The twenty-seventh day of the twelfth lunar month, there are two days left until Lunar New Year's Eve.
Henglong Building is no longer as busy as usual. Most employees have entered the holiday early, and only a few core departments and on-duty personnel are still staying.
The whole building seemed empty and quiet, and even the sound of the central air conditioner could be clearly heard.
In Small Meeting Room on the top floor, the lights are still bright.
Zhao Chen, Chen Xi, Zhang Qingxue, and Su Wantang sat together, with hot tea and several open documents in front of them.
This is the last Core Meeting before the lunar calendar New Year. In addition to the fragrance of tea, the air is also filled with a sense of tension and planning before the dust settles.
Chen Xi first reported that her voice was particularly clear in the quiet room:
"In the past five days, Finance Department has moved very quickly. Lin Wanqing has started to contact relevant Cooperator in accordance with the principles of '80% Completion Red Line' and 'Withhold 80% of Guaranteed Payable' determined by Executive Meeting."
She called up the surveillance summary on the tablet and projected it on the whiteboard next to her.
Several clear capital flow records are highlighted.
"According to the information we have monitored through special channels, Cayman Trust Account under the name of Lin Wanqing has transferred a total of Two Hundred Million to Four Transactions in the past five days, totaling 30 million Hong Kong Dollar.
Fund Flow went through multiple layers of transfers and was eventually injected into three different offshore companies.
And these three companies are exactly the one we have targeted, 'Cooperator', which is related to the first guarantee issue of three projects with more than 90% completion, including 'Jinlan Yuan'."
Three key pages of the scans of Guarantee Release Agreement appeared on the whiteboard.
"After the funds were in place, the three companies quickly repaid Bank Loan and Principal and Interest guaranteed by Henglong, totaling approximately 320 million.
The corresponding guarantee liability was officially released yesterday. The relevant Legal Document and bank certificate have been filed."
Chen Xi put down Laser Pointer and concluded:
"Together with the funds she mobilized to deal with our initial attack last month, since we began to systematically clean up Off-Balance Sheet Liabilities, Lin Wanqing has released a total of more than 350 million from Related Guarantee's responsibilities.
The current book balance of her trust is estimated to be about HK$120 million.
To her, this trust is not so much 'Family Trust' as it is a 'Secret Fund Pool' that can be withdrawn at any time. Now it is in name only and has been exposed."
Hearing the number "three hundred and fifty million", Zhang Qingxue pushed up his glasses and added calmly:
"From the perspective of risk mitigation, we have quietly dismantled more than 100 million invisible bombs without disturbing the market or triggering judicial disputes.
Based on the currently exposed guarantee structure and its resolution speed, I optimistically estimate that if the pressure continues, by the end of the second quarter of this year,
The scale of this type of 'hard' Off-Balance Sheet Liabilities, with clear joint and several liability and urgent need to be resolved, is expected to drop below one billion Hong Kong Dollar.
By then, even if other contingent liabilities are taken into account, Henglong's true liability structure and risk resistance will be at the forefront among mainland real estate companies, comparable to State-Owned Enterprises."
Zhao Chen listened silently, his fingers unconsciously sliding around the edge of the teacup.
The clearance of 350 million in risks is of course good news, as it is one step closer to "safety".
He knew that the compromise plan previously proposed by Executive Meeting seemed to give Lin Wanqing a breather, but in fact it was a more sophisticated bait.
She thought she had avoided the funding crisis before Spring Festival, but she did not know that the deadline of "resolving it before the project is completed" turned the pressure of clearing debts into a normal task that has been hanging over her head for a long time.
This is not only boiling a frog in warm water, but also slowly tying her hands and feet with her own rope.
The efficiency of capital flow will decrease, and hidden connections will become more obvious and difficult to cut due to this frozen "margin".
But this was not enough, it was far from the time to celebrate. He raised his eyes and looked at Chen Xi:
"She acted very quickly this time and used nearly one-third of the cash in the trust without hesitation.
It seems that the order given to her by Zhao Jianguo is very firm, and she is also afraid that we will really block the balance of those projects and completely cut off her vest."
"Yes." Chen Xi nodded,
"But she should also be relieved. We gave her a buffer period within the limit of 'project closure'; we only withheld part of the payment and did not immediately cut off all cash flow.
She probably thinks that the most urgent point has passed and the rest can be dealt with slowly. Although the consumption of more than 100 million yuan in cash is painful, it has not hurt her fundamentals."
"At all..." Zhao Chen repeated this word, with a hint of coldness on the corner of his mouth,
"Her foundation, apart from the trust that is about to be emptied, is the pledged shares in her and Zhao Jianguo's hands.
We can watch her spit out the trust's money bit by bit. But the issue of shares must be resolved in a more thorough way."
He turned to Chen Xi and Zhang Qingxue, his eyes becoming sharp and focused:
"Chen Xi was previously worried that when our '10 for 4' Stock Issuance plan came out, they might choose not to participate and would rather have their shares diluted. This possibility exists.