Home Business Zeng Qinghong’s family business “Fantasia” sells capital to repay over 4.5 billion yuan | Zeng Baobao | Real estate company | China Evergrande

Zeng Qinghong’s family business “Fantasia” sells capital to repay over 4.5 billion yuan | Zeng Baobao | Real estate company | China Evergrande

by admin
Zeng Qinghong’s family business “Fantasia” sells capital to repay over 4.5 billion yuan | Zeng Baobao | Real estate company | China Evergrande

[Epoch Times, May 22, 2022](The Epoch Times reporter Li Jing comprehensive report) The debt crisis of Fantasia Holdings Group Co., Ltd. (“Fantasia”), a large Chinese real estate company, has been going on for several months. Recently, Fantasia announced the sale of a 51% stake in China Jiaotong Huachuang, which attracted the attention of the industry. Since September last year, Fantasia has transferred assets of more than 4.56 billion yuan (RMB, the same below).

On the evening of May 19, Fantasia announced the sale of a total of 51% of the shares of CCCC Huachuang (Shaoxing) Real Estate Co., Ltd. to CCCC Meilu (Hangzhou) Real Estate Co., Ltd., a wholly-owned subsidiary of CCCC Real Estate, at a purchase price of about 408 million yuan At the same time, CCCC Real Estate received the same amount of creditor’s rights principal and interest of 70 million yuan from CCCC Huachuang, with a total transaction amount of about 760 million yuan.

Fantasia said in the announcement that the sale is one of the measures the company is implementing to alleviate liquidity problems.

According to the data, CCCC Huachuang is a project company jointly established by Fantasia and CCCC Real Estate, and CCCC Real Estate holds a 49% stake. The project company owns the Jinghu Guandu No. 4 project land in Yuecheng District, Shaoxing City, Zhejiang Province, which was auctioned by both parties for 4.156 billion yuan in April 2020. It is the last large-scale low-density residential land in the Guandu sector.

On September 28, 2021, Color Life, a property management platform under Fantasia, sold all the shares of its core asset, Neighborhood, to Country Garden Services for a total consideration of no more than 3.3 billion yuan. On October 4 of the same year, Fantasia announced a default on its debt due to its failure to repay US$206 million worth of notes as scheduled.

See also  Currencies: US dollar rallies non-stop for 3 reasons. And the emerging ones?

Fantasia Holdings is the family business of Zeng Qinghong, a former member of the Standing Committee of the Political Bureau of the Communist Party of China. His niece, Zeng Baobao, is the CEO and major shareholder of Fantasia Holdings and holds Hong Kong citizenship.

March 31 this year is the deadline for the annual report disclosure of mainland real estate companies listed in Hong Kong. Many real estate companies, including Fantasia Holdings, have been suspended by the Hong Kong Stock Exchange for failing to disclose their annual reports as scheduled.

From mid-October 2021, the three internationally renowned credit rating agencies Fitch, S&P and Moody’s have repeatedly downgraded Chinese real estate companies such as Fantasia, China Evergrande, and China Aoyuan. The company’s rating is due to the financial crisis.

“Securities Daily” reported that Fantasia has sold a number of assets since its public debt default in October last year. Together with the above-mentioned asset sales, the total amount of assets sold exceeds 1.26 billion yuan. It can be seen from this that since September 2021, the amount of assets transferred by Fantasia has exceeded 4.56 billion yuan.

After Fantasia fell into crisis, Zeng Qinghong has yet to show any signs of helping him. The outside world believes that he has been at a disadvantage in the struggle with Xi Jinping’s faction and is unable to help.

Responsible editor: Sun Yun#

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy