With the selection of the value list of Jinqilin listed companies in Hong Kong stock market opened, thousands of companies will compete fiercely for the eight Project Awards. Who is the most leading entrepreneur, such as Zhang Yong, Yu Liang, Wang Xing, Lei Jun, Xu Jiayin and Ding Lei.
today, the territory group, which is in the critical period of the IPO of Hong Kong stock market, seems to be in a bad situation: its companies are suspected of illegal house sales, tax evasion, heavy penalties for many violations, and concealment of the suspension of online signings; under high leverage, it is difficult to achieve the “type” sales target, which is burdened with debt and weak profits. “Investor net” contacted territory group on IPO prospects, and the other side said that the public information shall prevail.
according to the data, the territory group was established in April 1999. It is a comprehensive real estate developer located in Sichuan Province, mainly focusing on the development and sales of residential and commercial properties. At present, it has formed a national layout focusing on Chengdu Chongqing economic belt, Sichuan Province, central China, Beijing Tianjin Hebei region and Guangdong Hong Kong Macao Bay area.
from July to August this year, a number of rights protection incidents involving property quality problems of the territory group were exposed. People’s network leaders message board has information release: many projects under the territory group have been complained about by owners due to housing quality problems and suspected false publicity, involving projects such as Tianfu Lantai in Xinjin District of Chengdu, Tianyu Building in Leshan City and Kaixuan house in Meishan territory.
on August 3, a netizen posted a complaint about Tianfu Lantai phase I in Xinjin district. Complaint information shows that due to the developer did not reasonably arrange the construction in the early stage, the progress lagged behind. At the beginning of 2020, the developer was in the rush period, and the construction unit carried out rough construction, which led to a series of safety and quality problems. Many owners refused to accept the house and asked for rectification because of their objection to the housing quality. Up to now, the territory group still uses the means of shifting responsibility and indefinite delay to deceive the property owners, and some houses have not yet reached the delivery standard. Therefore, the administrative supervision and law enforcement departments are requested to investigate and deal with the illegal behaviors of developers and properties, and give justice to the people.
not alone. On August 2, some netizens complained about the Tianyu real estate in Leshan City, Sichuan Province, mainly related to the quality problems such as the inconsistency of the publicity garden households with the contract, and multiple cracks on the top floor.
on June 16, 2020, Dashiqiao Market Supervision Office of Dongpo District market supervision and Administration Bureau conducted on-the-spot inspection on the situation that netizens complained about elevator falling and shaking, housing quality, greening, planning, floor area ratio, suspected false publicity, etc., and Meishan Lingdi Real Estate Development Co., Ltd. is rectifying itself. The response from the relevant departments also confirmed that the complaint is true.
the complaints of Landai house owners in Xichang are even more bizarre. In June this year, according to the “Red Star News”, the Landai house owner complained that the Landau group concealed the owner’s maintenance and sent workers to break through the floor of the house, resulting in three large holes in the floor. The diameter of the holes ranged from 0.4 m to more than 1 m, and the mortar around the holes was easy to fall.
the owner said that the house had been delivered in January 2020, and soon after, he found that there were some through cracks in the house. Water was poured on the ground above the building, and the roof below would drip water. The house uses a password lock, and the password is not changed after the house is handed in. In addition to the family members, only the property owner and the developer know about it, but the relevant personnel did not inform him when he went into the house for maintenance.
on June 1, the relevant person in charge of Panxi area of the developer territory group replied to the media that the three large holes in the floor of the owner’s house were caused by the maintenance of the floor through which they had not informed the owners concerned at the first time. In addition, the person in charge said that the reason why the hardness of the cement mortar layer was not enough was mainly due to the accumulation of pipe mortar at these locations, which was a mistake in the construction process.
according to the information in the prospectus, there are three main types of non-compliance events in the territory group from 2017 to 2019: the first to start construction without obtaining the construction project permit, improper advertising and failure to make sufficient public funds for social insurance and housing provident fund. Among them, 18 companies were fined 5.8 million yuan for construction project permit related problems, 3 companies were fined 300000 yuan for improper advertising, and some subsidiaries were fined 41.1 million yuan for violation of social security and provident fund.
