Even at the weekend, the real estate market is still not very peaceful. On the one hand, the Chinese prefix AMC is ready to issue bonds to bail out high-quality projects of real estate enterprises, and on the other hand, the storm of highly leveraged real estate enterprises continues.
On the evening of February 18, Zhengrong real estate official announced that the debt due in March is expected to be unable to be repaid, including the $200 million perpetual debt that was previously announced to be repurchased on March 5. On February 11, there was news that the company could not redeem the perpetual bond, and Zhengrong real estate immediately fell by 80%. However, the company refuted the rumor twice and “clarified” that the news was “untrue and false”. Some netizens said that now it is false to see the company’s own announcement. Some shareholders on the stock bar platform are covered by copying the bottom of the “clarification announcement”.
Similarly, on the evening of February 18, after nearly three weeks of brewing, another 100 billion Fujian Real Estate Yango Group Co.Ltd(000671) finally replied to the letter of concern from the Shenzhen Stock Exchange, and the situation was worse than expected: the company’s available funds accounted for less than 1% of the book funds, and the cash had dried up. At present, due to the large-scale cross default caused by the failure to pay the interest of 170 million yuan of foreign debt, the company reminds investors to fully understand the risk factors disclosed by the company and pay attention to investment risks.
At the same time, the Xiamen Bank Co.Ltd(601187) announcement from Fujian sued Yango Group Co.Ltd(000671) holding stock Guangdonghectechnologyholdingco.Ltd(600673) group, its concerted action person Kangtian industry and Yango Group Co.Ltd(000671) actual controller Lin Tengjiao for loan disputes, involving a principal of 365 million yuan and corresponding interest, penalty interest and compound interest. The above borrowings were pledged with 111 million Yango Group Co.Ltd(000671) shares, which is likely to be frozen or forcibly reduced in the future. At present, the sunshine group and its persons acting in concert have been frozen for a total of 424 million shares and forcibly reduced for a total of 146 million shares.
the “rumor” of Zhengrong real estate confirmed that there were shareholders’ bottom copy quilt covers
Zhengrong real estate announced on January 4 that it planned to redeem the remaining US $200 million of perpetual bonds on March 5, 2022. However, on February 11, there was a sudden news: Zhengrong real estate was short of funds and could not redeem the extended US $200 million perpetual bonds as planned, and the company’s overseas bonds would be restructured. Under the influence of the news, Zhengrong real estate and its property company Zhengrong service both collapsed in the afternoon of February 11, with a decline of more than 80% and a closing decline of around 60%.
After a weekend, Zhengrong real estate issued an urgent announcement to refute the rumor “clarification” on February 14, saying that “the board of Directors hereby clarifies that these newspapers are untrue and false, and the company clearly reserves all the rights to investigate the legal responsibility of the authors, media and all parties responsible for the inaccurate information”. However, after the “clarification announcement” was issued, Zhengrong shares and bonds still fell, and Zhengrong real estate fell another 25% in two days. The company reissued the “clarification announcement” on February 15.
But unexpectedly, the company slapped itself in the face after only three days.
On the evening of February 18, Zhengrong real estate announced that since the announcement of the proposed repurchase, the company’s internal funds available for debt repayment have become increasingly limited. Therefore, “the company expects that its existing internal resources may not be sufficient to solve its debt due in March 2002 (including full redemption of securities on March 5, 2002)”. The company is “seeking the consent of the beneficial owner of the securities and proposing a number of proposed exemptions and amendments to the securities in accordance with the consent stated in the consent solicitation memorandum”.
In order to attract the consent of the holder, the company gives a “consent fee” of 1% and a “progressive fee” of 0.75%. However, the announcement stressed that “there is no guarantee that the consent solicitation will be completed, and the company reserves the right to amend, withdraw or terminate the consent solicitation conditionally or unconditionally”.
The company expects that the market situation of the real estate industry will still be under pressure in 2022. The company is still cautious about its short-term liquidity in the absence of a sharp rebound in the market and a rebound in a variety of financing options. In addition to the above extension consent solicitation, the company is also considering “other debt management actions on other outstanding overseas senior notes in the near future”.
Many shareholders expressed anger at the company’s behavior of clarifying “rumors” twice but finally taking it seriously. Some netizens said that they “made us miserable, and everyone bought it only after believing your notice”, “after all, it’s still a real hammer, and it’s a big loss before coming out early”, “liar company”, and many netizens said they want to report to the CSRC and claim compensation.
Yango Group Co.Ltd(000671) large scale default due to cash depletion. The company reminds investors to pay attention to risks
On the evening of February 17, Yango Group Co.Ltd(000671) just announced that the interest of two US dollar bonds of 170 million yuan was still not up (see the report on February 18 “sudden! Another explosion of 100 billion real estate”). On the evening of February 18, a series of key information was disclosed in the reply to the notice of the attention letter to the Shenzhen Stock Exchange, and the situation was more severe than expected.
What is the overall situation of the company’s debt at present?
According to the announcement, as of the end of September 2021, the company’s interest bearing debt totaled 84.9 billion yuan, with the highest financing cost reaching 12.5%, of which 61.4 billion yuan was due within one year and one to two years, accounting for more than 70%, facing the pressure of centralized cashing. Specifically, RMB 24.798 billion is due within one year, accounting for 29.2%, RMB 36.567 billion is due within one to two years, accounting for 43.05%, RMB 17.148 billion is due within two to three years, accounting for 20.19%, and RMB 6.425 billion is due over three years, accounting for 7.56%.
