Taihe Group'S "65 Sets Of Real Estate Leasing Contract In Beijing" Reveals The Inside Story Of China Construction Investment Trust Stepping On Thunder

The loss of the 4.8 billion loan dispute, the closure of Taihe headquarters by Bohai trust, and the involvement of the local government in debt restructuring

Taihe Group Co., Ltd. (hereinafter referred to as "Taihe Group") is in a "debt" dilemma.

On May 24, Taihe Group announced again that the company's bonds "H6 Taihe 02" and "H6 Taihe 03" could not complete the repayment of principal and interest on schedule. The total principal and interest payable on the two bonds exceeded 1.6 billion yuan, that is, the accumulated default debt of Taihe Group added more than 1.6 billion yuan of bond debt, and the accumulated default debt reached 43.1 billion yuan.

This also means that the debt of Taihe Group is still increasing.

"Heavily in debt", the cash flow of Taihe Group has almost dried up.

According to the company's first quarter report in 2021, its interest bearing liabilities have reached nearly 95 billion yuan, but the cash inflow from operating activities is only 776 million yuan, and the unrestricted cash at the end of the period is only 1.167 billion yuan, which is a drop in the bucket compared with the interest bearing liabilities.

Recently, the reporter of the 21st century economic report exclusively learned that two years ago, Taihe Group rented 65 sets of real estate in Beijing by fuyueju (Beijing) Property Management Co., Ltd. (hereinafter referred to as "fuyueju") at a high price, and rented out at a low price. The relationship between revenue and expenditure is incredible.

In the context of its return to liquidity, this seems reasonable.

"Doubtful cloud" of 898 million yuan rental housing

According to the written materials exclusively obtained by 21st century economic reporter, on July 1, 2018, Taihe Group and fuyueju officially signed the general rent contract (hereinafter referred to as the "contract") in Chaoyang District, Beijing.

According to the contract, Taihe Group leased 65 real estate units of fuyueju in Beijing for a term of 20 years without a rent free period. The purpose of the subject property is to lease out (sublease).

In terms of total rent, Taihe Group pays fuyueju the total rent payable in the current period on each total rent payment date (i.e. the first working day before the calculation date of operating income of each subject property). The total rent includes the consideration paid by Taihe Group for the rental income right in the transitional period.

According to the rent payment schedule in the appendix to the contract, except that the first year 2018 and the last year 2038 are the total rent payment days respectively, there are four total rent payment days in each year from 2019 to 2037, which are all at the end of January, April, July and October.

According to the calculation of 21st century economic reporter, if the contract is fulfilled as scheduled, Taihe Group will have to pay the total rent of 898 million yuan to fuyueju in 20 years. Up to now, if the rent is paid on time according to the contract, Taihe Group has paid 11 rents to fuyueju, totaling 84014100 yuan.

With a total rent of 898 million yuan, the average monthly rent of a house can reach nearly 57600 yuan.

In sharp contrast to this data, the 21st century economic report reporter learned that among the real estate leased by Taihe Group, the rent is far less than 57600 yuan / month, and the monthly rent of a house less than 100 square meters is even less than 10000 yuan, and nearly half of the 65 properties are within 100 square meters.

That is to say, the "business" of Taihe Group is stable without profit.

It is worth mentioning that the contract clearly states that during the lease term, Taihe group agrees that fuyueju has the right to transfer the subject property and gives up the preemptive right to the subject property.

Based on this agreement, after more than two years of performance of the total lease contract between the two parties, there has been a "variable" in the near future.

A person familiar with the matter disclosed to the reporter that fuyueju plans to sell the subject property in the contract and has been listed for sale in the market. In the past month, Taihe Group is also negotiating with relevant tenants.

But things didn't seem to go well.

"Fuyueju listing price is too high, and the near future is not the second-hand housing transaction peak season, can only be sold slowly." The person familiar with the matter added.

The dual status of China Construction Investment Trust

In this dubious transaction, fuyueju, the only major shareholder behind fuyueju, as a stable and non loss lessor, has a "deep relationship" with Taihe Group.

After consulting qixinbao, the reporter found that fuyueju is a wholly-owned subsidiary of China construction investment trust.

In other words, China construction investment trust can be equivalent to the "lessor" of 65 real estate transactions.

What is more intriguing is that fuyueju, the holding company of China construction investment trust, also happened in the second half of 2018, which is very close to July 1, 2018, when Taihe Group and fuyueju signed the general rent contract.

According to the industrial and commercial data, fuyueju officially completed the industrial and commercial form change on August 20, 2018, which was transferred by the controlling shareholder from Mosheng (Beijing) Apartment Management Co., Ltd. to China construction investment trust. According to the industrial and commercial change progress, the time for both parties to sign the industrial and commercial transfer agreement should be advanced, even before July 1.

Mu Sheng (Beijing) Apartment Management Co., Ltd. is the platform of 100% indirect holding of Taihe Group.

