The story of the former women’s clothing giant is not over yet…
On the evening of November 22, *ST Rasha issued an announcement stating that the company had been filed for bankruptcy liquidation by its creditors. However, *ST Rasha said that the company has not received any ruling from the court regarding this bankruptcy liquidation, and there is great uncertainty in the creditor’s application for bankruptcy liquidation of the company.
On November 23, *ST Rasha continued to fall, with its latest market value being only 868 million yuan.
Former women’s clothing giant filed for bankruptcy liquidation by creditors
On November 22, 2021, La Chapelle learned from the express transfer from the Xinshi District People’s Court of Urumqi City (hereinafter referred to as the “New District Court”) that the company’s creditors Jiaxing Chengxin, Haining Mangrove, and Zhejiang Zhongda (the above three parties (collectively referred to as the “Applicant”) submitted a “Bankruptcy Application” to it.
Among them, Zhejiang Zhongda pointed out in its application that the respondent could no longer pay off its due debts and clearly lacked the ability to pay off debts. It fully complied with the bankruptcy conditions stipulated by law. In order to realize the applicant’s creditor’s rights and protect the applicant’s legitimate rights and interests, in accordance with relevant legal provisions, the court is requested to declare the respondent bankrupt and repay the applicant with the bankruptcy property.
Regarding the above matters, *ST Rasha said that according to relevant regulations, since the company’s registration authority is the Xinjiang Uygur Autonomous Region Market Supervision and Administration Bureau, the company’s bankruptcy cases should generally be under the jurisdiction of the Intermediate People’s Court. The applicant applied for the company’s bankruptcy liquidation to the Xinshi District Court (basic people’s court). His request did not comply with the relevant legal procedures. The company will promptly submit an objection application to the bankruptcy liquidation to the Xinshi District Court. At the same time, the company has not received any information from the court regarding this application. Any ruling on bankruptcy liquidation and the creditor’s application for bankruptcy liquidation of the company are very uncertain.
In addition, the company will continue to actively communicate with creditors, courts, etc., strive to eliminate the adverse effects as soon as possible, and do its best to safeguard the interests of the company, shareholders, especially small and medium-sized shareholders.
If the relevant court ultimately accepts the company’s bankruptcy liquidation application and the company is declared bankrupt by the court, the company’s A shares will face the risk of being terminated from listing according to relevant regulations. At present, the company’s A shares have been subject to delisting risk warnings and other risk warnings. If the company encounters one of the circumstances stipulated in Article 13.3.12 of the “Shanghai Stock Exchange Stock Listing Rules” in 2021, the Shanghai Stock Exchange will decide to terminate the company’s A shares. Stocks are listed.
*ST Laxia received the Xinjiang Securities Regulatory Bureau’s decision on ordering corrective measures, and the original actual controller was recorded in the securities market integrity file
*ST Rasha received a decision on corrective measures from the Xinjiang Securities Regulatory Bureau on November 16 due to his own serious problems. The announcement shows that after the Xinjiang Supervision Bureau of the China Securities Regulatory Commission conducted an on-site inspection of La Chapelle, the Xinjiang Supervision Bureau found that the listed company had problems with internal control, financial accounting, standardized operations, etc., and the above problems also directly affected the company’s relevant information disclosure. accuracy.
In terms of corporate governance, *ST Rasha’s insufficient internal control operations related to fund payment led to the occupation of related party funds; the management of raised funds was not standardized, and after the expiration of the period for supplementing working capital, the company did not return the funds to the raised funds account. In addition, there are also problems such as imperfect system construction, irregular operation of shareholders’ meetings, and irregular procedures for convening some boards of directors.
In terms of information disclosure, there are big differences in the net assets and net profit data disclosed in the “2020 Annual Performance Express” and the “2020 Annual Report”. The review and disclosure of some related transactions was not timely; the disclosure of information on the takeover of important subsidiaries and the adjustment of relevant consolidated statement standards were not timely.
In terms of accounting and annual report preparation, there are accounting errors in the 2020 financial report; there is insufficient basis for selecting individual parameters in the goodwill impairment test; there are incomplete and inaccurate disclosures in some parts of the 2020 annual report.
In response to the above issues, in accordance with relevant regulations, the Xinjiang Supervision Bureau of the China Securities Regulatory Commission decided to take supervisory and administrative measures to order the company to make corrections.
In addition, another decision letter was directed to Xing Jiaxing, the original controlling shareholder, actual controller and chairman of *ST Rashia, and the matters involved were related to the non-operating occupation of listed company funds by the related parties mentioned above.
