[EpochTimesMarch192022](The Epoch Times reporter Li Jing comprehensive report) On Friday (18th), executive vice presidents of Chinese real estate giant Tahoe Group Huang Xi and vice president Lin Wenhua were taken away by the police to assist in the investigation. As early as Wednesday, Tahoe Group issued an announcement that Huang Qisen, chairman of the group, was assisting relevant departments in the investigation.
On March 18, according to various media reports such as “Daily Economic News”, executive vice president Huang Xi and vice president Lin Wenhua of Tahoe Group were taken away to assist in the investigation.
Huang Xi joined Tahoe Group in August 2018 as Executive Vice President, in charge of the Funding Department. He previously worked in China Construction Bank for 32 years, and was the general manager of the Investment Banking Department of China Construction Bank Headquarters before leaving. Lin Wenhua also has a working background in China Construction Bank.
On the evening of March 16, Tahoe Group announced that its chairman Huang Qisen was taken away to assist in the investigation. In just two days, it was reported that related personnel were involved in the incident, but the specific reason has not yet been determined.
According to “Financial World” Weekly learned from people familiar with the matter, Huang Qisen was taken away by Fujian Economic Investigation before, and the specific reason is not clear. According to the person’s guess, it may be caused by economic irregularities.
Tahoe Group exploded
Tahoe Group was established in 1992. The operation of the enterprise includes real estate development, company trademark franchising and hotel management. In 2019, it ranked 72nd in China’s private enterprise service industry, and in 2020, it ranked 31st in China’s top 100 real estate companies.
In June 2020, Tahoe Group exploded. In the past two years, Tahoe has made many efforts to get rid of the crisis. To this day, Tahoe Group is still in a quagmire.
In fact, since the company fell into a liquidity crisis in the second half of 2018, Tahoe Group and its actual controller Huang Qisen have been brought to court by a number of financial institutions.
Wind data shows that currently, in addition to the eight defaulted domestic bonds, Tahoe Group also has one overseas dollar bond that will mature on July 10 next year. The bond size is 400 million US dollars (about 2.548 billion yuan), and the coupon rate is 15%.
The financial situation of Tahoe Group is indeed hard to be optimistic. The financial report shows that in the first three quarters of 2021, Tahoe Group achieved a total revenue of 1.582 billion yuan (RMB, the same below), a year-on-year decrease of 43.64%; the cumulative net profit was -762 million yuan.
With the passage of time, Tahoe’s debt repayment pressure is also further increasing. During the period, the total liabilities of Tahoe Group was 204.522 billion yuan, and the asset-liability ratio was 91.82%, which was an increase compared to the total liabilities of 197.375 billion yuan and 86.23% of the asset-liability ratio in the same period last year. During the period, Tahoe’s overdue and unreturned loans reached 49.563 billion yuan, while its cash and cash equivalents were only 700 million yuan. Compared with the loan amount, it was a drop in the bucket.
Chinese real estate companies’ overseas debt will peak 4 times this year
Liu Shui, head of research at the Enterprise Division of China Index Research Institute, told Securities Daily, “From the perspective of the whole year of 2022, 658.94 billion yuan of bonds will mature (data from China Index Research Institute), of which credit bonds account for the proportion of 47%, and overseas debt accounted for 53%.”
According to incomplete statistics, the 2022 overseas debt financing of 100 typical housing companies will be due mainly in the first half of the year, and March, April, June and July are all small peaks in debt repayment for overseas debt financing.
Public data shows that in 2022, overseas debts due by real estate companies are equivalent to about 356 billion yuan, of which 196.7 billion yuan is due in the first half of the year.
Responsible editor: Sun Yun#