What happened to the generation of juice king?
The ad slogan "Huiyuan is called New Year" has accompanied many Chinese people during the Spring Festival. Now that the New Year is approaching, Huiyuan Juice is a bit "sad".
On the evening of January 13, Huiyuan Juice issued an announcement stating that the Stock Exchange announced that it would cancel Huiyuan Juice’s listing status in accordance with Rule 6.01A of the Listing Rules starting at 9 am on January 18, 2021.
Huiyuan Juice has been suspended from trading on April 3, 2018. According to Rule 6.01A of the Listing Rules, if the company fails to resume trading on or before January 31, 2020, the Stock Exchange may delist the company.
However, Huiyuan Juice finally failed to meet the deadline to resume trading. Huiyuan Juice stated that the board of directors was disappointed with the decision of the Listing Review Committee and did not agree with the decision.
A short-term loan leads to the consequences of trading suspension
Everything starts with the suspension of trading three years ago.
On March 29, 2018, Huiyuan Juice issued an announcement revealing an illegal loan from the company.
The announcement stated that between August 2017 and March 2018, Huiyuan Juice provided a short-term loan of 4.275 billion yuan to Beijing Huiyuan Beverage, a related company, so that it could meet temporary working capital needs or repay debts.
The amount of this loan has met the external disclosure requirements required by the Hong Kong Stock Exchange, but Huiyuan Juice has not only failed to make relevant disclosures, nor has it been approved by the board of directors.
On April 3, 2018, Huiyuan Juice began to suspend trading.
The Hong Kong Stock Exchange requires Huiyuan Juice to conduct a certification investigation on related loans, publish the investigation results, and take appropriate remedial measures.
On July 20, 2018, the Hong Kong Stock Exchange again issued a letter stating that if Huiyuan Juice fails to meet all the conditions for resumption of trading before January 31, 2020, the Listing Department of the Hong Kong Stock Exchange will begin the procedure to cancel its listing status.
However, three years later, Huiyuan Juice still failed to explain clearly the issue of illegal loans, and failed to resume trading on or before January 31, 2020 as required.
On February 14, 2020, the Listing Committee decided to cancel the listing status of Huiyuan Juice. Huiyuan Juice then sought a review of the Listing Review Committee's ruling. However, on January 5, 2021, the Listing Review Committee announced that it would maintain the delisting decision.
So far, a generation of "juice king" Huiyuan Juice will officially withdraw from the market on January 18.
A "acquisition storm" from the listing to the stock price plummet
What happened to Huiyuan Juice, which was once the "juice king", has been delisted today?
In 1992, Zhu Xinli, deputy director of the Yiyuan County Foreign Economic and Economic Commission, resigned and started his own business.
After winning an export order of USD 5 million for the first time, Huiyuan fruit juice concentrate has been exported to more than 30 countries and regions.
In 1997, Huiyuan Juice spent 70 million yuan to win the 5-second advertising time of CCTV News Network. This figure has exceeded Huiyuan Juice’s sales that year.
In just a few years, Huiyuan Juice's rapid expansion began to spread across the country and became a well-known national brand.
In February 2007, Huiyuan Juice went public on the Hong Kong Stock Exchange with a funding scale of 2.4 billion Hong Kong dollars.
After its listing, Huiyuan Juice, which is well-funded, deployed 9 factories in Leling, Shandong, Shulan, Jilin, and Jinzhou, Liaoning.
However, a "acquisition storm" caused Huiyuan to fall from its peak.
According to the Securities Times, on September 3, 2008, Coca-Cola and its wholly-owned subsidiary Altantic Industries jointly announced that they would acquire the entire issued share capital of Huiyuan Juice and all the outstanding convertible bonds of Huiyuan for a total price of HK$17.92 billion; Huiyuan was cancelled; All outstanding share options, and proposed voluntary conditional cash acquisitions.
Affected by this news, on September 3, Huiyuan Juice’s share price soared by 164.25%.
Compared with the fierce capital market, the domestic public opinion environment is extremely cold. According to the Securities Times, up to 82% of netizens opposed Coca-Cola's acquisition of Huiyuan Juice.
Seven months later, the Ministry of Commerce rejected the Coca-Cola acquisition on antitrust grounds.
Subsequently, the share price of Huiyuan Juice plummeted all the way, dropping by nearly 58% in just three trading days.
Where will the national juice go?
The founder withdrew, delisted sadly
The chain reaction brought about by the failure of the acquisition made Huiyuan "depressed."
Since 2008, Huiyuan Juice’s performance has continued to decline. The Red Star Capital Bureau reviewed Huiyuan Juice’s annual report and found that from 2011 to 2016, Huiyuan Juice’s annual non-net profit was negative, respectively: -230 million yuan,- 318 million yuan, -479 million yuan, -575 million yuan, -553 million yuan, and -208 million yuan.
In addition to poor performance, internal management is also turbulent.
According to previous reports from the Red Star Capital Bureau, Huiyuan Juice has changed five CEOs in the past six years.
Six executives have left this year.
In April 2019, Huiyuan Juice announced the establishment of a joint venture with Tiandi No.1 to expand the Huiyuan juice beverage market.
However, this cooperation plan still ended in failure. In July 2019, Huiyuan Juice and Tiandi No.1 issued an announcement at the same time, announcing the termination of their plans to establish a joint venture.
In September of the same year, Huiyuan Juice was exposed to a debt crisis. A P2P company announced that its subsidiaries Yichunyuanyuan Trading Co., Ltd., Yichun Huiyuan Ecological Breeding Co., Ltd., Hulin Huiyuan New Ecological Dairy Co., Ltd., and Hulin Huiyuan New Ecological Animal Husbandry Co., Ltd., a total of four companies on the platform for the loan project total amount of 4 million yuan, the repayment date is from early August to mid-August, at that time all overdue, Huiyuan juice to repay the debt.
In February 2020, Huiyuan Juice founder Zhu Xinli and his daughter announced their withdrawal from the board of directors of listed companies.
Today's Huiyuan, the founders withdrew and delisted sadly, where will the national juice go?
Chengdu Commercial Daily-Red Star News reporter Yuan Ye
Intern Qiang Yamiao