This also means that the "steady profit and no loss" business of China construction investment trust is more like a part of a package of methods by which Taihe Group "intentionally" transfers huge profits to China construction investment trust.

At that time, it was on the eve of Taihe Group's debt crisis in 2019. At that time, the market did not smell the smell of crisis for Taihe Group. However, according to people close to Taihe Group, at that time, Taihe Group had begun to seek financing, withdraw liquidity and other means.

In this context, why does Taihe Group transfer its interests to China construction investment trust?

According to the 21st century economic report reporter inquiry, another identity of China construction investment trust is the "creditor" of Taihe Group.

This event emerged in 2020, including China construction investment trust, Huarong assets, Zhongyuan trust and Chang'an International Trust suing Taihe for financial loan contract disputes.

It is reported that among the debts of Taihe Group, financial institutions are involved, including banks, trusts, funds, asset management, etc. Among them, the amount of trust company loans due within one year accounted for nearly half, accounting for 46.64%.

It has only been two years since the second landlord, who is a "steady earner", has been exposed to the media as a "creditor".

Multiple trust stepping on thunder

According to the analysis of insiders, there are two possibilities for the evolution of the event. One is fuyueju project, which is one of the package financing cooperation between Taihe and China construction investment trust; The temptation of fuyueju project, which makes the investment of China Construction Investment Trust step on the thunder.

According to the information obtained by our reporter, according to the "rent payment schedule" signed by Taihe Group and fuyueju, the two sides have implemented a rent agreement far exceeding the market price. According to the above-mentioned people, one possibility is that CSCEC investment trust or knew the corresponding risks of Taihe Group in advance, so that before the risk of Taihe Group broke out in full, the two sides had implemented a rent agreement far exceeding the market price, Taihe Group was strongly required to transfer a series of resources.

The risk of Taihe Group is still evolving, and China construction investment trust is only one aspect of it.

Since the end of 2019, many trust companies, as one of the main "creditors", have started litigation "debt collection".

At the end of 2019, both Zhongcheng trust and Tibet trust had lawsuits due to overdue loan contracts. After that, zhongchengxin trust completed the payment and Tibet trust also reached an execution settlement.

By 2020, under the situation that Taihe Group is faced with huge debt pressure but unable to introduce external financial support, loan dispute litigation will become more and more serious. Only in the annual report of 2020, there are 8 cases of financial loan disputes.

Among them, a huge loan dispute case of Sichuan trust, which has been adjudicated recently, has been settled.

In the near future, on May 9, a month ago, Taihe group received a notice from Bohai Trust: it plans to seal down the Beijing residence of Taihe Group, which is also its actual office headquarters in Beijing.

The announcement was posted in the elevator of Taihe Group's Beijing residence.

On May 27, Fujian daily published an announcement on asset disposal: Fujian Branch of China Cinda Asset Management Co., Ltd. plans to dispose of project creditor's rights of Shishi Taihe Plaza Investment Co., Ltd.

As of April 30, 2021, the total amount of creditor's rights of the project is RMB 1.058 billion, of which the balance of restructured debt is RMB 840 million.

On May 7, the office of Longhai District People's Government of Zhangzhou city set up a working group to sort out and screen the assets and liabilities of Taihe Group's subsidiaries, pay off the debts in order and proportion according to law, and communicate and coordinate with the prospective purchasers to discuss the equity restructuring plan and the plan for resumption of construction.

This is the first local government to intervene in the restructuring of Taihe Group.

On May 8, Taihe Group issued a statement saying that the essential purpose of setting up a liquidation group by the relevant government departments of Longhai District, Zhangzhou City, is to promote the equity restructuring scheme and resumption of work and production of the baitangwan project with the participation of government departments, rather than starting bankruptcy proceedings. This has the same starting point as the top priority of Taihe Group's current work, which is to deliver the house to the majority of owners as soon as possible and safeguard the legitimate rights and interests of creditors.

Taihe Group also said that the baitangwan project is a tripartite cooperation project between Taihe Group and other parties. Although the project is under shutdown for various reasons, there is no problem of insolvency. The unsold value of the project exceeds 20 billion yuan, which is enough to cover the current project debt.

Taihe Group said that the company hopes to promote the return of funds through the sale of existing houses and other measures to promote the normal operation of the project. However, due to the problems of equity cooperation of the project and internal decision-making differences, the project has fallen into an operation deadlock and cannot achieve normal operation.

The company's investors are also very concerned about debt restructuring, many of them have raised questions on the interactive platform of Shenzhen Stock Exchange.

Taihe group responded that the company is fully promoting debt restructuring and actively solving the debt problem.

Returning to the "bewilderment" of the 65 sets of properties in Beijing, fuyueju recently decided to terminate the contract and resell the subject property. Whether it is considered that Taihe Group may not be able to pay the total rent on time in the next ten years, 21st century economic reporter will continue to investigate and pay attention to it.