Huiyuan Juice is a very well-known big brand in China, and can even be said to be accompanied by a lot of investors grew up, but recently suddenly rumors of Huiyuan Juice may be delisted news, a lot of investors would like to know what is the reason for an old high-quality enterprises to this point.
What are the reasons why Huiyuan Juice may be delisted?
1 The biggest problem facing Huiyuan Juice is the financial loan contract dispute faced by founder Zhu Xinli, who was recently sued by China Merchants Bank and asked to freeze the relevant assets and shareholdings, which led to problems in the operation of Huiyuan Juice's funds, seriously affecting the company's operations.
2 major decision-making errors in the early stage, as early as 2008, when Coca-Cola had planned to buy Huiyuan Juice. In order to cooperate with the acquisition, Huiyuan Juice carried out radical reforms, resulting in a major injury, and in the subsequent years are in the loss-making state.
3 Failing to strictly comply with relevant regulations, in 2018, Huiyuan Juice was suspended by the Hong Kong Stock Exchange after it lent a large sum of money to a related party without board approval.
Huiyuan Juice has not been able to meet the above conditions for resumption of trading and is struggling in the capital market, but its offline business has been operating normally, according to its announcement.
While maintaining normal day-to-day operations, Huiyuan Juice's performance was extremely unstable and heavily indebted even before this crisis event.
According to Wind data statistics, Huiyuan Juice revenue growth rate is very unstable, 2012-2017 were 3.25%, 12.96%, 1.96%, 24.84%, 0.12%, -6.24%.
It is worth noting that Huiyuan Juice's net profit after deduction has been in the red since 2011, and it was only in 2017 that it reversed its loss to HK$255 million.
The development and growth of any enterprise is not smooth sailing, from slightly earlier Nokia, to the last two years of LeTV, to today's Huiyuan Juice. Encountering difficulties is inevitable, but the first two have the opportunity and potential to rise again, and hopefully Huiyuan Juice will be the same.