This year, Xiwang Group is having a hard time in debt crisis, even its listed company, Xiwang Food, also continues to have problems.
In the first half of this year, Xiwang Food achieved operating income of RMB 2.647 billion yuan (USD $390 million), down 4.58% year-on-year; net profit attributable to shareholders of listed companies for RMB 180 million yuan (USD $26.59 million), down 19.75% year-on-year. Since both revenue and net profit dropped, the company attributed the problem to the COVID-19 pandemic impact, the complex economic situation, and tight financial environment.
On October 13th, Xiwang Food received the Shenzhen Stock Exchange semi-annual report inquiry letter, requiring it to make explanations regarding issues as holding a large amount of monetary fund while maintaining large scale interest-bearing liabilities. (Sina.finance)