casinoonblockchain| Two major established real estate companies delisted

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Source: Leju Finance and Economics

Original Zhao Panpan

0Casinoonblockchain.43 yuan per share, which is the final closing price of * ST Shimao.

0.56 yuan per share, which is the final closing price of ST Zhongnan.

In the recent real estate good have landed one after another, the dawn of the industry at the moment, the two real estate enterprises regret to announce farewell to A shares.

On May 15, * ST Shimao received a prior notice of the proposed termination of the company's stock listing, as the daily closing price of the company's shares for 20 consecutive trading days was less than 1 yuan, the conditions for termination of listing were met, and the Shanghai Stock Exchange decided to terminate the listing, and the company's shares were suspended from trading on May 16.

The "darkest hour" in the middle and south of ST came earlier. The company received the advance notice of termination of listing issued by the Shenzhen Stock Exchange on May 13, and the Shenzhen Stock Exchange decided to terminate the listing of the company's shares because the closing price of its shares was less than 1 yuan for 20 consecutive trading days from April 3 to May 8. Trading in ST Zhongnan shares was suspended from the opening of the market on May 9.

At this point, there are two more names on the real estate delisting list, and the total market capitalization of * ST Shimao and ST Zhongnan is also fixed at 1.613 billion yuan and 2.143 billion yuan respectively.

These two enterprises are both established real estate enterprises in the industry.

* ST Shimao is a listed company of Shimao Group, which integrates comprehensive commercial real estate development and sales, commercial operation and management, and diversified investment. It was established in July 1992 and entered the Shanghai Stock Exchange in February 1994. It has been listed for more than 30 years. The company, formerly known as Shanghai Vientiane (Group) Co., Ltd., changed its name to "Shanghai Shimao Co., Ltd." in 2001. it is one of the few commercial real estate enterprises listed in A shares.

As one of the Fujian housing enterprises that developed rapidly in the early years, * ST Shimao first proposed to achieve the sales target of 100 billion yuan by 2024 in 2020, with an annual compound growth rate of about 40%. In addition, in 2020, the sales of its controlling shareholder Shimao Group exceeded 300 billion yuan, ranking eighth in the industry.

However, with the decline of the real estate industry, * ST Shimao has not been spared in this round of clearing.

The data show that from 2021 to 2023, the revenue of * ST Shimao declined for three consecutive years compared with the same period last year, while the net profit was negative for two consecutive years in 2022 and 2023, with a total net loss of more than 13.5 billion yuan. In the first quarter of 2024, the company lost another 64.4715 million yuan. by the end of the first quarter, its total debt was 91.368 billion yuan, with an asset-liability ratio of 83.96%.

According to * ST Shimao's previous announcement, as of April 30, 2024, the company and its subsidiaries' open market debt, non-open market bank debt and non-bank financial institution debt totaled 12.055 billion yuan failed to be paid on schedule. On May 8, * ST Shimao issued another announcement that the company's second issue of 2021 medium-term notes should pay 608 million yuan in principal and interest on May 6, 2024, and the medium-term notes were not paid on schedule. As of the date of announcement, the company and its subsidiaries had accumulated 4.385 billion yuan of open market debt and failed to pay the principal and interest on schedule.

In response, * ST Shimao explained that the company's sharp decline in sales since 2022 has not improved, the situation of narrowed and restricted financing channels has not been effectively improved, and the company still faces liquidity constraints.

The situation of Central South of ST is equally difficult. It has been 15 years since the company was founded in 1985 and listed on the backdoor curve in 2009.

As the largest real estate enterprise in Nantong, Jiangsu Province, ST Zhongnan is famous locally and has participated in national projects such as the Bird's Nest, the National Grand Theater, Beijing Daxing International Airport and the CCTV headquarters building. In 2020, the cumulative contract sales of ST Central and South China reached a record high of 223.83 billion yuan, with revenue of 78.601 billion yuan and net profit of 7.078 billion yuan, up 9.43% and 70.01% respectively over the same period last year.

But after that, the company's performance began to plummet. From 2021 to 2023, ST Central and South China lost 3.382 billion yuan, 9.183 billion yuan and 5.293 billion yuan respectively, and lost more than 17.8 billion yuan in three years. In the first quarter of 2024, the company continued to lose 601 million yuan.

In the face of difficulties, * ST Shimao and ST Zhongnan, like other real estate companies involved in delisting, have tried to save themselves, such as selling assets and buying back shares.

Public data show that * ST Shimao has been transferring shares in its subsidiaries since September 2023 to ease liquidity difficulties. In addition, according to its announcement disclosed on May 8, from January 10 to May 7 this year, the company bought back 117 million shares through centralized bidding transactions, with a total repurchase amount of 125 million yuan. During the buyback period from June 27, 2023 to September 26, 2023 and the two repurchase periods mentioned above, * ST Shimao has repurchased a total of 149 million shares, accounting for 3.98% of the company's total share capital, with a total repurchase amount of about 175 million yuan.

ST Zhongnan disclosed in February this year that some directors and senior executives voluntarily increased their shareholdings. As of May 8, the relevant personnel had increased their holdings in the company by a total of 6.8287 million shares, accounting for 0.178% of the total shares, with a total increase of about 4.84 million yuan.

In addition to the increase in senior executives' holdings, it was also reported on April 20 that led by the Haimen District Government of Nantong City, Jiangsu Province, Central South City Construction Investment, the majority shareholder of ST, held talks with institutions such as PAG and Jiangsu assets on its debt resolution, equity transactions and other cooperation. Subsequently, ST Zhongnan also confirmed this matter.

Unfortunately, the impact of these actions and news on ST Zhongnan stock is not obvious. Since April, the company's share price has continued to decline to less than 1 yuan. On April 24th, the company was given other risk warnings, and the stock abbreviation was changed from "Central South Construction" to "ST Central South".

The A-share ups and downs of the two established real estate enterprises ushered in the "end".

Fortunately, a new round of rescue of the market has begun, with the introduction of a number of heavy positive policies, the market positive signal has been gradually released.

Tianfeng Securities said in a research report that last Friday, the central bank announced a reduction in mortgage interest rates and the lower limit of the down payment ratio, or catalyzed the short-term concentration of residential demand into the market, the first and second line volume is expected to continue to rise; if a sustained stabilization trend can be established under improved market confidence, the price margin is expected to narrow at the same time. Debang Securities also believes that under the combined effect of various policies, real estate sales and market confidence are expected to be gradually repaired.