Image source: Xiangsheng Holding Group's official WeChat public account
Produced by | Sohu Finance
Author | Wu Ya
The stock price suddenly "slumped", and Xiangsheng Holding Group (stock code HK: 02599, hereinafter referred to as " Xiangsheng ") has attracted attention from the outside world.
Hong Kong stock opened on November 18, and Xiangsheng's stock price was HK$3.55, which was slightly higher than the closing price of HK$3.45 on the previous trading day, that is, on the 17th, and it also rose slightly by 2.89%. Afterwards, Xiangsheng's stock price started a "pitfall". As of the midday closing, the stock price fell 28.99%, with a total market value of only HK$7.6 billion.
After the opening of the market in the afternoon, Xiangsheng's stock price continued to fall. As of the closing, it was at HK$1.58, a new low since its listing in November 2020, with a single-day decline of 53.91%; the total market value was only HK$4.839 billion, and the total market value in a single-day shrinkage of more than HK$5.6 billion on the 18th.
Data source: Snowball
html On the evening of the 418th, Xiangsheng issued an announcement on "Unormal fluctuations in stock prices and trading volume", saying that there was no default in the existing debt and that the company's controlling shareholder did not pledge any shares.
stock price fell by more than 53% in a single day
stock price has plummeted since the early trading session, and Xiangsheng's stock price movement has attracted a lot of attention in the real estate circle.
From the transaction details, Xiangsheng Holdings Group has made a large-scale transaction before the opening of the market, with a price of HK$3.45 per share, involving 9 million shares and involving 31.05 million yuan. Subsequently, there were large orders of 2.2 million and 1.11 million respectively, with a total of more than 12 million shares sold, laying the foundation for today's flash crash.
If the timeline is turned back, on November 4, the international rating agency S&P downgraded Xiangsheng's issuer's credit rating from "B" to "B-", looking forward to "negative". At the same time, the long-term issuance rating of Xiangsheng US dollar notes was also downgraded from "B-" to "CCC+".
public information shows that the standard credit rating standards can be divided into: AAA, AA, A, BBB, BB, B, CCC, CC, C and D. The plus and minus signs indicate the relative strength of the rating in each major rating classification.
Among them, the S&P rating "B-" rating description shows that the possibility of default is higher than that of "BB", and the issuer is still able to repay the debt, but unfavorable commercial, financial and economic conditions may weaken the issuer's ability and willingness to repay the debt.
S&P Rating "CCC" rating description shows that there is currently a possibility of default, and whether the issuer can fulfill his financial commitments will depend on whether the commercial, financial and economic conditions are favorable. The issuer may default when encountering an adverse commercial, financial or economic environment.
Standard believes that Xiangsheng's continued use of cash to repay maturing debts will hinder its liquidity in the next 12 months. Moreover, Xiangsheng uses the cash on hand to repay debts, which will reduce its resources to purchase new land or build. In addition, the bank also believes that Xiangsheng will face difficulties in refinancing or extending its trust loans.
However, Xiangsheng is not the only real estate company to have been downgraded. Since the second half of this year, under the dual high-pressure environment of policy and market, the real estate industry has faced multiple difficulties such as sales difficulties, decline in profits and debt pressure.
, and rating agencies have never stopped intensively downgrading the credit rating of real estate companies. Sohu Finance found that since November alone, real estate companies that have been downgraded or expected by three major rating agencies such as Moody's , S&P and Fitch include Rongxin China , Dexin China, Country Garden, Kaisa , Shimao Group , and Zhongnan Construction. Before this, the three major rating agencies lowered the credit ratings of real estate companies by more than 100 times.
Image source: Company Announcement
In response to the abnormal stock price movement on the 18th, Xiangsheng stated in the announcement that he passed self-examination and confirmed by the company's board of directors, and was not aware of the relevant reasons for the fluctuations in the transaction price and trading volume of today's shares; or any insider information that must be released.
