Clear the invitation to be extended to get gasp!Nearly two trillion liabilities, Evergrande's funding dilemma is to be solved

Metappeling may only solve the problems in front of you, and what is most worried about the market is the uncertainty faced by Evergrande. The company's 2021 annual report and the 2022 report have not been disclosed, and the operating conditions are still unclear.

"Investment Times" researcher Xi Yu

After the real estate industry enters the downward cycle, the break of the fund chain has a diversified layout of China Evergrande trapped in debt quagmire. However, an announcement of "clearing the audition" announced that the former real estate leader had an opportunity to breathe.

On the afternoon of September 5, China Evergrande (03333.HK) issued an announcement saying that the Hong Kong High Court has approved the Group's postponement application, and the liquidation of the audition will be extended to November 7, 2022.

It is reported that the offering of this liquidation was initiated by Jiasheng Global Co., Ltd. (hereinafter referred to as Jiasheng Global) in June, and the fuse was a "RV treasure" that was highly hoped.

The cost of rapid expansion

Public information shows that the predecessor of RV treasure is Hengfang Tong, which is the entrance of the house on the Internet. It can collect all the listings of Evergrande to a platform, which includes a house, subscription, payment deposit, signing contract, and one -click transaction to complete the entire set of operating processes.

In recent years, Hengfangtong has developed rapidly. However, under the concept of diversified operations, Hengda also installed Hengchi Automobile in the end of 2020, and then renamed "RV treasure".

According to the idea of ​​Evergrande at that time, in the future, RV treasures will continue to vigorously expand offline stores, form a large -scale and uniform layout network in the country, and create an offline service terminal carrier for high -frequency transactions on the Internet. However, if you want to achieve rapid expansion, there must be plenty of funds to escort.

In March 2021, China Evergrande made financing for RV treasures, and introduced 17 investors including Hongyi Investment, CITIC Capital, Zhongrong International, and Anatole. The total investment amount was HK $ 16.35 billion, accounting for 10%of the total share capital. Among them, Jiasheng Global invested about HK $ 75 million to purchase approximately 59.8529 million shares, holding about 0.459%of the shareholding. At that time, Evergrande made a repurchase commitment that RV treasures will be listed within one year, otherwise it will need to be redeemed by 1.15 times the gold investment party investment.

The current business of RV treasures in Evergrande is basically stagnant and cannot be listed as planned. Therefore, according to the previous agreement, Evergrande will bear the cost of gambling at HK $ 862.5 billion.

Researchers in "Investment Times" noticed that since the second half of 2021, several real estate companies such as the year, Jiayuan International, Fusheng International, Dafa Real Estate, and Tianyu Real Estate have been submitted to the court for liquidation.

Industry insiders believe that due to the continuous thunderstorms in the real estate industry in recent years, the debt of real estate companies has occurred. If the foreign creditors do not take action, they may face problems such as depreciation of assets and domestic creditors in the future. Evergrande will also postpone the debt restructuring plan that should have been released by the end of July to the end of the year. If the creditor cannot see any solution to the debt problem, it is possible to use liquidation to protect rights and interests.

On March 29, 2021

Data Source: Announcement of the Hong Kong Stock Exchange

Nearly two trillion liabilities topped

In fact, Evergrande's liabilities from the real estate giants that year to the current debt of nearly two trillion, only 2 years.

In recent years, the state's "deleveraging" policy has continued to advance, and national measures such as purchase, loan restrictions, and price limit have been introduced one after another, which has brought huge challenges to the real estate industry, which is mainly based on high leverage operations.

According to the "Research Report on the 2021 China Real Estate Listed Companies", of the top 15 real estate companies in China, Evergrande's debt ratio rate is as high as 152.9%, and even stepped on three red lines. It is worth noting that in the second half of 2021, Evergrande Group has successively had problems in the redemption of business tickets and the failure of overseas bonds to perform the guarantee obligations, which caused debt crisis.

According to the financial report data, in 2018, 2019 and 2020, the net profit of China's Evergrande's returnees was RMB (the same below) 37.390 billion yuan, 17.280 billion yuan, and 8.076 billion yuan. 1.85 trillion yuan and 1.95 trillion yuan; cash and cash equivalents were 129.364 billion yuan, 15056 billion yuan, and 158.752 billion yuan, respectively. It is not difficult to find that the profitability of Evergrande in recent years has not only fallen sharply, but the gap between funds and liabilities has also expanded.

According to the company's 2021 interim report, China Evergrande's total assets were 2.38 trillion yuan, with total liabilities 1.97 trillion yuan, and asset -liability ratio of 82.71%. Among them, the debt due within a year was 240.049 billion yuan, while Evergrande's cash and cash equivalents were only 86.772 billion yuan, which was not enough to cover. As for Evergrande's 2022 interim, as of September 8, it has not been released.

At the investor conference call in March 2022, according to the company's management, Evergrande's overseas direct debt discount contracts were US $ 22.7 billion, including the Group issued $ 14.2 billion overseas bonds, US $ 5.2 billion overseas bond issued by its companies, and 3.3 billion US dollars of project financing and private equity financing.

In addition, China Evergrande's overseas entities also provide guarantee or repurchase commitments for some domestic financing. At present, under the coordination of the regulatory part, multiple over -maturity bonds in Evergrande have been successfully exhibited, but overseas bonds cannot obtain the widening of the creditor and default.

China Evergrande in the first half of 2021, concise and comprehensive balance sheet data Source: Company Financial Report

Quickly realize the urgent need

Evergrande is now paying for the "sequelae" left by the expansion of the year.

On July 31, China Evergrande issued an announcement saying that Evergrande Nanchang's receiving date of the receipt of the receipt of July 25 was arbitral award on July 25. Dananchang provided the applicant's anti -guarantee pledge to the applicant with a total of 1.282 billion Shengjing Bank shares held. Because the borrower failed to repay, the applicant fulfilled the guarantee responsibility and claimed the pledge to the subsidiary.

According to public information, Evergrande Nanchang became the bank's largest shareholder through the acquisition of 5 domestic shareholders of the bank in 2016, and then increased its shareholding ratio to 36.4%in 2019. However, in order to cope with the debt crisis, Evergrande began to sell equity in the second half of 2021, cash out nearly 11 billion yuan.

On September 7, according to the Ali judicial auction platform, all about 1.282 billion shares held by Shengjing Bank held by Evergrande Nanchang have been successfully auctioned by 7 companies, and the transaction price of online auctions is about 7.307 billion yuan. As the remaining equity has completed the transaction in the near future, Evergrande's cumulative return funds have exceeded 18 billion yuan.

"Investment Times" researcher noticed that Evergrande will have recently reduced measures to reach the football field. Xu Jiayin has publicly stated: "Evergrande must continue to do a good job of football, the positioning of the Guangzhou team will be cradle and platform in the future." However, Evergrande today has to accelerate the treatment of assets to relieve liabilities.

On the evening of August 4, China Evergrande issued an announcement saying that on August 3, it had signed a termination agreement with the transferee Guangzhou City Planning and Natural Resources Bureau, refunded the land use right of Guangzhou Evergrande football field, and obtained 5.52 billion yuan The transfer of gold refund the deposit.

From the perspective of the outside world, monetization may only solve the problems in front of you, and what is most worried about the market is the uncertainty faced by Evergrande. The company's 2021 annual report and the 2022 report have not been disclosed so far, letting all plans slow down and wait for the transfer, perhaps the best solution at present.

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