Original link: https://www.latepost.com/news/dj_detail?id=1805
Longfor Real Estate repays the principal in advance, and the cash flow is temporarily safe
In the procyclical real estate industry, once a trend is established, it seems difficult to break it. In recent years, various real estate companies have tried to break through, but few have broken through.
From regional real estate companies Aoyuan and Sunshine City, to R&F and Sunac in first- and second-tier cities, to Evergrande and Country Garden with trillions in assets and liabilities, real estate companies of different “levels” have been out of danger one after another. Longfor Real Estate, which looks healthy now, is trying to emphasize its safety by repaying its debts ahead of schedule.
On August 14, market sources said that Longfor had allocated 1.7 billion yuan to the special payment account for the payment of the “18 Longfor 04” bond. The bond was originally due to be paid on August 17. Longfor chose to repay the debt 3 days ahead of schedule, trying to send a signal to the market that the company has sufficient liquidity.
In addition, Longfor’s 15.3 billion Hong Kong dollar syndicated loan due in January 2024 is currently repaying 7.2 billion Hong Kong dollars in advance, and it plans to repay it in advance within this year. So far, the company has no overseas debt due this year.
In the short term, the cash on Longfor’s account is sufficient to cover the interest-bearing liabilities due this year. As of the end of 2022, Longfor’s cash and cash equivalents are 72.1 billion yuan, and the company needs to repay about 22.4 billion yuan in interest-bearing liabilities within one year, including about 10.8 billion yuan in bank loans, about 9.7 billion yuan in bond financing, and about 1.4 billion yuan in financial leases .
According to the analysis of the real estate group of China Merchants Securities, from the perspective of the source of liabilities, the proportion of direct financing (bond issuance) will drop to 30% in 2022, and the proportion of bank loans will increase to 70%. Under the current market environment, a higher proportion of bank loans will ratio or help reduce the risk of debt default. The bank loan interest rate cost will also drop slightly from 4.01% to 4.73% in 2021 to 4.01% to 4.68% in 2022.
But in the long run, Longfor still has long-term liabilities of 189.6 billion yuan. According to Choice data, the Longfor Group has two bond issuers, namely Longfor Group Holdings and Chongqing Longfor Enterprise Development.
As of August 13, the former currently has 4 existing overseas bonds (totaling 2 billion U.S. dollars, all due from 2027 to 2032), while the latter has 28 existing corporate bonds (totaling 41.24 billion yuan) and 5 Medium-term notes (a total of 4.115 billion yuan) and 9.446 billion yuan in ABS.
According to the company’s financial report, in the next three years, Longfor will need to repay bank loans of about 39.5 billion yuan, 32.7 billion yuan and 16 billion yuan; the due direct financing bonds will be 11.7 billion yuan, 14.5 billion yuan and 3.6 billion yuan.
Longfor’s future debt situation still depends on whether it can get rid of the consumption of cash flow caused by the downturn on the sales side. In the long run, it depends on the continuity of policy support. In the first seven months of this year, Longfor’s cumulative contracted sales and sales area achieved single-digit year-on-year growth.
But the industry as a whole is a different story. According to the National Bureau of Statistics, in the first half of the year, the sales area of commercial housing nationwide was 595.15 million square meters, a decrease of 21.5% from 2019. The sales of commercial housing were 6,309.2 billion yuan, 760.6 billion yuan less than in 2019. (Intern Lin Hongsheng)
Temu restricts sellers from hacking to grab storage space
There are a group of people who are keen to share Temu’s business experience on Xiaohongshu, such as “Temu’s price verification logic” or “400,000 orders per month with a profit of 7,000 yuan”.
One of the hottest topics recently is that Temu prohibits sellers from using third-party plug-ins to grab storage capacity, and the release time of storage capacity has also been adjusted from midnight to 2 p.m.
A person close to Temu told Wanwan Finance that Temu’s new regulations are that if a seller uses a plug-in, the priority will be lowered and given to other normal sellers. It is equivalent to restricting their use of plug-ins, rather than banning them outright.
However, many people don’t seem to understand the rules. Many sellers are worried that they will be frozen for stocking because of the plug-in, and there are posts to communicate which type of plug-in is safer.
