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].
负债超600亿港元！知名房企被下令清盘，市值仅剩12亿港元