One wave is not even, another wave rises again.
In the last few days of January, many listed companies intensively released performance forecasts, especially the upstream and downstream building materials, home furnishings, decoration, coatings and other enterprises related to the real estate industry, pointing the “unspeakable pain” of performance to Evergrande.
On January 29, Shanghai Trendzone Holdings Group Co.Ltd(603030) , the first company listed on the main board of Shanghai Stock Exchange in Shanghai decoration industry, became the latest company to “denounce” Evergrande. The company expects a net profit loss of 800 million yuan to 1.2 billion yuan in 2021, compared with 133 million yuan in the same period in 2020. The net profit of the past seven years will be lost in one year.
The Chinese reporter of the securities firm noted that due to the development of Evergrande, a “close” major customer, and the changing situation, the major customer has changed from a big financier to a big creditor at one stroke. There are more than 20 listed companies with similar Shanghai Trendzone Holdings Group Co.Ltd(603030) performance from profit to loss or a sharp decline, with a total pre loss of more than 18 billion yuan.
Meanwhile, Evergrande, which is in trouble, also announced recently that it will assess the situation of the group, formulate a restructuring plan to protect the rights of stakeholders and strive to put forward a preliminary restructuring plan within the next six months.
performance loss is due to Evergrande
enterprises may face the consequences of relying on key customers for development: one careless move will lose everything.
On January 29, Shanghai Trendzone Holdings Group Co.Ltd(603030) (603030, SH) released the performance forecast for 2021. It is estimated that the net profit loss attributable to the shareholders of the listed company will be RMB 800 million to RMB 1.2 billion in 2021, and RMB 133 million in the same period in 2020, turning from profit to loss year-on-year.
Why did Shanghai Trendzone Holdings Group Co.Ltd(603030) engaged in residential, apartment and other design and construction business have a record and amazing loss?
Shanghai Trendzone Holdings Group Co.Ltd(603030) explained that 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.
The Chinese reporter of the securities firm noted that the total net profit of Shanghai Trendzone Holdings Group Co.Ltd(603030) from 2014 to 2020 was 1.163 billion yuan, which means that Shanghai Trendzone Holdings Group Co.Ltd(603030) may lose all the net profits earned in the past seven years because of the explosion of Evergrande, the largest customer.
On January 28, the performance forecast of Zhejiang Yasha Decoration Co.Ltd(002375) (002375, SZ), another company engaged in architectural decoration in 2021, showed that the net profit loss is expected to be 738 million yuan to 928 million yuan, while the profit in the same period of 2020 is 317 million yuan. According to the data, Zhejiang Yasha Decoration Co.Ltd(002375) will also lose its net profit in 2019 and 2020.
Zhejiang Yasha Decoration Co.Ltd(002375) said that the main reason for the change in performance was the provision of impairment losses on relevant receivables and contract assets of Evergrande and real estate developers included in the three red lines of the country. The company involved about 1.25 billion yuan of commercial acceptance bills, accounts receivable, contract assets and inventory of the above-mentioned real estate developers. In view of the large-scale breach of commercial bills issued by Evergrande, It is unlikely that it will take the initiative to honor all due bills, and it does not rule out that the bill holder requires the company to bear the legal liability as an endorser.
Zhejiang Yasha Decoration Co.Ltd(002375) the management has carefully analyzed and evaluated the recoverability and time progress of the receivables of Evergrande and the real estate developers included in the three red lines of the state as of December 31, 2021, and believes that there are signs of impairment and corresponding impairment losses need to be accrued.
in addition, more serious losses include Shenzhen Grandland Group Co.Ltd(002482) (002482, SZ) and Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) (002081, SZ). Among them, Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) predicts that the net profit in 2021 will be between 4 billion yuan and 5 billion yuan, compared with 2.374 billion yuan in the same period of last year; According to the performance forecast released by Shenzhen Grandland Group Co.Ltd(002482) , the net loss in 20221 is 4 billion yuan ~ 5 billion yuan, an increase of 41.02% – 537.53% over the same period of last year, and the net profit in the same period of 2020 is 784 million yuan.
