Fuguiniao is deeply involved in the debt crisis: the vacant production lines of some staff dormitories are greatly reduced
Photographed by reporter Yu Yaofeng and Shishi, edited by editor Yao Zhiyu
On March 22, Fuguiniao (01819, HK) released the Notice on Receiving the Case Filing Investigation Notice from the China Securities Regulatory Commission, stating that the CSRC decided to file an investigation on the company in accordance with relevant regulations because the company was suspected of information disclosure and illegal use of bond raised funds.
The "14 Fuguiniao" bonds resumed trading on the same day fell sharply again, from 22.69 yuan to 13 yuan, a drop of 42.71%. In March this year, the price of the "14 Fuguiniao", which had been suspended for one and a half years, fell from 103.8 yuan to the lowest 8.5 yuan in just a few trading days, down 90%.
The main reason for the sharp drop after the resumption of trading of "14 Fuguiniao" is that investors are worried about the risk of principal and interest redemption. In February 2018, Fuguiniao announced that there was significant uncertainty in the repayment of the bond sale capital.
On March 21, when the reporter of the Daily Economic News interviewed Fuguiniao Headquarters in Shishi, Fujian, he saw that some workshops were in a shutdown state. A worker told the reporter that the company's production line employees were significantly reduced, but there was no arrears of wages.
● "Turnover" of employees
At noon on March 21, the reporter from the Daily Economic News visited the staff dormitory of Fuguiniao. This is the lunch break time, and almost all the dormitory doors are closed. Xiao Liu, a young man from Fuyang, Anhui, is lying on his bed playing with his mobile phone. The other three roommates are also playing with their mobile phones.
"I will go to work soon, and I will squint in the dormitory at noon." Xiao Liu told reporters that the time at noon is very short, and workers generally do not go out.
The reporter saw in Xiao Liu's dormitory that it was a dormitory with only more than 10 square meters and four beds with upper and lower bunks. The room has a TV and air conditioner, and an independent bathroom. According to the design, it can accommodate 8 people, but now there are only 4 people.
Xiao Liu pointed to a dormitory building across the street and told reporters that there are few employees in the factory now. The entire dormitory across the street is empty, and the employees live in the row where Xiao Liu lives. "The people in each room are different. There are three or four, and there are four or five."
It has been one year since Xiao Liu joined the Fuguiniao, and now he belongs to the gang making department. He was quite satisfied with his current working condition. "When he first came in, his salary was only more than 1000. The next month, his salary was more than 2000. Now his salary is more than 3000."
Xiao Luo, a worker from Jiangxi who lives with Xiao Liu, is working for the second time this year, the first time around 2014. According to him, there were many workers in Fuguiniao at that time, and the dormitories were basically full of people. "There are few people now, and the number of people in the four workshops is not as large as that in one workshop during the peak period."
The peak mentioned by Xiao Luo refers to 2013 and 2014, when there were thousands of factory employees in the headquarters of Fuguiniao, and now there are hundreds. Xiao Luo said that there may be two or three hundred employees in four workshops.
There are fewer and fewer employees in Fuguiniao. It is not that the factory has no work to do, but that the original workers cannot stay and the workers who want cannot be recruited. Liu said that from April, all workers will start working overtime.
Xiao Xu, another roommate of Xiao Liu, joined the company after this year. Xu said that Fuguiniao had recruited workers in many places after the New Year, but many people had resigned soon after they came. There were a group of Yunnan workers who came in with him, more than 20 in all, who had resigned soon after working.
The reporter walked into the factory workshop of Fugui Headquarters. Of the four workshops, only the first and second workshops saw employees working on the site. The third and fourth workshops have been shut down, and many machines have been placed in the aisles outside the workshops.
Wang Yaohui (a pseudonym), an employee of the leather washing team of the second workshop, told the reporter that his team used to have more than ten workers, but now seven or eight have left, leaving only three people. He himself has not been here for long, but he is also going to leave next month.
When walking out of the door of Fuguiniao's dormitory, the reporter saw a recruitment billboard of Fuguiniao. The Women's Shoe Department recruited 400 shoemaking operators from the society. The reporter saw through the gate that there was a recruitment desk, only one recruitment staff, and no one came to apply.
The reporter looked up the complete annual report of Fuguiniao since its listing in 2013, and found that the number of employees of Fuguiniao has been declining. As of June 30, 2014, the number of full-time employees of the company was 5729, and by the end of the year, it had decreased to 5170. By December 31, 2015, the company had employed 4401 full-time employees.
● Both benefit and performance decline
Established in the 1990s, Fuguiniao is mainly engaged in the R&D, production and sales of men's and women's leather shoes, men's business casual wear and leather goods and other related accessories.
The inability to recruit and retain people has something to do with the current business situation of the rich and noble birds. Wang Yaohui, a worker, said that the reason why he chose to leave Fuguiniao was that the benefits of the factory were not good, and the salary he got now was only more than 2000. This salary level is really unattractive today.
In the opinion of Xiao Liu from the help making department, different departments in the factory work differently, and the treatment is also different. The treatment of the leather washing group is worse. "In the help making department, I have just been here for one year and now I have a salary of more than 3000."
Many workers also said that the treatment of another shoemaking enterprise in Shishi was better than that here, and many workers chose this one.