At present, Temu’s stocking process is that the seller first uploads the product, and then creates a stocking list, which is equivalent to applying for a warehouse space. Only after the application is obtained can the goods be shipped to the Temu warehouse, otherwise the stock cannot be stocked for sale.
However, because the demand is too large and the warehouse scale cannot keep up, the competition for Temu’s warehouse space has become increasingly fierce. Many sellers had to stay up late at 0 o’clock to grab storage capacity, and some plug-in tools were also born in response to demand.
Search for “Temu Shipping Platform” in Xianyu, and there will be hundreds of tools for grabbing storage capacity, many of which are developed by sellers themselves and sold by the way, with prices ranging from 30 to 40 yuan. The method of use is very simple, as long as you install a plug-in in the browser and enter a string of codes, you can grab storage capacity 24 hours a day. A seller shared his experience saying that he hadn’t used the plug-in before, and couldn’t get a pit in a whole day. With the plug-in, he grabbed three stock orders in three hours.
A Temu seller told Wanwan Finance that this plug-in has been in operation for several months, and its functions are constantly being upgraded. At first, a single product automatically grabs storage capacity, then multiple products, and now it has developed to the point where multiple stores can grab inventory at the same time. More and more people are using it.
He guessed that Temu’s warehouse quotas are graded, and the hot-selling SKUs are relatively easy to grab, while the unsold SKUs are not easy to grab. Those merchants who open cheats may squeeze in some unsellable products, resulting in unavailable products that sell well, so Temu has to restrict cheating.
On the other side of trying so hard to grab storage capacity, some sellers complain that Temu’s rules are chaotic and changeable, making it difficult to make money.
An industry insider told Wanwan Finance that Temu does not make much money at present, the internal mechanism is not perfect, and the seller experience needs to be improved, but the industry’s top sellers are still willing to do it. In addition to valuing Temu’s potential, there is also the determination of the management. . Some big sellers predict that when Temu has a solid foundation and smooth processes, it may still become an infrastructure platform for going overseas, so as long as it is not losing money, they are still willing to invest in “occupying pits” first.
Factories and merchants also have inventory clearance needs. Some service providers pointed out that the current domestic factories, especially in the field of consumer daily necessities, have low profits, and the most important thing is to be able to sell, pay wages, and maintain operations. Temu has caught on to this trend.
A Temu small department store seller told Wanwan Finance that the rules of the platform are chaotic, but the sellers are also quite chaotic, because the threshold is extremely low. There are sellers transferred from various industries on Temu, as long as they have goods in hand, they can try it. Compared with big sellers, these small sellers are also more willing to share experience and help each other on social media. (Lin Guangying Zhang Qin)
Lei Jun’s annual speech: three memories, five new devices, and a large model
At 7 pm on August 14th, Lei Jun started his annual speech on time. In the first hour, he mainly shared his three experiences, namely studying in university and writing the first commercial software with his friend Wang Quanguo at the same time, starting a business with more than a dozen classmates and friends, and cooperating with Xiaomi and Leica.
The large model is an inseparable topic. Lei Jun said that now Xiaomi is trying its best to optimize the large model with 10 billion parameters, and has run through the large model with 1.3 billion parameters on the mobile phone, and “the effect of running out is comparable to that of 6 billion parameters calculated in the cloud. the result of”.
He then brought five new devices: the folding phone Mi MIXFold 3, the 14-inch tablet Mi Pad 6 Max, the Redmi K60 Extreme Edition that supports 8K/24fps video recording, and the Mi Band 8 Pro with a larger screen than the regular Apple Watch. , and the second-generation robot dog CyberDog, which is 30% more expensive than the first generation. (Gong Fangyi)
Early IPO Know丨Wavelength Optoelectronics, a company in the new battery energy industry chain, opens its subscription today
A total of three companies subscribed for A shares today:
- Zhongchen Technology: Zhongchen Technology is a high-tech enterprise engaged in product development, production, sales and service in the field of industrial automation. The main products are low-voltage inverters and servo systems. In 2022, the company will achieve operating income of 536 million yuan and net profit of 150 million yuan, a year-on-year decrease of 13.63% and 23.81% respectively. From 2020 to 2022, Zhongchen Technology’s market share in the domestic low-voltage inverter market will show a downward trend, and its R&D expense ratio will always be lower than the average of comparable companies in the same industry. The company intends to raise funds of 980 million yuan. The issue price is RMB 49.97 per share, and 37,192,963 shares are planned to be issued.