At the same time, Xiangsheng said, "The company is operating normally, there is no default in its existing debts, and the controlling shareholder of the company (defined as Hong Kong Stock Exchange Co., Ltd. Securities Listing Rules) has not pledged any shares."
no debt-related centralized repayment pressure within 4 years
Xiangsheng was established in 1995, and in three years it has achieved a scale of sales from 10 billion to 100 billion yuan. It was listed on , Hong Kong Stock Exchange in November 2020, becoming the largest listed real estate companies in Hong Kong in 2020 and the last listed company in the top 30 domestic real estate companies. The latest financial report of
shows that in the first half of 2021, Xiangsheng achieved a total operating income of 15.89 billion yuan and a net profit of 970 million yuan, a year-on-year increase of 19.6% and 135.6%; the gross profit margin was 18%, a slight decrease of 0.1%, but it was basically the same as in 2020. The land cost of property projects that were recognized during the period was relatively high. In terms of sales performance of
, during the period, Xiangsheng Holdings achieved sales of 49.681 billion yuan, a year-on-year increase of 30.4%; the equity sales area was 3.7636 million square meters, a year-on-year increase of 28.3%; the average selling price was 13,200 yuan/square meter, a year-on-year increase of 1.6%.
In terms of the "three red lines", as of the end of June this year, Xiangsheng Holdings' net debt ratio was 96.6%, which has met the "green level" requirements; the cash-to-short-term debt ratio is 1.2 times, and it is continuously optimized; the debt-to-asset ratio after excluding prepayments has dropped to 79.4%, which has not met the regulatory requirements.
According to the interim financial data, the improvement of Xiangsheng's net debt ratio indicator is mainly due to: as of the end of the period, its total loan amount (including interest-bearing banks and other loans, corporate bonds and priority notes ) was 46.2 billion yuan, basically the same as the end of 2020; cash and cash balances (including cash and cash equivalents , restricted cash, etc.) were 27.3 billion yuan, an increase of 12.4% from the end of 2020, resulting in the company's net interest-bearing liabilities balance falling from 21.87 billion yuan at the end of 2020 to 18.89 billion yuan.
is then disassembled in detail. As of the end of the period, Xiangsheng's cash funds were 27.3 billion yuan. Among them, the restricted funds were as high as 11.836 billion, and the cash and cash equivalents were 7.624 billion, but the short-term debts that it needs to repay within one year reached 22.162 billion.
According to information revealed by Tan Mingheng, vice president and chief financial officer of Xiangsheng, at the 2021 interim performance meeting, Xiangsheng Holdings also increased its equity cooperation in the first half of the year and introduced cooperation to create 2.9 billion yuan of funds; in addition, profit carryover increased the company's equity, which led to the optimization of the net debt ratio indicator under the action of comprehensive factors.
According to him, Xiangsheng Association took 1-2 years to make all the "three red lines" meet the standards. The main measures include continuing diversified land acquisition strategies, reasonably arranging the delivery rhythm, strengthening capital market financing efforts, and increasing revenue and reducing expenditure.
According to the public information review, Xiangsheng currently has three US dollar bonds in still within , which will expire in January, June, 2022, and August 2023 respectively. In addition, Xiangsheng issued a 500 million yuan housing rental special private bond on Shenzhen Stock Exchange in December 2020, which will expire on March 2, 2023. In other words, Xiangsheng currently has no pressure to repay centralized debts.
Previously, on November 4, Xiangsheng also announced that it had repurchased the 2022 notes of indirect subsidiaries in the open market, accounting for approximately 2.82% of the total principal of the notes issuance.
"The company will continue to monitor the market conditions and its financial structure, and may further repurchase priority notes at appropriate times." Xiangsheng also stated in the announcement. The latest data from
shows that Xiangsheng achieved contract sales of 4.082 billion yuan in October, an increase of 21.24% month-on-month from the previous month. In the first 10 months of this year, Xiangsheng achieved a total contract sales of approximately 68.363 billion yuan.
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