The left hand "cashes off", the right hand is overdue, how far is Huaxia Happiness from getting out of trouble?
Contribution|Heavenly body.
* |bedok finance
Heading into 2024, Wachovia is still not so much"Happy"。
Recently, China Fortune Foundation Co., Ltd. ***600340, hereinafter referred to as"Happiness in China"Issued announcements on overdue debts and the progress of debt restructuring. According to the announcement, as of January 31, China Fortune was unable to repay a total of 244 debts as planned$1.5 billion.
Huaxia Fortune, which is at the forefront of real estate development as a weakling, has had a brilliant future after building a comprehensive park and deeply cultivating the field of new industrial towns, but it has also been beaten back to its original shape by radical expansion. Even after the debt restructuring was announced in 2021, it never stopped looking for a way out.
But to think"Turn the tide", Surrounded by crises, the problem still needs to be solved.
First, the property company has become a dark horse, and the new industrial city has hidden dangers.
According to public information, the history of Huaxia Happiness can be traced back to 1998. The private real estate development company began to transform the development of the park in 2002, focusing on the new industrial city and supporting residences, and developed the Gu'an Industrial Park, which has now become a provincial key development zone and a benchmark industrial new city in Hebei Province.
According to reports, as of 2019, China Fortune has introduced more than 600 enterprises to Gu'an Industrial Park, attracting nearly 140 billion yuan. Driven by the development of the new industrial city, Gu'an County has become one of the top 100 counties in the country from the second-to-last agricultural county in Hebei, and its tax revenue has increased from 1100 million yuan increased to 9.6 billion yuan in 2019.
Huaxia Happiness, which has gained a reputation in the field of industrial new city construction, quickly won the favor of the best. Subsequently, the company built the Dachang Chaobaihe Industrial Zone, expanded its business territory based on the Beijing Huanjing area, and carried out the development, construction and operation of the comprehensive park with new models and mechanisms.
In 2011, Huaxia Fortune was listed on the Shanghai ** Stock Exchange through ST Guoxiang Company, and continued to move forward at a high speed, with total sales of 1203 in 20162.5 billion yuan, with an average annual growth rate of 6643%, becoming the only new town industry operator in the field of 100 billion yuan, and the momentum continues to improve.
It is worth noting that all of the income of China Fortune before its listing came from the Beijing area. Unwilling to be confined to a corner, China Fortune has begun to replicate its new industrial city model on a large scale in other places, and the company's revenue share in the Beijing area has dropped from 96% in 2014 to 69% in 2018 and will drop to 51% in 2020.
Up to now, China Fortune has formed six major sectors: new industrial city, industrial development, residential development, asset management, property services, and innovative activities, and has completed the layout around more than 10 metropolitan areas in China, including Beijing, Shanghai, Guangzhou, Nanjing, Hangzhou, Zhengzhou, and Wuhan, with a business territory covering more than 80 regions around the world.
It is worth mentioning that the cooperation model between China Fortune and ** is called"PPP development model"。According to this model, China Fortune takes industrial development as the center, provides comprehensive development services such as infrastructure, public service facilities, and urban operation, and is responsible for investment, construction, operation and management, and the return on investment is linked to performance.
The development of new industrial towns in the form of PPP can undoubtedly promote the integrated development of industries and towns, and enterprises can obtain long-term returns while taking risks. But at the same time, this kind of development model with long slopes and thick snow has a large upfront investment and a long return cycle, and once it fails to meet expectations or deviates from expectations, it may even appear"Industrial empty city"situation.
Second, the pressure of purchase restriction has been greatly expanded due to adverse reactions.
The turning point of Huaxia Happiness's fate came in 2017. Affected by the pressure of purchase restrictions in Beijing's property market, the number of real estate customers declined, and the revenue of Huaxia Fortune's real estate development business decreased by 18 year-on-year22% to 2893.1 billion yuan, and the balance of other current liabilities increased by 458 year-on-year62%, and the inventory turnover rate is even lower than the average of real estate enterprises.
After the release of the annual report, the Shanghai Stock Exchange issued a post-audit questionnaire to China Fortune for the 2017 annual report, requiring China Fortune to answer 18 questions, including the reasons for the decline in real estate activities, the promotion and replication ability of the new industrial city, the financing situation and the sustainability of financing activities, and the debt situation.
It was also during this period that Peacock Villas Group, a real estate development platform under China Fortune, began to concentrate some of its assets with a total value of more than 20 billion yuan to seek cooperation or cooperation. According to an insider, most of Peacock Villas' projects are in price reductions, with price reductions of up to more than 10,000 yuan.
In order to alleviate the financing problem, in April 2018, China Fortune introduced Ping An of China as a strategic investor, and the two parties reached a VAM agreement, requiring China Fortune to have a net profit growth rate of no less than % and 105% respectively in the next three years, that is, an annual net profit of no less than 1141.5 billion yuan, 1448.8 billion yuan and 18 billion yuan.
The agreement stipulates that if the actual net profit of China Fortune in any year is less than 95% of the promised profit margin, Ping An Bank must be compensated in cash. However, Hua Xia Bank in 2018 and 2019 may"Step on the line", net profit in 2020 fell sharply to 366.5 billion yuan, which is only 20 percent of the VAM agreement36%。
In 2021, Huaxia Fortune, which has been listed for ten years, recorded a loss of 390 for the first time3 billion yuan; Net cash flow from operating activities was -26$4.6 billion; Sales fell to 2816.8 billion yuan, a year-on-year decrease of 7006%；The asset-liability ratio reached 9460%, a sharp increase of 1331 percentage points.
