On January 10th, Guireniao Co., Ltd. (Guireniao), which has delisted and entered the third board trading, announced that the company has changed its name to Jinhe Agricultural Co., Ltd. (Jinhe Agriculture).
In the announcement released by Guireniao on the completion of industrial and commercial registration changes and acquisition of business license, it stated that the new company has completed the procedures for industrial and commercial registration and obtained a business license. The approved name is Jinhe Agricultural Co., Ltd., with a registered capital of 157,150,535.8 million RMB.
According to an analysis cited by Securities Times on January 11th, the three words “Guireniao” may completely disappear from the capital market.
Public data shows that Guireniao was founded in Jinjiang, Fujian in 1987, mainly focusing on sports shoes and apparel. In 2002, Guireniao invited Andy Lau to be the brand ambassador, followed by Cecilia Cheung as the image ambassador the following year, which boosted the brand’s popularity. At its peak, Guireniao was opening an average of 3 physical stores per day, with a total number surpassing 5000.
In 2014, Guireniao went public on the Shanghai Stock Exchange, becoming the first sports brand listed in A shares.
On January 11th, according to Daily Economic News, while expanding, Guireniao’s asset-liability ratio kept rising, and both sales revenue and profit showed a decline. In 2018, the company’s revenue decreased by 13.52% to 2.812 billion RMB, with a net loss of 686 million RMB attributable to the parent company’s shareholders, marking the first loss since its listing. In 2019, the company incurred a loss of 1.096 billion RMB, followed by another loss of 382 million RMB in 2020.
In April 2021, Guireniao, initially a sports shoe and apparel company, began its transition to grain trading. That year, Guireniao turned losses into profits, with a net profit of 360 million RMB attributable to the listed company’s shareholders.
However, in 2022, the company once again suffered losses, with a net loss of 90 million RMB attributable to the parent company.
On September 2023, Guireniao announced that due to the continuous losses in the sports shoe and apparel business, the company would gradually withdraw from that sector and focus on grain trading as its main future development direction.
Financial data shows that in 2023, Guireniao’s revenue was 1.244 billion RMB, down by 40.98% year-on-year, and the net profit attributable to the parent company was a loss of 591 million RMB.
From February 1, 2024, to March 7, 2024, Guireniao’s stock closed below 1 RMB for 20 consecutive trading days. Following the rules, the Shanghai Stock Exchange decided to delist the company, which officially happened on March 29, 2024. Prior to suspension, the stock price was only 0.67 RMB per share, and the market value significantly decreased to 1.1 billion RMB.
Jinhe Agricultural’s largest shareholder is Heilongjiang Taifu Jinguyi Network Technology Co., Ltd., which focuses on rice sales, grain trading, warehouse processing, and various businesses related to the grain supply chain platform and agricultural cooperation orders.