Wen/Leju Finance Li Yihe

In the 1980s, Chen Jinshi, who was born in Nantong, Jiangsu Province, with a 28 person migrant team and 5000 yuan cobbled together, started his own business with a trowel and an ash bucket.

This difficult entrepreneurial history, as part of the corporate culture, is now placed in Central South A prominent position on the group's official website.

Looking back on the years of hard work when he started his business, Chen Jinshi may feel the same, but his mood has changed a lot.

In the evening of May 8, ST Zhongnan（ Central South Construction , 000961. SZ) announced that the closing price of the company's shares has been less than 1 yuan/share for 20 consecutive trading days, and may be terminated by the Shenzhen Stock Exchange. The shares were also suspended from trading on May 9.

Since then, another real estate enterprise has been added to the delisting list. The stock price of Zhongnan Construction finally settled at 0.56 yuan/share.

Since last year, Hong Kong stock real estate enterprises Xinli The delisting of the real estate company in the capital market opened the curtain for the real estate company in danger to withdraw from the capital market. Later, Blue ray development 、 Zhongtian Finance , Taihe Sunshine City 、 Sansheng Holding And so on. Many of them were once 100 billion real estate enterprises.

Now it seems that the delisting tide is still not over.

On January 26 this year, Oceanwide Holdings The listing was terminated by Shenzhen Stock Exchange. On the evening of May 10, following the construction of Central South China* ST Shimao （ Shimao Shares , 600823. SH) disclosed the tenth risk warning announcement that may be terminated.

Shimao The closing price of shares on May 10 was 0.49 yuan/share, which has been lower than 1 yuan/share for 17 consecutive trading days. Even if the stock price rises or limits continuously for the next three trading days, it will touch the delisting index of transaction type because the stock price is lower than 1 yuan for 20 consecutive trading days. Lock the delisting in advance.

For real estate enterprises, delisting is not the end. Although the financing function in the secondary market is lost, the operation of the enterprise continues. This also makes the outside world curious, what is the performance of delisted real estate enterprises? Is the operation improving?

According to the first annual report of some real estate enterprises after delisting, huge losses and overdue debts are still problems that these real estate enterprises need to face.

The delisting list is further extended

Last April, Sunpower Holdings The resumption of trading failed to comply with the guidance of the Hong Kong Stock Exchange for resumption of trading within the specified time limit, and finally, after only four years of capital journey, the market had no choice but to delist.

And it also became the first real estate enterprise to be delisted by the Hong Kong Stock Exchange.

The delisting of Sunpower Holdings opened the prelude to the delisting of the real estate enterprises in danger. Less than a year later, Blue light Development, Zhongtian Finance Meihao Real Estate 、 Yuetai Shares 、 Songdu Shares 、 Jiakaicheng , Taihe Sunshine City , Sansheng Holdings and other real estate enterprises were delisted from the two exchanges.

According to statistics, in 2023 alone, a total of 12 real estate enterprises will delist from A-share and H-share markets, including 100 billion real estate enterprises. One reason for delisting is that most A-share real estate enterprises were delisted because their closing prices were lower than 1 yuan for 20 consecutive trading days, while Hong Kong share real estate enterprises were suspended for 18 consecutive months due to "the securities of main board companies were suspended for 18 consecutive months".

The deep adjustment of the real estate industry continues, and the delisting trend of real estate enterprises has continued since this year.

Before Zhongnan Construction and Shimao, on January 26 this year, Oceanwide During the period from November 30, 2023 to December 27, 2023, the daily closing price of the controlled shares was less than 1 yuan for 20 consecutive trading days, which touched the delisting situation of shares specified by Shenzhen Stock Exchange. Oceanwide The controlling shares are delisted.

Like many real estate enterprises involved in delisting, Zhongnan Construction and Shimao Holdings also actively launched self rescue.

At the time of the accident, Central South Construction once drew "national+local" AMC to reinforce. In February this year, in order to save the declining share price, Zhongnan Construction disclosed the announcement that some directors and senior executives voluntarily increased their shareholding. Six directors and senior executives, including Shi Jinhua, planned to increase their shareholding by 5 million to 10 million yuan through the secondary market within six months from February 8.

