by winston » Tue Oct 14, 2014 6:04 am
Agile falters on debt fears by Ling Wang
Tuesday, October 14, 2014
Shares of developer Agile Property Holdings (3383) dived to a five-year low upon resuming trade yesterday, following a suspension since October 3.
Shares closed down 17 percent at HK$3.95 the lowest since March 2009, reflecting concerns over its worrying financial health as well the detention of its chairman Chen Zhuolin for reportedly bribing officials in Yunnan.
The company said non executive directors Fion Luk Sin-fong and Chan Cheuk-yin are acting co-chairs.
It believes the issue will not impact long-term sales and operation. Talks are being held with three banks to extend debts due in December.
Last month, Agile revealed plans to raise HK$2.79 billion but axed the rights issue on Friday.
Its first-half accounts showed short-term debt at 14.7 billion yuan (HK$18.62 billion), far exceeding its free-to-use cash balance of 1.3 billion yuan as of June 30.
The management explained the cancelation of the rights issue was due to problems in the submission of documents and added current capital needs will be handled by internal resources.
Cash flow is expected to fall to between 12 billion and 13 billion yuan by year-end from 43 billion yuan in June.
The debt ratio is expected drop to 70 percent by then.
The developer may sell investment properties in Shanghai and Hainan worth 20 billion yuan.
Presales turnover in September was 2.05 billion yuan, 41.09 percent lower on-year.
Sales in the three months from July through September have slowed, but the value of presales in the first 10 months of October topped two billion yuan. About five billion yuan in monthly sales is targeted by year-end.
The firm is confident about sales due to a nationwide easing of property curbs.
Agile has invested more than three billion yuan in three projects in Yunnan, two of which have been on sale since last year, raking in one billion yuan.
Source: The Standard HK
It's all about "how much you made when you were right" & "how little you lost when you were wrong"