- Wavelength Optoelectronics: The company focuses on the fields of industrial laser processing and infrared thermal imaging, and is committed to providing overall solutions for various optical equipment, optical design and optical inspection. It is a major manufacturer of precision optical components and components in China. Customers include leading enterprises and scientific research institutes in various application fields at home and abroad, including Han’s Laser, Huagong Technology, Gaode Infrared, South Korea Iou Technology, and American IPG, etc. From 2020 to 2022, both wavelength photoelectric business revenue and net profit attributable to the parent will show a growth trend. During this period, the company’s performance in emerging application fields such as new energy, semiconductors, medical technology, additive manufacturing, and photovoltaics will grow rapidly. From 8.49% to 18.28%. The total number of public offerings is 28.93 million shares, and the issue price is 29.38 yuan per share. The company expects to raise a total of 850 million yuan.
- Vision Intelligence: Vision Intelligence is mainly engaged in R&D, design, manufacturing and sales of supporting technical services for smart home, video intercom and other intelligent equipment, as well as LCD screens and modules. At present, Vision Intelligence has realized intelligence for many projects in many countries and regions around the world, including Beijing Forbidden City Cultural Assets Digital Application Research Institute, Beijing Daxing International Airport, Xichang Satellite Launch Center, etc. In 2022, AVIC will achieve an operating income of 232 million yuan, a year-on-year increase of 1.69%, and a net profit of 34.06 million yuan, a year-on-year increase of 32.1%. Smart home products are the company’s main source of revenue. KNX (the only worldwide standard open to all aspects of home and building control in the smart home field) standard enterprise. The issue price is 10.3 yuan per share, the issue price-earnings ratio is 17.9 times, the number of public offerings is 12.7 million shares, and the total planned fundraising is 130 million yuan. (Intern Chen Yutong)
OTHER NEWS
The Shanghai Composite Index closed down 0.34%, down more than 3% intraday.
On August 14, 2,079 A-share companies saw their stock prices fall, while 2,944 companies rose. At the close, the Shanghai Composite Index fell 0.34%, the Shenzhen Component Index fell 0.5%, and the ChiNext Index fell 1.02%. The CSI 300, which can better reflect the performance of the broader market, fell 0.73%, wiping out all gains made in the past year. The net sales of northbound funds in the last 6 trading days exceeded 30 billion yuan.
About 650,000 foreigners entered Shanghai in the first half of the year.
According to Wind and the Shanghai Municipal Bureau of Statistics, 649,800 foreigners entered Shanghai (excluding Hong Kong, Macao and Taiwan) in the first half of the year, and the figure for the same period in 2019 was 3,328,600. This year’s figure is about one-fifth of the same period in 2019.
The securities industry in Hong Kong, China proposes to abolish stamp duty on stocks.
Recently, the Hong Kong Securities and Futures Professionals Association published a public consultation response to Hong Kong’s 2023 policy report, proposing to abolish stamp duty on stocks. Previously, the Hong Kong government raised the stamp duty rate on stocks from 0.1% to 0.13% in 2021. Statistics show that in recent years, stamp duty on stock transactions has contributed about 5% of Hong Kong’s overall tax revenue.
Tesla Model Y long-range version dropped to 300,000 yuan.
On August 14, Tesla announced a new round of price reduction information on its official Weibo. The starting prices of the Model Y long-range version and high-performance version in mainland China were both lowered by 14,000 yuan, down to 299,900 yuan and 349,900 yuan, respectively. ; Model 3 existing cars provide 8,000 yuan limited-time insurance subsidy.
SoftBank seeks full ownership of Arm.
Arm is preparing to go public on Nasdaq next month, with a valuation of $60 billion to $70 billion, and Softbank currently holds 75% of its shares. According to media reports, SoftBank is in talks to acquire the remaining 25 percent of Arm from Vision 1 Fund, a $100 billion investment fund that SoftBank raised in 2017, of which $56 billion came from SoftBank executives such as SoftBank and Masayoshi Son. Tube. If the deal is completed, investors in Vision One will immediately reap a huge benefit. The fund spent $8 billion in 2017 to acquire a 25% stake in Arm. According to the current valuation of Arm, its price may double.
