Xin Lang Cai Jing·2025-08-12 08:10Core 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]