On March 20, HuaMian wealth, which is actually controlled by Yango Group Co.Ltd(000671) founder Lin Tengjiao, held an online investor meeting to update the payment scheme of financial products: a package of payment schemes such as in kind, cash, debt to equity swap and payment of trust beneficial rights will be adopted to complete the full payment of all investors as soon as possible.
On March 18, the company just announced four bond defaults, all medium-term notes, with a total amount of 5.028 billion yuan. The reason is that cross default triggers early maturity, which is likely to lead to more early maturity or cross default of debt Yango Group Co.Ltd(000671) first announced two substantial defaults of interest on US dollar bonds with a duration of US $300 million and US $357 million on the evening of February 17, and predicted the risk of cross default.
Excluding off balance sheet debts like “financial management”, as of the end of September 2021, Yango Group Co.Ltd(000671) interest bearing debts 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.
last November, the outstanding balance was about 20 billion
According to the statement of HuaMian financial management, 34% of the cashing has been completed, and 25.4% of them have exceeded 59.4% of the overall scale in the cashing process. Although the latest scheme of HuaMian financial management still puts “cash” into the basket. However, an investor who bought 3 million “financial products” in June last year told the fund Jun that at present, the company has no cash cashing.
Wu Hongjing is the “brother of the fortune group” and Lin Weijing is the one who owns 98% of the shares of the fortune group, and Lin Weijing is the one behind the disclosure of the data.
According to a product promotion draft in 2019, “Born at the time of industry reform, HuaMian wealth was established in November 2017 and is subordinate to the new financial business sector of the world’s top 500 sunshine holdings. At present, relying on the resources and professional strength of the holding company, HuaMian wealth has set up 38 branches in the Yangtze River Delta, Pearl River Delta, Bohai rim, Fujian and central and Western China, quickly becoming a rising star in the wealth management industry and providing excellent financial services for high net worth people.”
Last November, 21st century business review reported that the outstanding balance of financial products sold by sunshine financial through online and offline platforms was about 20 billion yuan, involving about 10000 people, including about 3000 employees. At that time, an employee said, “during my employment, the company encouraged employees, resigned employees, their families and friends to buy the company’s online financial products in the form of online video live broadcast, e-mail publicity and other forms, promised that the annual income would be between 8% – 10%, and used Yango Group Co.Ltd(000671) each project company’s accounts receivable as guarantee to guarantee the principal and interest.”
At the beginning, the “financial products” were only purchased by employees, and non employee purchases needed to be held by employees. In 2019, HuaMian wealth launched “Youxiang”, which can be purchased by employees’ relatives and friends. In mid October last year, the company was still issuing a large number of financial products to employees and social investors.
four winning votes have just exploded, with an amount of more than 5 billion
Just two days before the online meeting of HuaMian wealth, Yango Group Co.Ltd(000671) released the announcement on the company’s domestic open market debt, saying that the company failed to pay in full the accumulated principal and interest of accelerated maturity bonds of about 5.028 billion yuan.
According to the announcement, sunshine failed to pay the interest of overseas bonds on schedule, resulting in the accelerated maturity of four bonds of the company, “17 Yango Group Co.Ltd(000671) mtn001”, “17 Yango Group Co.Ltd(000671) mtn004”, “20 Yango Group Co.Ltd(000671) mtn001”, “20 Yango Group Co.Ltd(000671) mtn003”. As of the announcement date, Yango Group Co.Ltd(000671) failed to obtain exemption from the cross protection provisions of the four accelerated maturity bonds Yango Group Co.Ltd(000671) said that the above matters may trigger the relevant terms of other financing instruments in the company’s territory, that is, trigger the early maturity of other bonds or cross default.
On the evening of February 17, Yango Group Co.Ltd(000671) disclosed for the first time the substantial breach of interest of about 170 million yuan on two overseas bonds, and warned that cross default clauses might be triggered. Sure enough!
According to the announcement at that time, the company completed the overseas issuance of bonds (bond Code: xs2100664544, xs2203986927) through Jiashi international, an overseas wholly-owned subsidiary, on January 15 and July 15, 2020. The bonds were listed on the Singapore Stock Exchange.
“Sunshi9.250415/23” (bond Code: xs2100664544), with a duration of US $300 million, an issue interest rate of 9.25% and a maturity date of April 15, 2023. “Sunshi7.504/15/24” (bond Code: xs2203986927), with a surviving amount of US $357 million, an issuing interest rate of 7.5%, an exercise date of October 15, 2022 and a maturity date of April 15, 2024. The company failed to pay the interest of the above two overseas bonds within the 30 day exemption period (i.e. February 15, 2022), which were US $13.875 million and US $133875 million respectively, totaling US $272.6 billion (equivalent to about 173 million yuan).
Before the 170 million interest default of overseas US dollar bonds, the company’s domestic bonds actually had interest extension and interest default, while on March 16, it had a substantial default of open market principal for the first time.
According to the announcement of CCB, “20 Yango Group Co.Ltd(000671) mtn001”, a medium-term note with a Yango Group Co.Ltd(000671) scale of 600 million, is due and payable on March 15, but the issuer fails to pay the interest or cash the principal in full on schedule, which constitutes a material breach of contract. On the same day, Guangdonghectechnologyholdingco.Ltd(600673) group, the holding stock of the company, announced that the principal and interest of the overseas bond “yangog 12.5 02 / 20 / 22” with a duration of US $106 million was in material breach, the interest of “yangog 12.5 01 / 04 / 24” with a duration of US $300 million was in material breach, and the amount of interest payable was US $18.75 million.
interest bearing liabilities on balance sheet: 84.9 billion
There will be more defaults in the Yango Group Co.Ltd(000671) open market debt probability in the future. What is the overall situation of the company’s debt at present?
According to the previous Reply of Yango Group Co.Ltd(000671) to the Shenzhen Stock Exchange, 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%.
By the end of December 2021, the company’s monetary capital in hand had decreased significantly compared with that at the beginning of the year, and the cash flow had dried up. “In practice, the proportion of funds for flexible activities in the book capital was less than 1%”. 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.
The company’s assets represented by properties under construction also experienced significant price decline, and the selling price of several projects could not cover the project cost.
For projects with a falling price of more than 200 million, 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.
