"Qu Wenkong" was caught in a whistleblowing trade storm, and many non-standard debts were overdue
Although the "whistleblower letter" turmoil has temporarily subsided, it is also a fact that Qu Wenkong currently has a number of non-standard debts that are overdue.
01
Report the trade storm
On March 25, Yuexiu Leasing reported to the China Securities Regulatory Commission and the Dealers Association that "Xi'an Qujiang Cultural Control Falsely Reported Debt Repayment", which attracted widespread attention in the industry.
According to the whistleblower letter, Xi'an Qujiang Culture Holdings Co., Ltd. (hereinafter referred to as "Quwen Holdings") disclosed in the "Xi'an Qujiang Culture Holdings Co., Ltd. 2024 Phase I Medium-term Note Prospectus" that the three loans that have been repaid on time have not been repaid.
The three payments are: the trust principal of 30 million yuan due on March 10 of Shaanxi International Trust Company, the rent of 7.3154 million yuan of Sinopharm Financial Leasing Co., Ltd., and the 3 million debt of Yuexiu Leasing due on December 17.
Subsequently, the relevant person in charge of Yuexiu Leasing clarified to the Financial Associated Press that he had not heard of the report letter, which was not written by the company. At present, Quwen Holdings' debt situation is normal to repay principal and interest, and the relevant rumors do not involve the operational risks of Yuexiu Leasing.
Although the "whistleblower letter" turmoil has temporarily subsided, it is also a fact that Qu Wenkong currently has a number of non-standard debts that are overdue.
It is reported that the debts of Qu Wenkong and Far East Horizon (Tianjin) Financial Leasing Co., Ltd., CITIC Trust Co., Ltd. and Minmetals Trust Co., Ltd. are overdue, and the company is negotiating and signing an extension agreement with the other party, involving an amount of more than 30 million yuan.
In addition, there was negative public opinion in the subsidiary of Quwen Holdings, and there were negative events such as the inclusion of the external guarantee object as the person subject to execution.
In January this year, CSI Pengyuan announced that the debt of Quwen Holdings' subsidiary was overdue, and the bond cross-default protection clause had been triggered.
As of the end of September 2023, the amount of Quwen Holdings' external guarantee was 8.365 billion yuan, accounting for 39.7% of the net assets at the end of the same period, and there was a certain risk of compensation.
Among the guaranteed objects, in June 2023, Xi'an Qujiang Lintong Tourism Investment (Group) Co., Ltd. will be listed as the person subject to execution, and the amount of the execution target will be 9.858 million yuan.
Since 2022, due to disputes over the contract amount of commercial housing and engineering construction, Chongqing Chuangying Jinxi Real Estate Co., Ltd. has been included in the judgment party for many times.
According to the statistics of "Small Debt Market", there are currently 14 bonds in Quwen Holdings, with an existing scale of 5.96 billion yuan, and the centralized redemption period is mainly 2025 and 2028.
Future debt service cash flows
According to the latest rating report, the credit rating of Quwen Holding and related debts is AAA, and the rating outlook is stable.
In recent years, Qu Wenkong's financial leverage has continued to be high, short-term debt pressure is high, and the company's liquidity is tight.
02
Liquidity is tight
According to public information, Quwen Control is the most important cultural industry investment entity in Qujiang New District, Xi'an City, and its business covers cultural tourism business, cultural industry (engineering) projects, scenic spot infrastructure construction, real estate development business, etc.
Qu Wenkong operates most of the high-quality tourism resources in Xi'an, including the Big Wild Goose Pagoda North Square, Tang Paradise, Tang Da Ci'en Temple Ruins Park, Qin II Ruins Park, Hanyao Ruins Park, Tang City Wall Ruins Park, Qujiangchi Ruins Park and Qujiang Aquarium and other famous scenic spots.
From the perspective of equity structure, Quwen Holding is jointly held by the Management Committee of Xi'an Qujiang New Area and the Xi'an Qujiang Cultural Industry Development Center, of which the Management Committee of Xi'an Qujiang New Area is the actual controller of Qu Wenkong, holding 99.9% of the company's shares.
