Billion Olympic Park Is Behind The Empty: Housing Companies "Walking Around" Financial Secrets

Human red is not many.

China's Austrian garden, which first entered the 100 billion club in 2019, has just released a notice of surplus at the end of 2.

Beginning in March 3rd, an anonymous short report and its author and Austrian garden "bar". According to the report, in the past few years, Austrian garden has hidden the real liabilities through the "Ming stock real debt", related party transactions and drawer agreements, with a profit of nearly 3 billion.

On the evening of March 5th, Austrian garden issued a clarification announcement to counter the report, and stated its non controlling shareholder rights and interests, sales and refund, and fund product compliance.

Real estate financial circles pointed out that the real debt of Ming stocks is common in the real estate industry. Through its own financial platform, it is also the operation of many housing enterprises.

China Olympic Park is a "dark horse" of real estate in recent years, and also a hot property market in the capital market. The anonymous report has cast a shadow over the company's upcoming 2019 earnings report.

"Confrontation" between the two sides

According to the short report, Austrian garden has aroused its concern that there are some unreasonable points in the financial report.

First, the sales growth rate of Austrian garden is not matched with the net debt ratio. The two is the non controlling shareholders' equity and profit inequality.

In the past three and a half years, the rate of return on investment of Austrian garden non controlling shareholders is only 3.4%, which is higher than that of 9 housing companies such as Biguiyuan, Fuli, Yuzhou and so on.

According to the report, the Austrian Park has injected tens of billions of loans into the minority shareholders of its subsidiaries through the trust and Austrian Park equity investment funds in the way of "Ming stocks and real debts". On the one hand, it has hidden the real debt ratio (above 300%), and on the other hand, it has inflated about 3 billion profits.

But there is no real evidence to prove that there is a drawer agreement between Austrian Park and related parties. This report is also considered by some investors to be "very unprofessional" and "do not understand real estate" at all.

In response to the challenge, the Austrian garden responded. On the evening of March 5th, Austrian garden issued a Clarification Announcement.

Austrian Park said that the company introduced non controlling shareholders at the project level (usually shareholders of the original project). With the carrying over of property deliveries and project profits in the past few financial years, the non controlling interest is gradually reflected.

On the other hand, real estate projects will normally take about two to three years from project acquisition to completion, and some projects (such as old projects) will have a project cycle of five years or more. Therefore, there is a time difference in the consolidated profit and loss and other comprehensive income statements and consolidated financial statements. The delivery schedule of the project is gradually reflected.

This can be summarized as that the minority shareholders' rights and interests are not equal to profits because of the non synchronization of stock recognition and settlement, rather than understatement of minority shareholders' profits.

However, Austrian garden did not elaborate on the investment path of non controlling shareholders. Similarly, the response did not convince the empty party to accept and accept.

The short side said it would provide relevant information to audit institutions and regulatory authorities for further investigation, and Austrian garden also said that it would retain the right to take legal action against related institutions and people.

The Austrian garden, which was short, fell 11.12% from March 3rd to 9.

This is the second time China's Olympic Garden has been short. In July 2019, an investor questioned the Austrian garden sales data fraud, resulting in its stock price fell 8.61% a day. Later, Austrian garden issued a Clarification Announcement, chairman of the board of directors Guo Ziwen massive increase in order to restore confidence in the market.

Universality?

Compared to the Hengda, which was short of citron, a few years ago, the Olympic Park's short selling didn't cause too much water spray.

A long-term track of Austrian garden investors believe that the Austrian garden business model is relatively unique, one is mainly mergers and acquisitions, the auction is rarely linked, while the management requires the items to be consolidated rather than placed outside the table, so the balance sheet has a large minority shareholder rights and interests; two, Austrian Garden actual profit than the current statements more profits. People who understand this business model will not accept the idea of short report.

From the perspective of dividends, Austrian garden has achieved a good balance between equity dividends and capital re investment. According to the earnings statistics, Austrian garden has been listed for 11 times in the past 12 years. The company has allocated about 1/3 profits to shareholders, with a total dividend of 3 billion 873 million yuan and a dividend rate of 31.17%.

More investors believe that the short report has no substance. As for housing prices, after last year's strict supervision of trust, real estate "Ming real debt" is not uncommon, it is conducive to enterprises to broaden the financing channels, reduce financial leverage, optimize consolidated statements, for the management, it can get higher returns, most of the housing enterprises, including leading housing companies have used the financing mode.

It is also common for Real Estate Company to use its financial platform to finance its own projects.

Then why is Austrian garden short? Aside from the professionalism of the short report, the market and investors will still ask, what is the specialty of Austrian garden compared with other housing prices?

Insiders pointed out that China's Austrian garden from 2016 to the first half of 2019, the proportion of non controlling shareholders were 39%, 62.6%, 61.4%, 62.1%, respectively, the proportion of non controlling shareholders is too large, amplifying the denominator of net debt ratio, disguised the debt situation, this kind of real debt, many real estate enterprises are using, but "Austrian garden used too ruthlessly".

Minsheng Securities believes that although the real debt of the Ming stock is not included in the enterprise's liabilities, but because of the agreed fixed income, the enterprise still has to face the cash ability from the Ming stock real debt when it is repaid. Therefore, when judging the solvency of the housing enterprises, the scale of the real debt should be considered as one of the considerations.

Yan Yuejin, director of the research center of Yi Ju think tank, pointed out that both the real stock debt and perpetual debt are the ways to smooth the financial statements by the housing companies. The use of these financial instruments must be based on the real sales and payment of the company, and the company must also ensure the health and safety of the cash flow.

The risk of China's Austrian garden is that future sales and payments are not as good as expected, or cash in hand is not enough to cover short-term financing obligations and interest, resulting in debt default.

In February 27th, Austrian garden issued a positive profit forecast that the core net profit in 2019 exceeded 50%, mainly due to the increase in settlement area.

The short report said that the profit share of Austrian non controlling shareholders would increase significantly, resulting in a significant net profit less than expected.

Investors are waiting to see how the Austrian garden's annual financial statements and management will give them an answer.

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