The salary of all employees at the headquarters of Sony Holding Group is reduced by 70%
[Epoch Times September 22, 2021](Epoch Times reporter Fang Xiao reported) Jiangxi’s billion-dollar real estate giant, the share price of Sony Holding Group, controlled by rich man Zhang Yuanyuan, plummeted 87% on Hong Kong Black Monday, and the total market value evaporated in a single day More than 12 billion Hong Kong dollars. The relative value of Zhang Yuanyuan has shrunk by 10 billion Hong Kong dollars. According to sources, all employees in the group headquarters have cut salaries, and the vice president level has dropped by 70%.
On September 20, the Hong Kong stock market plummeted and real estate stocks almost collapsed. Sony Holdings staged a big “diving”, and its stock price fell to 0.37 Hong Kong dollars per share in intraday trading, a decrease of 91%.
In response, Xinli Holding Group urgently issued a temporary suspension announcement. Before the suspension, the share price of Sony Holding Group was 0.5 Hong Kong dollars per share, a single-day drop of 87.01%, and the total market value was only 1.785 billion Hong Kong dollars.
In contrast, the total market value of the Sony Holding Group at the close of the previous trading day was HK$13.745 billion. It shows that its total market value evaporated about HK$12 billion on September 20.
So far, Sony Holding Group is no longer a tens of billions of real estate giants.
As of December 31, 2020, Zhang Yuanyuan, chairman and actual controller of Sony Holding Group, holds 83.19% of the shares. This also means that Zhang Yuanyuan’s worth is less than 1.5 billion Hong Kong dollars, a relative decrease of 10 billion Hong Kong dollars. Zhang Yuanyuan once ranked 354th in the “2020 Forbes China 400 Rich List” with a wealth of 11.41 billion yuan.
Jiemian News reported on September 22 that on the evening of September 20, Zhang Yuanyuan issued an emergency announcement that the company’s shares and debt securities were temporarily suspended from trading.
Zhang Yuanyuan established Xinli Holding Group in 2010. Rushing all the way, advancing to the top three in Jiangxi in 5 years, and into the top 30 in the country in 10 years.
According to the report, Zhang Yuanyuan seized the opportunity of the Jiangxi real estate market to explode and drove the company’s rapid development. It took 9 years to put the company on the Hong Kong stock market and became the youngest mainland real estate company.
According to public information, Xinli Holding Group was founded in 2010 and listed on the Hong Kong Stock Exchange in 2019.
Beduo Finance reported that the 2021 interim performance report of the Xinli Holding Group showed that the Xinli Holding Group achieved revenue of approximately 11.22 billion yuan in the first half of 2021, a year-on-year increase of 28.9%.
As of the end of June 2021, Xinli Holding Group has current liabilities of 75.428 billion yuan, and a total of 13.24 billion yuan of debt will mature in the next year.
The report said that for now, the Sony Holding Group is experiencing the “dark moment” since its listing.
It is worth mentioning that the Sony Holding Group is also planning to spin off its property management company, Sony Services, to be listed on the Hong Kong Stock Exchange. On March 4, 2021, Sony Services publicly submitted the prospectus on the Hong Kong Stock Exchange, and it “lapsed” in early September 2021. This means that Sony’s first sprint for listing on the Hong Kong stock market has failed.
However, Sony Services said to Beduo Finance that the failure of the listing document does not mean that the listing has failed. The proposed issuer can still reapply and “activate” the listing process by updating the information.
The news surrounding the company and Zhang Yuanyuan has been constant recently.
In July of this year, a “Letter for Help” circulated on the Internet. It was disclosed in this letter that Zhang Yuanyuan suffered financial fraud when the company went public and owed 1.6 billion Hong Kong dollars in loan sharks. He has not been out of trouble so far.
Subsequently, Zhang Yuanyuan and his company responded to the content through the official website as “purely fictitious and malicious slander”, but the public opinion of the debt crisis has not stopped.
Zhang Yuanyuan also quietly made a cut in the in vitro business of the market. In August of this year, the ultimate beneficiary and actual controller of Youjia Industry controlled by Zhang Yuanyuan changed from Zhang Yuanyuan to Zhang Lei. Before the change, Zhang Yuanyuan held 79.2% of the shares.
In September, the company’s many US dollar bonds fell to a record, especially on September 17, when the price of the company’s US dollar bonds due in October 2021 fell to 25.5%, triggering pessimism in the market.
On September 10 and September 15, the international rating agency Standard Popularity Fitch successively adjusted the company’s rating from stable to negative.
Standard & Poor’s believes that the company’s capital market channels have been damaged and financing channels have narrowed, and more funds may be needed to repay mature overseas bonds.
According to The Paper, on September 18, the Personnel Department of the Sony Holding Group verbally notified all employees of the group headquarters to reduce their salaries. Among them, the level of vice president was reduced by 70%, the level of general manager was reduced by 60%, and the level of director was reduced by 50%.
Up to now, the company has 3 USD bonds, namely, USD 210 million bonds issued in June 2020, maturing on June 18, 2022, and USD 250 million bonds with a term of 364 days in October 2020; January 2021 The US$250 million bond issued will mature in January 2022.
The total outstanding amount of the US dollar debt is US$694 million, one of which will mature in October this year. The company said it would reserve its own funds or apply for new dollar bonds to cover it.
In recent years, the company’s financial pressure has not alleviated at all. In the first half of this year, the company has adopted trust financing four times, and plans to raise a total of 1.5 billion yuan. The financing cost is 9%-11%, which is higher than the industry average financing level.
Editor in charge: Li Muen
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