Sellfirstclopulusandthenselltigerparkequityowner bird continued to sell assets can save themselves

Once trying to become an industrialized bird, once tried to change its name to "all-around sports". After failing, it is now in a state of no money "all can't" and can only sell its assets to save itself.

When did the road to fill the pit come to an end?

The crisis over Lord bird began on June 14. But recently, in the midst of the crisis, the bird, can only choose to sell assets to save themselves.

On Aug. 7, similar to the broader market, the sovereign bird rallied after a "deep V," closing up 1.99 percent. But this "deep V" trend, however, created the lowest share price since the debut of the rich bird.

At $28.65 per share, the highest since 2017, on June 14, the stock had fallen 70.65 per cent to $8.41 per share on August 7. That said, guidry shares are down more than 70 percent from the start of the 2018 World Cup and the eve of 2018 national fitness day.

In the last 50 days, guidry's shares have fallen by 70%

The reason for the crash, I have done some analysis in the previous articles. The most likely reason is the cash flow crisis. But it is clear that the current wealthy bird is already in a vicious circle: the crisis has led to a sharp fall in share prices, which has triggered the risk of stock collateral, further exacerbating the cash flow crisis.

Sell first, then sell the tiger attack, therefore, in the plight of the noble bird, can only choose to sell assets to save themselves.

Multiple announcement on August 2, noble bird, the sale subsidiary Kang Pai: noble bird will its holdings of Kang Pai thought (Beijing) sports management co., LTD. 37% stake and Kang Pai think sports consulting (Beijing) co., LTD. 37% stake in jinjiang national sports city co., LTD., the transfer amount is 135.2221 million yuan and 8.1142 million yuan respectively; It also agreed that quansheng invest to sell its 30% stake in kangpaosi network to jinjiang national sports city co., LTD., for the price of 65.25 million yuan to pay back the borrowed money.

On the evening of August 6, guirenbird released another announcement, announcing the sale of its 13.66% stake in tiaopu: it agreed that quansheng investment will transfer its 13.66% stake to Shanghai dingdian asset management co., LTD., with the transfer price of 273.28 million yuan, which will be used to repay the principal and interest of its loan.

Having sold two equity stakes in each company, guirenbird received nearly half a billion yuan to replenish its cash flow and save itself. But at the moment, there is no mid-2018 report on the bird, so we simply cannot get into the depth of the crisis facing the bird, nor can we predict the actual scale of the crisis facing the bird.

That said, the nearly $500 million raised through asset sales may not be enough to save your bird. If that is the case, then the bird will have to sell.

In fact, the noble bird under the "natural disaster", whether it is kangpai sports or hupu sports, is the diversified exploration layout of the noble bird in recent years. Hupu is often seen as a typical representative of the equity investment business of guijianbird, while kangpai focuses on campus sports and is seen as an important part of the strategic layout.

In recent years, as the main sports brand business gradually encountered bottlenecks, guirenbird began to explore a number of new business areas.

Buy the name of the shoe store and the travel of jie, expand their sales scale;

Two sports brands, AND1 and PRINCE, are planned to enter the first and second-tier cities, but they have not yet landed.

The acquisition of BOY, a football agency, and campbello, a campus sports company, to position the sports industry;

Investment in hupu sports, set up a dynamic capital;

In addition, guirenbird has purchased xiang 'an online insurance and invested in hubei shengdao sports products co., LTD.

Even on the eve of the crash, guidry was looking to buy a property owned by the man who actually controlled the property.

But the sudden collapse in share prices caught you off guard, and cash flow became the biggest problem for you as your market value evaporated by 70%. Before that, big shareholders had pledged almost all their shares. Therefore, in order to fill the pit, also to save themselves, the noble bird can only sell assets.

Haosha, which belongs to jinjiang system, also suffered a cash flow crisis.

After June 29, haosha international's controlling family held a combined 49.15 percent of the company's shares. By the evening of August 7, haosha international chief executive Mr. Shi's stake had dropped to 37.24 percent. Of these, the majority of the reduced shares belong to the pledged shares, which were forced to sell because haosha could not redeem them. Although Mr Haosha has used the jinjiang government and state-owned enterprises to endorse him, the cash flow problem has not been solved based on the fact that his share price has been sold.

To some extent, the crisis of guirenbird and haosha has also been an impressive lesson for Chinese sports companies. In the process of enterprise development, how to use leverage reasonably is a crucial issue in enterprise operation and expansion. Although crises such as guidry and haosha occur in capital markets, in practice, there is more than just public companies that abuse leverage.

Everything has its two sides, capital is no exception. How to draw a more precise line of risk control for companies in the process of development will be something sports companies need to learn.