Source, headline synthesis of non-performing assets ?Editor Zhang Yuan
On June 25, Huitianfu Fund, one of the largest fund companies with comprehensive assets in China, decided to hold its funds from June 24.Country Garden"It is valued at HK$ 0 per share. As the largest real estate enterprise with assets of 600 billion yuan in the past, it was valued at 0 by fund companies, which is rare in history.
What does 0 yuan’s valuation mean?
On April 2 this year, Country Garden started to suspend trading for delaying the announcement of its 2023 results. So far, it has been suspended for nearly three months. On June 6, it was announced on the Hong Kong Stock Exchange again, and the Hong Kong High Court issued an order to further postpone the hearing of the liquidation petition until July 29, 2024. Before the suspension, Country Garden’s share price was HK$ 0.485 per share, and Huitianfu Fund directly gave a valuation of HK$ 0 per share.
What does 0 yuan Valuation mean?It means that after careful evaluation, the fund company believes that the stock has a greater risk of delisting.If the stock is delisted, investors may face heavy losses. Therefore, fund companies take action in advance to protect the interests of investors by lowering the valuation of stocks.
However, on June 27, Country Garden issued an announcement and received the resumption guidelines issued by the Stock Exchange. The fund company adjusted its valuation to 0,It also prevents investors from suffering losses due to a sharp drop in the stock price after the stock resumes trading, and gives an early warning.
In either case, it is a huge negative for Country Garden.
The same thingAlso in Sunshine City in 2023.It also happened to me, and it was once withdrawn as 0 by a fund company. On August 4 of the same year, Sunshine City was decided by Shenzhen Stock Exchange.Termination of listing.
In addition, in August 2022,Huaan Fund valued China Evergrande at HK$ 0.01 and Evergrande Property at HK$ 0.01.
All financial data have worsened.
A few days ago, Country Garden announced that it would issue its 2023 annual report late, and the company’s shares would also be suspended from trading.
It is expected that the annual report is "difficult to produce". Before 2022, the company’s net profit returned to its mother has never been negative. In 2022, it turned from profit to loss, with a huge loss of over 6 billion yuan and a loss of nearly 50 billion yuan in the first half of 2023. As of the first half of 2023,Country Garden’s total debt is 1.36 trillion yuan.Equity assets were 254.369 billion yuan, interest-bearing liabilities were 257.9 billion yuan, and book cash flow was 101.115 billion yuan.
In the first five months of 2024, Country Garden achieved contracted sales of 21.65 billion yuan, down 80.8% from 112.76 billion yuan in the same period of last year. The contracted sales floor area attributable to shareholders’ equity of the Company was 2.248 million square meters, down 84.39% from 14.42 million square meters in the same period of last year.
In September last year, six bonds with a total amount of about 8.5 billion in Country Garden were extended for three years.
In terms of overseas debt restructuring, Country Garden said that the company is actively exploring all feasible overseas debt restructuring options with creditor groups and their consultants, including the Coordination Committee representing bank creditors and the project team representing bondholders, and the related work of the comprehensive restructuring plan is underway.
Selling the "heavy weapon of the country" to raise funds
According to a recent report by China, a brokerage firm, Country Garden Venture Capital, a subsidiary of Country Garden, is seeking to sell its shares in Changxin Storage Technology Co., Ltd., raising about 2 billion yuan. However, the sale time is still under negotiation, and the final result is inconclusive. In this regard, Country Garden responded that the company is committed to actively exploring various strategies to optimize the asset-liability structure, including prudent assessment of the asset portfolio and potential asset disposal opportunities.
Changxin Technology is known as the leading domestic DRAM memory enterprise and also the representative enterprise of "domestic alternative memory chips". The shareholders behind it are not only national and local industrial investment funds, industrial investment funds led by CITIC Group and China Merchants Capital, but also financial and insurance institutions such as CICC, CMB, CCB and Sunshine Insurance.
Country Garden Venture Capital is the earliest strategic investor of Changxin Storage.
In September 2021, Country Garden Venture Capital entered the list of shareholders of Changxin Storage as a strategic investor, and held 2.2426% of the shares at that time. The sale price of Country Garden is 2 billion yuan, which is equivalent to a 60% discount.
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