足球投注博彩Debt issue of shion giant Shandong Ruyi, dubbed ‘China’s LVMH’, likely to take its toll on the

Now that its parent company is on the brink of debt deult, how it will affect the listed company remains a question, reported Jiemian.

Sales of Ruyi Garment totalled 378 million yuan in 2022 through connected transactions, 346 million yuan of which is from its parent company, accounting for 32.8 percent of the listed companys 2022 revenue. Whats more, Ruyi Garment purchased 700 million yuan worth of products and services, 193 million yuan of them are from its parent company.

However, the filing revealed more worrying signs. According to the statement, Ruyi Garment has a piling debt of 3.35 billion yuan (including 981 million yuan worth of guaranteed debts), which has already exceeded its net assets of 2.79 billion yuan.

Apr.7 (NBD) — The debt issue of Chinese textiles and clothing company Shandong Ruyi Technology Group (Shangdong Ruyi), which is dubbed as Chinas LVMH by Bloomberg in 2022, is starting to affect its listed arm.

File photo/Liu Ling (NBD)

With the frequent connected transactions between Ruyi Garment and its parent company Shangdong Ruyi, the debt problems of the latter will possibly trigger joint liability for Ruyi Garment, according to media outlet Jiemian.

Notably, the parent company is cash strained by frequent overseas acquisition and investments. In an effort to transform itself into a global shion conglomerate, Shangdong Ruyi acquired French group Sandro, Maje Claudie Pierlot, Swiss shoemaker Bally and British brands Aquascutum, TM Lewin and Gieves Hawkes. These purchases bring Shangdong Ruyi with debts which have restricted its cash flow.

The listed company Shangdong Ruyi Woolen Garment Group Co (Ruyi Garment, 002193.SZ) denied debt deults and capital occupancy of its parent company in response to an inquiry letter issued by the Shenzhen Stock Exchange last Thursday.

Shandong Ruyi in March 2022 issued domestic medium-term notes of 1 billion yuan due in three years and the interest payment date is March 15 each year. And Shandong Ruyi has reached an agreement with notes holders to extend the interest payment date to June 15, 2022, which doesnt constitute deult, according to the statement of Ruyi Garment.