but the more serious problems such as suspected illegal house sales were not explained in the prospectus of the territory group. According to the document issued by Chengdu Chenghua District Housing construction and Transportation Bureau in July 2019, Chengdu territory pan Tai Real Estate Development Co., Ltd., a subsidiary of the territory group, failed to rectify and implement the rectification after the relevant departments inspected and pointed out the problems during the sales of Chengdu Project territory Haina era, which was criticized by Chengdu Chenghua District Housing construction and Transportation Bureau, They were included in the key regulatory objects and were punished by suspending the online signing authority and reducing credit scores. At the same time, Chengdu territory pan Tai Real Estate Development Co., Ltd. and brokerage service agencies suspected of tax evasion were copied to Chenghua District tax bureau. However, the above penalties were not disclosed in the offering documents as non-compliance events.
in addition to the above violations, the construction safety accidents of the territory group are frequent, and its management defects are also exposed. According to the website of the Ministry of housing and urban rural development, on January 6, 2019, a high-altitude falling accident occurred in lantaifu phase II, Shizhong District, Leshan City, Sichuan Province, killing one person. On December 17, 2018, a serious injury accident occurred in lantaifu project, Yucheng District, Ya’an City, Sichuan Province, killing two people. The construction units of the two projects are all subsidiaries of the territory group.
in 2017, the territory group once set a sales target of 30 billion yuan in 2018 and 100 billion yuan in 2019. However, the sales situation of the territory group is still far from reaching its set expansion target. From 2017 to 2019, the territory group achieved sales of 19.4 billion yuan, 29.2 billion yuan and 39.9 billion yuan.
although the slogan is loud, the fact is not satisfactory. The territory group’s 20th anniversary brand conference held in April 2019 revealed a new goal to achieve the 100 billion strategy in 2020-2021. Now, 60% of the year 2020 has passed. According to the view index data, the territory group will achieve sales of 18.57 billion yuan from January to July 2020, which is still far from the target of 100 billion yuan.
the demand for scale expansion also makes the territory group bear high leverage. According to the prospectus, from 2017 to 2019, the interest bearing liabilities of the territory group were 3.586 billion yuan, 7.854 billion yuan and 11.755 billion yuan respectively, and the ratio of net assets to liabilities was 60%, 110% and 140% respectively, which increased significantly. By the end of 2019, the debt scale of the territory group to be repaid within one year was 5.763 billion yuan, while the company’s book cash at the end of the year was only 1.382 billion yuan, so there was a great debt repayment pressure.
it is worth noting that the cash flow from operating activities of the territory group has been negative for three consecutive years. From 2017 to 2019, the cash flow generated by its operating activities was RMB – 186 million, – 4.288 billion and – 3.112 billion respectively.
at the same time of rising debt, the rising financing cost of territory group also dragged down the company’s performance. From 2017 to 2019, the average effective interest rates of the company’s loans were 6.4%, 8.8% and 9.9%, respectively.
from the perspective of profitability, the performance of the territory group is not very good. According to the prospectus, from 2017 to 2019, the income of the territory group was 5.339 billion yuan, 4.514 billion yuan and 7.568 billion yuan respectively, and the annual profits were 649 million yuan, 518 million yuan and 672 million yuan respectively. The performance fluctuated and fluctuated, among which, the income and net profit in 2018 showed a significant decline.
in addition, the net interest rate of the territory group decreased year by year and was lower than the industry average. From 2017 to 2019, the gross profit rate of the territory group was 20.1%, 35.7% and 27.8%, and the net interest rate was 12.2%, 11.5% and 8.9% respectively, showing a downward trend year by year. According to the data of Yihan think tank, the average net profit margin of China’s real estate enterprises in 2019 is 16.39%, and the 8.9% net interest rate of territory group is far lower than the industry average.
the territory group, with declining profits, insufficient scale and debt ridden, is burdened with a lot of previous records of illegal punishment. Now it is mired in complaints about product quality. Its IPO path is full of variables and can hardly be optimistic.