2023-08-13 13:00:00
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The specific situation depends on the announcement plan given by the company.
Liu Wei/From Beijing
On August 12, Country Garden’s domestic bonds such as “21 Bigi 02”, “22 Bigi 02” and “22 Bigi 03” issued a bond suspension announcement at the same time.
According to the announcement, Country Garden Real Estate Group Co., Ltd. intends to hold a bondholder meeting on the arrangement of corporate bond redemption in the near future. In order to ensure fair information disclosure and protect the interests of investors, according to the relevant regulations of the Shenzhen Stock Exchange, upon application by the company, ” Trading of 21 BDI 01, 21 BDI 02, 21 BDI 03, 21 BDI 04, 22 BDI 02 and 22 BDI 03 will be suspended from market opening on August 14, 2023. It will be determined separately when trading resumes.
Country Garden responded to this by saying: “The group will communicate with various stakeholders and consider adopting various debt management measures to protect the legitimate rights and interests of investors. The group will continue to steadily promote various risk mitigation measures and business strategies in order to Guarantee the long-term development of the group in the future.”
“Now the entire market knows that Country Garden’s funds are relatively tight, and the purpose of the suspension of bond trading is to give all creditors (including domestic and foreign) fair and just treatment. Under this condition, a solution to the problem will be given. Suspend trading and hold a bond There is a high probability that the holders’ meeting will carry out debt restructuring, but this is not completely certain, and the specific situation depends on the announcement plan given by the company.” A person engaged in the fixed income business of securities companies said.
A person engaged in bond issuance said in an interview that it is not uncommon for the current market of real estate bonds to be abnormal, and the specifics should be viewed in combination with previous events. He continued that at present, real estate bonds can basically only be borrowed to repay old ones. Because it takes time for the project to be realized, and the current house is not easy to sell.
On the news, on August 8, according to media reports, as of that day, Country Garden Holdings Co., Ltd. still failed to pay the coupons of the two US dollar bonds that should be paid on August 7. Country Garden later confirmed the news.
Affected by this, Country Garden’s stocks and bonds all fell sharply that day. Among them, “19 Bidi 03″ fell by more than 31%, triggering a temporary stop; 03” all fell more than 20%. In the Hong Kong stock market, Country Garden’s stock price fell by more than 13%, and Country Garden Services fell by more than 9%.
The current weakness in the supply and demand ends of the real estate market is affecting this leading company in the industry.
On August 10, Country Garden issued an internal announcement, predicting that the net loss for the half year ending June 30, 2023 will range from approximately RMB 45 billion to RMB 55 billion. The expected net loss is mainly due to the impact of the downturn in sales of the real estate industry, resulting in a decrease in the carry-forward gross profit margin of the real estate business, an increase in the impairment of property items, and the expected net exchange loss caused by foreign exchange fluctuations.
On August 11, Yang Huiyan, chairman of the board of directors of Country Garden, and Mo Bin, the president, published “Management Apology: Turning Crisis into Life and Forging a Healthier Country Garden” on Country Garden’s official Weibo account, saying, “On August 10, the company issued a profit warning and inside information. According to the news announcement, due to the unfavorable sales and refinancing environment, it is expected that there will be a large loss in the first half of 2023, and it is currently under phased liquidity pressure. Here, on behalf of the company’s management, we would like to express our sincere apologies to everyone!”
Yang Huiyan and Mo Bin said that since 2021, the real estate industry has entered a major adjustment. Measures such as revitalizing assets, reducing expenditures, and supporting shareholders have tried their best to save themselves, and try their best to ensure delivery and credit. Faced with the greatest difficulty since Country Garden was founded, we firmly believe that the real estate industry will eventually return to the track of healthy and stable development following this round of profound adjustments.
on dutyEditorial board member: Li Hongmei
Editor in charge: Li Hongmei and Wen Hongmei
Reader: Dai Shichao
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