But there was no money in the company’s account, so there was a scene that less than 200 million interest baffled 100 billion heroes.
The announcement said that by the end of December 2021, the company’s monetary funds on hand had decreased significantly compared with the beginning of the year. “In practice, the funds for flexible activities accounted for less than 1% of the book funds”. The company gives several reasons: first, the pre-sale funds are limited; Second, the financing channels are blocked; Third, the project company’s funds cannot be transferred back to the group. “Due to the continuous severe overall environment, financial institutions and project partner shareholders are very cautious about the project company’s fund back to the group”.
The company’s restricted assets are mainly inventories, monetary funds, long-term equity investments, investment real estate, fixed assets, intangible assets and other non current assets mortgaged and pledged due to loans. As of the end of June 2021, the total book value was 121.52 billion yuan, accounting for 33.92% of the company’s total assets. In other words, one third of the assets are limited, accounting for a relatively high proportion.
In terms of financing, from January to September 2021, the net cash flow generated by the company’s financing activities was -31.907 billion yuan, while the net cash flow contributed by financing activities in 2020 was positive 600 million yuan, with obvious collapse in comparison.
From January to September 2021, the cash flow generated by the company’s operating activities did not decline much, with a net amount of 20.789 billion yuan, a decrease of only 4.7% over the same period last year. However, the Yango Group Co.Ltd(000671) thunderstorm occurred in the fourth quarter, and the measurement price of the whole sales fell in the fourth quarter, resulting in a cliff.
The company predicts that the non net profit loss deducted in 2021 will be 7.3 billion yuan to 8.6 billion yuan, which is mainly due to the decline in the price of inventories and the provision for impairment.
In terms of projects with a falling price of more than 200 million, the selling price of many projects cannot cover the project cost. For example, the unit price of a project in the mainland decreased from 18300 yuan per square meter to 16400 yuan; The first project of greater Fujian has not been opened yet, which has decreased from 87200 yuan to 64200 yuan, a decrease of 26%; The price of a project in the Yangtze River Delta decreased from 119000 yuan to 89000 yuan, with a decrease of 25%; The unit price of a super market in the Pearl River Delta, which covers an area of 330000 square meters and has a total cargo of 15 billion yuan, has decreased from 22300 yuan to 19800 yuan, and the price decline is expected to be about 630 million yuan.
At present, the company has failed to pay the interest on the above-mentioned foreign debt, resulting in large-scale cross default. The company “reminds investors to fully understand the risk factors disclosed by the company and pay attention to investment risks”.
Xiamen Bank Co.Ltd(601187) file a lawsuit
On the evening of February 18, Xiamen Bank Co.Ltd(601187) also issued an announcement that its Fuzhou branch submitted a complaint to the people’s Court of Gulou District of Fuzhou City for a financial contract dispute with Kangtian industry, the person acting in concert with Yango Group Co.Ltd(000671) holding stock Guangdonghectechnologyholdingco.Ltd(600673) group and sunshine group, and Lin Tengjiao, the actual controller of Yango Group Co.Ltd(000671) . Recently, Fuzhou Branch received the acceptance notice from the court. The amount involved in the lawsuit is about 365 million yuan of the loan principal, as well as the corresponding interest, penalty interest and compound interest.
According to the announcement, on June 7, 2021, Fuzhou branch of Xiamen Bank signed the credit line agreement with sunshine group, agreeing to provide it with a credit line (principal) of 500 million yuan, and the scope of credit business includes working capital loan, bank acceptance bill, opening of Chinese letter of credit, etc. Subsequently, from June to September 2021, Fuzhou branch successively released loans, bank notes, letters of credit and other amounts totaling 559 million yuan. Sunshine Group and Kangtian industry successively provided 111 million Yango Group Co.Ltd(000671) shares as pledge, and Lin Tengjiao personally assumed joint and several guarantee liability for some debts.
At present, the above borrowing rate of Xiamen Bank Co.Ltd(601187) is bad. The latest share price of Yango Group Co.Ltd(000671) is 2.69 yuan / share, and the total market value of 111 million shares is about 300 million yuan, which can not cover the principal, let alone interest and penalty interest. The Yango Group Co.Ltd(000671) probability will add another frozen shares or passive reduction of shares.
As of February 18, 2022, due to the explosion of some accounts, sunshine group and its concerted actors had closed 146 million shares in the secondary market, accounting for 3.52% of the total share capital of the company. After the passive reduction, sunshine group and its persons acting in concert held a total of 1.675 billion Yango Group Co.Ltd(000671) shares, accounting for 40.46% of the company’s total share capital, of which 424 million shares were frozen, accounting for 25.02% of the company’s shares and 10.25% of the company’s total share capital.
Yango Group Co.Ltd(000671) in response to the announcement of Shenzhen Stock Exchange, said that at present, the above risk matters will not lead to the change of the company’s control right, and there is no risk of unstable control right for the time being. However, considering that the probability of judicial freezing and passive reduction of shares of sunshine group and its concerted actors continues to rise, the above risks can not be ignored.
