Summary:: The most critical thing has not yet improved (welcome to pay attention to leveraged real estate).
Written by |Sister Pole & Editor|Wenwen
The end of the year is approaching, and the consolidation of real estate companies continues. The nearest ones are China Aoyuan, Sansheng Holdings, and Powerlong Real Estate.
On December 21, market news reported that China Aoyuan filed for bankruptcy protection in a New York court under Chapter 15 of the U.S. Bankruptcy Code.
On the same day, Baolong Real Estate, which had been thundered for less than a month, disclosed its overseas debt restructuring plan.
Immediately after December 22, Sansheng Holdings, one of the top 100 real estate companies and a Hong Kong-listed company, officially announced that the listing place was officially canceled at 9 a.m. on December 27, 2023.
1. Aoyuan struggles
Let's start with China Aoyuan.
According to China Aoyuan's public response, the reason for the offshore bankruptcy protection application is that the existing public bonds are governed by New York law, and the confirmation procedure is a necessary step to promote the offshore debt restructuring, 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 debt restructuring plan.
China Aoyuan said that the confirmation procedure did not affect the company's independent operation, did not involve the debts of the group's domestic entities, and did not affect the group's domestic creditor's rights and debts and normal operations.
Previously, at the end of November, Leveraged Real Estate saw that China Aoyuan disclosed inside information, saying that the overseas restructuring plan was successfully voted on at the planned creditors' meeting held as scheduled on the evening of November 28.
According to the disclosure, 1,216 creditors holding a total of US$5,196,997,408 voting scheme claims voted in favour of the China Aoyuan scheme (i.e. the majority of the China Aoyuan scheme creditors attended and voted at the China Aoyuan scheme meeting in person or by proxy at the meeting, representing approximately 79.9 of the total value of the voting scheme claims voting11%）。
Despite the setbacks, China Aoyuan's offshore debt restructuring plan is still going well, but that doesn't mean the pressure will be much less.
The reason for this is more related to sales.
Charts**|Kerry (thanks to you).
Kerry data shows that in the first 11 months of 2023, Aoyuan Group's full-caliber sales were 125100 million yuan, equity sales of 87900 million yuan. The two figures for the same period last year were 198800 million yuan, 141400 million yuan. This year's year-on-year decline is about. 8%。
Previously, Kerry statistics showed that the sales of the top 100 real estate companies from January to November were 49,536500 million yuan, a year-on-year decrease of 144%, the year-on-year decline widened again.
Data from the China Index Institute also shows that in the first 11 months of this year, the total sales of the top 100 real estate companies were 5,737.9 billion yuan, a year-on-year decrease of 147%, a decrease of 1 compared with the previous month6 percentage points.
Overall, the sales recovery momentum is insufficient, and China Aoyuan is even more so. The situation has lasted for too long, and most real estate companies cannot afford it.
According to the previously disclosed semi-annual report, as of the end of June 2023, China Aoyuan's current liabilities were 6870 billion yuan;Senior Notes & Bonds3440 billion yuan;** and other payables 551100 million yuan.
On the other hand, as of the end of June this year, China Aoyuan Bank's balance and cash were 337.4 billion yuan, restricted bank deposits 356.3 billion yuan.
2. Sansheng "rout".
Let's look at Sansheng Holdings. In the eyes of leveraged real estate, this is a rather tragic real estate company.
Behind Sansheng Holdings is Sansheng Group, which was founded in 1988 and is a veteran enterprise, which started in the early years of industry, such as rubber and plastic foaming, and began to test the waters of real estate in Fujian in 2001. In 2014, it was listed on the list of China's top 100 real estate enterprises.
The current Sansheng Holdings is actually listed on the backdoor of Lifestyle Real Estate. Lifestyle Properties issued a prospectus in September 2013. The post-IPO development did not go well, and several profit warnings were issued in 2014-2015.
In April 2017, Lin Rongbin, the actual controller of Sansheng Group, successfully acquired the equity of Lifestyle Real Estate. In August of the same year, the listed company officially changed its name to Sansheng Holdings (Group)** referred to as "Sansheng Holdings").
So far, Sansheng Holdings has successfully been listed on the backdoor.
