Recently, sunshine 100 China (02608. HK) released insider information that the previously issued US $200 million 6.50% convertible bonds have expired, but as of the maturity date, there are US $50.9161 million in principal and US $1.4755 million in interest, totaling US $52.3916 million to be repaid. However, sunshine 100 China has raised the required funds and is expected to pay the principal and accrued interest within 10 working days after the maturity date.
This event of default has caused the market to pay attention to the operation of sunshine 100 China. The announcement shows that in July 2021, sunshine 100 achieved unaudited contract sales of about 196 million yuan, a year-on-year decrease of 86%; In the first seven months of 2021, the sales volume of unaudited contracts was about RMB 2.305 billion, a year-on-year decrease of 40%.
In fact, as early as 2019, sunshine 100 successively sold part of the equity of Chongqing Sunshine 100 China International New Town, Qingyuan sunshine 100 China Arle residence and 100% equity of Dongguan Qingyuan Incubator Co., Ltd. In July this year, sunshine 100 sold Tianjin sunshine 100 Tianta Himalaya to ease the financial pressure.
It is understood that sunshine 100 China was founded in 1999, focusing on the target market of young intellectual elite and middle class. It has formed three main products: shared service apartments, cultural blocks and composite residential areas, and is committed to the transformation from developers to operators and from single residence to composite property development.
According to the data on the official website, the shared service apartment for mobile business travelers is a new urban species in the Internet era. It provides “local life” for mobile business travelers in the era of globalization through high-grade shared space and functional supporting, luxury hotel service and in-depth operation of customer club mode.
Fenghuang street is a brand of sunshine 100 cultural district. Combined with local culture, it faces consumption upgrading and creates an urban reception hall with new scenes and new business formats; As a compound community of sunshine 100, Arle takes co living shared living as the life concept and provides young people with a healthy, fashionable and warm lifestyle.
From the annual sales of more than 6 billion in 2014 to 12 billion in 2018, sunshine 100 achieved leapfrog growth under the market strategy of focusing on “non residential”. However, the heavy asset model is a great test for the overall liquidity and capital turnover of enterprises, especially in the past two years.
According to the 2020 financial report, new projects of Himalayan apartment and Commercial Street projects were put on the market last year, but they were impacted by the epidemic, and the product sales were greatly challenged and difficult. By the end of the year, the product inventory had reached 19 billion. At the same time, this year, the real estate financial regulation continued to be strict, which brought great pressure on the company’s funds. In order to cope with this severe challenge, sunshine 100, on the one hand, increased promotion efforts to ensure that the annual contract sales exceeded 10 billion, on the other hand, made rapid adjustment, strengthened the development of the original residential projects, and carried out various cooperative financing at the same time, which successfully passed the repayment peak in 2020.
article links：Another real estate enterprise is facing debt default
Reprint indicated source：Spark Global Limited information