Pull one hair and move the whole body.
On the 28th, in addition to the transcripts of many listed companies with a loss of 10 billion, “Evergrande” and a major customer frequently appeared in the advance loss annual reports of more than a dozen home decoration companies. Among them, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) and Shenzhen Grandland Group Co.Ltd(002482) both suffered an advance loss of 4-5 billion yuan due to the default of Evergrande’s huge commercial acceptance bill exceeding 10 billion yuan.
“stepping on thunder” Evergrande
lose at least two years’ net profit in one quarter
The Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) was once famous for its participation in the decoration of iconic buildings such as the bird’s nest, the National Grand Theater and Beijing Daxing International Airport.
On the 28th, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) released a performance forecast. In 2021, the company’s operating revenue was between 24.5 billion yuan and 27.5 billion yuan, and the net profit attributable to shareholders of listed companies was between 4 billion yuan and 5 billion yuan, compared with 2.374 billion yuan in the same period of last year.
According to the financial report data over the years, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) made a profit of 1.4 billion yuan in the first three quarters of 2021, and now has a loss of at least 4 billion yuan in advance. This means that Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) has a loss of at least 5.4 billion yuan in the fourth quarter of 2021, more than the total profits of the past two years.
Turning to the reasons for the loss, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) said that the main reason for the change of the company’s performance was the provision for impairment of customer receivables.
Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) disclosed that as of December 31, 2021, the company held 7.73 billion yuan of notes receivable, accounts receivable and other creditor’s rights receivable of the customer, including 2.496 billion yuan of overdue notes, 1.76 billion yuan of undue notes and 1.676 billion yuan of accounts receivable, 1.798 billion yuan of notes were offset with assets (some of the notes were offset with assets, and the original offset assets were returned due to the requirements of the regulatory authorities).
Although Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) did not disclose the name of the customer. However, according to the details of the previous announcement, the customer is undoubtedly “Evergrande”.
According to the third quarterly report of Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) , Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) reached an agreement with Evergrande in the third quarter of 2021, agreeing that Evergrande would offset the notes with assets of 1.798 billion yuan, leaving the commercial acceptance bills receivable of 4.25 billion yuan.
For Evergrande’s solvency, the company’s management analyzed and evaluated the recoverability of the customer’s receivables as of December 31, 2021, and considered that there were obvious signs of impairment.
13 years together
tearful appeal “asking for salary” exceeded 1.6 billion
It is understood that Evergrande started business with Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) in 2008. With the rapid expansion and development of Evergrande, it soon became the largest customer of the latter.
According to the annual report of Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) in 2012, the revenue of business related to Evergrande accounts for 6.71% of the company’s total operating revenue, and Evergrande has become the largest customer of Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) .
By 2019 and 2020, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) ‘s largest customer (the specific information of the largest customer is not disclosed) will account for more than 20% of the operating revenue.
Evergrande’s rapid decline has also brought this pair of partners who have gone through a sweet period of 13 years hand in hand to the end.
In the 2021 semi annual report, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) announced that it had suspended the undertaking of projects of Evergrande group and its member enterprises.
On December 3, 2021, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) announced that 694 cases were involved in this lawsuit against Evergrande. The causes of the cases were that Evergrande and its member enterprises failed to pay the project funds and other funds on schedule as agreed in the contract, and the subject matter involved in the case was 882 million yuan.
On December 31, 2021, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) issued an announcement. The announcement said that from the previous disclosure of the announcement on litigation matters to the disclosure date of this announcement, the company and its subsidiaries have accumulated litigation and arbitration cases for 12 consecutive months, with a total amount of RMB 1.717 billion, accounting for 10.09% of the company’s latest audited net assets.
Among them, there were 337 litigation cases involving Evergrande group and its member enterprises, with a total amount of RMB 1.641 billion, accounting for 95.57% of the total amount disclosed in this Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) .
It is worth mentioning that during the cooperation with Evergrande, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) lost more than just the decoration income.
In November 2015, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) group subscribed for 2.5 million shares of Evergrande Taobao football and spent 100 million yuan to become the fifth largest shareholder of Evergrande football.
However, at the end of 2020, the “first share of Asian Football”, which lost only 7 billion, withdrew from the market.
Shenzhen Grandland Group Co.Ltd(002482) provision for bad debts of Evergrande exceeded 3 billion
In addition to Suzhou’s Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) , Shenzhen’s decoration industry leader Shenzhen Grandland Group Co.Ltd(002482) also accrued Evergrande’s debt of more than 3 billion last night.
On January 28, Shenzhen Grandland Group Co.Ltd(002482) released the annual performance forecast for 2021. The net loss attributable to shareholders of listed companies was 4-5 billion yuan, an increase of 410.02% – 537.53% over the same period of last year. The net loss after deducting non recurring profits and losses was 3.957 billion yuan to 4.957 billion yuan.