Chinese journalists from China, China’s securities brokers, are not fully statistical. In addition to the Shanghai Trendzone Holdings Group Co.Ltd(603030) , { Zhejiang Yasha Decoration Co.Ltd(002375) , {00237375}, Shenzhen Grandland Group Co.Ltd(002482) and { Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) , which includes Guangdong Topstrong Living Innovation And Integration Co.Ltd(300749) (300749, SZ), and Guangdong Topstrong Living Innovation And Integration Co.Ltd(300749) (300749, S9, SZ (60373737, SH) (603} (6030300300300}, {{6030300300300}, {{{6030300300}, {{{{6030300300300300}, {{{{{{ Jiangsu Canlon Building Materials Co.Ltd(300715) (300715. SZ (300715. Sz5. Sz. Sz. Sz. SZ) and {{{{{ Qumei Home Furnishings Group Co.Ltd(603818) (603818. 8. Sh (603818. Sh. Sh. Sh. Sh 5} (603725. SH) More than 20 real estate upstream and downstream listed companies, including Shanghai Electric Group Company Limited(601727) (601727. SH), Shenzhen Jianyi Decoration Group Co.Ltd(002789) (002789. SZ), Shenzhen Wenke Landscape Co.Ltd(002775) (002775. SZ), Guangzhou Holike Creative Home Co.Ltd(603898) (603898. SH), Jiangshan Oupai Door Industry Co.Ltd(603208) (603208. SH), Beijing Jiayu Door Window And Curtain Wall Joint-Stock Co.Ltd(300117) (300117. Sz), Chinese real estate (0127, HK), Shenzhen Holdings (0604, HK), all mentioned the risk of withdrawing impairment reserves for relevant funds such as Evergrande group and a major customer in the disclosure of 2021 performance forecast, Has a direct impact on performance.
Among them, there are at least 10 listed companies including Shenzhen Grandland Group Co.Ltd(002482) , Shanghai Trendzone Holdings Group Co.Ltd(603030) and so on. Due to the explosion of key customers, Hengda’s performance has changed from profit to loss, with a loss of more than 18 billion yuan, which once again sounded the alarm for enterprises’ high dependence on the development model of key customers.
Can the debt losses caused by Evergrande be recovered? Zhejiang Yasha Decoration Co.Ltd(002375) said it would actively negotiate with the above-mentioned real estate developers to find solutions, take various necessary preservation measures, claim the rights and interests of the company, and promote the follow-up recovery of the above-mentioned assets.
For Jiangsu Canlon Building Materials Co.Ltd(300715) with a total of 189 million yuan of accounts and notes receivable owned by Evergrande and its member enterprises, it said that it has been actively negotiating with Evergrande group and its member enterprises to seek solutions.
Evergrande’s restructuring plan is expected to be released within 6 months
so, what is the current situation of Evergrande, which has “changed” the performance of dozens of listed companies?
On January 26, Evergrande announced that China Evergrande held a teleconference with group creditors. At the meeting, the company reiterated that it would assess the situation of the group and formulate a restructuring plan to protect the rights of stakeholders.
To this end, China Evergrande is promoting auditors to carry out relevant work. During this period, it will continue to carefully listen to the opinions and suggestions of creditors and strive to put forward a preliminary restructuring plan within the next six months.
At present, Evergrande is facing multi-party debt pressure, including US dollar debt. Earlier, on January 24, Evergrande group issued a sincere statement on its official website, imploring the outside world, especially creditors, to give more time.
Evergrande said in the statement of Evergrande group on matters related to overseas bonds that it is continuing to communicate and dialogue with overseas creditors with a positive attitude together with relevant consulting institutions.
At present, the group has made it clear to overseas creditors that the board of directors, the risk resolution Committee and the whole group are sparing no effort to evaluate the operation, stabilize the production and operation, ensure the capital turnover, and pool the efforts of all parties to jointly formulate a comprehensive, detailed and effective debt restructuring plan to protect the legitimate rights of all parties. The progress of relevant work has been disclosed by the group in the form of announcement from December 2021 to January 2022.
During this period, the group conducted in-depth discussions with relevant parties and made some progress in promoting the exploration of the implementation path of risk resolution. The group is also aware that due to its large scale, various businesses and many stakeholders, the situation faced by the group will become more and more complex, which requires further discussion and deduction of various possibilities and Implementation Paths with all parties, comprehensive evaluation and measurement of various potential schemes, so as to lay a solid foundation for further communication.
Evergrande group said in the statement that the board of directors and the risk resolution Committee of Evergrande group, with a consistent and responsible attitude, urged all overseas creditors to give more time to support Evergrande group to fully consider all kinds of uncertainties and risks and work together to form a debt risk resolution scheme that guarantees the interests of all parties.
Evergrande group said that it looked forward to further dialogue and communication with overseas creditors, and called on overseas creditors to jointly ensure that the rights of all stakeholders are not greatly damaged and do not take any radical legal action, which will have an impact on the current hard won stability.
In the morning of January 25th, China Evergrande issued another announcement that the company and its consulting team had launched an active dialogue with overseas creditors. When communicating with creditors, the company has made it clear that the company and the company’s risk resolution Committee have been making unremitting efforts to evaluate the situation of Evergrande group and stabilize production and operation, with a view to formulating a restructuring plan beneficial to all shareholders.
The announcement also pointed out that in view of the size of Evergrande group, the large number of stakeholders and the complexity of the situation, Evergrande group still needs more time to fully consider, comprehensively evaluate and measure a number of potential schemes before it can responsibly further communicate with overseas creditors.