Worker Chen Chao (alias) has worked in Fuguiniao for ten years. When talking about the rich and noble birds of the past, his face showed a proud expression. When he first joined the rich and noble bird, his salary was more than 2000. "At that time, the money was worth more than it is now. The salary level is high in the local area. Many shoemakers would like to work in the ideal place of being rich and noble."
Indeed, the rich and noble birds once had a glorious period. In 2013, Fuguiniao landed in the Hong Kong stock market. Before listing, Fuguiniao had experienced double-digit high-speed growth. From 2011 to 2013, the attributable net profit of Fuguiniao increased by 113.79%, 27.47% and 37.13% year on year respectively.
However, since 2014, the performance of Fuguiniao has begun to show a decline. According to the financial data from 2014 to 2016, the net profit of Fuguiniao in 2014 was 45.1222 million yuan, up only 1.69% year on year; In 2015, the net profit was 392139000 yuan, a year-on-year decrease of 13.09%; In 2016, the net profit decreased by 59.16% to 162732300 yuan.
Since the listing, the business income of Fuguiniao has also shown a downward trend. In 2014, the business income of Fuguiniao was 2.323 billion yuan, 2.032 billion yuan in 2015, and 1.492 billion yuan again in 2016. According to the 2017 interim report, the business income during the reporting period was only 412 million yuan.
In view of the declining performance, Fuguiniao once explained in the 2015 financial report that the footwear industry is still at the bottom stage due to the impact of macroeconomic prosperity and its own development cycle.
As an old shoe manufacturing enterprise, Fuguiniao also tried to transform and develop in a diversified direction. For example, it tried to gradually enter the children's shoes and clothing market with school uniforms as a breakthrough, and also set up an e-commerce team to vigorously promote online business. At present, these arrangements are not enough to reverse its decline. In the first half of 2017, Fuguiniao's performance declined again, and its realized revenue was about 412 million yuan, a year-on-year decrease of 48.09%.
● The government has sent people to take over the enterprise
Shishi is the manufacturing base of shoes and clothing in China. According to the statistics of Shishi Municipal Bureau of Statistics, in 2017, there were nearly 100 shoes and clothing enterprises with annual sales of more than 100 million yuan. Fuguiniao was once the local leading enterprise.
When entering the Fuguiniao Industrial Park in Shishi City, the office building of the headquarters is still busy, and several security guards are on duty in the security booth at the entrance. The orderly flow of people cannot hide the crisis behind the Fuguiniao. The reporter learned from many sources that the Shishi Municipal Government has sent people to settle in Fuguiniao to take over the enterprise.
So, how much debt does the rich bird have? according to Guotai Jun'an According to the report of Fuguiniao, at least 4.909 billion yuan of assets are likely to be unrecoverable, including 165 million yuan of monetary capital, 200 million yuan of accounts receivable, 200 million yuan of inventory, 4.229 billion yuan of other receivables, and 115 million yuan of fixed assets.
At present, the total debt of Fuguiniao is about 3 billion yuan, including the principal of "14 Fuguiniao" of 800 million yuan and the corresponding interest, the principal of "16 Fugui01" of 1.3 billion yuan and the corresponding interest, bank loans of about 500 million yuan, and other operational liabilities of about 300 million yuan.
The "14 Fuguiniao", which resumed trading sharply in March, is the corporate bonds issued by Fuguiniao in April 2015, with a total issuance of 800 million yuan and a term of 5 years. It is attached with the issuer's option to raise the coupon rate and the investor's option to sell back at the end of the third year. In April this year, this bond will usher in the date of selling back.
On the eve of the resumption of trading of "14 Fuguiniao", the bond rating agency Oriental Jincheng International Credit Rating Co., Ltd. disclosed the Announcement of Oriental Jincheng on Lowering the Credit Rating of the Main Body of Fuguiniao Co., Ltd. and "14 Fuguiniao" on February 12, 2018, lowering the credit rating of the main body of Fuguiniao to CC, maintaining the rating outlook as negative, and at the same time lowering the credit rating of "14 Fuguiniao" The credit rating of the bonds was downgraded to CC. CC level means "less protection can be obtained in bankruptcy or reorganization, and debt repayment can hardly be guaranteed".
In addition, the exercise date of the issuer's option to raise the coupon rate and the investor's option to put back the sale of the 1.3 billion yuan private placement bond "16 Fugui 01" issued by Fuguiniao is August 12, 2018, or further aggravate its payment pressure.
In 2017, the two sales contract disputes about Fuguiniao seemed to have explained the current financial situation of Fuguiniao, which was in a very tense state.
In November 2017, Fujian Jinjiang Fuxing Zipper Co., Ltd. sued Fuguiniao to the court, requesting Fuguiniao to pay Fuxing Company 56790.34 yuan for goods; In December of the same year, Foshan Nanhai Carpenter New Shoes Co., Ltd. sued Fuguiniao and requested Fuguiniao to pay off the loan of 568116.4 yuan and interest. Fuguiniao did not reply to the two cases mentioned above at the hearing, and the court of acceptance ruled that Fuguiniao paid the plaintiff for goods.
On March 21, Guotai Jun'an, the trustee of "14 Fuguiniao", convened the first creditors' meeting in 2018. The reporter from the Daily Economic News wanted to enter the meeting, but was blocked by the company. Subsequently, the reporter tried to interview the senior management of Fuguiniao on the spot, but was also stopped by the company's security personnel. Since then, the reporter of the Daily Economic News has repeatedly made public calls to Fuguiniao, but no one has answered.
Editor in charge: Li Feng
