Amazing move! The debt crisis is not over yet, the textile giant suddenly replaced nearly 1 billion assets. This bold act was actually for...

After the termination of the major asset reorganization, the troubled Ruyi Group (002193) is still looking for a way out. The announcement on the evening of December 1st showed that the company intends to enter the high-end fiber new material industry through asset replacement.
Replace assets and enter a new industry
The announcement shows that Ruyi Group and its wholly-owned subsidiary Jining Ruyi New Material Technology Co., Ltd. intend to use part of the accounts receivable and inventories as assets to be placed, and the company's affiliate Francis Ning Ruyi Wanzhong Venture Capital Management Partnership (Limited Partnership) holds Lycra Part of the equity of New Materials (Foshan) Co., Ltd. undergoes asset replacement.
The assets proposed this time are part of the accounts receivable and inventory of Ruyi Group and Ruyi New Materials. The original book value is 984 million yuan, of which the original book value of accounts receivable is 736 million yuan, and the original book value of inventory is 248 million yuan. . The proposed assets are 984 million yuan worth of equity held by Foshan Lycra held by Wanzhong Entrepreneur.
According to the announcement, Foshan Lycra was established in Foshan City, Guangdong Province on August 3, 2021. The legal representative is Qiu Chenran (a person acting in concert with Qiu Yafu, the actual controller of Ruyi Group). The initial registered capital is 500 million yuan, Chuanglai Fiber holds 65% of the shares, and Wanzhong Venture holds 35% of the shares. The main business is the promotion of new material technology, synthetic fiber manufacturing, bio-based material manufacturing, and synthetic material manufacturing. The original shareholders increased the capital of Foshan Lycra with land, plant, equipment and other fixed assets, intangible assets and related businesses used for production and operation. At the same time, the company pointed out in the announcement that after the capital increase is completed, Foshan Lycra can achieve a net profit of about 300 million yuan per year.
Regarding the asset replacement, Ruyi Group stated that the asset replacement can improve the company's asset structure, solve the remaining problems of accounts receivable, enter the high-end fiber material industry, and enhance the company's continued profitability.
Loss, freezing of shares, the crisis of Ruyi Group
It is reported that the predecessor of Ruyi Group was the Jining Wool Textile Factory established in 1972. It was restructured into a company limited by shares in December 1993. It was listed on the Shenzhen Stock Exchange in December 2007. It is a company that specializes in the design and production of worsted woolen fabrics and garments. , A large-scale textile and apparel group integrating sales. Establish offices, storage centers and marketing agencies in more than 20 countries and regions around the world, covering six continents in the world. It is also the first enterprise in the industry to win the first prize of National Science and Technology Progress Award. The related party Ruyi Fashion also ranked first in the 2017-2018 China Top 500 Textile and Apparel Enterprises Competitiveness List, occupying a pivotal position in the industry.
However, as the major shareholder Ruyi Technology Group's debt crisis broke out, Ruyi Group was also affected, and the momentum came to an abrupt end. In 2019, Ruyi Group's net profit fell by 51% year-on-year. Coupled with the epidemic, the company has become more and more difficult. In 2020, the company's net profit will drop by 89% year-on-year; in the third quarter of 2021, the company's operating income for the first three quarters was only 428 million yuan, a year-on-year decrease of 15.91%; the net profit attributable to the parent was -43,296,300 yuan, A year-on-year decrease of 309.82%.
The third quarterly report of this year also showed that as of the end of the reporting period, the 60,514,700 shares held by the major shareholder Ruyi Technology Group had been pledged and frozen; the shares held by Ruyi Technology Co., Ltd., Ruyi Wool Textile Group and Shandong Jining Ruyi Import and Export Co., Ltd., also held almost All are frozen.
In October of this year, Ruyi Group planned to purchase Jining Ruyi Brand Investment Holdings Co., Ltd. for more than two years of major asset restructuring and also announced its termination. Among the reasons for the termination, Ruyi Group stated that due to the large number of overseas operating entities of the target company, it is more difficult for the company and its intermediary agencies to carry out various tasks due to the impact of the overseas new coronary pulmonary epidemic. Based on the current market environment, after friendly negotiation with the counterparty, and after careful research, the company decided to terminate the planning of this major asset reorganization.
Set up a debt committee to solve liquidity problems
In addition, in the recent investor online reception day event, Ruyi Group stated that the establishment of a debt committee by Ruyi Technology Group did not have an adverse effect on the company's production and operation. The company has joined the creditor committee of provincial banking financial institutions with Ruyi Technology Group. The member units of the debt committee have agreed to implement an interest rate reduction plan for Ruyi Technology and related companies to stabilize the financing scale, implement debt extension, interest rate reduction, and set buffers for a three-year period. To solve the debt problem in a period of time, etc., all bank debts of the company have been included in the scope of the debt committee's reconciliation.
Ruyi Technology Group has started the listing of related high-quality assets and will solve liquidity problems through asset securitization; Ruyi Technology Group and its subsidiaries are operating normally, and the steady growth of main business income and profitability will further enhance the company's future cash repayments At the same time, the company will accelerate the introduction of strategic investors, and actively raise funds through various channels to solve liquidity problems.