On June 18th, mainland China listed company ST Qibu (Qibu Co., Ltd.) announced that it would sell a portion of its real estate for 105 million Chinese yuan to repay debts and reduce the company’s liabilities.
In an announcement titled “Notice on the Company’s Intended Sale of Assets” published on the 18th, ST Qibu stated that in order to revitalize the company’s inefficient assets, reduce liabilities, enhance asset operation efficiency, and improve business performance, the company had signed a “Real Estate Transfer Agreement” with Zhejiang Qingtian County Overseas Chinese Imported Commodities City Group Co., Ltd. after negotiating relocation matters with the Qingtian County government in Zhejiang.
The company plans to transfer the land use rights located at No. 32 Jiangbin Road, Youzhu Street, Qingtian County, along with the corresponding buildings on the land, including buildings 1, 2, 3, 4, 5, and ancillary buildings, to the Qingtian County Overseas Chinese Imported Commodities City Group Co., Ltd. The total transaction price for the sale of these assets is 105 million yuan.
ST Qibu stated that the proceeds from this transaction will be used to repay company debts, with minimal impact on the company’s net assets and net profits.
Public records indicate that the recipient of these assets is a company under the local state-owned assets of the government. The actual controller behind the Imported Commodities City is the State-Owned Assets Supervision and Administration Office of Qingtian County, Lishui City, Zhejiang Province.
According to Securities Times, the office building and factory in Qingtian that ST Qibu is selling this time is where the company originated.
Public records show that ST Qibu was established in 2009, with its core brand “ABC KIDS” focusing on the design, development, production, and sale of children’s shoes, clothing, and accessories targeting children aged 3 to 13. In 2017, the company was listed on the main board of the stock exchange.
However, in recent years, ST Qibu has been operating at a loss. According to a report from Economic Daily News on June 19th, data shows that from 2020 to 2023, ST Qibu recorded attributable net profits of approximately -280 million yuan, -200 million yuan (adjusted), -480 million yuan (adjusted), and -656 million yuan. The company has had four consecutive years of losses in attributable net profits.
In the first quarter of this year, ST Qibu achieved operating income of 71.2848 million yuan, a year-on-year decrease of 14.89%, with attributable net profits amounting to -3.6422 million yuan.
As of the close on June 18th, ST Qibu’s stock price was 1.85 yuan per share, with a total market value of 996.5 million yuan.
As of 11:23 on the morning of June 19th Beijing time, the stock price was 1.82 yuan per share, reflecting a 1.62% decline, and a total market value of 980 million yuan.