After four days of delay, today (January 4, 2022), Sichuan Languang Development Co.Ltd(600466) (600466. SH) gave a reply to the Shanghai Stock Exchange about the transfer of three projects under the company to Jinke real estate for 1 yuan (see “three projects sold to Jinke for 1 yuan? Sichuan Languang Development Co.Ltd(600466) were” asked by five companies “of Shanghai stock exchange for details).
Previously, Sichuan Languang Development Co.Ltd(600466) received the inquiry letter on Sichuan Languang Development Co.Ltd(600466) related matters from Shanghai stock exchange because it planned to transfer 100% equity of Chongqing YANGJIU Trading Co., Ltd. (hereinafter referred to as Chongqing YANGJIU) to Chongqing yueningshan Enterprise Management Co., Ltd. for a transaction consideration of 1 yuan.
According to the announcement, before the transfer, Sichuan Languang Development Co.Ltd(600466) will restructure the assets of Chongqing YANGJIU, including Chongqing YANGJIU and its subordinate Chongqing future city 104 Mu project, Chongqing Furong residence project and Tianjin station. The book net assets of Chongqing YANGJIU after the simulated transaction were 1.484 billion yuan, while the price of this transaction was only 1 yuan.
In the reply letter, Sichuan Languang Development Co.Ltd(600466) said that since the transaction was conducted under the background of guaranteed delivery and reduced liabilities, the company’s liabilities (including operating liabilities) could be reduced by about 9.191 billion yuan while selling assets through debt taking acquisition. Therefore, under the above transaction background, the company’s transaction is based on the assessed value, the transaction price is fair and reasonable, and there is no damage to the interests of the listed company.
According to the data, the 104 Mu project of Chongqing future city was obtained by Chongqing canrui Real Estate Co., Ltd. through bidding, auction and listing in April 2019. The project has started construction since October 2019, with an area of 147850 square meters under construction. The current situation is in the state of shutdown and 0 square meters of undeveloped land. According to the current construction progress and the completion date agreed in the land use right transfer contract of state-owned construction land, the project has the risk of overdue completion and house delivery.
Chongqing Furong residence project is the state-owned land use right of 274.21 mu of land located in the two road cluster of Liangjiang New Area of Chongqing obtained by Chongqing Yusheng Real Estate Co., Ltd. through bidding, auction and listing in June 2017. The project has been under construction since May 2019, with a construction area of 599048 square meters. The current situation is shutdown, and the undeveloped land is 18400 square meters. The project has been completed late and there is a risk of late delivery.
Tianjin small station project is Tianjin Languang Hejun small station culture, tourism and Entertainment Development Co., Ltd. obtained the state-owned land use right of 665 mu of land in Jinnan District of Tianjin through bidding, auction and listing in March 2019. The project has been under construction since July 2019, with an area of 551888.48 square meters under construction. The current situation is in the process of construction; At present, the main roof of the West plot is capped and the secondary structure is under construction; The main body of the middle plot is capped, and the secondary structure is completed; The East plot has obtained the construction certificate and has not been piled; The undeveloped land is 60740.1 square meters. According to the current construction progress, there are risks of overdue completion and house delivery of the project.
Sichuan Languang Development Co.Ltd(600466) said that due to the current debt risk of the company, the above three projects are facing the problems of shutdown, litigation, seizure and resumption of work, and there are risks of overdue completion and delivery.
Sichuan Languang Development Co.Ltd(600466) said that the substantial loss in this transaction was mainly due to the impairment of 1.248 billion yuan in the evaluation of Tianjin small station project. The company tested the project in combination with the land cost invested in the early stage, the development cost expected to be realized in the future and the sales revenue that can be realized in the future. During the year, the overall value of goods decreased by about 950 million yuan due to the decline of the market, coupled with the rise of material prices, the extension of project development cycle and other factors, As a result, the estimated loss of continuous development of project simulation based on the transaction base date is large. The company’s project is based on the market environment on December 31, 2020 and the inventory falling price reserves under the normal operation of the company.
In addition, for the issues that need to be solved through negotiation, Sichuan Languang Development Co.Ltd(600466) said that the company’s financing guarantee of RMB 2.04 billion and repurchase obligation of RMB 1.42 billion involved in the external transfer project are expected to complete the cancellation procedures before the end of February 2022. The remaining 300 million yuan guarantee obligation will be lifted within one month after the successful stripping of Chongqing canrui and the lifting of the judicial seizure and freezing of the 104 Mu project of Chongqing future city.
As of today’s close, Sichuan Languang Development Co.Ltd(600466) shares were at 2.09 yuan / share, up 2.45%.
(Daily Economic News)
