The tide receded, and the happiness of naked swimmers in China began to erupt. Huaxia Happiness is caught in a debt crisis, with a cumulative overdue of 1 1 billion, but at present, the company has only 800 million available funds. According to Wang, the chairman of the company, the debt and new financing were completely blocked, the operating cash flow could not cover the repayment demand at all, and the injectable funds were basically exhausted, which eventually triggered a liquidity crisis.
The debt default of 1 10 billion is only the beginning.
On the evening of February 26th, Huaxia Happiness (600340) announced that recently, the amount of newly-increased debts of its subsidiaries that failed to repay the principal and interest on schedule was 5810.70 billion yuan, including bank loans, trust loans, overseas bonds and other forms of debts, but not domestic bonds, debt financing instruments and other products.
Up to now, the company has failed to repay the debt principal and interest as scheduled, totaling RMB 65,438+065,438+00.54 million. At present, the company is actively coordinating the extension with the financial institutions involved in the above overdue period.
Huaxia Happiness said that the debt due to the tight liquidity of the company failed to repay as scheduled, which had a great impact on the company's financing; At present, in order to resolve the company's debt risk and speed up the company's orderly operation, the company is actively coordinating all parties to discuss various ways to solve the current problems. With the strong support of local governments and the active coordination of major shareholders, the company will also speed up the formulation of short-,medium-and long-term comprehensive solutions. The company will resolutely abide by the concept of good faith management, actively solve the existing problems and implement the responsibility of the business entity. Based on the basic premise of "not evading debts", and in accordance with the principles of marketization, rule of law, fairness and justice, and classified policies, we will steadily resolve the risks of Huaxia Happiness Debt and safeguard the legitimate rights and interests of creditors according to law.
According to the analysis, Huaxia Happiness's current limited liquidity cannot cover large-scale debts. In addition, under the current operating conditions, the company's new financing channels have also been greatly hindered. Based on this, there will be more debts due in the future, and the debt gap faced by Huaxia Happiness will be even greater.
Misjudging the situation, radical expansion, "burying mines"
Huaxia happiness is now in a serious debt crisis, not without traces.
According to the financial report data, from 20 15 to 20 19, the annual net profit of Huaxia Happiness increased year after year, with a net profit of 201461200 million yuan. Even in 2020, affected by the epidemic, the company's net profit in the first three quarters totaled 7.28 billion yuan. According to the statistics of Oriental Fortune Network, its net profit ranks fourth in the real estate industry.
However, Huaxia Happiness's cash flow runs counter to the company's net profit performance. Since 20 17 years, the company's cash flow has been negative, reaching-162.28 million yuan. Since then, Huaxia's happy cash flow has not improved. In 20 19, the data has reached-3181900 million, and in the third quarter of 2020, the company's cash flow is still-25.073 billion yuan.
Wang, chairman of Huaxia Happiness, said at the debt coordination meeting that due to the misjudgment and radical expansion of the situation, the company's debts due this year will reach hundreds of billions of yuan, and the company's existing book funds will not be able to repay the debts.
What about Wang's "sizing up the situation and radical expansion"?
Wang said that before 20 16, the market around Beijing accounted for more than 90% of sales and payments. However, due to being carried away by the results and misjudging the situation, we will continue to increase investment in new industrial cities around Beijing and supporting housing enterprises in the later period. Later, due to the falling volume and price of the residential market around Beijing, the scale was halved. When I realized the seriousness of the problem, the situation was irreversible because the ship had to turn around.
Regarding the liquidity problem, Wang summarized four reasons. First, he misjudged the real estate situation around Beijing and his investment was too concentrated; Second, the new extension area is still being cultivated, and the effect is not as good as expected; The third is that the early expansion is radical and the management is not fine enough; Fourth, multiple rounds of epidemic shocks have made the business dilemma worse.
Under the combined effect of internal and external factors, the company's debt repayment problem broke out, and the repayment amount at maturity was as high as 1000 billion yuan, but by the end of 1, the company's cash was only 24 billion yuan, and it was basically limited funds. "The new financing has been completely blocked, and the business cash flow can't cover the repayment demand at all. The funds that can be injected are basically exhausted. The crisis has caused this, which is a situation that everyone does not want to see. " Wang said to him.
Many institutions gave negative ratings, and the stock price continued to fall.
65438+1On October 27th, Fitch, an international rating agency, issued the latest rating announcement, downgrading Huaxia Happiness's senior unsecured rating from B to CCC, and removing the company from the negative rating watch list. Just ten days ago, Fitch just downgraded its rating from "BB-" to "B". Almost at the same time, Moody's, another international rating agency, also downgraded Huaxia Happiness's Ba3 family rating and the advanced unsecured rating supported by enterprises to B2.
Not only Fitch, Moody's and other international rating agencies, but also domestic rating agencies have sounded the alarm for Huaxia Happiness's debt situation.
On October 8th, 65438/kloc-0, CICC downgraded Huaxia Happiness Investment to neutral. 65438+1October 19, China Chengxin International adjusted the rating outlook of Huaxia Happiness to negative, and the main credit rating was still AAA.
The capital market has long responded to the debt crisis of Huaxia Happiness. At the beginning of 200211,many bonds of Huaxia Happiness at home and abroad suddenly fell sharply. Among them, the dollar debt with the most discount, such as "Huaxia Happiness 8.05% B20250 1 13", has a face value of 100 and a transaction price of $52; The face value of domestic debt "16 Huaxia 0 1" is 100 yuan, and the transaction price is 55.2 yuan.
In terms of A shares, since the second half of 2020, the share price of Huaxia Happiness has been falling continuously. On February 19, Huaxia Happiness suffered a daily limit when it resumed trading. As of February 26th, its share price closed at 8.48 yuan/share, setting a new low since 20 15. Compared with its peak period of 20 17 of 33.88 yuan/share, the company's total market value evaporated by more than 50 billion yuan.