29 days later delisting, nearly 19 billion debt overdue * ST caddy still has 22 billion debt exposure

As a listed company, * ST Kaidi (000939. SZ) has only 29 trading days in A-share market. On November 5, * ST Kaidi resumed trading and entered the delisting consolidation period. This once glorious company will be delisted from the market and enter the history of a shares. < p > < p > the Shenzhen Stock Exchange disclosed on October 28 that due to three consecutive years of financial reports from 2017 to 2019 that could not express opinions, and the net assets and net profits of the same period were negative, it decided to terminate the listing of * ST Kaidi stock and enter the delisting consolidation period on November 5. It is expected that * ST Cady will be delisted from the market on December 16. < / P > < p > in May 2018, * ST Kaidi bonds suddenly defaulted, thus opening up multiple crises of debt and operation. By the end of August 2020, the outstanding debt of * ST Kaidi reached 22.78 billion yuan. On November 2, the latest announcement of * ST Kaidi (000939. SZ) said that at present, the total overdue debt was about 18.833 billion yuan, and the net assets of the company audited in the latest period was – 2.804 billion yuan, and the proportion of overdue debt to the latest audited net assets was – 671.76%. By the end of September this year, the total assets of * ST Kaidi were 29.44 billion yuan, and the monetary capital was only 198 million yuan. < / P > < p > although the overall situation of delisting has been decided, with the deepening of the crisis, * ST Cady’s huge debt has become more and more difficult. With delisting looming, these debts are more difficult to deal with. According to the reporter’s understanding, more than 50 financial institutions have been involved in the nearly 19 billion yuan overdue debts. Of these debts, only less than 40% have provided fixed assets, land and other assets as collateral. It is not known whether the rest of the debts have provided collateral. After the delisting of the company, how will the financial institutions involved, especially those that have no control of the collateral, block the huge risk exposure? < p > < p > according to the disclosure of * ST Kaidi on September 29, as of the end of August, including subsidiaries, the company had 193 existing credit and loans, with the amount reaching 22.78 billion yuan, including 152 overdue loans and 3 default bonds. Two of the remaining 38 debts mature in September. < p > < p > * ST Kaidi announced on September 10 that its overdue debt had reached 18.43 billion yuan. At the end of 2019, the audited net assets of the company were only 1.914 billion yuan, and the proportion of overdue debts in the latest audited net assets was as high as 963.3%. < p > < p > after the outbreak of the debt crisis in 2018, * ST Kaidi’s operation deteriorated sharply, the capital chain has broken, and the operating income has dropped sharply year after year. As of the end of 2018, 2019 and the end of September 2020, the company’s operating revenue was 2.404 billion yuan, 2.66 billion yuan and 1.546 billion yuan respectively, and the operating net cash flow was -168 million yuan, 672 million yuan and 120 million yuan respectively. In terms of financing, the cash from loans dropped sharply from 1.71 billion yuan in 2018 to 40 million yuan in the first half of this year. < / P > < p > in August 2018, at the beginning of the debt crisis, * ST Kaidi signed an agreement with China war Huaxin Asset Management Co., Ltd. (hereinafter referred to as “China war Huaxin”) to restructure * ST Kaidi by means of entrusted management of shares held by its controlling shareholder sunshine Kaidi group, appointment of directors, package sale of assets with book value of about 14 billion yuan. In May 2019, the shareholders’ meeting of * ST Kaidi agreed to bankruptcy reorganization, but there has been no substantial progress so far. < p > < p > on October 29, * ST Kaidi announced that in May 2019, the company signed an agreement with great wall Guorui to recommend the resumption of listing and entrust stock transfer, but the agreement could not be continued, and both parties are currently negotiating to terminate the agreement. In the absence of external assistance, * ST Kaidi may be even more unable to repay its debts after delisting. < p > < p > according to the disclosure of * ST Kaidi on September 29, as of the end of August, there were at least more than 50 creditors involved in its stock debt, which basically included banks, securities dealers, insurance, trust, leasing and other financial institutions. There were more than 20 creditors with more than 300 