On March 21, Xiangsheng Holdings announced that due to various unfavorable factors such as the macro economy, the real estate market environment and financial environment, and multiple rounds of epidemics, the Group’s liquidity has experienced periodic problems, and the company has not paid a 2023 payment before the expiration. US$12 million in interest on US dollar notes due.
According to previous announcements of Xiangsheng Holdings, the senior notes were listed on the Stock Exchange in 2018 (ISIN: XS2369849745, general code: 236984974), with a total principal of US$200 million and a coupon rate of 12%.
Xiangsheng responded to the “Daily Economic News” reporter: “The company will actively raise funds to solve the problem of overseas debt, and has been actively following up and dealing with various bond investors. At the same time, the company will also cooperate with domestic partners on related matters. Maintain close communication and exchanges to ensure that existing debt issues are properly resolved.”
Recently, Xiangsheng has made frequent attempts to revitalize resources. On March 18, Xiangsheng transferred a 58.5% stake in Linhai Ziyuan Yintong Real Estate Co., Ltd. held by a wholly-owned subsidiary of the company at a total consideration of 272 million yuan. The company’s assets are the rural revitalization construction project (Tangli Village BT project), including Zhejiang Residential and supporting facilities are under development in Dayang Street, Linhai City, Taizhou City, Province, with a total construction area of approximately 400,000 square meters.
As early as January 17, Xiangsheng also sold a 51% stake in “Hangzhou Bintuo Enterprise Management Co., Ltd.” to Zhejiang state-owned company “Zhelv Zhanjing Real Estate” for about 487 million yuan. The corresponding asset of the transaction is a property located in Xihu District, Hangzhou. of residential land to be developed.
On January 7, Xiangsheng transferred a 23.8% stake to a wholly-owned subsidiary of Ningbo Economic and Technological Development Zone Beilun Power Fuel Co., Ltd., with a transaction value of RMB 337 million. According to the information, the Target Company is principally engaged in elderly care services, hospital management, property management, hotel management, park management, health and sports-related consulting services (excluding diagnosis and treatment services), and its main asset is a health care and elderly care company located in Zhuji City, Zhejiang Province, the PRC. The center, with a construction area of 353,800 square meters, was under construction at the time.
The total sales volume of Xiangsheng’s three projects this year has exceeded 1 billion yuan.
Xiangsheng said: “With the recent recovery of policies and the market, the company is actively expanding marketing channels, arranging sales plans for projects, accelerating project sales, and promoting sales collection. The company will follow-up based on sales and delivery plans. Optimize the construction period of the project , rationally arrange cash flow. At the same time, the company will also take stock of corporate assets, actively seek partners for high-quality assets or projects, revitalize resources, and increase disposable funds on hand to deal with current liquidity risks.”
Source of cover image: Photo Network-500643987
