[Epoch Times September 11, 2021]A-share listed companies’ performance disclosures for the first half of the year ended. Among them, 562 suffered losses. The top 10 loss-making companies had a total loss of more than 50 billion yuan (RMB, the same below).
Wind data shows that the top 10 loss-making companies in the first half of this year are: China Fortune Land Development, Air China, ST Kaile, China Eastern Airlines, Shanghai Electric, Blu-ray Development, China Southern Airlines, TusHoldings, Suning.com, and New Hope.
Among the top 10 loss-making companies, the transportation and real estate industries have the largest number of listed companies, with 3 and 2 companies respectively. The total losses of the above 10 companies exceed 50 billion yuan.
According to the semi-annual report, among China’s three major state-owned airlines, Air China suffered the most losses, reaching 6.786 billion yuan, while Eastern Airlines and China Southern Airlines lost 5.208 billion yuan and 4.688 billion yuan respectively. As for the reason for the loss, it is mainly affected by the epidemic, and the future epidemic is still the biggest uncertain factor affecting the recovery of the air transport industry.
In addition, the above 10 loss-making companies have considerable credit scale in banks.
As of the end of June 2021, China Fortune Land Development’s total financing amounted to 187.619 billion yuan, of which the bank loan balance was 45.220 billion yuan;
The total loan amount of Shanghai Electric Bank is 41.845 billion yuan;
Air China still has an unused bank credit line of approximately RMB 124.132 billion;
China Eastern Airlines disclosed that the credit line of the group’s unused banking institutions was approximately RMB 35.3 billion;
China Southern Airlines stated that the group has obtained a total of approximately RMB 333.6 billion of credit lines provided by several domestic banks and other financial institutions, of which approximately 107.3 billion has been used, and the unused credit line is RMB 226.3 billion.
It is worth noting that 3 of the top 10 loss-making companies in the first half of the year have overdue loans. The three companies are China Fortune Land Development, Blu-ray Development, and Tuition Environment, with a total overdue amount of more than 17 billion yuan.
According to the “China Business News” report, Blu-ray Development announced on the 4th that recently, the company and its subsidiaries have added 2.667 billion yuan in principal and interest of unpaid debts due. As of September 3, 2021, the company’s accumulated unpaid principal and interest debts totaled 18.664 billion yuan (including bank loans, trust loans, debt financing instruments and other forms of debt).
Regarding the overdue business, Blu-ray Development explained in the announcement that due to the superimposed impact of the macroeconomic environment, industry environment, and financing environment, since the end of 2020, the company’s public market refinancing has been blocked, and the recovery of operating cash flow has slowed down. The liquidity was temporarily tight, and some financial institutions announced the maturity in advance, resulting in the company’s failure to repay some of its debts as scheduled.
“Times Weekly” reported that as of September 4, China Fortune Land Development failed to repay the principal and interest of the debt as scheduled, totaling 87.899 billion yuan.
In June of this year, “China Fortune Land Development” sold Shenzhen Urban Renewal Company to Shenzhen Peng Rui Real Estate. On July 27, it gave the Nanjing Jiangning Project to Vanke. On July 28, it transferred the equity of Beijing Fengtai Project; at the end of June, Sino-Ocean With a capital of 20 billion yuan in the acquisition of Red Star Real Estate; Blu-ray Development has successively sold more than 30 projects this year in order to deal with the debt default problem.
China’s listed real estate companies continue to default, and credit risk exposure has shown a trend of “large-scale” and “mainstreaming”. Defaults have gradually spread from small marginal real estate companies to TOP50 real estate companies.
At present, the debt of Chinese real estate companies has reached a peak. According to statistics from the Shell Research Institute, from January to July this year, the amount of domestic and foreign bond financing of real estate enterprises totaled approximately RMB 642.8 billion, a decrease of 13% from the same period in 2020. In just 6 months, 12 real estate companies have breached their contracts. In addition, as of September 5, a total of 274 Chinese real estate companies have issued bankruptcy documents, and on average, about one real estate company goes bankrupt every day.
Editor in charge: Li Bing#
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