan from the owners of listed companies, an increase of 493.78%.


Since then, Hemei Group has gradually acquired “addiction”.


In November 2015, Hemei Group acquired Shenzhen Lianjin Financial Information Service Co., Ltd. with its own funds of 255 million yuan (later renamed as “Hermizhike” and holds 100% equity of Shenzhen Qianhai United) and Shenzhen United Financial Microfinance Co., Ltd. (renamed Shenzhen Hemei Microfinance Co., Ltd., referred to as "Hermi Microfinance") 51% equity, the layout of mutual gold.


In 2016, the company officially changed its name from Haoningda to Shenzhen Hemei Group Co., Ltd., and the purchased assets gradually covered many fields such as jewelry, tourism and entertainment, international trade, e-commerce, and clothing department stores.


Since June 2017, Hemei Group has pressed the fast-forward button for asset operation. According to the statistics of the China Business Journal, since its listing in 2010, Hemei Group has conducted 17 mergers and acquisitions in 8 years, and the accumulated mergers and acquisitions exceeded 3.808 billion yuan. Among them, 9 orders occurred in more than one year since June 2017.


During the period, Hemei Group successively divested the traditional smart meter, diamond jewelry and financial services business, and spent nearly 1.5 billion yuan to acquire high-end consumer retail assets, mainly concentrated in the luxury agent field. What is embarrassing is that the group sells all profitable assets, and most of the acquisitions are loss-making DressLily Promo Code enterprises. After a series of capital moves, the performance of Hemei Group has gone from bad to worse. Market participants shouted, and the operation of Hemei Group really made people unable to understand.


The most typical is the acquisition of four companies under the Rainbow Group by Hemei Group. In October 2017, Hemei Group, a subsidiary of Hemei Group, acquired 80% equity of Qiuqiao Fashion, Rainbow Shenzhen, Yingcai Development and Rainbow Zhuhai in the form of paying 800 million in cash. The company promised to complete 3.1 in three years. 100 million yuan performance against gambling.


However, in 2016, the four companies all suffered losses without exception. In the first half of 2017, only two companies made profits, and the total net profit was only 6.45 million yuan. In the first three quarters of this year, the net profit realized by Qiuqiao Fashion, Rainbow Shenzhen, Yingcai Development and Rainbow Zhuhai was -282.57 million, -561.57 million, 5,234,200 yuan and -2,214,400 respectively.


The promised performance of 310 million yuan is obviously difficult to achieve. However, due to the acquisition, Hemei Group added up to 1.246 billion yuan of clothing inventory in 2017, and in less than one year it has accrued a reserve of up to 454 million yuan. It should be known that the cumulative net profit of Hemei Group's listing in the past 8 years was only 548 million yuan.