The State Administration of Financial Supervision issued a document, striving to pay more than 30% of the flood prevention and disaster relief insurance within a week.
On August 12, the State Administration of Financial Supervision issued the “Notice on Increasing Insurance Prepayment and Efforts to Do a Good Job in Flood Prevention and Disaster Relief Insurance Claims” (hereinafter referred to as the “Notice”), stating that all relevant regulatory bureaus should guide insurance companies within their jurisdictions to combine disaster-stricken Damage situation, sub-regional, sub-insurance, sub-industry, and step-by-step detailed claim settlement measures, and strive to achieve compensation and pre-compensation payments of more than 30% within a week, and more than 90% of auto insurance before the end of the month. The pre-payment ratio of citizens, small and micro enterprises and other insureds.
The transaction price of the prospecting rights of a lithium mine in Sichuan has increased by a thousand times.
According to the “China Securities Journal”, Sichuan Jiada Lithium Mine Exploration and Prospecting Rights was hammered at a high price of 4.206 billion yuan, an appreciation of more than 1317 times from the starting price of 3.19 million yuan. The final winner has not yet been announced. It is reported that the Garda lithium mine in Malkang covers an area of 21.2247 square kilometers, and the first transfer period is 5 years. Industry insiders speculate that Ningde Times also participated in the auction. Analysts at Longzhong Information said that lithium miners have considerable profits and that lithium mines belong to the source of the lithium battery industry chain. Enterprises with lithium ore resources will occupy a favorable position in the competition.
The Apple Watch may be getting a big update on its 10th anniversary.
Apple may launch the “Watch X” model from 2024 to 2025 to commemorate the 10th anniversary of the Apple Watch series. Reporter Mark Gurman, who is familiar with Apple’s products and the company’s progress, said the biggest design change for the Watch X is a thinner case and strap attachment method, and may be equipped with a microLED display and blood pressure monitoring technology.
Lianlian Digital, a payment company, is planning an IPO in Hong Kong, and the China Securities Regulatory Commission has requested opinions from the company’s industry regulators.
Last week, the International Department of the China Securities Regulatory Commission issued feedback on the overseas listing of 11 companies. In the continuous number of feedback, the company was required to provide regulatory opinions from industry regulators. Lianlian Digital mainly provides payment services for cross-border e-commerce. It is the second institution in Hangzhou to obtain a payment license. It ranks 466th in the “2023 Hurun Global Unicorn List” with a valuation of 15 billion yuan. Previously, in December 2020, it entered the Sci-tech Innovation Board for listing guidance and filing, but there has been no progress in the IPO since then.
Fundraising for start-ups fell in several key Asian markets in the second quarter.
According to DealStreetAsia, a tripartite data agency, compared with the previous year, the amount of funds raised by start-ups in the second quarter of this year in several major markets in Asia: Southeast Asia, India, and mainland China decreased year-on-year.
- Funding fell the most in Southeast Asia, with start-ups based in the region raising a total of US$2.13 billion in the second quarter, down 58.6% from US$5.13 billion in the same period in 2022.
- India, which raised $7.56 billion in the same period last year, raised just $3.2 billion this year.
- Private companies in China raised US$10.9 billion in the second quarter of this year, down 3.36% from US$11.28 billion in the same period last year.
Indonesia is facing another drought, and coffee production may decrease again.
It is predicted that Indonesia, the world’s fourth largest coffee producer, may encounter a drought caused by the El Niño phenomenon at the end of this year and early next year, which may exacerbate the decline in coffee production and increase in prices. The country’s coffee production fell to its lowest level in more than a decade after five months of torrential rains brought on by La Niña (a phenomenon opposite to El Niño) had dropped many immature coffee flowers early , Pushing global coffee prices to record highs, up more than 40% from the beginning of the year.
Yen and RMB fell below important points.
On August 14, the Australian and New Zealand dollars fell to nine-month lows, the yen fell to its lowest level against the dollar this year, falling below the key level of 145, and the Philippine peso also fell sharply. Philadelphia Fed President Patrick Harker said the central bank could be in a phase of keeping current rates on hold unless the economy surprises. As the dollar continued to strengthen, the yuan depreciated slightly, with the onshore yuan falling below 7.26 against the dollar for the first time since June 30.
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