China Evergrande

Hengda Real Estate Group Reports 1,946 Pending Litigation Cases Involving CNY 449.3B, Total Unpaid Debts CNY 278.5B at End of August

Thu 09/28/2023 21:19 PM
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Relevant Document:
Announcement

China Evergrande Group announced to the Hong Kong stock exchange on Sept. 28 that as of the end of August, its principal subsidiary Hengda Real Estate Group Co. Ltd. reported involvement in a total of 1,946 pending litigation cases which involved more than CNY 30 million ($4.1 million) each. The total amount involved was about CNY 449.298 billion.

At the end of August, Hengda Real Estate’s unpaid debts amounted to about CNY 278.532 billion. Its overdue commercial bills were about CNY 206.777 billion.

As of Aug. 31, the company completed the disposal of 73 real estate projects through equity transfer, land transfer and construction in progress, trust and nominee holding.

In August, there were 163 new enforcement cases against Hengda Real Estate, involving CNY 9.128 billion. Further, there were 68 new cases in which the equity interest in subsidiaries and investee companies held by the company, as the party subject to enforcement, were frozen.

China Evergrande’s capital structure is below:
 
China Evergrande - Pro Forma as of 08/31/2021
 
06/30/2021
  
EBITDA Multiple
(CNY in Millions)
Amount
US$ Amt.
Maturity
Rate
Book
 
Bank and Other Loans
390,868.7
60,133.6
 
 
  
Total Bank and Other Loans
390,868.7
60,133.6
  
3.4x
Zhongyu Sub
10.0
1.5
Dec-17-2038
 
  
Evergrande R1 Senior
1,062.0
163.4
Dec-29-2036
7.500%
  
Evergrande R1 Sub
118.0
18.2
Dec-29-2036
 
  
PR Zhongyu 1
299.8
46.1
Dec-17-2036
7.300%
  
Zhongyu Senior 2
880.0
135.4
Dec-17-2036
7.500%
  
Total Onshore ABS
2,369.8
364.6
  
3.4x
21 Evergrande 01
8,200.0
1,261.5
Apr-26-2026
7.000%
  
20 Evergrande 05
2,100.0
323.1
Oct-19-2025
5.800%
  
20 Evergrande 04
4,000.0
615.4
Sep-23-2025
5.800%
  
20 Evergrande 03
2,500.0
384.6
Jun-05-2023
5.600%
  
20 Evergrande 02
4,000.0
615.4
May-26-2023
5.900%
  
20 Evergrande 01
4,500.0
692.3
Jan-08-2023
6.980%
  
19 Evergrande 02
5,000.0
769.2
May-06-2024
6.800%
  
19 Evergrande 01
15,000.0
2,307.7
May-06-2023
6.270%
  
15 Evergrande 03
8,200.0
1,261.5
Jul-08-2022
6.980%
  
Total Onshore Bonds
53,500.0
8,230.8
  
3.9x
$4680.5 Million 8.75% Senior Notes Due 2025
30,423.1
4,680.5
Jun-28-2025
8.750%
  
$700 Million 10.5% Senior Notes Due 2024
4,550.0
700.0
Apr-11-2024
10.500%
  
$951 Million 9.5% Senior Notes Due 2024
6,181.5
951.0
Mar-29-2024
9.500%
  
$1000 Million 12% Senior Notes Due 2024
6,500.0
1,000.0
Jan-22-2024
12.000%
  
$1344.9 Million 7.5% Senior Notes Due 2023
8,742.0
1,344.9
Jun-28-2023
7.500%
  
$850 Million 10% Senior Notes Due 2023
5,525.0
850.0
Apr-11-2023
10.000%
  
$1000 Million 11.5% Senior Notes Due 2023
6,500.0
1,000.0
Jan-22-2023
11.500%
  
$1450 Million 9.5% Senior Notes Due 2022
9,425.0
1,450.0
Apr-11-2022
9.500%
  
$2025 Million 8.25% Senior Notes Due 2022
13,162.5
2,025.0
Mar-23-2022
8.250%
  
$590 Million 13.75% Senior Notes Due 2023
3,835.0
590.0
Nov-06-2023
13.750%
  
$2000 Million 12% Senior Notes Due 2023
13,000.0
2,000.0
Oct-24-2023
12.000%
  
$645 Million 13% Senior Notes Due 2022
4,192.5
645.0
Nov-06-2022
13.000%
  
$2000 Million 11.5% Senior Notes Due 2022
13,000.0
2,000.0
Oct-24-2022
11.500%
  
Total Offshore Bonds
125,036.6
19,236.4
  
5.0x
Total Debt
571,775.1
87,965.4
  
5.0x
Less: Cash and Equivalents
(180,744.0)
(27,806.8)
  
Plus: Restricted Cash
74,855.0
11,516.2
  
Net Debt
465,886.1
71,674.8
  
4.1x
Operating Metrics
US$ Amt.
LTM Reorg EBITDA
114,206.1
17,570.2
  
 
Liquidity
Plus: Cash and Equivalents
180,744.0
27,806.8
  
Less: Restricted Cash
(74,855.0)
(11,516.2)
  
Total Liquidity
105,889.0
16,290.6
  
Credit Metrics
Gross Leverage
5.0x
  
Net Leverage
4.1x
  

Notes:
Sources: Reorg, company filing, HKEX; 2021E Wind EBITDA is used
Pro Forma: For Pro forma, the proceeds from the new bonds were added to cash as the exact use of proceeds for each of the bond raised remains unclear; The repayment for matured debts were subtracted from cash as the exact source of funding used to repay the debt remains unclear
US$ Translation: CNY/USD rate used for USD conversion is 6.5.
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