[Epoch Times, February 1, 2022](Epoch Times reporter Liu Yi comprehensive report) Mainland A-share listed companies have recently announced their 2021 performance forecasts. Dozens of companies have difficulty in capital turnover due to stepping on Lei Hengda.
According to a report by the Financial Associated Press on January 29, recently, companies including Quanzhu Co., Ltd., Jangho Group, Zhongheng Design, Wole Home Furnishing, Karen Co., Ltd., Qumei Home Furnishing, Piano, Tianan New Materials, Shanghai Electric, and Jianyi Group , Grandland Group, Wenke Garden, Gold Mantis, Holike, Jiangshan Oupai, Jiayu Co., Ltd. and other listed companies have disclosed the risk of accruing impairment reserves for related funds of Evergrande Group in their 2021 annual performance forecast. , this provision will have a direct impact on the company’s 2021 annual performance.
After the Evergrande Department “exploded”, the situation of the upstream and downstream companies in its supply chain being dragged down may be reflected in the 2021 financial report.
An industry insider said that the turnover of the real estate market was very fast before, and real estate companies settled with bills as a normal business model in the industry. However, the time for bill redemption is generally long. Once the bills cannot be redeemed normally, the accumulated amount will be large, and many of them will expire at the end of this year. And all the larger building materials companies have business with Evergrande, and not only Evergrande recently, but several other real estate companies have also experienced a similar situation, and this time they are basically implicated. The fact that these upstream and downstream companies are dragged down will basically be reflected in the 2021 financial report, and the impact is expected to gradually weaken after that. But it is hard to say whether there will be similar situations in other homes in the future.
However, the company and the real estate company signed a clause to prevent debt repayment, but there is still a situation that cannot be implemented. A company and Evergrande Group initially reached a settlement solution for the purchase of real estate for some of the overdue commercial tickets, but it could not be implemented. By the date of the disclosure of the performance forecast, a formal house purchase contract had not been signed, and the online signing could not be processed. The company does not rule out taking judicial measures to protect the company’s legitimate rights and interests, but the judicial process takes a long time, and according to the current situation of Evergrande Group, it is expected that the possibility of obtaining cash or other assets through judicial procedures in the future is low.
Commentator Wen Xiaogang told The Epoch Times that, after Evergrande defaulted at the end of last year, in addition to public debts that attracted market attention, an undisclosed number of commercial papers also aroused concerns of companies that have business relations with Evergrande. Judging from the performance forecast, these companies have classified Evergrande’s commercial papers as impairments, indicating that these companies are ready for Evergrande to not settle the payment.
Judging from the current news, Evergrande’s debt crisis has spread to suppliers and cooperative companies. Wenke Garden lost 1.8 billion yuan, equivalent to the company’s 10-year net profit; decoration group Gold Mantis collected debts of 1.6 billion yuan from Evergrande; two Hong Kong-listed companies Shenzhen Holdings and China Real Estate lost more than 100 yuan due to the devaluation of their holdings in Evergrande billion Hong Kong dollars; China Minsheng Bank lent more than 29 billion yuan to Evergrande Group, which may become bad debts.
Among them, Wenke Garden and Shenzhen Holdings have made it clear that due to Evergrande’s non-payment of debts, the company’s performance in 2021 will turn from profit to loss.
Responsible editor: Lin Congwen