According to the latest data, as of May 6, the main shareholders had accumulated 2.3752 million shares of Zhongnan Construction, with an increase amount of about 2.28 million yuan, accounting for 0.062% of the total share capital. However, it seems that the impact of the shareholding increase plan on the stock is not obvious. Since April, the stock price of Zhongnan Construction has continued to fall below 1 yuan.

On April 20, there was news that Zhongnan, the controlling shareholder of Zhongnan Construction urban construction Investment held talks with Pacific Alliance Investment Group (PAG), Jiangsu Assets and other institutions on debt resolution, equity trading and other cooperation. But these news also failed to play a significant role in the secondary market. On April 24, Zhongnan Construction was implemented with "other risk warning", and the stock abbreviation was changed from "Zhongnan Construction" to "ST Zhongnan". And finally came to the step of delisting and delisting.

Shimao has also tried to get rid of the delisting risk by repurchasing several times.

The announcement of repurchase progress on May 7 showed that Shimao Shares repurchased 117419371 shares through centralized bidding from January 10 to May 7 this year, with a total amount of 125 million yuan. From June 27 to September 26 last year, Shimao also repurchased 149169371 shares through centralized bidding, with a total repurchase amount of 175 million yuan.

In addition, more real estate enterprises are also on the verge of delisting. It is understood that among the current Hong Kong stock real estate enterprises, Jiayuan International , Datang Group Ligao Group 、 Huijing Holding 、 Xinming China Xiangsheng Holding Shangzhi Group 、 Dafa Real Estate It has been more than a year since many real estate enterprises were suspended in March and April last year.

In March this year, due to the delay in releasing the annual report, including Country Garden 、 Shangkun Real Estate 、 Yida China 、 Contemporary Real Estate 、 Rongxin China 、 Dexin China 、 Zhengshang Industry 、 Hengda Several real estate enterprises, including the Group, also announced the suspension of trading.

Loss and over expected repayment pressure

In 2023, the operating revenue of Zhongnan Construction will be 68.488 billion yuan, up 16.01% year on year; The net loss attributable to shareholders of the listed company was 5.29 billion yuan, with a year-on-year decrease of 3.89 billion yuan. During the period, Shimao realized an operating income of 5.547 billion yuan, down 3.48% year on year; Net profit attributable to shareholders of listed companies was -8.996 billion yuan, a year-on-year decrease of 98.71%.

Affected by the overall market environment, delisted real estate enterprises generally face greater operating and debt pressure. Compared with real estate enterprises about to delist such as Zhongnan Construction and Shimao, the operation of real estate enterprises that have exited the capital market is also widely concerned by the outside world.

Recently, Sunshine City, Taihe, Bluelight Development and Zhongtian Finance all released their first annual reports after delisting. On the whole, the decline in performance, losses and huge overdue debts are still the problems that these real estate enterprises need to face.

In 2023, Sunshine City will achieve an operating revenue of 47.777 billion yuan, a year-on-year increase of 19.69%; The net profit attributable to the shareholders of the delisted company was - 8069 million yuan, and the loss of Sunshine City in the same period of the previous year was 12.553 billion yuan, which was significantly reduced.

Taihe realized an operating revenue of 6.395 billion yuan, down 27.35% year on year, and a net profit attributable to shareholders of the company of 6.072 billion yuan, down 12.99% year on year.

In 2023, the operating revenue of Blu ray Development will be 19.997 billion yuan, up 3.59% year on year; The net profit attributable to shareholders of delisted companies was - 17.46 billion yuan, and the net profit attributable to the parent company was 24.942 billion yuan lower than that in 2022, which also narrowed significantly.

Last year, Zhongtian Finance realized an operating revenue of 5.682 billion yuan and a net profit attributable to shareholders of the parent company of -18.144 billion yuan.

At the end of the period, the asset liability ratio of Sunshine City was 96.22%, Taihe 99.66%, Bluelight Development 136.42%, and Zhongtian Finance 123.54%. Total liabilities of Blu ray Development and Zhongtian Finance are greater than total assets.

