GNC of the United States is in business crisis. Harbin Pharmaceutical Co., Ltd. has a Book loss of 1.165 billion

category:Finance
 GNC of the United States is in business crisis. Harbin Pharmaceutical Co., Ltd. has a Book loss of 1.165 billion


According to the data, GNCs Chinese name is American jiananxi Holding Co., Ltd. it was founded in 1935 and listed on the New York Stock Exchange in April 2011. It is an internationally famous brand of dietary supplements such as health care products and nutrition products, providing more than 1500 kinds of health products. In February 2018, Harbin Pharmaceutical Co., Ltd. issued a suggestive announcement on foreign investment and related party transactions to invest in convertible preferred shares issued by GNC. The transaction was initiated by Harbin Pharmaceutical Group, the controlling shareholder of the company.

At that time, according to the disclosure of Harbin Pharmaceutical Co., Ltd., GNCs net profit in 2016 and 2017 was RMB 286 million and RMB 149 million respectively, and its net assets in the same period were negative. However, Harbin Pharmaceutical said that the investment in GNC will help enrich the companys product line, and the introduction of its brand will help improve the companys own brand image. In addition, due to the stable dividend of preferred shares, the company can participate in the operation of GNC on the one hand, and can also obtain fixed income.

Investment in GNC preferred shares failed to bring expected returns to Harbin Pharmaceutical Co., Ltd. According to the latest announcement disclosed by Harbin Pharmaceutical Co., Ltd. on the evening of June 21, as of February 13, 2019, the company has paid US $299.5 million to GNC in three times in total for subscription of 299950 convertible preferred shares issued by it. Recently, Harbin Pharmaceutical Co., Ltd. has paid attention to GNCs performance decline and debt extension.

According to novel coronavirus pneumonia, the companys first quarter results showed a sharp decline in the first quarter of 2020. As of May 6th this year, about 40% (1300) GNC stores located in the US and Canada were temporarily closed due to government requirements and some other stores may be permanently closed in the future.

According to financial data, GNCs revenue in the first quarter of this year was US $473 million, down 16.3% year on year, and its gross profit was US $137 million, down 32.7% year on year. And novel coronavirus pneumonia is still in the process, and it is not ruled out that GNC will continue to decline in business performance in the future. In addition, some of GNCs debts have been extended again. On June 15 this year, GNC issued a debt extension announcement, which announced that GNC had reached an agreement with relevant lenders to postpone the accelerated maturity date of the outstanding part of its loan agreement to June 30, 2020. If the loan matures, GNC may face the risk of not being able to extend it again, and GNC may also face the pressure to repay the loan. Nevertheless, GNC said it would continue to seek all possible solutions to its debt, including applying for a restructuring plan. Extended reading of Alibaba rumor makers apology to Wang Shuai: we dont allow anyone to edit the 280 million yuan hub renovation case in Henan Province: circular economy enterprises? Fake and shoddy dens? What have the eight companies behind the giant fund experienced in the past five years? Source: responsible editor of Securities Times: Yang bin_ NF4368

According to financial data, GNCs revenue in the first quarter of this year was US $473 million, down 16.3% year on year, and its gross profit was US $137 million, down 32.7% year on year. And novel coronavirus pneumonia is still in the process, and it is not ruled out that GNC will continue to decline in business performance in the future.

In addition, some of GNCs debts have been extended again. On June 15 this year, GNC issued a debt extension announcement, which announced that GNC had reached an agreement with relevant lenders to postpone the accelerated maturity date of the outstanding part of its loan agreement to June 30, 2020. If the loan matures, GNC may face the risk of not being able to extend it again, and GNC may also face the pressure to repay the loan. Nevertheless, GNC said it would continue to seek all possible solutions to its debt, including applying for a restructuring plan.