百亿级港资房企路劲，宣布正式违约

Core Viewpoint - Hong Kong property developer K. Wah International Holdings has entered a critical phase, facing significant financial distress and defaulting on its offshore debts, marking a shift in the stability traditionally associated with Hong Kong real estate companies [1][21]. Group 1: Financial Distress and Default - K. Wah announced a suspension of all offshore bank debts, notes, and perpetual securities, officially joining the ranks of defaulting companies [1][19]. - The company failed to pay interest on a USD bond due in July 2029 and sought to replace cash payments with physical assets, which was opposed by a creditor group [1][4]. - As of 2024, K. Wah's total offshore debt amounts to approximately USD 1.51 billion, with an additional USD 890.5 million in perpetual securities, totaling nearly USD 2.4 billion in suspended interest payments [4][12]. Group 2: Revenue and Business Performance - K. Wah's revenue has significantly declined, with total operating income dropping from HKD 246.78 billion in 2020 to HKD 55.37 billion in 2024, a decrease of over 77.5% [9]. - The company's toll road business, a key revenue source, contributed HKD 2.725 billion in 2020, but the overall revenue from this segment has become increasingly critical as real estate development revenues fell [8][9]. - In 2024, K. Wah reported a net loss of HKD 3.308 billion, with shareholder losses amounting to HKD 4.122 billion, nearly equivalent to its cash reserves [11][16]. Group 3: Debt Management and Restructuring - K. Wah is pursuing debt restructuring and has sold toll road assets to alleviate debt pressure, raising HKD 4.412 billion from the sale of four toll roads in mainland China [11][16]. - The company plans to use part of the proceeds from asset sales for comprehensive restructuring, indicating a shift in strategy to manage its financial obligations [16][19]. - Despite the sale of assets, K. Wah's cash flow situation remains dire, with operating cash flow insufficient to cover debt repayments, necessitating further restructuring efforts [11][13]. Group 4: Industry Context - Other Hong Kong property firms are also facing challenges, with New World Development announcing delays in interest payments on perpetual bonds totaling USD 3.4 billion, marking a significant shift in the industry [21][22]. - The overall performance of Hong Kong property companies is declining, with several firms reporting losses and liquidity issues, indicating a potential turning point in the real estate market [21][23].