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Guirenniao

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Guirenniao
Company typePrivate
IndustrySportswear, Food
Founded1987; 37 years ago (1987)
FounderTianfu Lin
Headquarters
China
BrandsGuirenniao, Prince
Revenue
  • Increase CNY 2.19bn (2023)
  • CNY 1.42bn (2022)
  • Decrease -CNY485 million (2023)
  • -CNY9.4 million (2022)
OwnerTaifujingu Network Technology (20.4%)
Websitehttps://www.grn.cn/

Guirenniao Co., Ltd. is a Chinese apparel and food company. The company was listed on the Shanghai Stock Exchange. It was one of leading chinese sports brand.[1]

At its peak, the company had more than 5,000 outlets. In 2015, its maket cap topped CNY42.7 billion (US$5.5 billion). The company had celebrity brand ambassadors such as Andy Lau, Lin Chi-Ling, and Cecilia Cheung. The company is known as "Shoe King of China".[2]

History

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Guirenniao was established in 1987 by Lin Tianfu. The company was an OEM for other sportswear companies in the 1980s. "Guirenniao" brand was launched in 2002 while the company was officially formed in 2004.[3]

From 2009 to 2011, the brand was an instant hit due to the Andy Lau's endorsement and the number of physical stores increased from 1,847 to 5,057.[2]

The firm went public on Shanghai Stock Exchange in 2014.[4] In 2015, Guirenniao became second largest shareholder (16.1%) of Hupu after it invested RMB239 million (US$38.5 million) in the firm and announced that they plan to establish a RMB2 billion (US$320 million) investment fund with sports portal Hupu.[5][6] The fund was named "Arena Capital".[7] Guirenniao also invested 200 million yuan in KPS Sports or Compass Sports and acquired Spanish soccer agency Best of You Sports SA (45%).[8]

In 2016, Sequential Brands partnered with Guirenniao to expand And1 in China.[9] In the same year, the company acquired trademark rights of Prince Global Sports in Greater China for $20 million.[10] Multiple companies were aqcuired during this time - offline retailer Jiezhixing, online distributor Ming Shoe Library, Shengdao Sports (45.45%), Xingyou Technology Game Company, retailer S.cn and invested 260 million in Ankang Life Insurance.[11] In 2017, Guirenniao ended its restructuring plan. It also failed to acquire fitness chain Weikang Fitness.[12] Guirenniao also issued an announcement to change its name to "Almighty Sports".

In 2018, JD.com announced that they had signed a cooperation agreement with Guirenniao.[13] They sold their shares in Hupu, sold Jiezhixing for 300 million yuan and sold 37% stake in Kangpaisi Sports for 143 million yuan.[14] Between 2018 and 2020 was unprofitable and in 2019. the company logged a net loss of US$136.9 million. In the first quarter of 2019, more than 2,000 stores closed down, with about 2,800 remaining. In August 2019, due to a loan contract dispute, the 325 million shares held by the company's controlling Guireniao Group were judicially frozen. The freezing period is from August 1, 2019 to July 31, 2022.[15]

In 2021, due to heavy debt, Guirenniao went through a court led restructuring. Grain giant Taifujingu Network Technology bought 20.4 percent stake in Guirenniao for CNY417 million (US$58 million). Guirenniao donated 30 million yuan in supplies to Henan floods silently. Many netizens purchased Guirenniao products to show their support.[16]

In 2022, the firm changed its auditor twice in July and October. This many changes in a short period of time prompted Shanghai Stock Exchange to send an enquiry letter asking the firm to explain the reasons.[17] In August 2022, Li Zhihua, chairman of Taifujingu, took the control of the firm. He pivoted the company into food-related businesses.[18]

In 2023, it announced that the company will exit apparel market to instead focus on agricultural produce. Guirenniao also stated that it intends to lease its brands Guirenniao and Prince to other companies.[19] In March 2023, Guirenniao entered ready-made dishes market and invested 100 million yuan in order to set up an industrial park which specialises in such dishes in Qiqihar. Grains became its largest revenue segment.[20]

In February 2024, the China Securities Regulatory Commission opened a case against Guirenniao and its chairman Li Zhihua for suspected violations of information disclosure.[21] In March 2024, company's listing status was terminated by Shanghai Stock Exchange as to its low share price breached the bourse rules.[22] Guirenniao share price closed below CNY1 on February 1 and failed to recover by March 7 which triggered mandatory delisting condition. On March 7, its last trading day, price was 67 Chinese cents (US$9 cents) with a market cap of less than CNY1.1 billion (US$153.1 million).[23]

