The Fall of Domestic Mobile Phone Major: Jinlis Debt of 17 Billion Official Website Cant Open

 The Fall of Domestic Mobile Phone Major: Jinlis Debt of 17 Billion Official Website Cant Open

After experiencing bankruptcy proceedings, in April 9th, Jinli mobile official website was unable to open. Baidu prompted that the page may not be able to visit normally because of the sites changing web address or unstable service. A generation of mobile phone giant Jinli finally fell into the dust.


Jinli Official Website Cant Open

In April 9th, it was reported that the official website of Jinli mobile had been unable to visit. The Beijing Youth Daily reporter found in Baidu search that the official website of Jinli mobile phone showed a reminder that the page could not be accessed because of the sites changing web address or unstable service. After clicking the link, it showed that the network connection was timeout.

It is also understood that Jinlis official flagship stores have not been found in Jingdong and Taobao, only some third-party dealers are still selling Jinlis products at reduced prices.

With the rise of smartphones and the rise of Huawei, millet and other brands, Jinli has gradually lost its share of the domestic market. Since 2018, Jinli Group has been exposed to financial crisis. Reported that the fuse of Jin Lis fall was the chairman Liu Lirong gambling, which accelerated the speed of capital chain rupture and bankruptcy.

On December 17, 2018, the Shenzhen court officially ruled that Jinli Group was bankrupt. At present, Jinli mobile phone is entering the final bankruptcy procedure.


Unable to repay Huaxing Banks debts and was filed for bankruptcy

On December 10, 2018, the Shenzhen Intermediate Court of Guangdong Province accepted the bankruptcy liquidation application filed by the Shenzhen Branch of Guangdong Huaxing Bank Co., Ltd. to the Shenzhen Jinli Communication Equipment Co., Ltd.

It is understood that during the hearing, the applicant, Huaxing Bank Shenzhen Branch, claimed that as of November 20, the hearing date of the case, the amount of outstanding claims (principal and interest) owed to the respondent totaled 266656669.50 yuan. Jinli said it was unable to repay the creditors rights of Huaxing Bank Shenzhen Branch.

The Shenzhen Intermediate Court held that the applicants Shenzhen Branch of Huaxing Bank enjoyed legal and effective creditors rights to the applicants Jinli Company, which was overdue and could not be repaid. As a creditor of Jinli Company, Shenzhen Branch of Huaxing Bank may apply to our court for bankruptcy liquidation of Jinli Company according to law. The claim in question has expired and has not been repaid so far, sufficiently proving that Jinli Company is obviously lack of liquidity. The application of the applicant, Huaxing Bank Shenzhen Branch, conforms to the law and therefore makes a ruling.


The founder was exposed to gambling billions

In the fiercest competition in the mobile phone market, Jinli finally fell down. The reason is controversial from outside, and Liu Lirongs gambling has caused a great disturbance. Previously, an article on Jinli mentioned that people close to Jinli shareholders said, Chairman Liu Lirong lost more than 10 billion yuan in gambling, and the number of embezzlement of public funds may be about 6 billion, not excluding the establishment of a bureau. Liu Lirong said that he did not lose 10 billion yuan, but billions. Liu Lirong also admitted that there was the act of borrowing the companys funds. I have been an absolute authority in the company since I founded the fund for 16 years. I have no other income personally. It is inevitable that there are some acts of borrowing the companys funds in my life, both public and private. All parties in the market believe that the only way to decide whether to borrow or misappropriate is to wait for the decision of the law.

In addition to the companys development, Liu Lirong has a lot of debts. From 2013 to 2015, Jinli lost no less than 100 million yuan a month on average, and in 2016 and 2017, it lost no less than 200 million yuan a month, Liu said. Liu Lirong said in an interview with the media, Since the introduction of strategic investors at the beginning of last year, we have approached about six companies with intentions, but by August we basically gave up hope. Who would like to take over the debt of more than 10 billion yuan? Later, we changed our thinking to promote bankruptcy reorganization. At first, we were worried that the banks would disagree. At the subsequent meeting of financial creditors, all banks supported the bankruptcy reorganization plan. However, in November last year, Liu Lirong was asked to resign from the board of directors because of rumours that gambling had lost the trust of suppliers. At present, Liu Lirong has signed off from the board of directors.


Jinlis debt is about 17 billion yuan

It is understood that on May 8 last year, the applicant, Shenzhen Branch of Guangdong Huaxing Bank Co., Ltd., applied to the Shenzhen Intermediate Court for bankruptcy liquidation on the grounds that the applicant, Shenzhen Jinli Communications Equipment Co., Ltd., could not pay the debts due.

On November 20, nearly 20 Jinli suppliers submitted their applications for bankruptcy restructuring to the Shenzhen Intermediate Court. If an investor is willing to reorganize in the middle, the case can be converted to bankruptcy reorganization, and if it fails, the liquidation will continue.

Liu Lirong previously publicly said that Jinli currently has about 17 billion yuan of debt, including bank creditors debt of 10 billion yuan, upstream suppliers of about 5 billion yuan, advertising suppliers of about 2 billion yuan.

On April 2 this year, the Shenzhen Intermediate Court held the first creditors rights meeting on Shenzhen Jinli Communications Equipment Co., Ltd. to inform the administrator of the investigation and future arrangements after the establishment of the self-stationed Jinli Communications Equipment Co., Ltd. The meeting announced that as of March 21 this year, 558 creditors had been notified to declare their claims and 372 had declared their claims. After examination by the administrator, 324 creditorsrights have been initially identified and compiled into the Creditors Rights Form, and the total amount of creditors rights has been determined to be 17.359 billion yuan (including foreign currency creditorsrights). As of December 31, 2018, the total book assets of Jinli were about 8.538 billion yuan, and the total assets after the inventory were about 3.839 billion yuan. Obviously, Jinlis assets were not enough to repay its debts.

The market believes that Jinli bankruptcy has entered the countdown, and the suspected transfer of assets by Jinli Group and its chairman Liu Lirong, as well as the gambling accountability issues involved by Liu Lirong, will also become the focus of the future development of the event.

Source: Ji Xueying_NN6784, responsible editor of Beijing Youth Daily