million yuan and 5 with more than 1 billion yuan. < p > < p > * among the outstanding debts of St Kaidi, the most involved is the Export Import Bank of China. According to the semi annual report, by the end of June 2020, the loan balance of * ST Kaidi in the export import bank totaled 1.559 billion yuan, which was still close to 1.56 billion yuan at the end of August. In addition, there are 657 million yuan of bonds, which are jointly owned by the Agricultural Bank of China and the Export Import Bank of China. < / P > < p > next to exim bank is Sino German securities. After the outbreak of the debt crisis, * ST Kaidi issued three bonds with a total amount of 1.6 billion yuan in 2016, which also broke the contract successively. Although the transfer has been arranged since August 2019, the public disclosure shows that the cashing funds have not been resolved. < / P > < p > in addition to the above two institutions, * ST Kaidi’s debts in Zhongmin International Financial Leasing Co., Ltd., Jinzhou bank and Huarong Asset Management Co., Ltd. (hereinafter referred to as “Huarong assets”) are all over 1 billion yuan. As of the end of June this year, the debt scale was 1.336 billion yuan, 1 billion yuan and 1.093 billion yuan respectively. In addition, Shenzhen Ping An Dahua Huitong Wealth Management Co., Ltd. (hereinafter referred to as “Dahua Huitong”) also provided funds to * ST Kaidi through asset management plan and entrusted loan, and Hengtai securities provided funds to * ST Kaidi through ABS. The balance at the end of June was 823 million yuan and 880 million yuan respectively. Dongfang Qianhai (Shenzhen) equity investment fund management center and Zheshang Bank provided 900 million yuan and 600 million yuan of financing respectively in the form of funds. < p > < p > in addition to loans and bonds, * ST Kaidi also has a large number of trust loans. As of the end of August this year, its stock loans in Guotong trust and AVIC trust reached about 757 million yuan and 718 million yuan, and the loans of Yingda trust and COFCO trust were 540 million yuan and 500 million yuan respectively. As of the end of September this year, * ST Kaidi had a total assets of 29.44 billion yuan, a net asset of – 3.93 billion yuan, and a monetary fund of only 198 million yuan. There were 15.67 billion yuan of fixed assets and 3.98 billion yuan of construction in progress. In the case of constant default, it is obvious that these assets will not be able to repay all the debts. < / P > < p > * ST Caddy’s most valuable asset may be the power plant already built. By the end of 2018, a total of 47 power plants have been built and operated by * ST Kaidi, but these power plants and their corresponding land, plant and other assets have been mortgaged to some financial institutions as early as 2015. Prior to the financing, in addition to the guarantee of * ST Kaidi, sunshine Kaidi and Wuhan Kaidi Electric Power Engineering Co., Ltd. (hereinafter referred to as “Kaidi project”), the * ST Kaidi also mortgaged the equity pledge of the borrowing subject, land, equipment, electricity charge income account, carbon emission right, etc. < p > < p > according to the annual report, by the end of 2019, there were 20 restricted assets of * ST Kaidi, with a total corresponding amount of about 9.2 billion yuan, of which 11 items were more than 300 million yuan, with a total amount of more than 8.25 billion yuan. These restricted assets used for mortgage are all in the hands of 20 financial institutions, such as export import bank, Zhongmin leasing, Dahua Huitong, etc. < p > < p > after the outbreak of debt and business crisis, some of the valuable assets of * ST Kaidi have been disposed of or auctioned by judicial. According to public information, due to the default of lease financing, Beiliu Kaidi and linli Kaidi, as well as the equity of Hankou bank, have been auctioned successively since 2019. Compared with the total debt, the financing provided by mortgage, pledge and guarantee is not high. *A considerable part of St Kaidi’s stock debts are working capital loans, funds and trust loans. The secured ones are mainly fixed asset loans, leasing and asset securitization. According to the disclosure in August, among the outstanding debts of * ST Kaidi, more than 13 billion yuan of debt has not been disclosed whether it has provided asset mortgage, guarantee and other credit enhancement means. < p > < p > according to the semi annual report of 2020, only three of the working capital loans of * ST Kaidi provided asset collateral, totaling about 1 billion yuan. Even with secured debt, the situation is equally worrying. Take the current loan of * ST Kaidi in a bank in Hubei