China's Leading Daily Chemical Company Sells $259.6M in Assets
- Chaileedo Press
- Feb 28, 2023
- 2 min read
Reward Group's main daily chemical business suffered from the strong impact of Blue Moon, Liby and Dettol, and its market share is not what it used to be, and the acquisition of PANROSA also failed to help Reward regain the decline.
Recently, according to the National Enterprise Bankruptcy Information Disclosure Platform, two major segments of the daily chemical and real estate assets under Reward Group are in bankruptcy liquidation.
Reward Group, one of the top 500 private manufacturing companies in China, had acquired 80% of Panrosa in the US and 77.34% of Le Chatelard in France to expand its daily chemical business.
Public information shows that Reward Group was founded in 1994, and pioneered the first phosphate-free and environmentally friendly laundry product in China - Reward Soap Powder, which became the first laundry product in China to receive the environmental label certification. At its peak, Reward Group also invited Xu Qing, Liu Tao and other famous Chinese stars as brand spokespersons.
It is reported that Reward laundry detergent powder and laundry detergent are the most competitive products of Reward Daily Chemical, which has 7 brands. "Since 2014, Reward's daily chemical products have shown a fluctuating trend of decline in both sales revenue and profit." Brand marketing experts said that the strategy of Reward Group is to occupy the two product categories of home cleansing and personal care and complete full coverage of the high-middle-and-low market.
According to Ali Auction, the total appraisal price of Reward Group's Beijing-based Reward Building A, B, C and many other properties and real estate is more than 1.8 billion, most of which are real estate bids, and the auction was stopped on February 23 and will start on March 5. For example, the property and land use rights of Jinchao Yuma International Hotel held by Reward Group have a starting bid of 478.93 million yuan.
In addition to the daily chemical industry, Reward Group also has a layout in the food industry and tourism real estate section. The diversified business layout has made Reward Group the title of "Top 500 Chinese Private Enterprises in Manufacturing", but at the same time, its heavy assets have also led to rising liabilities. It is understood that from 2014 to the end of 2018, five years, the scale of debt reached 4.017 billion yuan ($579 million), 5.152 billion yuan ($ 742.4 million), 7.897 billion yuan ($1.14 billion), 8.794 billion yuan ($1.27 billion) and 6.094 billion yuan ($878.1 million), respectively.
On August 12, 2022, the Beijing Chaoyang District People's Court issued a notice saying that the court ruled to terminate the reorganization process and declare Reward Group Inc. bankrupt because the draft reorganization plan of Reward Group was not approved by the creditors' meeting. This is what led to the current asset auction.
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