In terms of overdue liabilities, by the end of the 2023 report period, the total principal of the due and unpaid debts of Sunshine City (including loans from financial institutions, partner funds, etc.) was 67.565 billion yuan. Taihe has an outstanding loan of 82.246 billion yuan.

The overdue short-term loans and the overdue long-term loans (including those due within one year) of Bluelight Development totaled 18.067 billion yuan. The short-term borrowings and non current liabilities due within one year of Zhongtian Finance were 32.160 billion yuan, including 23.605 billion yuan of overdue interest bearing debt principal.

In the face of large overdue debts, the cash held by these real estate enterprises is still insufficient. In 2023, the closing cash and cash equivalents of Sunshine City, Taihe, Bluelight Development and Zhongtian Finance will be 3.324 billion yuan, 212 million yuan, 782 million yuan and 5.786 billion yuan respectively. Taihe and Blu ray Development have less than double digit cash.

Waiting for recovery and rebirth

Although it has withdrawn from the capital market, the operation of the enterprise continues. However, it is still these real estate enterprises that can return to normal operation to see whether the current depressed real estate industry can recover track The key to.

Data shows that in 2023, the sales area of commercial housing nationwide will be 1.12 billion square meters, down 8.5% year on year; Among the 31 large and medium-sized cities, the area of commercial housing transactions in the first tier cities decreased by 0.7% year on year, the second tier cities by 8.8% year on year, and the third tier cities by 10.6% year on year. While the transaction scale continued to decline, cities were also differentiating.

From the policy perspective, de stocking in the property market has become the main theme, and the industry is undoubtedly ushering in a more relaxed environment.

At the meeting of the Political Bureau of the CPC Central Committee on April 30, it was mentioned that we should integrate the new changes in the relationship between supply and demand in the real estate market and the new expectations of the people for high-quality housing, make a comprehensive study of the policies and measures to digest the stock of real estate and optimize the incremental housing, pay close attention to the construction of a new model of real estate development, and promote the high-quality development of real estate. Real estate is still the key area of risk prevention.

The news of the cancellation of purchase restrictions also came in succession.

On May 9, Hangzhou and Xi'an announced that the purchase restriction policy in the property market would be completely cancelled. Since then, apart from Beijing, Shanghai, Guangzhou and Shenzhen, the first tier cities, only Hainan Province and Tianjin are still partially free from purchase restrictions. In the future, the purchase restriction policies in these places are still expected to be gradually adjusted.

However, after a long downturn in real estate, the effect of these policies still needs time to verify. However, real estate enterprises that have experienced declining performance, loss and increasingly exhausted liquidity are still waiting for recovery opportunities through their own efforts.

Some changes may be expected in the annual reports disclosed by the above delisted real estate enterprises.

In 2023, both Sunshine City and Taihe realized the net inflow of cash flow from operating activities, of which the net cash flow from operating activities of Sunshine City was 695 million yuan and that of Taihe was 266 million yuan. In 2022, the project data of the two real estate enterprises are negative.

The net cash flow from operating activities of Blu ray Development is RMB -6.11 billion, which is still negative, but it has narrowed compared with the outflow of RMB 1.001 billion in 2022.

The return of cash flow from operating activities is the first step for real estate enterprises to return to their own hematopoietic function.

In the annual report, Taihe mentioned that in 2023, its projects across the country have received about 1.45 billion yuan of government special funds. With the support of policies and funds, it has delivered new projects in Shanghai, Beijing and Fuzhou.

At present, the projects sold but not delivered by Taihe have basically started, distributed in Beijing, Shanghai, Fuzhou, Guangzhou and Shenzhen, and are expected to be delivered in the next two years. The project sales proceeds will be used in proportion to repay the loan and ensure the daily operation of the company.

Taihe specially emphasized that "the company will be able to continue its business in the next 12 months."

Blu ray Development also disclosed that it has completed the mapping of asset and liability base, forming the embryonic form of risk resolution plan. By the end of April 2024, the signed extension amounts in 2023 and after will be about 2.614 billion yuan and 641 million yuan respectively.

During the reporting period, it gave priority to ensuring new rigid operational expenditure before delivery by means of closed operation of development project funds, introduction of advance fund agent, application for judicial restructuring, application for rescue funds, etc., and realized 23 delivery and carry forward projects.