In the era when even state-owned enterprises were losing money, Baolong Real Estate and Damingcheng were the only two listed Fujian private real estate enterprises that were still profitable.
It's such a family that can still be in a weak cityEarnedMoneyAfter all, the real estate companies cannot maintain the dignity of the capital market. Recently, Baolong Real Estate officially announced that it was "unable to repay its debts" and sought an overall restructuring!
As early as 2022, Powerlong Real Estate made an exchange offer for two US dollar bonds. Because we can't wait for the market to pick up, the strategy of exchanging time for space ultimately fails.
With the official thunderstorm of Baolong Real Estate, the camp of Fujian private real estate enterprises has lost another member!
On November 29, Baolong Real Estate announced that the expiration of 595% of the senior notes, 1591 due October 30 has not been paid$630,000 in interest.
That is to say,The interest on a US dollar bond of Baolong Real Estate was also repaid within the 30-day grace period, constituting a substantial default on the overseas debt
This is also the year since July last year that it failed to pay 2129After the principal and interest of the $40,000 note, Powerlong Real Estate defaulted for the second time. At that time, Powerlong Real Estate reached 1$7.9 billion and 2The $6.3 billion bill exchange bought itself a short respite.
At the shareholders' meeting of Baolong Commercial in June this year, Xu Huafang, chairman of the board of directors, threatened:
Among the real estate companies that reached the debt extension last year, Baolong is the only one left in the whole industry that continues to pay interest at home and abroad and fulfills the extension commitment. Today, the "only" is also lying flat. Powerlong Real Estate has a showdown in this announcement:
It is expected that liquid cash and bank deposits will still not be able to meet current and future debt requirements.
Real estate + business" under the two-wheel drive of Baolong Real Estate,It is one of the most profitable private real estate enterprises in Fujian, and its gross profit margin has been maintained at the industry-leading level of 30%-40% all year round, even in the first half of this year, the net profit attributable to the parent company was 12800 million yuan, so why can't you pay it back?
Because of cash flow pressures.
The largest cash flow of real estate enterprises is the sales receipt. ButSince 2022, the sales scale of the once 100 billion Fujian real estate enterprises has continued to slow down
In 2022, the annual contracted sales of Baolong Real Estate will only be 409500 million yuan, a year-on-year decrease of 596%；Total income 3137.8 billion yuan, a year-on-year decrease of 214%。In the first half of this year, Baolong Real Estate achieved contracted sales of 176100 million yuan, a year-on-year increase of **242%；Total income 1229.9 billion yuan, a year-on-year increase of **272%。
The development and construction of Baolong Commercial requires a large amount of capital precipitation, and the residential project cannot be realized, so the cash flow will not be able to turn.
However, the original sin is still a high-turnover business model.
Baolong Real Estate expanded recklessly in 2020, when the epidemic was raging, and the new land bank was as high as 94010,000!
Finally, in 2021, the 32-year-old real estate company crossed the 100 billion sales mark, and at the same time accumulated large-scale debt.
According to the interim report, as of the end of June this year, Baolong Real Estate had total assets of 225.9 billion yuan and total liabilities of 163.6 billion yuan.
Its total borrowings were 6091.9 billion yuan, of which 130 billion loans due within one year800 million yuan, in addition to 113The operating liabilities of 6.5 billion yuan need to be repaid within one year.
However, the scale of cash and cash equivalents in Baolong Real Estate is only 894.7 billion yuan, even with the addition of 23With 3.4 billion yuan of restricted cash, there is still a funding gap of 13 billion yuan.
The fancy clothes were already crawling with lice, and it was only a matter of time before they defaulted.
For real estate companies, only the normal flow of sales is the restoration of normal hematopoietic circulation. But at the moment, the sales side is not performing wellIn the next step, Powerlong Real Estate will follow Sunac's debt restructuring to alleviate financial pressure.
It is reported that at present, Powerlong Real Estate has appointed Haitong International as the financial adviser and Sidley Law Firm as the legal adviser, and the company and the consultant will cooperate with creditors**Seek all possible solutions to the current liquidity problem in a comprehensive manner.
If you can win the trust of creditors and successfully restructure, you can put aside the trouble of debt crisis for a long time and focus on business.
However, in the past two years, only a very small number of players such as R&F, China Fortune, and Sunac have completed debt restructuring, such as CIFI, Shimao, and Rongxin, which are still deadlocked.
In short, it is not so difficult to get ashore.
Recently, there have been rumors that Baolong Real Estate is one of the 50 "white list" real estate companies. If it is really picked up by the bank, that is another story.
In fact, it is not easy for Baolong's production capacity to persist until now. Looking back, the industry is still there, but the private real estate companies in Fujian have been lost one by one.
Tahoe and Sunshine City have bid farewell to the A** field, and Sansheng Holdings is only one announcement away from delisting. Other Fujian real estate companies that have been out of danger are also living in fear that the building will collapse:
CIFI, which has successfully resumed trading, has recently completed the extension of all mature onshore bonds during the year, but the debts will have to be repaid sooner or laterShimao, who couldn't save Fusheng, also fell into the quagmire of debt, and even Shimao Strait, the "No. 1 regional company in China", was mergedThe Putian Oujia brothers are bankrupt in the capital market and have no credibility to home buyers. Ronshine has postponed the delivery of the house in Fuzhou for the fourth time this year, and Binjiang Zhengrong Mansion cannot be delivered on timeYuzhou Group, which is busy with overseas debt restructuring, still has a funding gap of about 15.4 billion yuan as of June this yearRongqiao, who sold the property, also blew up that "cash flow is still relatively tight";The first batch of thunderous Zhonggeng stopped work in the second phase of Xiangwan Bay in Mawei for ......After the disk, there are almost only Jinhui left in the scale of Fujian private real estate enterprises that have not publicly defaulted, but this "lone seedling" has recently added a lot of enforcement information.
Boiled frogs in warm water, no one can run.
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