Core Viewpoint - Huazhong City is entering liquidation, with its stock price halting at 0.107 HKD and a market value of only 1.2 billion HKD, a significant drop from its peak market value of over 30 billion HKD [1][2]. Group 1: Company Financial Status - As of the end of 2024, Huazhong City has total liabilities amounting to 60.9 billion HKD, with a reported net loss of nearly 9 billion HKD attributed to the parent company last year [2]. - The company's financial troubles were exacerbated by a failure to repay a debt of 306 million USD in April last year, leading to a liquidation petition filed by creditors [2][4]. - Despite attempts to restructure its debt, Huazhong City was unable to reach an agreement with creditors, resulting in a court-ordered liquidation [2][4]. Group 2: Company History and Operations - Established in May 2002 and listed on the Hong Kong Stock Exchange in 2009, Huazhong City was once a prominent developer and operator of comprehensive commercial logistics and commodity trading centers across multiple cities in China [3]. - By September 2021, Huazhong City had developed projects in eight cities, with a total planned construction area of 81.05 million square meters [3]. - The company faced operational challenges starting around 2021, including declining revenue and profit margins, alongside a significant amount of short-term debt maturing in 2022 [3][4]. Group 3: External Support and Market Context - In May 2022, a major shareholder, Shenzhen State-owned Assets Management, acquired a 29.28% stake in Huazhong City, providing financial support [3][4]. - Despite receiving support from state-owned enterprises, Huazhong City continued to struggle with liquidity issues and debt repayment pressures, indicating that external backing does not guarantee recovery for troubled firms [5]. - The broader context of liquidity crises among real estate companies highlights the challenges faced by Huazhong City, even after becoming one of the first firms to receive state support [5].

Core Viewpoint - Huazhong City is entering liquidation, with its stock price at 0.107 HKD and a market capitalization of only 1.2 billion HKD, a significant drop from its peak market value of over 30 billion HKD [1][3]. Group 1: Company Status - The Hong Kong High Court issued a liquidation order for Huazhong City on August 11, 2025, leading to the suspension of its stock trading [3]. - As of the end of 2024, the company's total liabilities reached 60.9 billion HKD, with a net profit loss of nearly 9 billion HKD attributed to the parent company last year [4][5]. Group 2: Debt Issues - The immediate trigger for Huazhong City's liquidation was the failure to repay a debt of 306 million USD due in April last year, leading to a petition for liquidation by creditors [5]. - Despite attempts at debt restructuring, the company was unable to reach an agreement with creditors, resulting in the court-ordered liquidation [5]. Group 3: Historical Context - Established in May 2002 and listed on the Hong Kong Stock Exchange in 2009, Huazhong City was once a prominent player in the commercial logistics and trading center development sector [7]. - The company faced operational challenges around 2021, including declining revenue and increased short-term debt, which became due in 2022 [7]. Group 4: Attempts at Recovery - In May 2022, a significant investment of 1.9095 billion HKD was made by a state-owned enterprise, which became the largest shareholder, but this did not prevent the company's decline [8]. - By December 2023, Huazhong City reported severe cash flow issues and debt defaults, indicating a deteriorating financial situation despite previous support from state-owned enterprises [8][9].

Core Viewpoint - South China City has been ordered to be liquidated by the High Court, marking it as another major real estate company facing liquidation after Evergrande [1][2] Financial Situation - As of the end of 2024, South China City reported cash on hand of only 37.43 million yuan, while short-term interest-bearing liabilities reached 16.596 billion yuan [2] - The company's total market value is approximately 1.2 billion yuan, significantly lower than its total liabilities of 55.447 billion yuan [2] - The company recorded a net loss of 8.976 billion HKD for the year ending December 31, 2024, with current liabilities exceeding current assets by 2.848 billion HKD [2] Debt Issues - Citigroup filed for liquidation against South China City in the High Court, primarily related to a USD bond due in April 2024, with an outstanding amount of 306 million USD [2] - As of December 31, 2024, 15.742 billion HKD of interest-bearing debt principal or interest was not repaid on the due date, triggering cross-default on 375 million HKD of debt [2] Shareholder Impact - Tencent, as the third-largest shareholder with an 8.35% stake, faces significant investment losses, having invested a total of 2.3225 billion HKD in South China City since 2014 [3][4] - The liquidation process may leave little to no residual value for shareholders due to the large scale of the company's debts [3] Business Model and Challenges - South China City initially operated as a non-typical real estate company, focusing on comprehensive commercial logistics centers, but faced challenges as the e-commerce landscape evolved [5][6] - The company attempted to pivot towards e-commerce by establishing an industrial park in 2012 and partnering with Tencent in 2014, but ultimately struggled with merchant attrition and store vacancies [6]

