Sunac failed to issue annual report on schedule, intraday 22% plunge, more than 15 housing enterprises annual report “difficult labor”

2022-07-29 0 By

Sunac China (01918.HK) announced in the Hong Kong Stock Exchange on the evening of March 28 that it would not be able to disclose the unaudited annual results for 2021 as scheduled.Trading in the company’s shares will be suspended on the Hong Kong Stock Exchange from April 1.Red Star Capital Bureau noted that there are now more than 15 listed housing enterprises announced 2021 annual report delay disclosure, including the head of housing enterprises.But the disclosure of the annual report of housing enterprises, there are also many profitability, sales growth decline.Sunac announced that there are three main reasons for failing to disclose the annual report on schedule: 1. Considering the expected workload and time required for the preparation of some financial statements that have not been completed; 2.2. Due to the recent downgrade of the company’s rating by international rating agencies, the company is actively communicating with relevant creditors to solve the problems related to overseas loans;3. Uncertainty of the impact of sunac Real Estate’s domestic public debt rollover on the financial statements.The Company does not expect to complete the preparation of the Group’s financial statements for the year ending 2021 by the end of March, i.e. the Company does not expect to publish its unaudited results for the year ending 2021 on or before 31 March 2022.Previously, Sunac China had announced on March 21, will be released on March 31, 2021 unaudited annual results, expected to delay the publication of 2021 audited annual results.Just a week later, Sunac announced that it would not be able to release its annual results without review.Sunac said it would publish the group’s 2021 audited annual results as soon as practicable.In addition, the board meeting originally scheduled for March 31 will be postponed as Sunac will not publish its 2021 unaudited annual results.Trading in the company’s shares will be suspended on the Hong Kong Stock Exchange from April 1.Sunac’s shares fell 20% at the opening on March 29 after the “difficult birth” news, and at one point fell more than 22% during the session.Sunac’s last share price was HK $4.08 at the close, down 17.41%, giving it a market cap of HK $22.23 billion.That is down more than 90% from its high in January 2020, wiping out more than HK $200bn in market value.Its shares have fallen about 66% since 2022.Just a few days ago, sunac’s Chinese subsidiary Sunac Real Estate Group Co., LTD. (hereinafter referred to as sunac Real Estate Group) issued a major announcement on the maturity of the company’s bonds on the Shanghai Stock Exchange on March 25.In the announcement, Sunac Real Estate Group admitted that it is expected to be unable to repay the principal and interest of its bonds “20 Sunac 01” and the interest of “21 Sunac 03″ as scheduled due to periodic financial pressure recently.”20Sunac 01″ is a bond issued by Sunac Real Estate Group on April 1, 2020, with a balance of 4 billion yuan and a current interest rate of 4.78%.According to the original agreement, the sale capital and interest shall be paid back on April 1, 2022.”21 Sunac 03” will be issued on April 2, 2021, with a bond balance of 2 billion yuan and a current interest rate of 7%. The interest will be paid on April 2, 2022.’We will soon communicate with bondholders about the extension and deferred payment of the bonds,’ the statement said.The company is actively formulating relevant plans to provide unlimited joint and several liability guarantee for Sun Hongbin, chairman of the Board of Sunac China, as credit enhancement measures.Sunac real Estate group said that the company will never run away from its debts and will do its best to protect the rights and interests of bondholders.In fact, the news of sunac’s “capital chain” tightening has already spread like wildfire, and the capital market has been foreboding it.On March 18, 21 and 23, “20 Sunac 01” fell.Among them, on March 23, “20 Sunac 01” fell by the daily limit twice, with a one-day drop of 41.54%.According to China Entrepreneur magazine, sunac has 9 domestic bonds outstanding, including 20 Sunac 01, with a total outstanding volume of 16.749 billion yuan.Among them, the balance due in June this year is 1.44 billion yuan, and four of 20 Sunac 01, 20 Sunac 03, 16 Sunac 07, 16 Rongdi 01, which have reached the resold period this year, are about 7.83 billion yuan, totaling more than 9.2 billion yuan.According to the above announcement, as of June 30, 2021, sunac Real Estate Group’s total asset scale is 1141.052 billion yuan, asset-liability ratio is 83.45%, interest-bearing liabilities is 226.75 billion yuan.By the end of 2021, sunac China’s saleable value (including its affiliates) is about 2.0 trillion yuan.Sunac China’s cumulative sales in January-February 2022 fell by about 27% year-on-year.More than 15 listed real estate companies have announced the postponement of 2021 annual reports, China Securities Journal reported.There is no lack of head room enterprise figure.Red Star Capital Bureau incomplete statistics, has announced the delay of 2021 annual report performance of listed housing enterprises including:China Evergrande (03333.HK), Sun Power Holdings (02103.HK), Kaisa Group (01638.HK), Sunshine 100 China (0268.hk), Rongxin China (03301.hk), Baolong Real Estate (01238.HK), China Olympic Park (03883), Shimao Group (00813).HK), Sansheng Holdings (02183.HK), etc.From the current point of view, the main reason for delaying the release of annual reports is the impact of the epidemic on the audit process, and some real estate companies said that it is related to the change of auditors.But the disclosure of the annual report of housing enterprises, there are also many profitability, sales growth decline.SOHO China (00410.HK) 2021 performance report shows that the annual operating revenue of about 1.742 billion yuan, a year-on-year growth of about 13%, the annual net profit from profit to loss, from a profit of 537 million yuan in 2020 to a loss of 124 million yuan in 2021;The net loss attributable to equity shareholders of the company was about 131 million yuan.Poly Development (600048.SH) 2021 performance report shows that the company achieved total operating revenue of 285.048 billion yuan, with a year-on-year growth of 17.2%;Net profit of 27.577 billion yuan, down 4.74% year-on-year.Merchants Shekou (001979.SZ) achieved operating revenue of 160.643 billion yuan in 2021, with a year-on-year growth of 23.93%;Net profit attributable to shareholders of listed companies was 10.372 billion yuan, down 15.35% year-on-year.In addition, according to the Securities Times, for housing enterprises to delay the impact of the annual report, Moody’s Investors Service company senior vice president Zeng Qixian believes that this will have a negative credit impact.The inability of these companies to disclose their audited financial results on time reinforces concerns about weak corporate governance, financial management, financial planning, transparency, disclosure, financial and liquidity positions, and may further limit their limited access to funding.However, there are also industry insiders believe that the main reason for the delay in the annual report of housing enterprises is the interference of the epidemic on the audit work, and the business situation has little to do with.