Over 140000 investors are stepping on the mine!, Billion dollar real estate companies bid farewell to A-shares, taking 26 consecutive limit down leverage | performance | A-shares

The wave of A-share real estate companies delisting is still ongoing. After Blu ray Development and Taihe, ST Sunshine City, which also ranks among the "billion dollar clubs", has also received a "verdict".

Recently, ST Sunshine City announced that it has received a decision from the Shenzhen Stock Exchange regarding the delisting of shares of Sunshine City Group Co., Ltd. The company has been delisted by the Shenzhen Stock Exchange.

According to the above decision, during the period from May 15, 2023 to June 9, 2023, ST Sunshine City had a daily closing price of less than 1 yuan for twenty consecutive trading days, and its stock was subject to mandatory delisting in the trading category.

ST Sunshine City has therefore been terminated from listing by the Shenzhen Stock Exchange and will not enter the delisting consolidation period. It will be delisted within fifteen trading days after the aforementioned decision is made. After delisting, ST Sunshine City's stocks will be transferred to the delisting sector managed by the National Equities Exchange Corporation for listing and transfer.

The last straw that crushed the stock price of ST Sunshine City was the company's huge losses in 2022 and the audit report issued with a negative opinion.

According to statistics from Bank of China International, the stock price of ST Sunshine City fell by a cumulative 18.8% from March 1st to April 20th this year. On the evening of April 28th, ST Sunshine City disclosed its 2022 annual report, which showed a loss of up to 12.55 billion yuan for the whole year. At the same time, due to the internal control audit report issued by the accounting firm with a negative opinion on Sunshine City, Sunshine City was warned of risks as "ST Sunshine City".

From then on, the stock price of ST Sunshine City plummeted all the way, hitting the limit down on May 5th and falling below 1 yuan on May 15th. As of June 9th, the daily closing price of ST Sunshine City has been below 1 yuan for 20 consecutive trading days, hitting a total of 26 limit down, closing at 0.37 yuan per share, with a total market value of only 1.532 billion yuan and approximately 142500 shareholders.

In May 2015, the stock price of ST Sunshine City reached a historical peak of 9.84 yuan per share, but now it has dropped by more than 96%, with a market value evaporation of over 39 billion yuan.

The starting point of Sunshine City in the capital market began in 2002. At that time, the 34 year old founder of the company, Lin Tengjiao, chose to shell out "Shishi Xinfa" and completed the IPO.

However, the expansion path of Sunshine City only began in 2010, with a nationwide layout, achieving a rapid leap from a regional real estate enterprise with a scale of only over a billion to a leading real estate enterprise.

In 2012, Sunshine City relocated its headquarters to Shanghai and fully launched nationwide development, seizing 7 golden plots of land in a year. In 2015, its sales reached 30 billion yuan, ranking 28th in the industry; Three years later, with a scale of 162.8 billion yuan, it entered the "100 billion club" and its ranking also rose to 14th place; In 2020, Sunshine City broke through the threshold of 200 billion yuan.

The sales scale has increased exponentially, and high liabilities are also accompanying us. In 2015, the total liabilities of Sunshine City were only about 56 billion yuan; Five years later, this indicator increased to over 290 billion yuan, a growth of over four times.

Sunshine City has also made important efforts to reduce leverage by introducing the Taikang series of insurance funds as a strategic investment in 2020, and attaching performance betting agreements. According to the gambling agreement, Sunshine City aims to achieve a compound annual growth rate of no less than 15% in net profit attributable to shareholders between 2020 and 2024, with a cumulative net profit attributable to shareholders of no less than 34.059 billion yuan; The demand for profit growth in the following five years is even greater than this.

But in the blink of an eye, the real estate industry entered a downward channel. In the third quarter of 2021, the operation of Sunshine City deteriorated, with a non deductible net profit of only 86.7 million in the first three quarters, a significant year-on-year decrease of 96.89%. This third quarter report caused two directors of the Taikang Group to vote against it, and the Taikang Group began a clearance style reduction of holdings from then on. With a series of problems such as declining sales and frozen financing, Sunshine City quickly fell into the vortex of crisis.

Afterwards, although Lin Tengjiao carried out a series of self rescue measures, such as debt extension and asset sales, he still failed to escape the fate of default. In February 2022, due to the inability to redeem two interest payments totaling $27.2625 million, Sunshine City officially defaulted.

As of May 12, 2023, the total principal amount of ST Sunshine City's matured but unpaid debts was 64.732 billion yuan, of which the cumulative principal amount of matured but unpaid debts involving guarantee matters was 24.562 billion yuan; In terms of the open market, overseas open market bonds have not paid their principal on time, totaling 2.244 billion US dollars, and domestic open market bonds have not paid their principal on time, totaling 19.475 billion yuan.

ST Sunshine City's operating performance also exploded in 2021, turning from profit to loss, with a net profit attributable to the parent company of approximately -7493 million yuan; In 2022, this loss significantly increased to 12.553 billion yuan, indicating a continuous deterioration in operations.

On July 15th, ST Sunshine City disclosed its performance forecast, which showed that in the first half of 2023, the company achieved a net profit attributable to the parent company of approximately RMB 1.5-21 billion, with a decrease in losses of approximately 57.9% -41.1%. For the reasons for performance changes, ST Sunshine City stated that the operating loss value is mainly due to the extension of project development cycle and the increase in expensed loan interest.

Now, the 21 year listing process of ST Sunshine City will come to an end, and its future development will also be shrouded in another layer of shadow. Industry insiders have pointed out that delisting stocks will cause a decrease in company value, damage shareholder interests, affect investor confidence, restrict financing channels, damage brands, affect project sales, and have adverse effects on debt restructuring and risk clearance.