It is understood that from July to August 2019, *ST Rasha transferred a total of 9.5 million yuan to the original second largest shareholder Shanghai Hexia Investment Co., Ltd. (hereinafter referred to as Shanghai Hexia) through a third-party bank account., used to repay Shanghai Hexia’s external borrowings. The above matters constitute Shanghai Hexia’s non-operational occupation of *ST Rasha’s funds, which violates relevant regulations.
As the original controlling shareholder, actual controller and chairman of *ST Laxia, Xing Jiaxing and Shanghai Hexia are persons acting in concert with each other and are the actual user of its external borrowings. He is primarily responsible for the above-mentioned actions. In the end, the Xinjiang Securities Regulatory Bureau decided to take supervisory and administrative measures to order corrections and recorded it in the securities market integrity file.
Two subsidiaries of La Chapelle were auctioned, and the Shanghai Stock Exchange issued an urgent inquiry letter
On November 10, La Chapelle issued an announcement announcing that 100% equity of the company’s wholly-owned subsidiary La Chapelle Clothing Taicang Co., Ltd. and 100% equity of Shanghai La Chapelle Casual Clothing Co., Ltd. will be judicially auctioned to pay for Mangrove and Ji. Cheng Optoelectronics’ payment, litigation fees and preservation fees.
It is understood that the auction targets are 95% equity of Rasha Taicang, 5% equity of Rasha Taicang and 100% equity of Rasha Leisure. It is understood that 95% of the equity of Laxia Taicang is currently displayed on the official website of JD.com. The starting price is 200,000 yuan, and a deposit of 20,000 yuan is required to register. There are currently 864 people watching and 22 people paying attention.
In addition, the starting price for the 100% equity of Laxia Leisure held by La Chapelle is also 200,000 yuan. Currently, 15 people are paying attention and 698 people are watching.
But on November 11, the Shanghai Stock Exchange issued a letter of inquiry. It is required to supplement the disclosure of the operations and financial status of Rasha Taicang and Rasha Leisure in the past three years; if the auction is completed, assess the specific impact on the listed company’s operations and finances; and fully remind the risks related to this judicial auction. For example, after the equity of Rasha Taicang is judicially auctioned, the subsequent repayment arrangements for the relevant entrusted loans will be arranged, and whether the listed company has sufficient ability to repay the relevant claims; whether there are other mortgages and external guarantees provided by Rasha Taicang and Rasha Leisure to the listed company.
The Shanghai Stock Exchange pointed out that according to the company’s third quarter report, the company’s net assets are still negative. According to the new delisting regulations, if a company still reaches relevant delisting indicators after disclosing its 2021 annual report, it will be directly terminated from listing. Companies are requested to improve their fundamentals as soon as possible based on their own operating and financial conditions, verify and disclose whether there are other major matters that should be disclosed but not disclosed, and fully remind the existing risks of termination of listing to avoid misleading investors.
On November 18, *ST Rasha issued an announcement stating that it would postpone its response to the Shanghai Stock Exchange’s inquiry letter on matters related to the judicial auction of the equity of the company’s subsidiaries.
144 bank accounts were frozen and 4 real estate properties were seized
On October 28, *ST Rasha issued an announcement that the company had recently filed two new lawsuits. So far, the company has been involved in a total of 58 lawsuits, with a total amount of 530 million yuan involved.
Due to being involved in many litigation cases, a total of 144 bank accounts of the company and its subsidiaries were frozen, with a frozen amount of approximately 126 million yuan; the equity of 17 subsidiaries of the company was frozen, with a total execution amount of approximately 673 million yuan involved; The impact of 31 lawsuits resulted in the seizure of four of the company’s real estate properties.
According to its third quarterly report, *ST Rasha achieved revenue of 365 million yuan in the first three quarters, a year-on-year decrease of 78.16%; a net loss of 289 million yuan, a year-on-year increase of 63.92%. In the third quarter, operating income was 86.703 million yuan, a year-on-year decrease of 71.74%; net loss was 51.678 million yuan.
*ST Rasha explained that the decrease in revenue was mainly due to the company continuing to close offline stores and transforming its licensing business model. As for the narrowing of net losses, it was mainly due to the company adopting a contraction strategy to control expenditure costs, resulting in a reduction in losses.
It is worth noting that *ST Rasha’s debt ratio hit a new high since its listing. As of the end of the third quarter, the company’s total assets were 2.889 billion yuan, total liabilities were 3.861 billion yuan, and the asset-liability ratio reached 133.63%.
In terms of stock price performance, it is also at a low point. Since June, the stock has fallen by more than 34%, and the stock price has fallen by more than 92% from its historical high. The current stock price is 2.36 yuan, with a total market value of 884 million yuan.
As *ST Laxiagang announced that it had been filed for bankruptcy and liquidation by its creditors, 12,000 shareholders were confused, “Sudden bankruptcy and liquidation?” “It fell to the limit and stopped running.”
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