The "Bird Of Honor" Rating To "Negative": Cash From 550 Million To Negative Is Almost Exhausted.

On the evening of September 16th, the company announced that the company commissioned the joint credit rating Company Limited (hereinafter referred to as the "joint rating") to track the credit rating of the company's "14 noble bird" corporate bonds issued in 2014, and the company's main body and bond rating decreased from AA- to A, and the rating outlook was changed from "stable" to "negative". This is the second rating of the company and its main body in the year.

Company rating, bond rating two half a year down

Public information shows that the "14 noble birds" officially launched on the Shanghai stock exchange in December 23, 2014, and the total issue is RMB 800 million yuan. This rating is AA, and the company's main long-term credit rating is AA. Before the listing of this bond, the three annual accounting year of the noble bird can achieve an annual profit of 453 million yuan.

In June 24th this year, the bird announced that the joint rating lowered the corporate bond and corporate ontology credit rating after analyzing and evaluating the company's operating conditions and financial status. Corporate bonds and corporate entities declined from AA to AA-, and the rating outlook remained stable. The rating of "14 birds of honor" has been downgraded for the first time since its listing.

What surprised the market is that in September 17th, the company released a new corporate bond rating adjustment notice. The company's main body and its bond rating were adjusted from AA- to A, while the rating outlook was also adjusted from "stable" to "negative". The adjustment was less than three months from last time, and the rating of the noble bird bond and the company's main body was two consecutive months.

Sharp decline in performance in the first half of the cash flow decreased by more than 500 million

According to the company's announcement, operating conditions and financial conditions are the reasons why the company's main body and bond rating were downgraded for the two time. The 2018 annual report shows that the company achieved a revenue of 2 billion 812 million yuan in 2018, a decrease of 13.52% compared with 3 billion 252 million yuan in 2017, and net profit attributable to shareholders of listed companies from positive to negative, from 157 million yuan to -6.86 billion yuan, a decrease of 536.01%. At the same time, the net cash flow generated by the company's business activities decreased by 11.66% from 633 million yuan in 2017 to 559 million yuan in 2018.

The performance of the birds in the first half of this year continued the decline of last year. The company's semi annual report in 2019 showed that the company's operating income in the first half of the year was 810 million yuan, 47.27% less than that of the same period last year, and the net profit attributable to shareholders of listed companies also decreased from 34 million yuan in the same period last year to -0.58 billion yuan. The net cash flow generated by operating activities was much less than that in the first half of the year, from 555 million yuan to -0.20 billion yuan, a decrease of 103.53%.

The company's net decrease in net cash generated by operating activities in the first half of the year was attributed to a decrease in the repayment period during the reporting period. The company's semi annual report 2019 showed that as at June 30, 2019, the end of the company's accounts receivable amounted to 1 billion 410 million yuan, accounting for 28.77% of the total assets. You also admit that if dealers default on the company's payment, they will have a negative impact on the operation of the company.

Controlling shareholders freeze nearly 90% stake holders change risk

In addition to the downgrade of the bond rating and the decline of business, the freezing of shares of controlling shareholders is another "lingering haze" added to the birds. In September last year, the company announced that the company had 102 million shares of tradable shares and fruits (of which 97 million shares had been registered for pledge) had been frozen by the Xiamen intermediate people's court. The freeze time was September 19, 2018, and the freeze period was from September 19, 2018 to September 18, 2021. After the shares were frozen, the number of shares held by the company was 102 million shares, accounting for 16.18% of the total share capital of the company.

In August of this year, the precious birds released a notice once again that the 325 million tradable shares and fruits of the company held by the company were already frozen by the Central People's Court of Quanzhou, Fujian, and waiting for a freeze (of which 287 million shares were frozen by waiting), and the freeze period was from August 1, 2019 to July 31, 2022. After the stock freeze and waiting freeze implementation, the number of shares held by the company was increased to 427 million shares, accounting for 67.86% of the total share capital of the company.

It is worth noting that as of August 2nd this year, the Group owned 479 million shares of the company, all of which were tradable shares with unlimited sale conditions, accounting for 76.22% of the total share capital of the company. After the freezing of shares and waiting for freezing, the frozen shares of the group were 89.03% of the total shares.

At the same time, the company also warned in the notice that the shares held by the Hongkong bird group still have the risk of waiting for a freeze because the company's share price has fallen below the closing percentage of the performing security ratio set by the company. If the company's frozen shares are disposed of by the judiciary, it may even lead to a change in the actual controller of the company.