After falling behind Red Star Macalline, Singholdings once again came to the edge of the cliff.

On June 12th, Singholdings, the second largest shareholder of RS Macalline, issued an announcement stating that it was difficult to repay its own debt and formally applied to the court for bankruptcy restructuring on June 7th!On June 7th,it formally applied to the court for bankruptcy restructuring!

This reorganization only targets Singholdings' own legal entities, not including its subsidiaries and joint ventures.

Singholdings believes that by applying for restructuring to the court and resolving the debt crisis through the judicial restructuring process, it can avoid further deterioration of the company's debt and operational risks, better protect the legitimate rights and interests of all creditors and investors.

RS Macalline stated that the company's largest shareholder and controlling shareholder is Xiamen C&D Inc., and the actual controller is the State-owned Assets Supervision and Administration Commission of Xiamen City. Singholdings' application for restructuring will not lead to a change in the company's controlling shareholder and actual controller, nor will it have a significant impact on the company's daily operations and financial situation.

It has been almost one year since Singholdings sold the 1.043 billion A shares it holds to Xiamen C&D Inc., losing control of Red Star Macalline. Time has passed, but the predicament has not disappeared.Founded from scratch, Red Star Macalline

Che Jianxing was born in 1966 in a poor family in Changzhou, Jiangsu. He dropped out of school at the age of 16 to make a living.

He once started from scratch and gradually built up assets of hundreds of billions of yuan over 30 years. At its peak, he owned the country's largest home furnishings retail chain store, Red Star Macalline, as well as many commercial properties and residences.

In 1986, Che Jianxing opened a furniture store named "Red Star Woodware" in his local area and began selling his own furniture.

In June 2007, Singholdings was established, with Che Jianxing holding 92% of the shares and his sister Che Jianfang holding 8% of the shares.

On January 6, 2011, the company changed to a Sino-foreign joint stock limited company and was renamed Red Star Macalline Group Corporation Limited. At its peak, Red Star Macalline had over 200 shopping malls nationwide and became a benchmark in the industry.

Red Star Macalline was listed in Hong Kong in 2015 and in A shares in 2018.

The A-share stock price of Red Star Macalline peaked at 20.96 yuan in 2018, but has since fallen all the way to less than 3 yuan.

It is reported that Red Star Macalline has two business models.One is to purchase land and build shopping malls, then lease them out. The other is to operate third-party properties.

In 2009, Che Jianxin began to engage in real estate development, with one project being Red Star Real Estate and the other being Red Star Property.

Not only that, in 2019, he also founded the real estate brokerage platform Red Star Macalline Home, which recruited nearly 10,000 employees in a year. It is worth noting that 2019 happened to be the first year of China's real estate decline.After the start of the real estate downturn, the furniture industry also experienced a slowdown, with declining occupancy rates and revenue unable to cover interest, leading to a series of problems. At its peak, Red Star's debt reached 200 billion.

In 2021, Che Jianxin realized that the situation was not right and began to try to save the situation. In July, he sold 70% of Red Star's equity for 4 billion yuan to Sino-Ocean Group, which has a state-owned enterprise background.

In October, Red Star Macalline sold 80% of its property equity to CIFI ES Service for 696 million yuan.On January 13, 2023, Red Star Holdings announced that it was selling its 29.95% stake in Red Star Macalline to Xiamen C&D Inc. for no more than 6.3 billion yuan.

Afterwards, Xiamen C&D Inc. became Red Star Macalline's controlling shareholder and Che Jianxin resigned as chairman.

At that time, Red Star Holdings stated that the sale was an active asset disposal measure taken to resolve debt and stabilize operations. In the future, Red Star Macalline will not be included in Red Star Holdings' consolidated statements.

By selling the aforementioned assets, Che Jianxin cashed out about 14 billion yuan, but he still faced difficulties in solving the debt crisis.

Red Star Holdings' 2023 audit report showed that the company's overdue borrowings and interest exceeded 6 billion yuan in a year, while its monetary funds on account were only 110 million yuan.

Losses have continued for the past two years.

In 2023, Red Star Holdings had a revenue of 13.889 billion yuan, with a net loss attributable to the owner of the parent company of 27.174 billion yuan. As of the end of 2022, Red Star Holdings' revenue was still 21.08 billion yuan, with a net loss attributable to the owner of the parent company of 8.206 billion yuan.

According to incomplete statistics, Red Star Holdings' current scale of overdue and unpaid debts has reached 2.074 billion yuan, with total liabilities exceeding 32.5 billion yuan.

It is worth mentioning that half a month ago, due to debt disputes, Red Star holdings' 1.73% stake in Red Star Macalline was judicially transferred to compensate for the debt owed by Red Star holdings.

However, Red Star Holdings still could not survive and therefore applied for restructuring.