Shareholding structure chart
In recent years, Quwenkong's gross profit margin has continued to show a downward trend, and the company's supermarket retail and real estate sectors have been affected by market conditions, and their revenue has shrunk by different margins.
In the first three quarters of 2023, Quwenkong achieved revenue of 12.784 billion yuan, a year-on-year increase of 4.22%, net profit attributable to the parent company of -1.714 billion yuan, and net operating cash flow of -2.501 billion yuan.
Net profit attributable to the parent company
As of the end of the third quarter of 2023, Quwen Holdings has total assets of 205.156 billion yuan, total liabilities of 175.671 billion yuan, net assets of 29.485 billion yuan, and the company's asset-liability ratio is 85.63%.
In recent years, with the advancement of project construction, Quwen Holding has relied on external financing to meet the funding gap, the company's net debt has continued to grow, and the financial leverage ratio is at a high level.
Financial leverage
The analysis of the debt structure of "Small Debt Market" found that Qu Wenkong mainly focuses on current liabilities, accounting for 70% of the total debt, and the debt structure needs to be optimized.
As of the same reporting period, Quwenkong's current liabilities were 122.62 billion yuan, mainly other payables, and its short-term debts due within one year totaled 41.823 billion yuan.
Compared with the pressure of short-term debt, Qu Wenkong's liquidity is tight, and the monetary funds on its account are only 10.435 billion yuan, which is not enough to cover short-term debt, and the company has certain short-term debt repayment pressure.
In terms of standby funds, as of the end of September 2023, the total credit line of Quwenkong Bank was 88.621 billion yuan, and the unused credit line was 39.83 billion yuan, which shows that the company's standby liquidity is average.
Bank credit
In addition, Qu Wenkong also has non-current liabilities of 53.051 billion yuan, mainly long-term borrowings, and its total long-term interest-bearing liabilities are 44.959 billion yuan.
On the whole, the total scale of Quwenkong's rigid debt is 86.783 billion yuan, mainly long-term interest-bearing debt, and the interest-bearing debt ratio is 49%.
From the perspective of debt structure, Quwenkong's debt is mainly bank loans and bond issuance, and most bank loans have pledges and guarantee measures, and there are non-standard loans of a certain scale, which shows that its debt types and channels are more diverse.
It is worth noting that after repaying a large amount of debt in 2022, Quwenkong's financing cash flow will show a net outflow, and it is necessary to pay attention to its subsequent refinancing.
Financing cash flow
In terms of asset quality, Quwen Control's accounts receivable and other receivables were 21.264 billion yuan and 60.206 billion yuan respectively.
In addition, the inventory scale of Quwen Control is 47.515 billion yuan, which is mainly composed of land use rights, development costs of real estate projects under construction, and development products such as completed real estate projects that have not been transferred.
On the whole, due to the poor liquidity of receivables and inventories, which account for a large proportion of assets, Quwen Holdings' assets are illiquid, and their profitability is average, and their asset quality is average.
03
Regional environment
Qujiang New Area, located in the southeast of Xi'an, is a new urban development area established by Shaanxi Province and Xi'an City, which is dominated by cultural industry and tourism industry.
Qujiang New Area mainly develops cultural industries, and has successively built a number of major cultural projects such as the North Square of the Big Wild Goose Pagoda, the Tang Paradise, the Qujiangchi Ruins Park, and the Datang Sleepless City.
The main economic indicators of Qujiang New Area are located in the middle reaches of the development zone under the jurisdiction of Xi'an.
In 2022, Qujiang New Area will achieve a GDP of 30.547 billion yuan, a year-on-year increase of 0.2%, and the economic growth rate has slowed down.
The general public budget revenue of Qujiang New Area increased slightly, the fiscal self-sufficiency was high, and the proportion of tax revenue remained at a high level.
In addition, the income of government funds is an important supplement to the financial resources of the local government in Qujiang New Area, but it is greatly affected by the land market and has a certain degree of volatility.
In terms of the refinancing environment, as of the end of 2022, the government debt balance of Qujiang New Area was 30.22 billion yuan, and the explicit debt ratio was relatively high.
The financing channels of the platform in Qujiang New Area include banks, direct financing and non-standard financing, etc., and the overall debt scale continues to grow and is already at a high level;