On November 29, 2023, Powerlong Real Estate announced that the interest of US$15,916,250 due in April 25 was due and payable on October 30, but within the 30-day grace period, that is, on November 29, the company was still unable to pay the interest. The default was officially declared. Powerlong Real Estate said that as of the date of this announcement, the group still continues to maintain normal business operations.
In fact, Baolong Real Estate's difficulties did not start this year, but have been revealed since 2020 or even earlier.
According to internal employees, as early as 2020, Baolong Real Estate has begun to default on the progress payment of the first business, and the speed of land acquisition has also slowed down repeatedly. Insiders even joked: when the company can pay money, the design institute is Sun*, and when the money can't be paid, the owner is Sun*, especially before the need to catch up with the schedule of the drawings on various holidays, there is no money to pay the design fee, and the design manager is worried that the design institute will not be able to produce the drawings, so the design manager simply sends the following design management projects to the design institute to help, and sends red envelopes and small gifts during the New Year's holidays. Since the beginning of 2021, major regions in China have begun to lay off employees significantly.
Over the years, after cooperating with Baolong, it is relatively stable, and the corporate management culture is not as disgusting as Evergrande. But the current real estate environment has caused such a situation, which is a pity. I can only wish to get out of the quagmire as soon as possible.