"Five steps" to pay off debts, Huaxia Happiness to reissuance debt restructuring plan, can the stock price come back to life?

On December 28, Huaxia Happiness opened high and went high, and as of press time, the stock rose nearly 3% to 3.75 yuan, with a market value of 14.68 billion yuan.

On the evening of December 27, Huaxia Happiness issued the "Announcement on the Implementation of Debt Restructuring", saying that the 17th meeting of the 7th Board of Directors of the company deliberated and passed the "Proposal on the Implementation of Debt Restructuring".

According to the debt restructuring plan, the debt restructuring agreement mainly involves "belt", "exhibition", "redemption", "offsetting" and "receiving" and other contents. These include the sale of assets to take away about 50 billion yuan of financial debts; the extension or repayment of priority financial debts of about 35.2 billion yuan; about 57 billion yuan of the funds recovered from the sale of assets for the payment of financial debts; the establishment of trusts with about 22 billion yuan of assets such as holding properties to offset about 22 billion yuan of financial debts with the share of trust beneficiary rights; and the remaining financial debts of about 55 billion yuan are undertaken by Huaxia Happiness and gradually repaid.

The announcement shows that due to the difficulties of the enterprise's operation, the financial debts under the debt restructuring plan have been exempted from unpaid interest or the interest is paid with the principal, and if the interest is selected to be cleared with the principal, the interest rate will be adjusted to 2.5%; the penalty interest, liquidated damages, compound interest and other liabilities for breach of contract that have been incurred are exempted.

Huaxia Happiness said that the company is in an important stage of the implementation of the debt restructuring plan, and the signing of the debt restructuring agreement is an important part of the implementation of the Debt Restructuring Plan. After the signing of the debt restructuring agreement, it will have a positive impact on the company's financial position and operating results, and will help reduce the company's debt pressure and improve the company's financial situation. Currently, the creditor committee of the financial institution has voted to approve the plan in December 2021. At present, the company is actively promoting the negotiation and signing of debt restructuring agreements and other matters related to the Debt Restructuring Plan.

In the secondary market, since the beginning of this year, as of yesterday's close, Huaxia Happiness's stock price has fallen by 71.77%.

In terms of performance, Huaxia Happiness's operating income in the first three quarters of this year was 28.422 billion yuan, down 49.90% year-on-year; the net profit loss attributable to the shareholders of the listed company was 13.456 billion yuan, a year-on-year decrease of 284.84%; and the net cash flow from operating activities was about -4.893 billion yuan. Huaxia Happiness's asset impairment loss was RMB1.915 billion, including RMB893 million for bad debts, RMB5.31 million for impairment of contractual assets, and provision for inventory depreciation.