Core Points - Changsha Yuanda Housing Industrial Group Co., Ltd. has applied for bankruptcy reorganization due to an inability to repay debts and severe cash flow issues [1][6] - The company, once a leader in the prefabricated construction industry, has seen a significant decline in its financial health since its IPO in 2019 [2][3] - The broader construction industry is facing a crisis, with nearly 6,000 companies undergoing bankruptcy or restructuring in 2023 alone [1][7] Company Overview - Established in 2006, Yuanda is recognized as China's first new manufacturing enterprise in the "residential industry" category, holding over 1,300 patents and having a significant market share in the PC prefabricated construction sector [2] - The company operates three main business segments: PC component manufacturing, PC production equipment manufacturing, and construction contracting, with a notable shift towards PC component manufacturing since 2019 [2][3] Financial Performance - After a peak in 2019 with a net profit of 680 million yuan, the company has faced declining profits, reporting revenues of 2.23 billion yuan in 2022 and a net loss of 810 million yuan [3][6] - The company's accounts receivable reached 2.756 billion yuan in 2021 and 2.615 billion yuan in 2022, indicating significant financial strain and reliance on the real estate sector [3][7] Governance Issues - The company has faced governance challenges, including the resignation of multiple board members and allegations of fund misappropriation by the controlling shareholder [4][5] - A new board was elected in September 2024, which proposed the bankruptcy reorganization as a potential path forward [6][8] Industry Context - The prefabricated construction industry is closely tied to the real estate market, with recent regulatory measures leading to a decline in demand and significant financial risks for companies like Yuanda [7] - The company aims to attract strategic investors through the reorganization process to mitigate debt risks and enhance competitiveness [7][8]