During the annual report disclosure season, Guirenniao released its 2020 performance forecast. The company expects full-year net profit to be -379 million yuan, with a growth rate of approximately 65.41%. This is already the third consecutive year of losses for Guirenniao. According to the regulations of the Shanghai and Shenzhen Stock Exchanges, if its annual reported net profit cannot turn from a loss to a profit, there is a risk of being forced to delist.

On March 9, Guirenniao routinely released the latest announcement on the progress of its restructuring. The announcement shows that 163 creditors have declared their claims to the administrator, with a declared amount of RMB 4.093 billion. According to its last regular announcement, as of January 11, the number of creditors was 154. The wall fell and everyone pushed, and a generation of sports brand kings was about to come to an end.

In the 7 years since its listing, Guirenniao’s market value has evaporated by more than 40 billion yuan. The company has faced multiple unfavorable situations such as huge performance losses, loan defaults, and excessive goodwill. Due to its "14 Guireniao" corporate bonds and default, the bond holders filed for pre-litigation property preservation, and its real estate, land, subsidiaries and equity interests in participating companies are basically frozen. In addition, Guirenniao’s total loan principal of 1.41 billion yuan in various banks has been overdue. In addition to the company's assets, Guirenniao founder Lin Tianfu also received five consecutive court summonses and consumption restriction orders due to debt defaults.

In 2014, Guirenniao, known as the “No. 1 A-share sports brand”, was listed on the A-share market, with a maximum market value of more than 40 billion yuan.

But the good times did not last long. In the second year after its listing, Guirenniao’s series of radical operations laid the foundation for its current situation. In 2015, Guirenniao, which was still well-funded, was ambitious and attempted to operate in multiple fields. It was determined to become a "sports industrialization group based on the manufacturing of sports apparel products and coordinated development of multiple sports industry forms."

It invested heavily in Hupu Sports to become its second largest shareholder, and jointly established a sports industry fund totaling 2 billion yuan with Hupu *** to invest in multiple sub-sectors of the sports industry. In addition to Hupu Sports, Guireniao has also acquired and merged sports-related enterprises such as Kangpaisi Sports, Jiezhixing and Shoeku. This series of mergers and acquisitions also caused Guirenniao’s net cash outflow from investment activities to reach an astonishing 556 million yuan, 1.317 billion yuan, and 992 million yuan from 2015 to 2017.

After the completion of the merger, the business scope of Guirenniao Company has covered many fields such as sports economy, event hosting, sports + Internet, sports games, sports fitness and so on. However, Guirenniao, which operates on multiple fronts, has shown a bit of a lack of success. Many of the companies it acquired have been difficult to bring corresponding performance to Guireniao. It has made goodwill impairment almost every year. In the end, these acquired assets were sold at low prices. end.

Since 2018, Guirenniao has sold shares in companies such as Hupu and Kangpaisi. At the same time, it has closed nearly 3,000 franchise stores and opened more than 1,000 new direct-operated stores. However, another strategic mistake made Guirenniao's financial situation worse. The cost of direct-sale store employee salaries and store management fees was beyond Guirenniao's imagination. At the same time, due to fierce brand competition, the company's inventory accumulation became more serious, and it could only rely on promotions to survive.

Successive years of losses have also led to the deterioration of Guirenniao’s financing situation. Guirenniao’s 2019 annual report shows that because the company is unable to find new capital market financing channels, some financial institutions continue to suppress loans or increase credit conditions for the company. In order to maintain the credit of existing financial institutions, land, buildings and important subsidiary equity assets have been disclosed to the outside world. Mortgage and pledge.

In 1987, Lin Tianfu founded the once national brand Guireniao. He once relied on the 19 billion worth contributed by Guireniao to become the richest man in Quanzhou, Fujian. But unlike his radical style in running the company, Lin Tianfu has basically not accepted any media interviews and is low-key and mysterious.

Lin Tianfu was born in Jinjiang, the "Shoe Capital of China", and was one of the first businessmen in China to realize the importance of brands. When Lin Tianfu first founded Guirenniao, he relied entirely on OEM to make money. At that time, he happened to catch up with the transfer of Taiwan's shoemaking industry and made a lot of money.

But then more and more companies became OEMs, and Guirenniao’s profits became less and less. Lin Tianfu came up with the idea of ????making his own brand: he has the materials, production lines, and craftsmanship, and if others don't do it, we can do it ourselves.

I didn’t expect that this would be out of control. Lin Tianfu successively invited celebrities such as Andy Lau, Cecilia Cheung, and Lin Chiling to endorse Guireniao, and he quickly became famous. The sports craze hit after Beijing's successful bid for the Olympics, and Lin Tianfu also ushered in his highlight moment. At that time, he controlled more than 5,000 stores. Relying on Lin Tianfu’s crazy marketing, Guireniao was also among the top sports brands in China at that time.

Until 2014, with the promotion of Lin Tianfu, Guirenniao was listed on the A-share market, becoming the first and only sports brand at that time.