On March 12th, it was reported by several domestic media outlets that ST Guiren received a "Pre-notification Letter on the Intended Termination of the Listing of Guiren Bird Co., Ltd."
The letter mentioned that from February 1st, 2024, to March 7th, 2024, the daily closing price of ST Guiren stock had been below 1 CNY for 20 consecutive trading days. According to relevant regulations, ST Guiren stock had triggered the conditions for delisting, and in accordance with relevant rules, the company's stock will be delisted.
Guiren Bird is a familiar name to many, once a highly popular sports footwear and apparel brand.
Records show that Guiren Bird was founded in 1987.
In 2014, Guiren Bird was listed on the Shanghai Stock Exchange and had celebrities like Andy Lau as endorsers.
In 2015, Guiren Bird's market value exceeded 40 billion CNY, becoming the "Shoe King" at the time.
During its peak, the company was opening an average of 3 physical stores per day, with the number of physical stores surpassing 5,000 at one point.
However, the good times didn't last. From 2018 to 2020, Guiren Bird incurred annual losses of 686 million CNY, 1.096 billion CNY, and 382 million CNY respectively, with a total accumulated loss of 2.164 billion CNY over three years.
Industry insiders suggest that Guiren Bird seized the opportunity to go public but failed to capitalize on development opportunities. After listing, it engaged in too many cross-border investments, which affected the natural growth of its core business.
Corporate transformation is a complex and lengthy process involving aspects such as corporate culture, organizational structure, operational processes, and technological upgrades.
Therefore, it is crucial to proceed with the transformation gradually, as rushing may lead to a series of problems and risks.
