On March 28, Longguang Group (3380.HK) announced its annual results for the year ended December 31, 2023.
In 2023, the real estate industry is still in an adjustment cycle. It is still an extremely difficult year, and housing enterprises generally face pressure and difficulties. Longguang proactively responds to challenges, adjusts business strategies in a timely manner, continuously improves refined management, strengthens project sales and capital return measures, ensures project development and operation, and makes every effort to “stabilize operation and ensure delivery”.
Overcoming many difficulties, more than 53,000 sets were delivered throughout the year
Affected by multiple factors such as the continued downturn in the real estate industry, the year-on-year decline in sales of housing enterprises, the decline in gross project carry-over margin, and accrued inventory depreciation, housing enterprises generally experienced a decline in sales and profits in 2023, and corporate losses further expanded.
In 2023, the company achieved contract sales of RMB 19.05 billion, revenue of RMB 47.17 billion, and net loss of RMB 8.86 billion. The company has total assets of 248.38 billion yuan and current assets of 192.5 billion yuan.
Longguang overcame heavy pressure and made every effort to “stabilize operation and ensure delivery”. A total of 99 batches and over 53,000 units of the project were delivered throughout the year, fulfilling corporate promises and showing responsibility.
Longguang focuses on differentiated product strategies and continues to improve product strength. Various projects have received international and local design awards, including the International Space Design Award “Aite Award”, the American Muse Design Award Platinum Award, the LICC London International Creative Competition Design Award, and the SIDA Singapore Interior Design Award.
Breakthrough in foreign debt management, US dollar senior notes have been supported by more than 90% of creditors
Longguang's overseas debt management has made breakthrough progress. A creditor panel composed of several existing US dollar senior note holders and their advisors have agreed on provisions relating to the restructuring of notes, and signed creditor support agreements with clauses.
In February of this year, the Cayman Islands Supreme Court and the Hong Kong High Court issued separate orders to revoke the Cayman Liquidation Petition and the Hong Kong Liquidation Petition, which will help further speed up the company's overseas debt management process and promote property sales in Hong Kong.
At present, note holders, which account for more than 90% of the total outstanding principal amount of US dollar senior notes, have signed restructuring support agreements. The company actively continues to engage in constructive negotiations with various creditors for overseas debt restructuring, and will do its best to complete the overall overseas debt management work as soon as possible.
Steady goals and forge ahead
Since the second half of last year, the government has introduced a number of policies to support the real estate industry to increase confidence, stabilize expectations, prevent risks, promote the steady and healthy development of the real estate market, and the industry is developing steadily and positively.
Facing the new situation in the industry, in 2024, Longguang will continue to persevere and face industry challenges, adhere to both production and operation and debt management, adhere to a stable basic market in terms of operation, reduce costs, strengthen risk management and control, ensure stable operation and quality delivery, and forge ahead with firm goals to push the enterprise to steadily return to normal business trajectory.