Views: 0 Author: Site Editor Publish Time: 2023-10-26 Origin: Site
Since the epidemic, the national real estate market has been sluggish. In the post pandemic era of 2023, while various industries are slowly recovering, the real estate industry seems to have become "terminally ill" and "explosive".
In early May of this year, Rongchuang announced that it had failed to pay the interest due on four US dollar bonds within the 30 day grace period, resulting in a total unpaid interest of 104.7 million US dollars (704 million RMB). This means that Rongchuang officials have declared a debt explosion, and the boss Sun Hongbin has entered a dark moment, which has also opened the "2023 Pandora's Box" for domestic real estate enterprises.
In July of this year, China Evergrande Group issued multiple announcements, showing that as of the announcement date, it had a debt of 2.4 trillion yuan, a loss of over 800 billion yuan in two years, and more than 4 billion yuan in cash available. It is worth noting that the net profit of Kweichow Moutai in 2022 will be 62.7 billion yuan, and Evergrande's liabilities will be about equal to the net profit of Moutai in 40 years.
In early August of this year, multiple media outlets reported that Country Garden failed to repay the interest on two US dollar bonds as scheduled. It is reported that these two bonds together amount to $1 billion, with interest rates of 4.2% and 4.8%, respectively. Shortly after the news spread, Country Garden announced the suspension of several domestic corporate bonds, officially embarking on the path of bond restructuring, which also means that this "universe real estate enterprise" has taken a risk.
Only about 10 days after the debt incident at Country Garden was reported, COSCO Group also announced on the Hong Kong Stock Exchange that it expected the group to lose approximately RMB 17 billion to RMB 20 billion in the first half of the year. Prior to this, COSCO Group suffered its first loss since going public in 2022, and its gross profit margin also hit a new low. At the same time, COSCO Group is also on the brink of default on both bills and bonds.
Faced with the sluggish real estate industry, although the People's Bank of China issued the "Notice on Doing a Good Job in Financial Support of the Stable and Healthy Development of the Real Estate Market" as early as November 11, 2022, and issued the "16 Measures to Save the Market", it still cannot save the heavily indebted main real estate enterprises. On August 31 of this year, the Central Bank and the State Administration of Financial Supervision and Administration issued two notices, namely the "Notice on Reducing the Interest Rate of Existing First Home Loans" and the "Notice on Adjusting and Optimizing Differentiated Housing Credit Policies". The interest rate of existing housing loans has officially entered the preliminary adjustment plan, and the lower limit of the minimum down payment ratio for national commercial personal housing loans has also been uniformly adjusted. Although the efforts to "rescue the market" have increased, no one can provide a clear answer to the effect at present.
In just over four months, the continuous "explosions" of real estate enterprises have brought about negative "shock waves" of business formats, which have truly affected social livelihoods. This not only intimidates the general public who are interested in purchasing real estate, but also affects the business expansion of related supply chain enterprises. For lighting companies related to their business chain and real estate, how much impact does the continuous "explosion" of real estate companies have on themselves? What are the strategies to deal with it?
To be continued！
