On January 31, surging news learned that the association of market dealers of Bank Of China Limited(601988) issued a self-discipline punishment information announcement on its official website on January 30, saying that Sichuan Languang Development Co.Ltd(600466) ( Sichuan Languang Development Co.Ltd(600466) , 600466. SH) should be given a serious warning because it violated the relevant self-discipline management rules of the inter-bank bond market and the default of multi-term debt financing instruments, Suspend its business related to debt financing instruments for 18 months.
The announcement said that Sichuan Languang Development Co.Ltd(600466) indirectly subscribed its own debt financing tool “21 Blu ray mtn001” with its own funds through asset management products, distorting the issuance interest rate and undermining the market order. In addition, in the “21 Blu ray mtn001” issuance document, the commitment that Sichuan Languang Development Co.Ltd(600466) will not directly or indirectly subscribe for debt financing instruments is inconsistent with the actual situation, and the relevant information disclosure is untrue. At the same time, the company has defaulted on multi-term debt financing instruments, which belongs to the situation that should be dealt with severely or aggravated. According to the relevant self-discipline regulations of the inter-bank bond market, after the deliberation of the third self-discipline meeting in 2022, the Sichuan Languang Development Co.Ltd(600466) was given a serious warning and its business related to debt financing instruments was suspended for 18 months; Order them to make comprehensive and in-depth rectification on the problems exposed in this incident; Chi Feng, the then legal representative and President of the company, was warned and identified as an inappropriate candidate for 6 months; Ou Junming, the then financial director of the company, was criticized in a circular.
On January 28, Sichuan Languang Development Co.Ltd(600466) disclosed the annual performance forecast for 2021. The announcement shows that the company’s net profit loss attributable to shareholders of Listed Companies in 2021 is expected to be 12.037 billion yuan, and the net profit loss after deducting non recurring profits and losses is 11.273 billion yuan. In 2020, Sichuan Languang Development Co.Ltd(600466) the net profit attributable to shareholders of listed companies was 3.302 billion yuan, and the net profit after deducting non recurring profits and losses was 2.997 billion yuan.
For the reasons for the performance loss, Sichuan Languang Development Co.Ltd(600466) said that due to the superimposed impact of the industry environment and financing environment, the refinancing in the open market was blocked, and the liquidity was tense at different stages. Due to the debt repayment run of some financial institutions, some debts of the company were overdue and defaulted, which had a great impact on the operation of the company. According to the internal control policies and procedures of the company’s financial report, based on the financial statements preliminarily prepared by the entities included in the company’s consolidated financial statements, the company’s financial department preliminarily consolidated and calculated that the company had a large operating loss in 2021 compared with 2020, and the estimated loss was about 4.394 billion yuan.
Sichuan Languang Development Co.Ltd(600466) said that due to overdue debts and tight funds, the construction progress of the projects planned to be delivered this year was affected to varying degrees. The projects originally planned to complete the performance obligations of house sales and included in the settlement in this period failed to complete the delivery according to the original plan in this period. Despite the efforts of the company and all parties, the real estate business revenue was confirmed to be about 18.842 billion yuan lower than that in 2020, The year-on-year decrease was 47.37%.
After announcing a huge loss of 12 billion yuan, the Shanghai Stock Exchange issued an inquiry letter to Sichuan Languang Development Co.Ltd(600466) , asking it to explain the specific reasons and rationality of the large loss in the fourth quarter of 2021 in combination with the project carry forward and other business conditions of the real estate business, and whether there is profit adjustment such as the cost should be carried forward but not carried forward in the first three quarters; Supplement and list the specific amount of impairment provision for each item in the inventory, combined with the location distribution, development, sales progress, market supply and demand and other factors of the project. In addition, it is also required to explain the reasons and rationality of the sharp decline in the company’s gross profit margin, and whether there is a trend or risk of further decline; Supplement the changes in the capitalization rate of financial expenses in recent three years and its impact on financial expenses; Combined with the debt repayment situation, the company will make a supplementary disclosure of the debt resolution progress achieved so far and what measures the company plans to take in the future to improve liquidity and profitability.
