Blu-ray development can not see the end of debt repayment

Zebra consumption Yang Garnet

In the past year, Blu-ray development has not been able to get out of the debt quagmire, the scale of overdue debt has become larger and larger, in yesterday's announcement, the amount of overdue debt principal and interest has approached 30 billion yuan.

Judging from the current public information, the company has not yet introduced a substantive plan to deal with overdue debts, which further aggravates the concerns of the outside world about this housing enterprise. At the close of trading yesterday, the company's stock price closed at 1.99 yuan, with a total market value of 6.040 billion yuan.

Overdue debt is approaching 30 billion

After the Spring Festival, Sichuan's largest housing enterprise Blu-ray Development (600466. SH) overdue debt does not decrease but increases. The company disclosed in the announcement on February 10 that recently, the principal and interest of the company and its subsidiaries' new debts due to repayment were 2.116 billion yuan.

As of the 9th, the accumulated amount of principal and interest of the debt that has not been repaid due has totaled 29.855 billion yuan. This includes bank loans, trust loans and debt financing instruments, among others.

Since last year, the debt crisis has swept the entire real estate industry, and Blu-ray Development has not been able to formally introduce even a medium- and long-term debt resolution plan after selling property assets and selling 1.4 billion shares for 1 yuan to solve nearly 9.2 billion debts.

At the end of January, the company was suspended by the China Interbank Market Dealers Association for 18 months for indirectly purchasing the 21 Blu-ray MTN001 medium-term notes issued by itself through asset management products and other means, distorting the issuance interest rate and disrupting the market order. This means that the company's financing channels in the public financing market have been further narrowed.

The announcement disclosed that the main reason for the company's debt overdue is that since the end of 2020, its operating cash flow recovery rate has slowed down, the public market refinancing has been blocked, and some financial institutions have announced maturity in advance, which is worse for the company.

In order to resolve the debt risk, the company said it is making every effort to coordinate the financing of all parties and discuss various ways to solve the relevant problems.

As of the end of September last year, the company's total liabilities totaled 184.6 billion yuan, the asset-liability ratio was 90.31%, and the net profit attributable to the mother for the current period was -6.705 billion yuan.

According to the company's performance forecast, the net profit attributable to the mother in 2021 was -12.037 billion yuan, which was more than the cumulative net profit attributable to the mother in the five years from 2016 to 2020 (the cumulative net profit attributable to the mother in these five years was 11.226 billion yuan).

The announcement disclosed the reasons for the huge loss, first, the revenue recognized by the main real estate business decreased by 18.842 billion yuan, down 47.37% year-on-year; at the same time, combined with the impact of the current liquidity risk on future real estate sales, an impairment loss of about 6.909 billion yuan was recorded; and the cumulative non-recurring profit and loss caused by the disposal of assets was about -733 million yuan.

The cost of a counterattack

Today's business is a matter of life and death, and the root cause is a big gamble many years ago. In 2018, Wanda cut meat and reduced debts, Vanke shouted to live, and the head housing enterprises have already sniffed out ominous signs. At that time, Yang Hao was proud of the spring breeze, and with a big hand, he hit the scale of 100 billion yuan, and entered the 27th place in the list of the top 100 of Kerui that year.

For Yang Hao, it is a counterattack, but also a race to step on the wrong drum.

It should be known that since the second half of 2016, the domestic real estate market regulation has become increasingly stringent, and the running of blue light development on the ice has long been dangerous.

In 2019, the company achieved a sales scale of 101.537 billion yuan, stepped into the 100 billion club as desired, and established another headquarters in Shanghai. Yang Heng tried to operate with chengdu + shanghai dual headquarters, from the region to the whole country.

However, Yang Hao also miscalculated. In 2020, the company achieved annual sales of 103.536 billion yuan, an increase of 1.97% year-on-year. In that year, the operating income was 42.96 billion yuan, an increase of 9.6% year-on-year, far lower than the growth rate of more than 25% in 2018 and 2019.

The company has fallen again and again on the Kerry Top 100 list, ranking 33rd and 39th from 2019 to 2020, respectively, and has disappeared from the list in 2021.

During this period, the company maintained a ferocious land acquisition effort throughout the country. Public data show that from 2018 to 2020, the amount of land obtained was 43 billion yuan, 49.4 billion yuan and 52.9 billion yuan, respectively.

What does the company rely on to obtain land funds? At an investor meeting in April last year, the company revealed that a non-standard financing of 12 billion yuan due in 2021 was due, which was mainly used for land acquisition and mergers and acquisitions.

Behind the glossy performance data, the company has brought a sharp increase in the scale of debt. In 2018, its total liabilities amounted to 123.8 billion yuan, reaching 211.9 billion yuan two years later.

The second generation was forced to take over

The company actively released bailout measures to the outside world, did not dispel market doubts, Yang Hao pushed his son Yang Wuzheng to the forefront, which aggravated the negative attitude of the outside world to blue light.

The second generation of real estate suddenly took office, Wang Xiaosong of New Town Holdings, Zhao Weihao of Hongkun Group, etc., all of which let them take office in advance due to the special reasons of their parents. Since July last year, Chairman Yang Wuzheng and President have shouldered the burden, and there are very few in the second-generation real estate group.

Under the multiple pressures of the company being mired in debt, the downturn in the industry, and the departure of senior executives, it may be more in line with the family's wishes to be personally operated by the Yang family, but Yang Wu is in front of and behind the huge waves, no less than reshaping a blue light development.

Yang Wuzheng previously seemed too optimistic, having proposed a sales amount of 115.8 billion yuan in 2021, a plan that has failed.

From January to September last year, the company achieved sales of 43.649 billion yuan and equity sales of 23.085 billion yuan, down 34.08% and 51.03% respectively year-on-year. From a single quarter point of view, in the third quarter of last year, the sales amount and equity sales increased by 9.259 billion yuan and 130 million yuan respectively.

Houses are becoming increasingly difficult to sell, and Blu-ray Development is no exception, with inventory turnover days increasing from 1241 days in 2018 to 2831 days at the end of September 2021.

2021 is a period of extraordinary anxiety for the company, as of the end of the third quarter of last year, the company's financial expenses were 1.452 billion yuan, a sharp increase of 306% year-on-year.

Relying on sales performance can not solve the liquidity problem for the time being, subject to the narrowing of financing channels, rating downgrades and equity freezing and other factors, Blu-ray can only increase the intensity of realizing assets, and the introduction of war investment.

Yang Wuzheng is regarded by the outside world as an important node in the development of enterprises, and how to reverse the messy debt crisis requires not only wisdom, but also time.