Hundreds of billions of giant Ziguang Group bankruptcy restructuring? Ziguang Guowei: basically no impact

On July 9, Ziguang Group said that it had received a "notice" from the Beijing No. 1 Intermediate people's Court that the relevant creditors had applied to the court for bankruptcy reorganization of Ziguang Group on the grounds that the group was unable to pay off its due debts, that its assets were insufficient to pay off all its debts and that it obviously lacked the ability to pay off all its debts, and that it had the value and feasibility of restructuring.

It is reported that Ziguang Group was founded in 1988 and is currently a leading digital infrastructure and service enterprise, focusing on the development of electronic components and equipment manufacturing industry, with total assets of nearly 300 billion yuan by the end of 2019. Especially in the chip industry, in recent years, Ziguang Group has successively acquired companies such as Spreadtrum Communications, Ruidi Microelectronics and Xinhua, and invested heavily in memory chip manufacturing. However, large-scale mergers and acquisitions have also led to the huge debt pressure of the hundreds of billions of dollars. Public information shows that Ziguang Group faces a number of bond defaults at home and abroad. According to the announcement on the follow-up Progress of Corporate Bond default issued on June 30, six bonds of "16 Ziguang 01", "16 Ziguang 02", "17 Ziguang 03", 18 Ziguang 04 "19 Ziguang 01" and "19 Ziguang 02" defaulted. According to data, the current default principal and interest of Ziguang Group is about 6.883 billion yuan, and a 1.3 billion yuan bond will mature at the end of December this year.

The creditor Huishang Bank Co., Ltd. applied to Beijing No. 1 Intermediate people's Court for the reorganization of Ziguang Group. as of the date of the letter, there is still uncertainty as to whether the reorganization application submitted by creditors will be accepted by the court and whether Ziguang Group will enter the reorganization process.

As soon as the news came out, there was a lot of talk in the market, and everyone paid attention to where the purple light system would go. Ziguang Guowei responded that Ziguang Group's application for restructuring by creditors did not have a direct impact on the daily production and operation of the company, and all the production and business activities of the company are carried out normally. However, it is worth noting that Ziguang Group holds a 32.39% stake in the company through its wholly-owned subsidiary Ziguang Chunhua. If Ziguang Group enters the restructuring process, the restructuring plan may have an impact on the equity structure of Ziguangguo.

As of today's close, the market capitalization of Ziguang has exceeded 100 billion yuan, reaching 101.9 billion yuan. In recent months, affected by the shortage of chips, Ziguang Weiwei has developed rapidly and its share price has continued to rise, rising more than 15% in the first half of the year. Prior to this, the share price of Ziguang Guowei hit 175.57 yuan per share, a new high since its listing. However, affected by the news that Ziguang Group may go bankrupt and reorganized, the share price of Ziguang Guowei rose and fell rapidly on July 9. As of July 12, the share price of Ziguang Guowei fell slightly for two consecutive trading days. Whether there will be further impact in the future remains to be seen.