Recently, there has been a lot of good news about Aoyuan's debt restructuring, and not long ago, another debt restructuring plan was approved by a majority vote of creditors, which means that Aoyuan's net assets will increase significantly. Some institutions even believe that Aoyuan has already gone ashore and the future prospects are worth looking forward to.
However, we can't jump to conclusions, let's see what's really going on. According to Aoyuan Group's 2022 financial report, the company's total equity liabilities reached 17.6 billion yuan.
This is only the data at the end of last year, and the situation may be even worse now, because since the beginning of this year, the business situation of Aoyuan Group has continued to decline, and there have been large property enforcement cases from time to time.
According to the financial report data, Aoyuan Group's revenue in 2022 will be 18.4 billion yuan, compared with 49.7 billion yuan in 2021 before the explosion, and even 67.5 billion yuan in 2020. It is clear that Aoyuan Group's operating conditions have declined sharply after defaulting on its debts. So, it's too early to talk about the disembarkation of Aoyuan, so don't jump to conclusions.
Despite the difficult financial situation faced by Aoyuan Group, it is its employees who are most affected. For example, the current employees of Aoyuan Urban Regeneration have been in arrears for about four months. With their love and dedication to the company, they basically become self-paid to work.
In addition, a large number of employees who left the company complained that since the layoffs in May 2022, Aoyuan Group has not resolved the issue of unpaid severance compensation. This means that those who have been made redundant since May 2022 have not received severance compensation to date. Although many employees sought fairness through the arbitration process, Aoyuan did not cooperate with the enforcement, and the result was still zero response.
The most dissatisfied part of Aoyuan's urban renewal employees is that the wage arrears in the urban renewal sector are more serious than those in the real estate sector. This raises the question of why it has become so difficult to pay salaries. Even though there are projects where development is slow, the employees still put in the hard work, so this reason is not entirely tenable.
What's even more puzzling is that the issue of severance compensation for laid-off employees has been unresolved. Although Aoyuan Group had a large number of urban renewal projects, which were advertised as the company's cards and fundamentals before the debt default, due to the overall drag of real estate, the development cycle of Aoyuan Group's urban renewal projects was long, and the sales situation was extremely poor, resulting in the project entering a semi-stagnant state.
The stagnation in project development and the difficulty of paying wages may explain part of the situation. However, for those employees who have been laid off, they have not yet received their due severance payments, why is that? In short, Aoyuan's debt restructuring does not mean that everything is fine.
Despite the positive changes, we still need to remain calm and objective. We cannot ignore the plight of our employees due to unpaid wages. Aoyuan Group still faces many challenges that need to be overcome in order to achieve a true landing.