Province as an example. At that time, the company pledged the carbon emission right of 41 household electrical appliances factory. At the end of June this year, the balance of existing loans was 447 million yuan. *St Kaidi reported in the half year of 2020 that the daily operation cost of biomass power plant was higher than the monthly basic electricity fee income, resulting in serious shortage of cash flow in the current period, and the power of continuous operation of the power plant decreased. < / P > < p > among the debts that * ST Kaidi did not disclose whether to increase its credit or not, there are as many as 11 financial institutions with credit and loan amount exceeding 300 million yuan, and 7 financial institutions with more than 500 million yuan. Among them, there are 1.6 billion yuan bonds involved in Sino German securities, and financing provided by financial institutions such as Guotong securities, Zheshang Bank and Jinzhou bank through funds and trust loans. There is great uncertainty whether these funds with huge amount and unclear risk guarantee means can be recovered, and the relevant financial institutions are faced with risks. < p > < p > after the debt default in 2018, * ST Kaidi also successively solved some debts, but the amount was very small. According to the information disclosed, by the end of 2017, the loan balance of exim bank to * ST Kaidi was 1.82 billion yuan, which dropped to 1.59 billion yuan by the end of 2019, and further reduced to 1.56 billion yuan by the end of June this year. If the entrusted loans are not included, the balance of the special asset management stock of Dahua Huitong will be 400 million yuan by the end of 2019, which has dropped to 200 million yuan by the end of August this year. However, in the increasingly difficult situation, * ST Kaidi is under increasing pressure to repay its huge debts. < / P > < p > * ST Kaidi’s debt expanded on a large scale, focusing on the period from 2015 to 2017. With the rapid expansion of asset scale, liabilities also increased significantly. < p > < p > according to the annual report, at the end of 2014, * ST Kaidi’s total assets were 25.91 billion yuan, which had increased to 32.89 billion yuan in 2015, further increased to 41.76 billion yuan in 2016, and nearly 16 billion yuan in two years. Although there was a decrease in 2017, it still reached 38.46 billion yuan. < p > < p > total assets increased sharply, but net assets increased disproportionately. At the end of 2014, the net assets of * ST Kaidi were 7.43 billion yuan and 7.93 billion yuan at the end of 2015, only an increase of 500 million yuan over the previous year. In 2017, with the total assets shrinking, its net assets increased to 10.63 billion yuan, but the growth rate was still far lower than that of the total assets. The growth of net assets is slow, but the debt is expanding rapidly. In 2015, the total liabilities of Kaidi reached RMB 28.78 billion, reaching RMB 28.78 billion in 2016, respectively. By the end of September this year, the total liabilities of * ST Kaidi had soared to 33.87 billion yuan. < / P > < p > as of the end of August this year, most of the outstanding debts of * ST Kaidi of 22.78 billion yuan were generated in this period (2015-2017). Data show that during this period, the company’s accumulated financing exceeded 54 billion yuan, and debt financing alone exceeded 47 billion yuan. < p > < p > according to the information disclosed, from 2015 to 2017, * ST Kaidi’s annual financing cash inflow was 17.74 billion yuan, 24.06 billion yuan and 10.52 billion yuan respectively, with a total amount of more than 52.3 billion yuan. Among them, cash obtained by borrowing over the years was 9.66 billion yuan, 13.93 billion yuan and 8.19 billion yuan respectively. In addition, 1.6 billion yuan of bond financing was issued in 2016, totaling nearly 54 billion yuan. < / P > < p > * why did st Caddy’s debt expand sharply? According to Chen Yilong, its actual controller, in 2018, the company has developed too fast in recent years, with more than 100 biomass power generation projects under development and to be developed alone. In addition, there are more than 10 million mu of forest land resources, short-term loans and long-term investment, and serious mismatching of resources, resulting in tight cash flow and concentrated risk outbreak. < p > < p > the biomass power generation and forestry assets mentioned by Chen Yilong are 100% equity of 87 biomass power plants, 1 biomass power plant operating company, 5 wind power plants, 2 hydropower plants and 58 forestry companies acquired by * ST Kaidi from 15 counterparties such as sunshine Kaidi and Huarong assets in July 2015