[Epoch Times December 02, 2021](Epoch Times reporter Li Jing comprehensive report) On the evening of November 30, Zhejiang-level enterprise Baidu Group issued an announcement stating that the debt principal and interest of the Fantasia Hangzhou project invested by the company were overdue. File a lawsuit.
According to The Paper, on November 30, Hangzhou Hongtong received a written notification letter from Hangzhou Xingang that Hangzhou Xingang has filed a lawsuit against Hangzhou Huapu, Fantasia Group (China) Co., Ltd., and Shanghai Fantasia Real Estate Development Co., Ltd. , Hangzhou Intermediate Court has filed the case.
Baida Group invested 100 million yuan (RMB, the same below) in Hangzhou Hongtong Enterprise Management Partnership (Limited Partnership) with its own funds in June this year, and through Hangzhou Xingang Enterprise Management Partnership (Limited Partnership) Real Estate Development Co., Ltd. issues loans. The expected return on this investment is 10.8%/year, and the expected return is collected quarterly. The company received 89,000 yuan on June 21, 2021, and 2,648,500 yuan on September 18, 2021.
On November 6, Baida Group issued an announcement stating that it had not received its principal and interest repayment on schedule.
Hangzhou Huapu was established on May 19, 2021. It is a project company established by Shanghai Fantasia to develop the R21-21a plot of Pule unit in Binjiang District, Hangzhou.
According to a report by the financial media “Gelonghui”, Fantasia is highly dependent on bond financing, and the short-term debt is serious. As of the first half of 2021, bonds accounted for 67.1% of the company’s interest-bearing liabilities, of which US dollar bonds accounted for more than 50%. In terms of the maturity structure, the proportion of maturity within one year reached 38%, and the degree of short-termization was relatively high. Moreover, in recent years, it has relied on credit bonds to borrow the new and repay the old, but the cost of financing has continued to rise.
Fantasia Holdings stated on October 4 that it failed to repay the U.S. dollar bills due on October 4 with an outstanding principal amount of US$206 million. The news aroused strong concern.
Bloomberg reported that, given Fantasia’s political ties, Fantasia may become an example of Beijing’s efforts to curb excessive lending.
The head of the Fantasia Year, Zeng Baobao, is a typical member of the CCP’s red noble family. His uncle Zeng Qinghong was the Vice President of the CCP. Fantasia is famous for building high-end residential projects and luxury apartments. Fantasia Holdings has dozens of ongoing real estate projects in many major cities in China, including Beijing, Wuhan, Tianjin and Ningbo.
According to the report, the wealth of the Zeng Qinghong family has been a concern before, including the purchase of a Sydney luxury house by Zeng Qinghong’s son Zeng Wei, the acquisition of 91.6% of the Luneng Group with a net worth of more than 70 billion yuan at a low price, and the involvement of the Zeng Qinghong family in the Panama document scandal.
Editor in charge: Hu Yulong#
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