China’s major real estate enterprise, Shimao Group, reported a sales of 31.17 billion yuan in the first 11 months of the year, marking a 22% year-on-year decrease.
On December 8, Shimao Group Holding Co., Ltd. released unaudited operational data for the first 11 months.
The announcement reveals that from January to November, Shimao Group and its subsidiaries accumulated a total contract sales amounting to approximately 311.7 billion yuan, down by 22.09% compared to the same period last year. The total contract sales area reached 2.4503 million square meters, with an average selling price of 12,721 yuan per square meter.
In the month of November alone, the total contract sales of Shimao Group and its subsidiaries were about 2.72 billion yuan, representing an increase of 11.93% year-on-year. The total contract sales area was 227,600 square meters, with an average selling price of 11,951 yuan per square meter.
Amidst frequent bankruptcy incidents in China’s real estate sector, Shimao Group, which once boasted sales exceeding 300 billion and ranked among the top ten in the industry, is now facing a liquidity crisis. In 2022, the group defaulted on a 1 billion US dollar debt.
On April 8 of this year, Shimao Group announced that China Construction Bank (Asia) Limited filed a winding-up petition against the group, involving financial obligations of around 1.58 billion Hong Kong dollars.
On December 2, Shimao Group announced that the winding-up petition filed by them against the group in the Hong Kong High Court had been mutually withdrawn.
Additionally, Shimao Group’s wholly-owned subsidiary, Shanghai Shimao Construction Co., Ltd., recently faced forced execution of 1.76 billion.
Judicial cases from Tianyancha show that on November 4, Shanghai Shimao Construction Co., Ltd. added 3 new enforcement and execution restoration information, with an execution target totaling over 1.76 billion yuan (RMB). Some of the executing parties include Changsha Guanjing Building Materials Co., Ltd., Guangzhou Dalong Investment Co., Ltd., and the executing courts include Fuzhou Intermediate People’s Court of Fujian Province and Bengbu Boshan District Court.
On October 30, Shanghai Shimao Construction added 2 new executing party information, with an execution target totaling over 2.4 billion yuan, involving guarantee contract disputes and other cases. Some of the parties include Nanjing Suotian Real Estate Co., Ltd., Fujian Fusheng Group Co., Ltd., and the executing courts are Shanghai First Intermediate People’s Court and Fuzhou Intermediate People’s Court in Fujian.
Risk information from Tianyancha indicates that Shanghai Shimao Construction Co., Ltd. currently has 100 instances of execution information, with a total execution amount exceeding 42 billion yuan. In addition, the company has multiple restrictions on consumption orders, dishonesty execution subjects, as well as final case information.
Established in March 2001, Shanghai Shimao Construction was initially jointly funded by Shanghai Shimao Co., Ltd. and Shanghai Shimao Investment Development Co., Ltd., serving as a wholly-owned subsidiary of Shimao Group Holding Co., Ltd. (0813.HK) and its principal operating entity in China.