Souyute, who once ranked among the sales champions of domestic clothing brands with his “Popular Frontline” brand clothing, has been in constant trouble in recent years. His performance has declined. Last year, he started a huge loss mode. This year, he has fallen into a capital chain crisis, with overdue debts. Then it appeared, and now the debt snowball has grown bigger again:
Souyute announced on the evening of the 16th that from August 27, 2021 to December 16, 2021, the company and its subsidiaries had new overdue debts totaling 584 million yuan, accounting for 15.48% of the company’s audited net assets in 2020. As of December 16, the company and its subsidiaries’ overdue debt totaled 1.962 billion yuan, accounting for 51.99% of the company’s audited net assets in 2020. In addition, the company’s new bank accounts have been frozen (a total of 2 accounts, involving 554,100 yuan), and new assets have been frozen and seized, mainly including the company’s wholly-owned subsidiary Guangdong Meiyida Supply Chain The shares of the management company and the joint-stock company Beijing Zhongyan Hanhai Network Technology Co., Ltd. were frozen, and the company’s property at No. 1 Xinhongchang Road, Daojiao Town, Dongguan City was seized.
As a result, Souyute’s situation will become even more difficult. Not only will he face the need to pay related liquidated damages, late payment fees and penalty interest, and be sued due to overdue debts, which will lead to an increase in the company’s financial expenses, it will also cause the company’s goodwill to further deteriorate. Damage will make financing more difficult, exacerbating the company’s financial stress and adversely affecting the company’s business development.
I remember how high-spirited Souyute was back then. It had fashionable front-line stores all over the country. It spent money to invite celebrities such as Kelly Chen, Nicholas Tse, Song Hye Kyo, and Huang Shengyi to serve as brand spokespersons. It was well-known in the domestic clothing industry for its design, production and sales of popular and fashionable youth casual clothing. However, Souyute is not satisfied with being a clothing giant. Since 2015, Souyute has launched a strategic transformation, shouting the slogan of building a comprehensive service provider for the fashion life industry, and then vigorously developed supply chain management, brand management and other businesses. , but the pace of transformation and expansion was too fast, and coupled with the factors of the epidemic, it eventually turned the company into a dead end.
Following a huge loss of 1.771 billion yuan last year, Souyute once again lost 2.128 billion yuan in the first three quarters of this year, showing a worsening of losses, which really worries its investors. In the secondary market, Soyute’s stock price has been falling continuously in the past four years. In the middle of 2020, relying on investment masks, it took advantage of the hot spots and broke out. After that, it continued to fall. Now the stock price is only 1.56 yuan/share. As the sixth-ranked low-price stock in the A-share market, if the debt default troubles continue to develop, it is not impossible for Souyute to become a “1 yuan delisted stock” and leave the market – “for 20 consecutive trading days The closing price is lower than RMB 1” is a trading delisting indicator.
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