Country Garden's debt crisis is still fermenting, and Country Garden Services will draw 3.241 billion yuan of bad debt provisions due to this, while last year's net profit was less than 2 billion!
Among them, the receivables owed by related parties were provided for impairment of 1.823 billion yuanImpairment of goodwill and other intangible assets amounted to approximately $1.4 billion to $1.8 billion.
Country Garden Services Holdings*** was incorporated in the Cayman Islands in January 2018 and landed on the Hong Kong Stock Exchange in the same year.
The actual operation of the property management business is the shares of Country Garden Life Service Group*** registered in Shunde, which are wholly owned by the Cayman Islands platform company through a complex shareholding structure.
Currently, Yang Hye-yeon holds 124% of the shares, 3 through another offshore company72% of the shares, with a total of 1612%。
Why so little?
Because on July 30 this year, Yang Huiyan donated 20% of the equity held by Bisheng *** to the Guoqiang Public Welfare Association (Hong Kong), which has just been established for more than a month
The shareholding structure of this company is too dispersed, and the former chairman Li Changjiang, who has cashed out many times, has only 01% of the shares, it is still the fourth largest shareholder.
Bisheng*** is a wholly-owned company owned by Yang Huiyan, through which she holds shares in both Country Garden Holdings and Country Garden Services.
The former is a developer, the latter is a property company, and the houses built by Country Garden are of course managed by their own property management companies, so there have been a lot of related party transactions!
Generally speaking, there are the following types of related-party transactions between real estate enterprises and property management companies:
1. In order to sell the house, the developer promises to exempt the owner from the property fee for a certain number of years, and the developer allocates it to the property management company in the sales proceeds.
2. According to the relevant regulations, the house without ** belongs to the developer and should pay the property fee.
3. The developer entrusts the property company to have an exclusive parking space, but will charge a high deposit, which is a disguised financing method.
The above is a normal related party transaction, and China Evergrande embezzled the funds just raised by Evergrande Property from ** in the form of deposit receipt pledge, which is too ugly!
Success, Xiao He, defeat, Xiao He!
The developer directly entrusts the management of the property to its own property company, and the fertilizer water does not flow into the fields of outsiders.
However, when the house is not selling, the problem becomes apparent.
On the one hand, if the house cannot be sold, the developer will have to pay the property feeOn the other hand, the developer's capital chain is tight, and even the property fee cannot be taken out, so it can only be hung on the account.
Therefore, Country Garden Services has increased revenue but not profits in recent years, generating about 24 billion accounts receivable.
In 2022, operating income increased by 43 year-on-year42%, but net profit fell 48% year-on-year01%；In the first half of 2023, revenue increased by 338%, net profit 248.9 billion yuan, down 956%。
In addition, Country Garden Services acquired many peers at a high premium in the past few years, and its goodwill was once as high as 26 billion.
The real estate market is sluggish, property companies have been affected, and the thunder of goodwill is also detonating!