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zebra consumption yangzhe

two years after the boss lady took over, yuzhou group finally saw the light of day.

recently, the company's overseas debt restructuring plan has made new progress. the plan has been approved by the vast majority of creditors of both categories a and b and is only awaiting approval and ruling from the court.

as a fujian-based real estate company that is about to successfully restructure its debt, it is more important to resume blood production and ensure cash flow. in the current market context, relying solely on real estate sales may be a drop in the bucket. however, the company's chairman and ceo guo yinglan has already thought about it. she said that she will use various channels to reduce financial pressure by means of debt restructuring and asset sales.

seeing the light

hard work pays off. on the road to debt restructuring, yuzhou group (01628.hk) finally saw the light of day.

last week, the company announced thatdebt restructuringaccording to the results of the planning meeting, the company's overseas debt restructuring plan has obtained the support of the statutory majority of plan creditors.

according to the announcement, the creditors participating in the company's overseas debt restructuring plan are divided into two categories: a and b.

as for class a plan creditors, there are a total of 1,648 plan creditors participating, holding a total of approximately $6.621 billion of voting plan claims. among these plan creditors, 1,645 voted in favor, holding a total of approximately $6.573 billion of voting plan claims. among class a plan creditors, the votes in favor account for approximately 99.28% of the total value of the voted voting plan claims;

a total of 191 class b plan creditors participated in the creditor plan meeting, holding a total of approximately us$1.173 billion in voting plan claims, and all voted in favor.

according to relevant procedures, after the planned creditors' meeting, the debt restructuring plan must also be approved and ruled by the hong kong court and the cayman court.

if everything goes well, yuzhou group will become another private real estate company that successfully completes debt restructuring.

yuzhou group has been under debt pressure for a long time. as early as the beginning of 2022, the company's two us dollar bonds matured. with the consent of investors, the extension was successfully completed, but it failed to buy the company more time. on march 7 of that year, the company announced that an 8.5% senior note (code 05719) due in 2023 defaulted, and after a 30-day grace period, it still failed to pay interest of us$21.25 million.

the company had tried to liquidate its assets to ease debt pressure, and even transferred yujia lifestyle services, which was rushing to the hong kong stock market, to china resources vanguard lifestyle (01209.hk) for 1.058 billion yuan. it also transferred several units and parking spaces in the building at no. 17 sunny sun street, kowloon, hong kong to taijie co., ltd. for hk$305 million.

in early august 2023, the company announced a preliminary debt restructuring plan, the core content of which is to convert bonds into short- and medium-term us dollar bonds, or into newly issued common shares of the company. after more than a year of communication and coordination, it has finally been recognized by most creditors.

the secondary market was optimistic about this, and the stock price saw a rare surge. on the first trading day (september 19) after the company disclosed the results of the debt restructuring plan meeting, the stock price rose as high as 19.05% during the trading session and closed at hk$0.073, up 15.87%.

self-hematopoiesis

the debt restructuring plan is only one step away from being finalized, but this method of exchanging time for space ultimately has to be guaranteed by continuous cash flow.

in the first six months of this year, yuzhou group achieved a cumulative sales amount of approximately rmb 4.346 billion, a year-on-year decrease of 62.77%; the cumulative sales area was approximately 279,300 square meters, a year-on-year decrease of 59.77%; the average sales price was 15,561 yuan/square meter, a year-on-year decrease of 7.76%.

in the first half of this year, the company achieved operating income of approximately rmb 6.378 billion and a net loss of approximately rmb 6.256 billion attributable to the parent company. as of the end of june this year, the company had approximately rmb 3.561 billion in cash and cash equivalents and restricted cash.

in terms of regional distribution, the company's revenue mainly comes from the yangtze river delta, central china, southwest china, the haixi economic zone, the guangdong-hong kong-macao greater bay area and the bohai rim region.

in the first half of 2024, the yangtze river delta region contributed approximately rmb 3.56 billion in sales, accounting for 58.09% of the company's confirmed revenue. in the same period last year, the yangtze river delta region contributed approximately rmb 5.46 billion in sales, accounting for 44.96%.

the company started its nationalization journey in 2004, with the first battle being shanghai, a key city in the yangtze river delta. under the strategic execution of deepening regional development, the company has been deeply rooted in the yangtze river delta for 20 years, with businesses and projects covering cities such as shanghai, suzhou, hangzhou, nanjing, hefei and ningbo.

as of the end of june this year, the company had 74 projects in the yangtze river delta region, with a total saleable building area of ​​3.4325 million square meters, accounting for 30.3% of the company's total saleable building area.

in the current real estate market environment, it is difficult for distressed real estate developers to provide sufficient cash flow through real estate sales. previously, the company's chairman and ceo guo yinglan said that they would use various channels to reduce the pressure of funds by selling assets.

yuzhou group still has a lot of assets that can be converted into cash. as of the end of june this year, the company held about 1.624 billion yuan of land for property development and sales, about 10.585 billion yuan of properties for sales, and about 26.749 billion yuan of properties under construction, so there is room for maneuver.

the boss lady's seal

in june 2022, lin longan resigned from his positions as chairman and ceo of the company, and his wife guo yinglan took over.

at that time, the company gave the reason for lin longan’s resignation as “work arrangement adjustment”. after his resignation, he was adjusted to a non-executive director and continued to participate in matters such as board supervision and inspection.

before guo yinglan stepped onto the stage, the corporate debt crisis was looming. in the following two years, she experienced many storms, including industry downturn and debt pressure. in the past, she stood behind the company's head, lin longan, but now she is at the center of the vortex.

in 1997, guo yinglan joined yuzhou group and held important positions in the company and its subsidiaries, specifically responsible for finance, capital and auditing. in october 2009, guo yinglan served as executive director and vice chairman of yuzhou group, familiar with company operations, real estate development and asset management.

in the more than 20 years of the group's development, guo yinglan has almost never missed any key nodes. especially when lin longan started his own business in his early years, it was guo yinglan's support and encouragement that enabled him to make his first pot of gold.

after years of hard work, yuzhou has reached the pinnacle. in november 2009, the company successfully listed on the hong kong stock exchange. in 2016, it moved its headquarters from fuzhou to shanghai, embarking on a path of national expansion. four years later, the company's contract sales exceeded 100 billion yuan, officially entering the ranks of domestic real estate companies with sales of 100 billion yuan.

the company has only been in the 100 billion real estate enterprise camp for two years. in 2022, the industry situation took a sharp turn for the worse, and yuzhou group's liquidity crisis was inevitable.

judging from her qualifications, during the low period of business development, guo yinglan has the natural resilience, patience and execution ability of a woman, and with the blessing of her banking background, she can also play a greater role.

however, after the company decisively gave up on scale development and placed its hopes on the "small and beautiful" development route, how to survive became the heaviest burden on her shoulders.