Core Viewpoint - South China City Holdings Limited has been officially declared insolvent by the Hong Kong court, marking a significant event in the real estate sector as it becomes the largest Chinese property company to face liquidation since China Evergrande [2][3]. Group 1: Company Background and Financial Struggles - South China City, founded in 2002, rapidly grew through its "industrial raw material distribution + trade logistics park" model, with its Shenzhen project recognized as a key logistics initiative by the local government [9]. - Despite receiving financial support from Shenzhen Capital Group, South China City has struggled to recover, with its financial performance remaining weak. The company reported a record loss of HKD 89.76 billion in the 2024 fiscal year, attributed to increased inventory impairment provisions and a decline in the fair value of investment properties [11][12]. - The company's debt situation is dire, with interest-bearing debt reaching HKD 302.2 billion, while cash and bank deposits are only HKD 7.177 billion, leading to a liquidity crisis [11]. Group 2: Restructuring Attempts and Court Proceedings - South China City has faced prolonged negotiations for a restructuring plan, which ultimately failed to gain sufficient support from creditors, leading to the court's decision for liquidation [3][8]. - The company had previously attempted to extend its dollar bonds and sought waivers from creditors, but these efforts were unsuccessful, prompting the need for judicial intervention [6][7]. - The court's ruling reflects a shift in the market's tolerance for ineffective restructuring, emphasizing the need for substantial progress and timely disclosures [8][12]. Group 3: Impact of Major Shareholder - Shenzhen Capital Group became the largest shareholder of South China City in December 2021, investing HKD 19.1 billion to provide financial relief, which included cash injections and asset acquisitions [5][6]. - Despite these efforts, the company's operational status did not improve significantly, and the risk of a second default on previously extended dollar bonds emerged [6][11]. - The relationship between South China City and Shenzhen Capital Group has deteriorated, with the latter distancing itself from the company amid ongoing financial troubles [7][12]. Group 4: Market Reactions and Future Implications - The liquidation of South China City has intensified market concerns regarding the viability of other property developers facing similar financial challenges, reinforcing the trend of judicial liquidation as a resolution method [8][12]. - Investors have reacted strongly to the company's dollar bond defaults, with some seeking legal recourse against Shenzhen Capital Group for its perceived responsibilities in the restructuring process [7][8]. - The case sets a precedent for how the Hong Kong courts may handle future insolvencies in the real estate sector, potentially leading to more stringent requirements for restructuring proposals [8][12].

Core Viewpoint - South China City has entered liquidation proceedings as ordered by the High Court, marking a significant event in the ongoing turmoil within the real estate sector in China [1] Company Summary - On August 11, South China City was ordered into liquidation by the High Court, with Wei Cheng Zhou and Lu Yang Pan appointed as joint and individual liquidators [1] - South China City is the fifth Chinese property developer to face liquidation in the current industry downturn, following New Power, Da Fa, Jia Yuan International, and China Evergrande [1] - It is notable that South China City is the first developer with state-owned background to enter liquidation [1] - The company had previously introduced state-owned capital in 2022 to support asset disposal and financing activities, as well as to extend overseas debt maturities [1] - Despite nearly three years of efforts, South China City has not achieved fundamental recovery and is now facing liquidation [1] - The company's stock has been suspended from trading and will continue to remain so [1] Industry Summary - The real estate sector in China is experiencing a deep adjustment, with multiple companies, including South China City, facing severe financial difficulties [1] - The trend of liquidations among property developers indicates ongoing challenges within the industry, highlighting the impact of financial instability on companies with varying backgrounds [1]

Core Viewpoint - The company South China City (01668.HK) has entered liquidation, marking a significant event in the real estate sector, following its inability to repay a key debt of $306 million due in April 2024, leading to a court-ordered liquidation process [1][4][10]. Financial Situation - As of the end of 2024, South China City reported total assets of HKD 87.5 billion and total liabilities of HKD 60.9 billion, making it the largest liquidation case in the real estate sector after Evergrande [1][9]. - The company's stock was suspended at HKD 0.107, resulting in a market capitalization of HKD 1.224 billion [2]. Debt Crisis - The immediate trigger for the liquidation was the failure to repay a critical debt of $306 million, which led Citigroup, as the trustee, to file for liquidation in January 2025 [3][4]. - Despite attempts at debt restructuring, the company could not reach an agreement with creditors, culminating in a court hearing that resulted in the liquidation order [4][10]. Historical Context - South China City was established in May 2002 and listed on the Hong Kong Stock Exchange in 2009, previously recognized as a major player in the commercial logistics and trading center development sector [4]. - The company was once favored in the capital markets, receiving credit rating upgrades and recommendations from major financial institutions due to its strong recurring income and land acquisition strategies [5]. Strategic Investments and Failures - In May 2022, Shenzhen-based strategic investor Shenzhen Special Zone Construction Development Group acquired a 29.28% stake in South China City for HKD 19.095 billion and provided further financial support [6][7]. - Despite these efforts, the company faced severe cash flow issues and ultimately declared default in February 2024 [7][12]. Liquidation Process - Following the liquidation order, appointed liquidators will manage the company's assets, prioritizing local asset disposal and potentially restructuring or selling core assets to maximize value [10]. - The total liabilities of HKD 60.9 billion significantly overshadow the company's market value, raising concerns about the recovery prospects for creditors [10][11]. Industry Implications - The liquidation of South China City is expected to have far-reaching effects on market confidence regarding distressed real estate companies, particularly those undergoing debt restructuring [10][11]. - The case illustrates the risks associated with strategic investments in troubled companies, as the major shareholder may face significant losses and legal challenges [11].

