of May 22, Jinke issued the Prompt Announcement on the Company's Application for Reorganization by Creditors. On the same day, the company received the Notification Letter from Chongqing Duanheng Construction Engineering Co., Ltd., which considered that although the company could not pay off its debts due and obviously lacked solvency, it still had certain reorganization value as a listed company, so it applied to the Fifth Intermediate People's Court of Chongqing for reorganization of the company.
On May 23, the Shenzhen Stock Exchange sent a letter of concern to Jinke, asking it to explain whether the company had evaded debts through bankruptcy reorganization and damaged the legitimate rights and interests of creditors and small and medium-sized shareholders.
The Shenzhen Stock Exchange requests to explain the specific circumstances of Duanheng Construction's holding of the company's creditor's rights, including the causes, the amount of the creditor's rights, the repayment situation, the information disclosure obligations and the review procedures (if applicable), and to explain one by one whether the aforementioned debts have expired, and whether the basis for applying for bankruptcy reorganization of the company is sufficient and reasonable. Whether it complies with the relevant provisions of the Enterprise Bankruptcy Law, and please fully disclose the relevant uncertainty risks.
In addition, the Shenzhen Stock Exchange requests to verify and explain whether Duanheng Construction is related to Jinke Stock, Jinke Stock Directors, Supervisors, Senior Managers, more than 5% shareholders, actual controllers or other relationships that may cause a tilt of interests, and whether its proposal to the court for reorganization is driven by the aforementioned relevant subjects. Whether Jinke shares evade debts through bankruptcy reorganization and damage the legitimate rights and interests of creditors and minority shareholders. On December 30, 2022, both domestic and overseas debts defaulted
with a
loss of 10 billion US dollars. A US dollar bond with a coupon of 6.85% constituted a default, and Jinke officially exploded.
In the case of insufficient cash flow, "insurance" has become a common strategy adopted by most housing enterprises, which gives priority to limited liquidity for domestic debt payment, insurance delivery and daily operation.
But in 2023, Jinke even defaulted on its domestic debt.
On February 27, Jinke Real Estate Group Co., Ltd. announced that it had defaulted on domestic debts. "20 Jinke Real Estate MTN002" failed to pay the principal and interest on time and in full, totaling 51.38 million yuan.
Jinke shares said that due to the superposition of macroeconomic environment, industry environment and financing environment, the company's liquidity has been tense in stages, and the holders'meeting on the extension scheme of the current medium-term bills is still in the process of convening, and the voting procedure of the holders' meeting has not been completed as of the date of this announcement. In view of this, the company failed to pay the principal and interest payable of the current medium-term notes on time.
Jinke's 2022 annual performance forecast: the net profit loss attributable to shareholders of listed companies is 9.5 billion yuan to 19 billion yuan, turning from profit to loss compared with the same period last year.
By the end of January 2023, the scale of interest-bearing liabilities of Jinke was 68.415 billion yuan, a decrease of 12.195 billion yuan compared with the end of 2021; the balance of interest-bearing liabilities due within one year was 37.551 billion yuan, of which 28.577 billion yuan of interest-bearing liabilities were extended.
As a well-known Chongqing-style real estate enterprise, Jinke was founded in 1998, and its business has spread over 23 provinces, municipalities directly under the Central Government and autonomous regions, with rapid growth in scale, and has been the first developer in Chongqing, ranking ahead of Longhu. It has become the first representative private enterprise in Chongqing for many years.
In 2021, after Jinke's real estate financing exploded into debt crisis, the Chongqing Municipal Government gave Jinke great support, which is extremely rare in the current housing enterprises. Including:
1, the release of relief funds in batches, in the form of loans and pledges of project equity to Jinke Group, has 300 million yuan of relief funds in place;
2. Lead the state-owned enterprises in Chongqing to negotiate on the issue of equity investment in Jinke Group, and the investors currently in contact include Chongqing Yufu, Chongqing Liangjiang New Area Industrial Development Group, Chongqing City Investment, Chongqing Real Estate Group, Chongqing Development Investment Co., Ltd., etc;
3. To invest in the real estate project company of Jinke Group in stages, to endorse the credit enhancement of the project, to facilitate bank loans to Jinke Group, to moderately release the pre-sale funds of Jinke Group's projects in Chongqing, and to support Jinke Group in financing and credit by the financial management department. In terms of
capital, the Chongqing government will give Jinke Group the form of loan and pledge of project equity. Subsequently, including the support of the real estate industry at the policy level, Jinke received further funds.
Jinke stressed that the company has set up a special working group and is actively communicating, coordinating and striving for government relief policy support, especially in alleviating the liquidity pressure of short-term funds, resolving the risk of stock debt and revitalizing various regulatory funds, the government and relevant departments have given strong support. By the end of January 2023, the company's regional companies had been granted a total of more than 2 billion yuan of special loans from the state and local governments, of which more than 1.2 billion yuan of available funds had been allocated to project companies, alleviating the liquidity pressure of short-term funds at the project level to a certain extent.
But Jinke, which is deeply in debt crisis, still faces a confused prospect.
Jinke shares said in yesterday's announcement that if the company successfully implements the reorganization and completes the reorganization plan, it will be conducive to optimizing the company's asset-liability structure and enhancing the company's sustainable operation and profitability; if the reorganization fails, the company will have the risk of being declared bankrupt. If the company is declared bankrupt, according to the regulations, the company's shares will face the risk of being terminated.
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