In the face of significant performance losses, the company explained that since mid-2021, affected by the debt default of the company’s largest customer, the commercial acceptance bills issued by the largest customer and its subsidiaries have frequently defaulted due to maturity, and the collection of project funds receivable by the company from the largest customer has been delayed, facing greater credit risk. As of December 31, 2021, the overdue amount of commercial acceptance bill of the largest customer held by the company was 3.247 billion yuan (transferred into accounts receivable).
Combined with the progress of resumption of work and production of the first largest customer and the cashing status of Companies in various regions, the company believes that there are obvious signs of impairment after analyzing and evaluating the recoverability of relevant projects of the first largest customer. Therefore, it is proposed to withdraw the corresponding bad debt provision for the relevant accounts receivable of the first largest customer.
It is understood that Evergrande is the largest customer of Shenzhen Grandland Group Co.Ltd(002482) for many years. In November 2010, Shenzhen Grandland Group Co.Ltd(002482) announced that it had signed a strategic cooperation agreement with Evergrande real estate to undertake the construction business of building decoration works of some buildings constructed by Evergrande real estate and its subsidiaries. According to the agreement, Evergrande real estate arranges about 3.5 billion yuan of decoration construction tasks every year, and increases about 1 billion yuan of construction tasks to Shenzhen Grandland Group Co.Ltd(002482) year by year. The validity period of the agreement is 3 years.
According to the financial report, about half of the operating revenue from 2010 to 2013 came from Evergrande.
several listed companies stepped on “Evergrande”
In fact, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) is just one of the waves aroused by Evergrande.
Recently, listed companies including Shanghai Trendzone Holdings Group Co.Ltd(603030) , Jangho Group Co.Ltd(601886) , Arts Group Co.Ltd(603017) , Nanjing Olo Home Furnishing Co.Ltd(603326) , Jiangsu Canlon Building Materials Co.Ltd(300715) , Qumei Home Furnishings Group Co.Ltd(603818) , Guangdong Piano Customized Furniture Co.Ltd(002853) , Guangdong Tianan New Material Co.Ltd(603725) , Shanghai Electric Group Company Limited(601727) , Shenzhen Jianyi Decoration Group Co.Ltd(002789) , Shenzhen Grandland Group Co.Ltd(002482) , Shenzhen Wenke Landscape Co.Ltd(002775) , Guangzhou Holike Creative Home Co.Ltd(603898) , Jiangshan Oupai Door Industry Co.Ltd(603208) , Beijing Jiayu Door Window And Curtain Wall Joint-Stock Co.Ltd(300117) mentioned the risk of impairment provision for relevant funds of Evergrande group in the disclosure of performance forecast of the previous year, This provision will have a direct impact on the company’s performance in 2021.
On January 28, Shanghai Trendzone Holdings Group Co.Ltd(603030) disclosed that according to the preliminary calculation of the company’s financial department, it is expected to realize a net profit loss of 800 million yuan to 1.2 billion yuan attributable to the shareholders of the listed company in 2021.
The company said that during the reporting period, Evergrande, the company’s largest customer, had liquidity problems. Since April 2021, Evergrande’s commercial acceptance bills held by the company have been overdue, and Evergrande’s collection of receivables has deteriorated in a large area. Although the company has taken various measures to actively respond, based on the principle of prudence, the company has accrued corresponding bad debt reserves for the amounts received from Evergrande group and its subsidiaries.
On January 28, Jangho Group Co.Ltd(601886) lost 900 million to 1.1 billion yuan in advance. The main reason for the loss in advance is that Gangyuan decoration, the holding subsidiary of the company, has undertaken some decoration projects of relevant subsidiaries and their affiliates of Evergrande Real Estate Group Co., Ltd. (hereinafter referred to as “Evergrande group” or “the customer”), and the company cannot recover the due receivables of the customer on time. After the evaluation of the company’s management, it is considered that there are obvious signs of impairment of its receivables, Based on the principle of prudence, the company has further accrued the credit impairment loss of the customer’s accounts receivable, notes receivable and contract assets in accordance with the accounting policy. The company expects to accrue the customer’s credit impairment loss of about 1.68 billion yuan in the current period (including 1.66 billion yuan of Gangyuan decoration). By the end of 2021, the company had accrued about 1.89 billion yuan of credit impairment losses for the customer, the net exposure receivable was about 780 million yuan (including 76 million yuan of materials supplied by Party A), and the assets such as account offsets being handled were about 504 million yuan.
Similarly, on January 28, Qumei Home Furnishings Group Co.Ltd(603818) although the profit was increased by more than 100 million yuan in advance, nearly 40 million accounts receivable related to Evergrande were still accrued.
Qumei Home Furnishings Group Co.Ltd(603818) said that as of December 31, 2021, the company held a total of 37.0799 million yuan of notes and accounts receivable of Evergrande group and its member enterprises (hereinafter referred to as “Evergrande group”). Based on the current analysis and evaluation of the recoverability of notes and accounts receivable of Evergrande group, the management of the company believes that there are signs of impairment.
