In recent years, China Aoyuan, a private real estate enterprise that has taken risks in China, has finally come out with good news recently, and there has been substantial progress in overseas restructuring after being exposed to operational difficulties.
On December 21, it was reported that China Aoyuan filed for bankruptcy protection in a New York court. In this regard, China Aoyuan said that this is a necessary step to promote the restructuring of overseas debts, which is a procedural court procedure, not a bankruptcy liquidation procedure, and its purpose is to confirm the corporate restructuring plan that has been agreed by the majority of creditors, prevent litigation risks, and facilitate the successful implementation of the offshore restructuring plan.
Over the years, due to the continuous advancement of operational difficulties, especially from 2021 to 2022, the company's two-year huge loss is as high as 4091.8 billion yuan, and in the first half of 2023, the company will lose 29 again4.5 billion yuan, with a cumulative loss of 438 in two and a half years6.3 billion yuan. Moreover, at the end of the first half of the year, the company was already in a state of insolvency, so in order to get out of the crisis, the company has been promoting debt restructuring in the past two years.
Filing for bankruptcy protection in New York allows the company to protect its U.S. assets if it undergoes reorganization arrangements elsewhere. China Aoyuan's application was made on December 20 local time.
In response to the overseas restructuring, China Aoyuan stated that the confirmation procedure will not affect the normal operation of the company, because it involves the debts of the group's domestic entities, and will not affect the group's domestic creditor-debt relationship and normal operation. At the same time, it is also a necessary measure to protect the interests of all creditors of the company and maintain the overall delivery, safety and operation of the company. In other words, the bankruptcy protection is basically an overseas restructuring, and domestic debts are not included.
Negotiations on debt restructuring, which have been pushing for years to come, are now finally expected to be realized, especially in November, when it was voted on at a meeting of scheme creditors in Hong Kong and elsewhere. Even before, up to $6.1 billion of offshore debt was replaced with new financing instruments.
Now, China Aoyuan is not only expected to restructure its overseas debt, but also 12 public debt products in China have also been rolled over for a period of three years, with a total debt size of 11.6 billion yuan. Today, China Aoyuan is also a large and medium-sized real estate enterprise that has once again completed the debt restructuring at home and abroad after Sunac.
Once all the debt packages are implemented, China Aoyuan will also take a big step forward in terms of debt crisis, and there will still be many problems to face after that.
As a Cantonese real estate company, in 2019, the company was ranked with 1180The sales of 600 million yuan were among the 100 billion real estate enterprises in China at that time, and because it was a private enterprise in Guangzhou, it was called the "Guangdong-Hong Kong-Macao Four Little Dragons" along with Kaisa, Longguang and KWG at that time.
However, at the beginning of 2021, the company fell into operational difficulties, and its losses increased year by year. In 2022, the company announced that it was unable to repay the maturing US dollar bonds and interest, and its ** also announced the suspension of trading in April of that year.
The "high turnover" business model did not let China Aoyuan out of the market predicament, resulting in the company's operation becoming more and more difficult, in desperation, the company was exposed to operational difficulties, the group launched a comprehensive debt restructuring, began to save itself through the best assets, project strategic cooperation, the introduction of strategic investors and other ways.
In July this year, China Aoyuan successively announced its financial results for 2021, its 2021 interim results and its financial results for 2022. At the end of August, the interim report for 2023 was published.
In several financial reports, the loss attributable to the owners of China Aoyuan in 2021 and 2022 totaled about 409$1.8 billion. In this year's interim financial report, the company's revenue in the first half of the year was 1094.1 billion yuan, a year-on-year increase of 251%, while the net profit loss was about 294.5 billion yuan. The company's sales have dropped sharply in three years, and even in 2022, the company's sales will only be 20 billion, far less than the previous hundreds of billions.
In addition, the company's debt has also continued to increase, the interim financial report shows that the company's total assets are 221.8 billion yuan, including cash and equivalents of 4.2 billion yuan, current assets of 197 billion yuan, total liabilities of 242.4 billion yuan, and an asset-liability ratio of 10926%, basically the company is the result of insolvency.
Therefore, in order to solve this problem, the company comprehensively promoted debt restructuring, and even carried out a lot of assets, including the equity of two subsidiaries in Australia, Canadian projects, etc.
Now, the company's debt restructuring has been on the right track, so the next step is to focus on ensuring the delivery of buildings, which is also the top priority of many real estate companies. After all, this may lead to the company revitalizing more restricted funds, creating liquidity, and mitigating or resolving debt problems.
According to the current point of view, in the first ten months of this year, the company has delivered 2More than 30,000 sets, and nearly 20,000 sets are expected to be delivered this year**. In the future, we will further accelerate the guarantee on the delivery of the building.
Once the restructuring of China Aoyuan is successful, then new real estate companies will come out of a new future in the future.