After the backdoor listing, Sansheng Holdings started the pace of expansion. At the end of 2018, Sansheng Group established the goal of "double 100 billion" and strives to achieve it within three years. That is, in 2021, this goal will be accomplished.
Behind the expansion target is the inevitable high debt and high turnover. Unfortunately, before the goal was completed, Sansheng Holdings exploded first.
In the last year of the "double 100 billion" goal, in 2021, the crisis of Sansheng Holdings appeared. Its projects have been suspended, and rumors such as employee financial "thunder" and dollar bond default have ......
This was followed by a series of actions to sell their children to survive, and later, in mid-2022, Sansheng Holdings officially defaulted.
According to the Beijing News, as of August this year, Sansheng Holdings had not repaid any payments after the July 2022 notes, November 2022 notes, and January 2023 bonds matured.
Charts**|Oriental Fortune (thanks in advance).
On May 16, 2022, Sansheng Holdings announced the suspension of trading and never resumed trading.
The latest financial data shows that in 2021, Sansheng Holdings' revenue will be 990.6 billion yuan, an increase of 12 percent year-on-year85%, and the net profit attributable to the parent company was about 6.6 billion yuan, down 2599%。In 2021, the company's sales were 3138.8 billion yuan. Since then, there appears to have been no financial performance disclosure.
It is also worth mentioning that once Sansheng Holdings was not the only listed company of Sansheng Group, Lin Rongbin also had a listed company called Sansheng Education, but later the company was sold and is now ST shares.
After the delisting of Sansheng Holdings, whether it is Sansheng Group or Lin Rongbin, there will be no listed companies under it.
3. Baolong "firefighting".
Finally, Baolong.
On December 21, Baolong Real Estate announced the major progress of the overall solution. In the impression of Leveraged Real Estate, this is less than a month after it announced that it would immediately ** a comprehensive solution to the current overall debt.
On November 29, Baolong Real Estate disclosed inside information that the 1591The interest on the US$6.25 million note was due on October 30, with a grace period of 30 days, but the company was still unable to pay it as of the announcement date (November 29).
At the same time, the company said that in view of the current pressure, it believes that a comprehensive solution to the current overall debt should be urgently implemented to ensure the sustainable operation of the group and safeguard the interests of all its stakeholders.
More than 20 days later, this preliminary "restructuring clause" was disclosed.
In this announcement, Baolong Real Estate gave 4** items, as shown in the screenshot below, in addition to a small amount of cash payment, it also includes debt-to-equity swaps linked to Baolong Commercial, and mandatory convertible bonds linked to Baolong Real Estate;New medium- and long-term notes and new loans.
For the New Medium Term Notes, Powerlong Properties intends to complete redemptions within 54 months;The redemption time for new long-term notes is up to 84 months;The new loan will be repaid in amortizations of up to 90 months.
These are the routine actions of the overseas debt restructuring of real estate enterprises, and it is worth mentioning the debt-to-equity swap part. Baolong Real Estate** has another listed platform, Baolong Commercial, which will be transformed into about 1$2.5 billion in debt, equivalent to about 8,133 shares30,000 shares.
In terms of Baolong Real Estate, there will be about 5$5.8 billion of debt was converted into mandatory convertible bonds, up to a maximum of 1.3 billion shares of the Division.
There is also a lot of pressure behind Baolong Real Estate's efficient launch of overseas debt restructuring.
Previously, in the latest interim report data of Baolong Real Estate, the total amount of borrowings as of the end of June 2023 was 6091.9 billion yuan, 130 loans due within one year$800 million, but its cash and cash equivalents were $8.9 billion for the same period4.7 billion yuan.
Powerlong Real Estate has disclosed 9 outstanding US dollar bonds with a total amount of about 21$1.7 billion, of which 3 have matured, totaling $4,327$20,000.
A total of 15 overseas debts are planned to be restructured by Powerlong Real Estate, including 5 syndicated loans, 6 of which have not yet been announced, and 1 of which has an annual interest rate of 6 due in August 20245% of New York laws regulate senior notes.
Referring to other insuring real estate companies, even if Baolong Real Estate succeeds in overseas debt restructuring, there are still many uncertainties, and the most critical uncertainty is sales.
The financial charts and graphs that are not attributed to the source in this article are all from the relevant announcements of the company, and are hereby explained and acknowledged
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