As part of the asset liquidity crisis, ChinaAMC's debt restructuring plan was approved at the end of 2021, and the financial debt of 219.2 billion yuan will be resolved through asset repayment funds, asset write-off of financial debts, rolling or repayment of senior financial debts, cash payments, and offsetting the trust shares of the beneficiaries.
Wang Wenxue, chairman and general manager of Huaxia Fortune, also frankly admitted himself at the internal meeting"So ambitious, impetuous and aggressive"。According to him, due to the misjudgment of the situation, China Fortune continued to increase its investment in the new industrial city around Beijing and supported residential investment, but the volume and price of Beijing's residential market shrank under the purchase restriction order, and the scale could not be brought up, which eventually led to the rupture of the capital chain.
iii.Two defaults, the problem is to recover funds.
According to the restructuring plan announced by China Fortune, the company expects to complete most of the debt restructuring in 2022, and previously released data also shows that the company has achieved debt restructuring through contracts and other means$6.5 billion, or 85 percent of total debt6%, but faces a debt default at the end of 2023.
Capital market sources said China Fortune was supposed to pay 1.1 of its dollar bond principal in cash to creditors involved in offshore debt restructuring by 20248%, but according to the holders' report, they only received about 055%, i.e. less than a third. The company explained that part of the payment was subject to:"Technical issues"impact.
On the other hand, China Fortune has signed a debt restructuring agreement with Zhongrong Trust and signed an extension plan for related trust products for a period of five years to 2027. However, it failed to pay the loan interest 4669 to Zhongrong Trust within the period specified in the agreement50,000 yuan, constituting a breach of contract.
With bond funds on the one hand and investment interest on the other, it is not easy for China Fortune to make a comeback. In fact, the company has been actively promoting debt repayment restructuring in recent years, and in September 2022, it launched a supplemental plan to build"Happiness Picks"with"Happiness preferred"Asset-light service platform to offset financial debt and operating debt.
Huaxia Fortune also made several ** assets in December 2022, and the 4 assets were divided into a total of 99.9 billion yuan of ** transferred to Gu'an Industrial Port Investment*** and Gu'an Industrial Development Education Investment***, and announced that the relevant assets of the southern headquarters will be given to China Resources Land for 12.4 billion yuan.
According to people familiar with the inside story, among the transferred asset packages, the Wuhan Yangtze River Center project, the Wuhan Zhongbei Road project and the Nanjing Snow Resort project are commercial real estate projects led by Wu Xiangdong, the former president of China Resources, after becoming the president of China Fortune, with a total price of 1987.4 billion yuan. In other words, monetization is equivalent to a discount of about 6%.
However, due to the height limit of the Nanjing project and the planning of the Wuhan project, the payment progress of the relevant transaction funds was affected. As of the end of June 2023, China Fortune has only received the first transfer price of about 27500 million yuan, difficulty in obtaining new income has become one of the main problems in supplementing cash flow.
Four. Trying to save themselves, but expect to continue to lose money in 2023.
In accordance with the repayment method agreed in the "Counterparty Agreement" of the debt restructuring plan, China Fortune announced on January 25 that it would take the company's wholly-owned subsidiary, Shanrong Financial Services (Gu'an) Information Consulting Services, hereinafter referred to as the "Counterparty Agreement"."Gu'an Information Consulting"100% equity and 11 related project company debts of 255$8.4 billion to set up self-raised funds.
According to the report, Kaisa Information Consulting Company intends to offset the financial debt of RMB 1 per RMB of the face value of the above-mentioned trust ** share, and the financial debt of the company to some creditors shall not exceed 2400.1 billion RMB. The portion of the trust beneficiary rights that are not used to offset the debt continues to be held by Goodyear Information Consulting.
According to the latest information disclosed by China Fortune, as of January 31, 2024, the cumulative financial debt restructured through contracts and other debt restructuring methods in the debt restructuring plan of China Fortune was 219.2 billion yuan, about 188.5 billion700 million yuan, accounting for about 86 percent of the total financial debt of the debt restructuring plan03%。
The equity of the Happiness Select Platform established by China Fortune with the capital of its subsidiaries to offset financial debts and operating debts totaled 1601.7 billion yuan, and the proportion of equity obtained by relevant creditors of the Happiness Select Platform is about 2697%；The total amount of equity offset operating debts of Happiness Select Platform and Happiness Preferred Platform is about 53$4.1 billion.
From the last disclosure of the litigation and arbitration situation to January 31, the total amount of new litigation and arbitration of China Fortune was 18$2.9 billion. The company said that the litigation is still ongoing, the final outcome is uncertain, and it is not yet possible to assess the impact on the company's current profit and subsequent profits.
In addition, according to the performance forecast released by China Fortune, the company expects a net profit of -9 billion yuan to -6.1 billion yuan in 2023; The net profit after deducting non-profits was -11.3 billion yuan to -9.9 billion yuan. In 2022, the above two performance indicators were 158.3 billion and -164$8.9 billion.
HHF explained that the main reason for the pre-loss in the current results is that the company will record a loss in 2023 on some highly realizable assets. At the same time, the company's debt remains high, but the current interest capitalization rate is extremely low, which means that finance expenses remain at a high level.
Huaxia Fortune emphasized that it will firmly respect the concept of integrity in business activities, actively resolve current problems, and implement core business responsibilities"Do not evade debts"As the basic premise, in accordance with the principles of commercialization, rule of law, fairness and justice, classified policies, constantly resolve the company's debt risks, and safeguard the legitimate rights and interests of creditors in accordance with the law.