Guangdong Baibaolong Co., Ltd. (hereinafter referred to as “Babaolong”), the first A-share fashion design listed company that ranked among the top 100 “total profits” in the apparel industry in 2012, disclosed 2021 in the evening today (January 26) According to the annual performance forecast, during the reporting period, the net loss attributable to shareholders of the listed company is expected to be 1.1 billion to 1.3 billion yuan. The basic earnings per share loss was 2.2 yuan to 1.8 yuan, and the net profit loss attributable to shareholders of listed companies in the same period last year was approximately 317 million yuan.
As for the main reasons for the large losses caused by performance, Bai Baolong explained that firstly, due to various adverse factors, the company lost a large number of customers during the reporting period, sales orders dropped significantly, and operating income dropped significantly. Secondly, during the reporting period, Based on the principle of prudence, the company accrued credit impairment losses for other receivables incurred in the previous period, and accrued credit impairment losses of RMB 1.185 billion in the current period.
As for the main reasons for the company’s high losses, Bai Baolong has previously said that first of all, the clothing sales market is affected by market fluctuations and the strategic adjustments of clothing brand customers, and the company’s purchase demand has dropped significantly, especially the demand for design business orders. Secondly, the company’s management made mistakes in judging the epidemic prevention product market, resulting in a large backlog of unsalable anti-epidemic products, a sharp drop in market prices of anti-epidemic products, and serious sales losses of anti-epidemic products.
In addition, due to suspicion of illegal disclosure of information, since Baibaolong was investigated by the China Securities Regulatory Commission in March 2021, Baibaolong’s stock price has been falling, as low as 2.03 yuan/share. On October 28, 2021, Baibaolong closed According to the Securities Regulatory Commission’s “Administrative Penalty and Market Ban Prior Notice”, it was found that the facts that Baibaolong (former name) was suspected of violating the law are as follows: (1) Baibaolong’s initial public offering prospectus, 2016 non-profit There are false records in public issuance reports, listing announcements and periodic reports; (2) Baibaolong is suspected of not truthfully disclosing the “other non-current assets” statement items in its annual reports from 2017 to 2019. The use of raised funds was not truthfully disclosed in the 2018 annual report; (3) Baibaolong was suspected of failing to perform the approval procedures and information disclosure obligations for external guarantees from 2018 to 2020.
Based on the facts, nature, circumstances and degree of social harm of the parties’ illegal acts, and in accordance with the relevant provisions of the Securities Law, the China Securities Regulatory Commission plans to order Bai Baolong to make corrections, give him a warning, and impose a fine of 10 million yuan. At the same time, the China Securities Regulatory Commission found out that Baibaolong’s then chairman Chen Weixiong, then vice chairman and general manager Chen Nana, then financial director Wang Qi, and then supervisor Lin Xiaoru were aware of and participated in the company’s financial fraud.
In response, the China Securities Regulatory Commission plans to warn Chen Weixiong and Chen Nana, impose a fine of 5 million yuan each, and ban the two from the market for life. Other relevant responsible persons will be fined ranging from 500,000 yuan to 3 million yuan, and measures will be taken to prohibit market entry for 5 to 10 years.
Public information shows that Baibaolong is a professional design company that focuses on clothing design and provides supporting organization and production services for the company’s design styles according to customer requirements. It was listed on the Shenzhen Stock Exchange in 2015. The company’s main business is clothing design, and according to customer requirements Providing supporting production for the company’s design styles, the design business is the core, and the production business is the supporting and extension of the design business. In 2016, Baibaolong decided to start the implementation of the “Global Fashion Design Ecosystem” project, integrating designers, suppliers through the construction of a platform Providers, service providers and other various design resources to empower the B-side and expand the C-side.
The latest quarterly financial report shows that in the first three quarters of 2021, Baibaolong achieved operating income of 112 million yuan, a year-on-year decrease of 81.07%, and a net profit loss attributable to shareholders of the listed company of 43.4246 million yuan, a year-on-year decrease of 131.06%. Among them, in the third quarter, Operating income was approximately 14.44 million yuan, a year-on-year decrease of 90.71%, and the net profit loss attributable to shareholders of the listed company was 22.24 million yuan, a year-on-year decrease of 184.82%.
As of press time in the evening, Baibaolong closed at 2.65 yuan per share, a decrease of 1.49%, with a market value of 1.426 billion yuan.
</p
