Chinese media reported that on September 11, Mr. Cui Nguy held a press conference lasting about an hour and a half, announcing that the company was experiencing internal difficulties.
The financial troubles of China’s major private real estate developers such as Country Garden, Evergrande Real Estate and Sino-Ocean are far from over. Beijing Pomegranate Group, one of China’s top 100 real estate companies, is also facing difficulties.
In front of the media, Mr Thoi became agitated, choked up several times and had to try to adjust his emotions to continue speaking.
According to financial newspaper details FX168 (Hong Kong) and Chinese newspapers Vision Times (USA), at one point he was so excited that he walked straight to the front of the hall, got down on his knees and hit the floor with both hands.
Mr Thoi suddenly fell to his knees and cried and begged the local government, financial institutions and investors to trust him. He “guaranteed with his life” that he would not default.
Thoi Nguy, president of Pomegranate Real Estate, knelt down and swore on his life to make sure he would not pay his debts. Video screenshot. Photo: SecretChina
Mr. Thoi said: “In terms of debt ratio and net asset ratio, we welcome all financial institutions to evaluate. I guarantee credibility in my life.”
According to Mr. Thoi, in the last 20 years, none of the company’s projects has remained incomplete, causing trouble or loss to the local government. So far, there has never been any case of bad debt or overdue bank debt, the company’s interest payable debt is less than 12 billion yuan out of the company’s total assets of about 60 billion yuan.
Since the end of 2021, the company’s listing plan was unsuccessful, causing a number of problems requiring liquidity in 2022.
According to the company’s annual report, revenue in 2022 is 16.785 billion yuan, down 23.65% compared with the same period last year, net profit attributable to the parent company decreased sharply from 818 million yuan last year. Decreased to 111 million yuan in 2021.
According to data from market research company CRIC, Pomegranate Group’s revenue in 2021 is 40.7 billion RMB, an increase over 2020. However, the company’s silhouette no longer appears in the annual rankings in 2022.
China is considered the largest real estate market in the world. Photo: Xinhua News Agency
Statistics show that the sales of Chinese real estate development companies are continuously declining, corporate capital chains are tightening and the risk of credit risk is increasing.
According to data released by the China Index Research Institute earlier this year, Chinese real estate companies will face more debt repayment pressure in 2023.
Maturity credit bonds and foreign loans of real estate companies totaled 957.96 billion yuan, 70 billion yuan more than last year; The scale of loan repayment of real estate companies also increased.
Because many real estate development companies are having difficulty getting financial support, the credit crunch is increasing.
