According to the joint credit research report, Zhujiang investment faces certain centralized repayment pressure, large-scale external guarantee and certain debt risk; And pointed out that the company’s Zhujiang life “has a high scale of real estate investment and insufficient solvency”.
Before that, Zhujiang investment silk made no secret of its desire for scale.
In February this year, Zhujiang investment won the old reconstruction project in Haizhu District, with a total investment of about 22.9 billion yuan. Almost at the same time, the company also took a stake in GAC Weilai. Now, the news about the pressure on its capital chain is also circulating in the market.
At the same time, Zhujiang investment and its subsidiaries are caught in commercial housing pre-sale contract disputes, administrative penalties and various legal enforcement.
Facing the pressure of centralized payment
Not long before the institutional research report suggested the risk, Pearl River investment was still taking land. On April 26 this year, the company won the plot in Zengcheng District, Guangzhou with a total price of 2.17 billion yuan. On May 27, another commercial and residential land in Ningbo was won with 616 million yuan, with a premium rate of 27.8%.
In addition to emerging in the real estate business, Zhujiang investment has also entered the field of new energy vehicles.
At the beginning of this year, GAC announced that GAC Wei would introduce a strategic investor, Pearl River Investment Group’s Pearl River Investment Intelligence. At present, zhutou intelligent has become the major shareholder of GAC Weilai with a shareholding of 68.56%. According to Leju finance and economics, the initial investment of the two sides’ cooperation is 3 billion yuan, and the subsequent investment is more than 10 billion yuan.
New energy vehicles and real estate development are undoubtedly expensive. The latest financial report released by Zhujiang investment is the third quarterly report of 2020. By the end of the reporting period, the company’s liabilities due within one year were about 14 billion yuan, monetary funds were 17.3 billion yuan, and the asset liability ratio was 72%
United credit recently published a research report saying: “Pearl River investment is facing some problems such as centralized repayment pressure. The company’s prepayments and other receivables are large in scale and occupy funds; Limited assets, high appreciation rate of investment real estate appraisal, and facing the risk of fair value fluctuation; The scale of external guarantee is large and there is a certain debt risk“
The agency is also concerned that the proportion of industrial and storage land in the Pearl River investment land reserve is still large, and the investment scale of construction in progress and urban renewal projects is still large. Taking Beijing as an example, there are more than ten projects under construction invested by the Pearl River. Among them, Beijing Jinlu project is of storage nature, Zhangjiawan project and Yongle Development Zone project are of industrial nature, Majuqiao is of storage nature, and the reconstruction project of three villages in West Lubei, Fangshan is of collective land reconstruction project.
Coincidentally, in its follow-up credit rating announcement in July this year, united credit downgraded the long-term credit rating of Zhujiang life of Zhujiang investment holding. The reason for this downgrade is “the high scale of real estate investment of Zhujiang life, the scale of related party transactions to be reduced, the insufficient core solvency and the high proportion of equity pledge”.
So, is there any connection between the debt rating downgrade of subsidiaries and Pearl River Investment? How does the company view and deal with the above risks or pressures《 Investor.com sought confirmation from the company and contacted the members of the board of directors through microblog, e-mail, telephone and other channels. However, after waiting for many days, it has not received any reply in any form.
Reprint indicated source：Shine Trader Limited Live information