At the end of the year, a personnel change pushed the Olympic Park to the front of the stage.
At noon on December 30, the “Olympic Park” A-share listing platform Aoyuan Beauty Valley Technology Co.Ltd(000615) revealed that Hu ran will serve as the chairman of the 10th board of directors of the company and fan Shijie will be the president of the 10th board of directors of the company.
The previous night, the company issued seven announcements on senior management personnel changes. People close to Aoyuan Beauty Valley Technology Co.Ltd(000615) told the media that the major personnel adjustment is to maintain Aoyuan Beauty Valley Technology Co.Ltd(000615) independence and reduce too many operational and management connections with China Olympic Park.
personnel reshuffle
On December 29, Aoyuan Beauty Valley Technology Co.Ltd(000615) announced that the company received resignation reports from director Ma Jun, director Chen Yong, independent director Zhang Shujun, President Hu ran and CEO fan Shijie on that day.
Among them, due to job adjustment, Ma Jun applied for resignation from the company’s director, chairman and special committees of the board of directors, Chen Yong applied for resignation from the company’s director and special committees of the board of directors, Hu ran applied for resignation from the company’s president, and fan Shijie applied for resignation from the company’s executive president; Zhang Shujun applied for resignation from the company’s independent director and the special committees of the board of directors for personal reasons.
After resignation, Ma Jun, Chen Yong and Zhang Shujun will not hold any position in Aoyuan Beauty Valley Technology Co.Ltd(000615) . Meanwhile, the board of directors of the company nominated Jiang Nan and Lin bin as candidates for non independent directors of the 10th board of directors and Huang Weimin as candidates for independent directors of the 10th board of directors.
The reporter of the international finance news noted that many directors with real estate background withdrew from the Aoyuan Beauty Valley Technology Co.Ltd(000615) personnel change. Among them, Ma Jun is the current co president, operating president and executive director of China Olympic Park, and Chen Yong is the vice president of China Olympic Park and general manager of real estate investment center.
With the participation of Huang Weimin, an expert in the field of biomedical energy and environmental protection, Aoyuan Beauty Valley Technology Co.Ltd(000615) is accelerating the development of its strategic plan to go to real estate and focus on medical beauty.
In 2020, in order to avoid horizontal competition, Aoyuan Beauty Valley Technology Co.Ltd(000615) acquired by Aoyuan group began to adjust the company’s strategy, and this year transferred its 100% equity of Jinghan real estate, 100% equity of Beijing Yangjia and 35% equity of Penglai pension, stripped off the real estate and health care business, and changed its business scope to medical and beauty services.
Riding the “east wind” of medical beauty hot spot, Aoyuan Beauty Valley Technology Co.Ltd(000615) ushered in a sharp rise in April this year, and its share price doubled from April to June, reaching a maximum of 29.95 yuan.
However, with the tuyere receding, Aoyuan Beauty Valley Technology Co.Ltd(000615) share price also began to enter the downward channel. As of today’s close, its share price has fallen nearly 60% from the highest point of this year to close at RMB 1063, with a market value of RMB 8.3 billion.
real estate crisis
While fostering new business and increasing medical beauty, the real estate business platform of Aoyuan is also suffering an unprecedented impact.
Since the second half of the year, China Olympic Park has been deeply in a liquidity crisis. Although it is actively alleviating the capital pressure by discussing with creditors about the extension and sale of assets, the situation facing the company is still difficult to be optimistic.
On December 28, China Olympic Park said that it had received a writ of summons and lawsuit from Citibank and nine masses investment fund against China Olympic Park and its wholly-owned subsidiary Letian Investment Co., Ltd. the lawsuit involved a debt of US $131 million, together with accrued interest and expenses.
After the news, the company’s share price fell all the way, with a cumulative decline of more than 16% from the 28th to today’s closing.
This is not the only “trouble” China Olympic Park is facing. Affected by frequent downgrades by international rating agencies, China Olympic Park announced on December 2 that some investors were required to prepay the total principal of about $651 million due to the default clause triggered by the downgrade.
This emergency made the company temporarily increase a temporary debt of more than 4 billion yuan. If this debt is included, the company’s capital has been under extreme pressure.
At that time, for the debt required to be repaid in advance, China Olympic Park said that there was no guarantee that the group would be able to fulfill its financial responsibilities when other overseas financing arrangements expired. In order to cope with the debt, the company had to put its assets on the shelf in an attempt to recover the funds.
On November 4, China Olympic Park announced its intention to sell part of the equity of Olympic Park health; On September 9, it pledged 19.62% of the equity of Guangdong Aoyuan urban renewal group to Science City (Guangzhou) urban renewal group; On the 14th, the company listed some properties of Yanyi building in Hong Kong at the price of HK $900 million, with an estimated loss of HK $177 million, equivalent to a discount of 80.4%; On the same day, 49% of the old reform project of Donglong village, Liwan, Aoyuan was transferred to century Jinyuan
While intensively selling assets and actively extending self-help, China Olympic Park has ushered in a new round of tests.
In the early morning of December 3, the company admitted that some of its guaranteed investment products were overdue. The document points out that the total amount of relevant funds and fixed financing products of the company is about 6 billion yuan, and the fixed financing products managed by third-party companies are about 2.4 billion yuan, totaling about 8.4 billion yuan.
While announcing the overdue financial management, Aoyuan also gave a cashing scheme. It said that in addition to the firm and full payment of principal and interest agreed in the contract and the addition of high-quality property assets with a total value of no less than 9 billion yuan for physical cashing, the overdue interest will be paid at an annualized interest rate of 6% for the delayed cashing principal.
On the 13th, Shandong Hi-Speed Company Limited(600350) finance, also known as a US dollar bill with Guangjing enterprise, a subsidiary of China Olympic Park, triggered a default. The principal amount of the bill was US $100 million and the annual interest rate was 6%. The original maturity date was December 15.
Fitch estimates that by the end of 2022, China Olympic Park will have 8.8 billion yuan of public capital market debt due or available for resale, of which the most recent debt due will be in January 2022, with a scale of about US $688 million.
The Chinese Olympic Park, which actively responds to risks and competes with the crisis, has also heard good news recently. It said that the company had completed the connected transactions related to the subscription of new shares by joy Pacific, raising a total of HK $600 million. According to the plan of China Olympic Park, 88% of the funds will be used for general corporate purposes before January 31, 2022, including the payment of bond and bank loan interest.
(International Finance News)
