Newsletter summary
Langshi Green Management (HK00106) faces liquidity pressurePennsenator30reel, failed to pay the 2022 bill, or triggered creditors to speed up their repayment claims. Under the influence of the slowdown in the mainland real estate market, the company has reduced its advance sales significantly and is discussing a solution with bill holders. Operating income in 2023 is about 90%Pennsenator30reel40 million yuan, with contracted sales of about 18.39 billion yuan.
Text of news flash
Langshi Green Management (HK00106) faces financial difficulties and fails to pay bills on time, affecting investor confidence in the secondary market.
Longshi Green Management Co., Ltd. (HK00106) failed to make payments related to the 2022 note on April 20, 2024 due to liquidity pressure, which may prompt creditors to demand accelerated debt repayment. ]
According to the announcement, the note will be issued in October 2022 with an initial principal of about $119 million and an annual interest rate of 10.75%. It is paid semi-annually and is scheduled to mature on October 20, 2024. According to the terms, Longshi is required to pay a redemption price equivalent to 100% of the amount of the bill on April 20, 2024, with at least 30% of the principal and related interest.
In the announcement, Longshi pointed out that due to the slowdown in the mainland real estate market since the second half of 2021, the company's real estate development business in China has experienced a decline, resulting in a significant reduction in the number of housing pre-sales and proceeds in 2022 and 2023. Nevertheless, Longshi Green Management said that the group's business operations are still normal and will continue to work to ensure property delivery, accelerate sales and maintain operational stability.
For future measures, Lansi Green Management revealed that it is currently in discussions with bill holders and will continue to monitor market changes and consider possible actions. These actions may include the development of a comprehensive liability management solution for group-related liabilities and the engagement of financial and legal advisers to assist in related matters. The company promises that if there is any significant progress, it will update the information in a timely manner in accordance with the listing rules.
According to the 2023 performance data released by Longshi Green Management, the group realized operating income of about 9.04 billion yuan and gross profit of about 1.11 billion yuan. The contracted sales of Langshi products reached about 18.39 billion yuan, with a signed area of about 967000 square meters. During the year, the contract value of new development and construction services was about 460 million yuan, the new salable value was about 29.29 billion yuan, and the remaining saleable value was about 141.32 billion yuan.