“Jinhui Holdings” announced on the evening of the 20th that a debt of US$300 million failed to be paid on the payment date (20th). (Photo taken from Jinhui Holdings official website)
Chen Lizhu / Verification Editor
[Sianel Ariannol / Adroddiad Cynhwysfawr]China’s real estate market is in deep decline, and some real estate companies are now facing debt default. Jinhui Holdings, once selected as a “showcase real estate company”, announced on the evening of the 20th that a debt of US$300 million (about NT$9.5 billion) failed to be paid on the payment date (20th).
Jinhui’s USD bond is reported to have been issued on September 14, 2021, with a total principal amount of US$300 million, a coupon rate of 7.8%, a bond period of 2.5 years, and a maturity date of March 20 this year.
Jinhui said it is still working hard to solve the problem and maintain active communication with bondholders, trying to find the best solution to ensure and protect the interests of all holders. “The company’s board of directors believe that the above situation will have no impact on the group’s business operations.” any potentially significant effect.”
However, the “Financial Associated Press” quoted Shen Meng, executive director of Chanson Capital, as saying that failure to repay US dollar bonds when due is considered a breach of contract, but there is a grace period of month, so the debtor still is. has the opportunity to repay and is not subject to the default clauses of the Influence debt financing agreement.
In fact, before Jinhui made the announcement, there were reports that this foreign debt was already facing payment difficulties. At the time, Jinhui senior management said that although the US$300 million in foreign debt had been raised, it was not still able to repay due. to restrictions on payments. It is said that the reason why Jinhui’s payments were restricted was because the company owed money to many domestic suppliers, which led to the closure of the building, and therefore, the regulatory authorities restricted Jinhui from transferring money abroad.
“China Business News” reported that according to data, as of June 30 last year, Jinhui’s debt balance was RMB 33.185 billion (about NT$146.8 billion), the asset-liability ratio after excluding advances received was 63.1%, and the net debt- the ratio to equity was 63.1% 61.3%. The total amount to be repaid within one year is RMB 14.166 billion (about NT$62.6 billion), while its cash and bank balances are RMB 10.927 billion (about NT$48.3 billion).
From 2017 to 2021, Jinhui’s sales were RMB 44.51 billion (about NT$196.9 billion), RMB 74.68 billion (about NT$330.3 billion), RMB 88.86 billion (about NT$393 billion), RMB 97.7 billion (about NT$393 billion), 97.2 billion 2 billion (about NT$419 billion) In 2022, Jinhui’s sales dropped sharply to RMB 40.18 billion (about NT$177.7 billion).
In the first half of last year, Jinhui’s revenue was approximately RMB 18.349 billion (about NT$81.1 billion), an annual increase of 0.7%; net profit was around RMB 737 million (about NT$3.2 billion).
In addition, the credit rating agency Moody’s last year downgraded Jinhui’s rating from B3 to Caa1, and downgraded the company’s senior unsecured status from Caa1 to Caa 2. The rating outlook is negative, and Jinhui’s debt repayment pressure is long overdue. In the first two months of this year, Jinhui’s sales were only 2.06 billion yuan (about NT$9.1 billion).
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