Core Viewpoint - On August 11, South China City (01668.HK) was ordered to be liquidated by the Hong Kong High Court, becoming the largest developer by asset size to face liquidation after China Evergrande [1][3]. Group 1: Company Background and Financial Status - South China City is a comprehensive commercial logistics enterprise listed on the Hong Kong Stock Exchange, established in May 2002 [6]. - The company reported a significant loss for the first time since its listing, with a net profit loss attributable to the parent company of HKD 8.986 billion, and had HKD 15.742 billion in overdue borrowings [5][6]. - As of the end of 2024, South China City had total assets of HKD 87.551 billion and total liabilities of approximately HKD 60.944 billion, with interest-bearing debt of HKD 30.22 billion [5]. Group 2: Debt and Liquidation Process - South China City faced a liquidation petition from Citigroup International Limited regarding a debt of USD 306.1704 million related to a USD 288.84 million senior note due in April 2024 [4]. - The company attempted a debt restructuring plan but faced opposition from creditors, with a significant portion of its debt being non-performing [5]. - The company’s cash and cash equivalents were approximately HKD 4.114 million, insufficient to cover its debts [5]. Group 3: Market Reaction and Trading Status - Trading of South China City shares was suspended on August 11 at a price of HKD 0.107 per share, with a market capitalization of only HKD 1.2 billion prior to suspension [3]. - The liquidation was anticipated by creditors, indicating a lack of confidence in the company's recovery efforts [4].

Core Viewpoint - South China City, a Shenzhen-based real estate developer, has been ordered into liquidation by the High Court, marking it as the fifth Chinese property company to face such a fate amid the industry's deep adjustment [2][3]. Group 1: Company Background and Financial Struggles - South China City was established in 2002 and has developed various logistics and commodity trading centers, with its first project launched in 2004 [6]. - The company has faced significant financial difficulties since 2021, leading to the introduction of state-owned capital for support [6][7]. - Despite efforts to restructure and secure financing, South China City reported a loss of HKD 4.32 billion for the fiscal year 2023, with total interest-bearing liabilities amounting to HKD 16.295 billion and cash reserves of only HKD 1.143 billion [7][8]. Group 2: Debt Issues and Liquidation Process - The liquidation was initiated due to a USD 306 million debt due in April 2024, which the company failed to repay, leading to multiple defaults [3][4]. - Following the defaults, South China City began a debt restructuring process but failed to present a complete plan before the liquidation order was issued [4][5]. - The company has been unable to reach an agreement with creditors, resulting in the court's intervention and the establishment of a temporary creditors' committee to manage asset disposal [4][5]. Group 3: Market Implications and Future Outlook - The trend of judicial liquidation among property developers has intensified since the Evergrande crisis, with expectations that more companies, especially smaller developers, will face similar pressures [5]. - The situation reflects a broader industry challenge where cash flow issues and weak refinancing capabilities are prevalent, leading to increased scrutiny from courts [5][9]. - The involvement of state-owned entities, initially seen as a rescue, has turned into a complex scenario with potential implications for future asset management and recovery strategies [9].

2025.08. 12 本文字数：2353，阅读时长大约4分钟 作者 | 第一财经 郑娜 据克而瑞不完全统计，在本轮行业的深度调整中，已有包括新力、大发、佳源国际和中国恒大等在内的4家内房企业被颁令清盘。华南城是截 至目前的第5家内房企，更是首家有国资背景的开发商。 早在2022年时，华南城就引入了国资力量，在后者支持下进行了一系列资产处置和融资活动，并推进境外债务展期。但历经近三年努力，华 南城仍未能得到根本性恢复，如今仍走向了清盘的终局。目前，华南城的股票暂停买卖，并将继续停牌。 走向清盘 此次清盘由花旗国际在2025年1月27日提出，事关一笔于2024年4月到期的美元债，欠款共约3.06亿美元。 这笔美元债的违约情况最早发生在2024年2月初。彼时，华南城表示，近年来，因外部因素变化，公司销售不及预期，现金流只能保证日常 经营所需。上述因素的叠加效应导致该公司流动资金日趋紧张，因此在债务上面临着非常大的还本付息压力。 "我们自2022年以来采取了各种积极措施，并成功将境外美元债进行了几次展期。但公司经营以及资金状况未能及时改善，"基于此，华南城 坦言，不会就2024年10月票据于2024年2月9日到期的 ...

【财华社讯】华南城(01668.HK)公布，冯星航因希望投入更多时间处理其他个人事务，辞去公司非执行 董事职务，自2025年8月10日起生效。 公司股份已于2025年8月11日(星期一)上午10:55起在联交所暂停买卖，直至另行通知为止。 本文源自：财华网 ...