References

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  1. ^ "Sequential Brands Group Announces Plans to Expand AND1 Basketball Brand to China". GlobeNewswire News Room (Press release). 2016-10-26. Archived from the original on 2024-03-23. Retrieved 2024-03-22.
  2. ^ a b "昔日A股鞋王宣布退出鞋业！曾邀刘德华、张柏芝代言_运动_发展_品牌". www.sohu.com. Archived from the original on 2024-04-05. Retrieved 2024-03-24.
  3. ^ "Chinese Sportswear Maker Grows First-Half Revenue by 50% With Multi-Brand Strategy". www.yicaiglobal.com. Archived from the original on 2021-01-09. Retrieved 2024-03-23.
  4. ^ "Lin Tianfu". Forbes. Archived from the original on 2015-06-22. Retrieved 2024-03-22.
  5. ^ Su, Wiki (2015-01-20). "Guirenniao, Hupu.Com To Establish $320M Sports Investment Fund". China Money Network. Archived from the original on 2019-11-08. Retrieved 2024-03-23.
  6. ^ Yue, Jillian (2016-05-16). "Venture-Backed Online Sports Portal Hupu.com Seeks Domestic IPO". China Money Network. Archived from the original on 2023-10-02. Retrieved 2024-03-23.
  7. ^ Yue, Jillian (2015-12-03). "The Arena Capital Leads $18M Series B Round In JoyRun". China Money Network. Archived from the original on 2023-03-23. Retrieved 2024-03-23.
  8. ^ "Spanish agency has the right image for Chinese sports brand|Industries|chinadaily.com.cn". usa.chinadaily.com.cn. Archived from the original on 2024-04-12. Retrieved 2024-04-12.
  9. ^ Young, Vicki M. (2016-10-26). "Sequential Brands & Guirenniao Partner to Expand And1 Brand to China". WWD. Archived from the original on 2024-03-23. Retrieved 2024-03-22.
  10. ^ "Quick Take: Chinese Sportswear Maker to Buy Greater China Rights to Prince Sports - Caixin Global". www.caixinglobal.com. Archived from the original on 2022-11-28. Retrieved 2024-03-22.
  11. ^ "The former wealthiest businessman in Quanzhou has been eliminated, the "Shoe King" has delisted, but still has over 9 million fans on the internet. - News about China". newsaboutchina.com. Archived from the original on 2024-04-12. Retrieved 2024-04-12.
  12. ^ "Guirenniao Ends Major Assets Restructuring Plan as Acquisition of Gym Company Fails". www.yicaiglobal.com. Archived from the original on 2024-03-23. Retrieved 2024-03-22.
  13. ^ "China's JD.Com to Help Shoemaker Guirenniao to Smarten Up Supply Chain". www.yicaiglobal.com. Archived from the original on 2024-03-23. Retrieved 2024-03-22.
  14. ^ "It was once a hot search due to donations, from a market value of 40 billion to heavily in debt, the former king of shoes is going to start selling food?".
  15. ^ "Shareholders' funds frozen in Guirenniao dispute". Archived from the original on 2019-08-07. Retrieved 2024-03-24.
  16. ^ 财经自媒体 (2021-07-24). "贵人鸟默默捐款三千万，老板带队上一线，网友：都关注一下贵人鸟". finance.sina.com.cn. Archived from the original on 2021-07-25. Retrieved 2024-03-24.
  17. ^ "Over 100 Chinese Listed Firms Swap Accountants at Year End". www.yicaiglobal.com. Archived from the original on 2022-12-09. Retrieved 2024-03-23.
  18. ^ "轉賽道做農貿賣糧 貴人鳥要變火鳳凰". Yahoo Finance (in Chinese). 2023-10-03. Archived from the original on 2023-11-30. Retrieved 2024-03-24.
  19. ^ "China's Guirenniao to Exit Sportswear, Shift Focus to Grain Trade". www.yicaiglobal.com. Archived from the original on 2024-03-23. Retrieved 2024-03-22.
  20. ^ Lau, Rick (2023-10-03). "Guirenniao trades in fading sports brand for grains - Bamboo Works - Where China Stocks meet global investors". Bamboo Works. Archived from the original on 2024-03-23. Retrieved 2024-03-22.
  21. ^ "贵人鸟股份有限公司关于公司及实际控制人收到中国证券监督管理委员会立案告知书的公告" (PDF). Shanghai Stock Exchange. Archived (PDF) from the original on 2024-04-05. Retrieved 2024-03-24.
  22. ^ "Shanghai Exchange Decides To Terminate Guirenniao's Listing Status". XM – Global Broker in Forex and CFD Trading. 2014-09-10. Archived from the original on 2024-03-22. Retrieved 2024-03-22.
  23. ^ "China's Guirenniao Delists Due to Too Low Share Price". www.yicaiglobal.com. Archived from the original on 2024-03-22. Retrieved 2024-03-23.
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