The Reflection Of The Dilemma Of The Three Prosperous Industries: The Difficulties Of Small And Medium Enterprises Will Be Impending.

In recent days, the Sanxing Hongye industry in Zhejiang Province reported the news of the downtime of the project.

In September of this year, Sansheng Hongye was appointed by the second intermediate people's Court of Shanghai according to the compulsory enforcement notarization No. 228Th of the Changan Notary Office of Beijing, Changan (228Th), and it was put into the dishonest executor and executed for more than 398 million yuan. Subsequently, Sansheng Hongye developed in Hangzhou's Yijing imperial residence was found to have been shut down. In twenty-first Century, the economic news reporter contacted a person close to Sansheng Hongye chairman Chen Jianming, who said that the company had no plans to release any information about the company's overall situation at present.

Fuxing Group, a Fujian based housing company, has also heard a number of unfavorable rumors in the market. But in November 1st, Fu Sheng group issued a Clarification Announcement on the official WeChat, saying that rumors about the company's application for bankruptcy were dismissed and "layoff 50%" were false news. The company had never submitted bankruptcy applications to the relevant government departments, nor had it laid off 50%.

According to the people's court bulletin web data, up to now, 408 developers have been sentenced to bankruptcy liquidation this year. Zhang Hongwei, chief analyst of the same policy research institute, thinks that tightening control will affect the turnover rate of Housing enterprises first. For example, many housing companies in the past have problems with the plots taken by M & A, and have not handled smoothly in the past. Secondly, the decline in housing sales speed has led to the failure of the housing enterprises to maintain their existing operating conditions. Zhang Hongwei believes that the financing dilemma of small and medium enterprises is a common problem to be solved in the industry.

The dilemma of small housing companies

In September 24th, Sansheng Hongye debt default was incorporated into the credit information system. In September 26th, Chen Jianming and Shanghai three Sheng real estate (Group) Co., Ltd. respectively held Sansheng 415 million 400 thousand yuan equity and 200 million yuan equity interest, and was frozen by the Minhang District people's Court of Shanghai for a period of 3 years.

In September 30th, Sansheng Hongye held 100 million yuan of Shanghai Yi Cci Capital Ltd's share of 100%, which was frozen by the Qingdao intermediate people's court and the freeze period was 3 years. In late September, Sansheng Hongye intends to transfer the headquarters building of the riverside line in Shanghai with 1 billion 750 million yuan, which has not yet been concluded. In October, Chen Jianming and his Sansheng Hongye as defendants, at least 4 cases will be awaiting trial, involving hundreds of millions of dollars. In October 17th, Chen Jianming issued the temporary supervision group of Sansheng Hongye group. The loss of capital assets without approval or authorization shall be transferred to judicial organs.

Sansheng Hongye began to receive the attention of the industry in September. The above Sansheng Hongye insider acknowledged the tight funding and revealed that Dongfang assets would be involved in solving short-term funding problems. Reporters learned from the third party sources that Oriental assets had given loans to Sansheng Hongye. Once the company entered the asset reorganization, it should have the right to speak of the assets of Sansheng Hongye.

Fu Sheng group's real estate listed company platform Fu Sheng International, this year's share price fell sharply, layoffs, arrears of wages and other rumors of noisy dust. Fu Sheng denied massive layoffs, but some projects are about to end, but no follow-up projects keep up. Personnel diversion is normal.

In October 31st, the reporter visited the residential project of Fuxin group in Shanghai foreshore on the spot. According to the project progress plan, the project will be completed before the end of this year, and will be completed by the end of next February.

Since the acquisition of Fu Sheng International shell company, Fu Sheng has only injected several real estate projects in Changsha into Fu Sheng International, and most of the projects have been placed in the group. Fu Sheng Group Chairman Pan Weiming and his wife in September this year will also be holding 56.45% of the shares of Fuxin international, to their sons and two generation successors Pan Haoran.

In the past two years, the "Flying Tigers", which is a frequent occurrence in Fusheng group, began to fade out in 2018. Statistics from third party organizations show that in 2017, Fu Sheng group ranked second in the Fuzhou base camp with a sales scale of 7 billion 424 million yuan, ranking only tenth in 2018 and 4 billion 884 million in the first half of 2019.

Sansheng Hongye and Fusheng international are facing the same problem: the debt rate is high. As of June 30, 2019, Sansheng Hongye's interest bearing liabilities amounted to 26 billion 950 million yuan, accounting for 63% of its total liabilities, of which 13 billion 811 million yuan was short term liabilities in one year, and short-term debt repayment pressure was huge. Fu Sheng International net asset liability ratio is more than 130%.

Insiders pointed out that similar to the previous Zhejiang Province Housing enterprises with risk problems, Sansheng Hongye was stranded in the failure of diversification. Sansheng Hongye has been involved in science and big data and marine investment in recent years, and has not brought benefits to the real estate industry. Poor financing and the poor sales of Fuzhou base camp may be the main reason for the tight capital of Fu Sheng group.

Capital Luo Sheng door

Sansheng Hongye is not a case. As early as June this year, Bank of Yin has filed for bankruptcy reorganization in the Ningbo court because of default. According to institutional statistics, the housing company's sales income reached 65 billion 200 million yuan in 2016, and its total assets were close to 80 billion yuan.

Since the second half of 2018, many urban housing transactions have been slack, housing enterprises' cash flow has weakened, some small and medium-sized Housing enterprises have been stagnant, others are in financial difficulties.

Zhang Hongwei believes that following the issuance of regulation No. 23 by the CIRC in May, the financing channels for housing enterprises continued to tighten. Accompanied by this, the financing cost of Housing enterprises is obviously divided, and the financing costs of some top credit and high level housing companies remain low. However, some housing companies with high debt rates and tight liquidity are raising financing costs, and some have more than 15% interest rates.

A report from the Institute of strategic consultation showed that the total financing of 40 typical housing enterprises in the three quarter of this year amounted to 193 billion 773 million yuan, of which two yuan was 173 billion 321 million yuan in the first quarter and 245 billion 809 million yuan in the first quarter. After the 23 letter of the CIRC (May), the financing of Housing enterprises has shrunk dramatically. Taihe Group's financing amount exceeds 20 billion yuan, of which two US dollar bond interest rates are above 10%.

After consulting some financial institutions, the reporter learned that since September this year, the amount of trust financing has been limited, and the record of real estate funds has tightened. Housing companies are busy finding other financing channels. But in the case of declining market sales, housing companies, especially small and medium-sized Housing enterprises, have not opened up cash flow shortage.

Under the dual attack of sales failure and narrowing of financing channels, some small and medium-sized Housing enterprises are facing a crisis.