According to preliminary statistics on Vanke's announcement information, it has obtained approximately 9.257 billion yuan in loans since June by providing equity pledges and guarantee methods. On the investor relations platform, when asked about how Vanke views the real estate market, Vanke's Secretary of the Board expressed that the company always believes that housing demand needs to be dynamically viewed and that there is still ample space in the future.
On June 21st, CaiLenshe News (Reporter Wang Haichun) reported new information on Vanke's financing.
Recently, Vanke disclosed that in order to meet its operational needs, the company and its controlling subsidiaries applied for loans from banks, and the controlling subsidiaries provided guarantees for the relevant loans through equity pledges and guarantee methods. The guarantee involved in this matter includes two loan applications, with a total amount of 1.957 billion yuan.
The guarantee involved in this matter includes two loan applications, with a total amount of 1.957 billion yuan.
The first one is a loan application of 263 million yuan from Vanke's holding subsidiary Chongqing Yunkai Property to CM Bank, with a four-year term. Chongqing Vanke and Chongqing Kepan pledge their holdings of Chongqing Yunkai's equity to provide guarantees.
The second loan application of 1.694 billion yuan was made by Vanke to Industrial and Commercial Bank of China, with a term of 2.5 years. The guarantee method included equity pledge and joint and several guarantee. Corresponding equity pledges or guarantees were provided by Vanke's holding subsidiaries Wuhan Gecheng Junling, Hubei Wanyue, Wuhan Hongcheng Wanli, and Yichang Hongzhan Cheng.
"This guaranty measures will help meet the company's operational and development needs. The risk is controllable and there is no harm to the interests of the company and its shareholders," Vanke said.
In fact, according to the preliminary statistics of Vanke's announcement information, Vanke has obtained a loan of about 9.257 billion yuan since June in this way.
Previously, on June 3rd, Vanke disclosed that it had applied for a loan from the Shenzhen Branch of the Bank of Communications and completed the withdrawal, with a withdrawal amount of RMB 1.1 billion and a term of 4 years; Vanke's holding subsidiary Chongqing Bocui Property intends to provide corresponding mortgage guarantees for the loan with the land held by the project.
On June 7th, Vanke disclosed two mortgage loan items, and obtained 2.1 billion yuan in loan from Bank of Communications through Kunming and Zhongshan projects; on June 14th, Vanke used the Xuzhou and Xi'an projects as collateral to apply for a 4.1 billion yuan loan from China Post Savings Bank.
According to the relevant plan passed by Vanke's 2023 shareholders meeting, Vanke can provide a new guarantee amount of no more than 150 billion yuan within the authorization period. While obtaining the authorization of the shareholders' meeting, the board of directors of Vanke has further delegated the decision-making power of the president to provide guarantees for external guarantees with a single amount lower than 12.5 billion yuan.
According to the information released by Vanke on June 20th, after the guarantee for the above-mentioned loans applied by China Merchants Bank and ICBC, the total amount of external guarantees of the company will be 46.642 billion yuan, accounting for 18.6% of the audited net assets attributable to the shareholders of the listed company by the end of 2023.
"The company and its controlling subsidiaries have no external guarantees, and the company has no overdue guarantees or guarantees related to litigation," said Vanke.
In addition, there was news recently that Vanke plans to apply to the regulatory authorities with its long-term rental apartment project as the target to issue a real estate investment trust fund (REITs) with a scale of approximately 1 billion yuan. As this plan is still in the preliminary stage, relevant details such as the scale of issuance will be adjusted according to market changes and regulatory requirements.
In response to this, the reporter contacted Vanke for verification, and Vanke did not comment on this.
It is worth mentioning that at the end of May, Vanke made significant progress on the financing side. On May 23rd, it was learned that Vanke had signed an agreement with head financial institutions such as China Merchants Bank to obtain a loan of 20 billion yuan, with Wanwei Logistics shares under Vanke as collateral. As of now, 10 billion yuan has been credited to Vanke's account. Industry insiders pointed out that this is the largest single amount of syndicated loans provided by financial institutions to real estate companies since 2020.
Founder Securities analysts believe that Vanke's active disposal and accelerated collection, coupled with multiple financing support from the market, are expected to continue to improve the company's liquidity.
"The company is active, and financing has made significant progress. At the same time, the company's sales rank first, actively dispose of and accelerate collection, and financing support from multiple parties, liquidity is expected to continue to improve." Founder Securities analysts said.
On the investor relations platform, when asked about Vanke's view on the real estate market, Vanke's secretary said that the company has always believed that housing demand needs to be viewed dynamically, and the future space is still broad.
"After entering a new stage of development, the service formats provided for cities are becoming more and more diverse, and these are believed to provide space for corporate development. In the current environment, the company will focus on main business, streamline, maintain leadership in good products, good services, and good communities, actively revitalize existing resources, and also obtain quality projects in a reasonable manner." Vanke's secretary said.
In response to investors' questions about how much the pig-breeding business accounts for in the company's total business volume and whether there are plans to expand the pig-breeding business, Vanke responded on the investor interaction platform that the pig-breeding business is an attempt to develop around customer service, and currently has a relatively small impact on the company in terms of assets, income or profit.
"Under the current environment, the company will further focus resources on the main business, and do well and strengthen the core business." according to Vanke.